TORONTO August 5, 2026 -- Xanadu Quantum Technologies Limited , a leading photonic quantum computing company, today announced financial results for the second quarter ended June 30, 2026.

"Every decision at Xanadu comes back to one mission: building quantum computers that are useful and available to people everywhere," said Dr. Christian Weedbrook, Founder and Chief Executive Officer of Xanadu. "This quarter, we made real progress on that mission. We set new performance records across some of our core photonic components, and we're pairing that hardware progress with software breakthroughs that we believe make quantum algorithms more efficient today."

"We ended the quarter in a strong financial position, with $312.8 million of cash on hand," said Michael Trzupek, Chief Financial Officer of Xanadu. "That balance sheet gives us the runway to keep investing in the engineering talent and wafer capacity our roadmap requires. During the quarter we raised $67.2 million under our synthetic at-the-market facility with Yorkville Advisors, and we intend to remain disciplined, drawing on that facility only when we believe conditions are favorable to the Company, including its shareholders."

Second Quarter Business Milestones and Announcements

• Chip packaging and fabrication: Achieved an average edge-coupling loss of 0.085 dB per facet, supported by the Company's internal packaging facility and collaborations with Corning and DISCO, and increased foundry fabrication runs across its two core material platforms: thin-film lithium niobate (up approximately 75%) and silicon nitride (up approximately 50%).
• U.S. operations expansion: Announced a significant expansion of U.S. operations anchored in Albany, New York; U.S. headcount has grown more than five-fold since 2023, with further growth expected by year-end.
• Software and algorithm advancements: Published an algorithmic breakthrough in Quantum Read-Only Memory (QROM) that cuts required Toffoli gate operations by roughly half, patent-filed and available today in PennyLane; also trained a Fourier-based quantum machine-learning model with over one million parameters, large enough to learn the distribution of ribosomal RNA.
• PennyLane momentum: Shipped PennyLane 0.45 and Catalyst 0.15; the foundational PennyLane white paper surpassed 2,000 citations.
• Strategic collaborations and partnerships: Partnered with Oak Ridge National Laboratory to bring PennyLane onto the Frontier exascale supercomputer; re-signed a multi-year collaboration with Rolls-Royce on computational fluid dynamics and aerodynamics; and continued research with the Fidelity Center for Applied Technology (FCAT), alongside advanced-stage engagements with several major banks. Launched a joint quantum machine learning and workforce-training initiative with Lockheed Martin under its Quantum Talent Pipeline; deepened engagement with Los Alamos National Laboratory's 2026 Summer School; and joined the Unitary Foundation.

Second Quarter Financial Highlights (1)

• Cash and cash equivalents were $312.8 million as of June 30, 2026
• Revenue was $1.5 million, compared to $2.8 million in the first quarter of 2026 and $1.1 million in the second quarter of 2025, with the year-over-year increase primarily driven by DARPA Stage B revenue
• Research and development ("R\&D") expense was $19.7 million, an increase of $2.4 million from the first quarter of 2026, primarily reflecting increased spending on engineering hires
• General and administrative ("G\&A") expense was approximately $11.1 million, compared to $9.8 million in the prior quarter, primarily due to higher headcount, stock-based compensation, and capital market and public-company related professional costs
• Net loss was $42.1 million, compared to a loss of $20.6 million in the first quarter of 2026
• Adjusted EBITDA(2) loss was $21.3 million, compared to a loss of $13.9 million in the first quarter of 2026, primarily due to increased R\&D, G\&A, and lower grant revenue in the quarter
• Capital expenditures increased to approximately $6.4 million in the quarter, compared to $0.3 million in the first quarter of 2026

(1) All financial figures in this release are presented in United States Dollars unless otherwise noted.

(2) Adjusted EBITDA is a non-GAAP financial measure defined under “Non-GAAP Financial Measures,” below. Note: Components may not sum to totals due to rounding.

Synthetic At-The-Market Equity Facility

In May 2026, Xanadu entered into a Standby Equity Purchase Agreement with Yorkville Advisors, establishing a synthetic at-the-market equity facility for up to $300 million. The facility gives the Company the flexibility, but not the obligation, to issue Class B subordinate voting shares to Yorkville over a three-year term, opportunistically, based on market conditions and valuation. During the second quarter, the Company raised $67.2 million under the facility, selling 5.5 million shares at an average net price of $12.28. Net proceeds are used for working capital and general corporate purposes, which help fund the continued development of the Company's quantum computing technology roadmap.

The Company intends to remain disciplined and strategic in its use of the facility, drawing on it only when it believes market conditions and valuation are favorable to the Company and its shareholders. The Company continues to expect to provide more detailed engineering and spending guidance metrics later this summer, as previously indicated.

This press release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction in which such offer or solicitation is unlawful.

Second Quarter 2026 Conference Call

Xanadu will host a conference call today, August 5, 2026, with Dr. Christian Weedbrook, Founder and Chief Executive Officer, Michael Trzupek, Chief Financial Officer, and Rafal Janik, Chief Operating Officer to discuss the results and business outlook. The call will be webcast live and archived on the Investor Relations section of the Company's website at investors.xanadu.ai.