ARQQNasdaqServices-Prepackaged SoftwareUS GAAP · USD

Arqit Quantum Inc.

Arqit Quantum Inc. develops software-based post-quantum cryptography solutions for secure communications and data protection. Its offerings are designed for enterprise, government, defense, telecommunications, and other security-sensitive customers that need to protect data in transit and data in process across cloud and network environments.

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Revenue0.5m USD
+80.9 %y/y
Operating profit (EBIT)-37.6m USD
−44.5 %y/y
EBIT margin-7,088.3%
+1,782.3 ppy/y
Net income-35.3m USD
+37.8 %y/y
Free cash flow-30.1m USD
+19.6 %y/y

Fiscal year 2025 · change from previous year

Development 2022–2025

-50-250255075m USD2022: 7.2 m USD2022: EBIT 54 m USD20222023: 0.64 m USD2023: EBIT -48 m USD20232024: 0.29 m USD2024: EBIT -26 m USD20242025: 0.53 m USD2025: EBIT -38 m USD20250.53-38
RevenueOperating profit (EBIT)
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Business

Share of revenue
Post-quantum cryptographic software50 %

Software products that secure communications and computing against quantum-era threats.

PQC migration planning15 %

Tools and services that help customers assess and plan migration to post-quantum security.

Channel and partner solutions20 %

Sales delivered through OEMs, telecom partners, consultancies, and specialist cybersecurity partners.

Defense and government security deployments15 %

Secure communications and mission-focused encryption deployments for public-sector users.

Customers

Arqit sells to organizations that need high-assurance encryption and are preparing for post-quantum threats, especially in telecommunications, government, defense, and financial services. The company also serves partners such as OEM vendors, IT consultancies, and cybersecurity providers that resell or integrate its solutions into larger deployments. Its customer base is shaped by use cases involving secure data traffic, confidential computing, cloud sovereignty, and mission-critical communications.

Telecommunications operators

Buy quantum-safe encryption and confidential computing solutions to secure data traffic and network services.

Government and defense organizations

Buy secure communication and cryptographically hardened solutions for command, control, and sensitive data.

Financial services

Buy Encryption Intelligence and PQC migration planning tools to prepare for quantum-safe security requirements.

Technology partners and resellers

OEMs, consultancies, and cybersecurity providers that package or implement Arqit solutions for end customers.

Critical infrastructure and cloud users

Buy data sovereignty and cloud security solutions to protect sensitive workloads and regulated data.

Strategy

Arqit’s strategy centers on selling an end-to-end PQC migration solution, anchored by Encryption Intelligence and followed by software-based cryptographically agile security products. The company is also emphasizing partner-led distribution, including telecom ecosystems, cybersecurity specialists, and defense-focused resellers, to improve market reach and conversion. A further priority is expanding into confidential computing and data sovereignty use cases where quantum-safe encryption can be embedded into cloud and network infrastructure.

Commercialize the end-to-end PQC migration platformShort term

Combining planning and encryption products can capture more of the customer migration budget.

Grow partner-led distributionShort term

Partners help access regulated and technically complex buyers with lower direct sales friction.

Expand into confidential computing and data sovereigntyMedium term

These adjacent use cases broaden the market for quantum-safe encryption beyond core telecom security.

Convert defense and government opportunitiesMedium term

Mission-critical deployments can establish reference customers and durable recurring relationships.

Geography

Arqit is headquartered in the United States but its commercial activity is international, with repeated references to European, government, telecom, and defense opportunities. The company’s reported contract and partnership activity indicates meaningful exposure to Europe, while its partner network also supports broader global distribution. Geography matters because many target customers are regulated public-sector or infrastructure users whose procurement is often country-specific and partnership-driven.

Risks

Arqit depends on converting a relatively early market for post-quantum cryptography into repeat commercial contracts, so execution risk is tied to customer education, long sales cycles, and partner adoption. The company also faces funding and going-concern sensitivity because development-stage software businesses often require continued capital support before demand scales. In addition, cybersecurity vendors compete on technical credibility, integration ease, and trust, which makes product validation and reference wins especially important.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Funding and going-concern pressure1Customer adoption of PQC solutions3Partner dependency2Government and defense procurement cycles4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Funding and going-concern pressureImpact: CriticalLikelihood: Medium

    The business requires ongoing capital to fund product development and commercial expansion.

    Exposure: Corporate liquidity and operating runway

  2. Partner dependencyImpact: HighLikelihood: High

    A material share of commercial activity is routed through OEMs, consultancies, and ecosystem partners.

    Exposure: Channel sales and international distribution

  3. Customer adoption of PQC solutionsImpact: HighLikelihood: Medium

    The market for post-quantum migration is still developing and buyers may delay spending until standards and urgency mature.

    ExposureTelecommunicationsGovernmentDefenseFinancial services
  4. Government and defense procurement cyclesImpact: MediumLikelihood: High

    Public-sector customers have lengthy procurement, security review, and contracting processes.

    Exposure: Defense and government contracts

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Accounting

Judgemental items
Going concern

Management must assess whether future funding and cash resources are sufficient to continue operations.

Impact: Affects basis of preparation and investor assessment of financial resilience

Share-based payment accounting

RSU expense recognition requires estimates and can materially affect operating expense.

Impact: Can change equity and profit or loss without immediate cash impact

Lease accounting

Right-of-use assets and lease liabilities generate depreciation and interest expense.

Impact: Affects operating costs, leverage presentation, and cash flow classification

Equity issuance and warrants

Share issues and warrant exercises alter share capital and dilution.

Impact: Impacts per-share metrics and financing cash flows

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Last updated: 28/09/2026