Key Highlights

  • Adjusted EBITDA loss was USD 26.3 million in the third quarter of 2026, against USD 21.3 million in the second quarter and USD 15.4 million a year earlier, driven mainly by higher Research and Development spending.
  • Net loss was USD 32.2 million compared with USD 42.1 million in the second quarter and USD 20.3 million in the third quarter of 2025, while Revenue was USD 1.3 million versus USD 1.0 million.
  • Research and development expense was about USD 25.6 million, up USD 5.9 million from the second quarter, while general and administrative expense fell to about USD 9.2 million from USD 11.1 million.
  • Cash ended the quarter at USD 286.5 million, down USD 26.3 million from the second quarter, with about USD 232.8 million still available under a synthetic at-the-market facility, management said.

Chip Fabrication Spending Widens the Adjusted Loss

Xanadu Quantum Technologies (NASDAQ:XNDU) reported its third-quarter 2026 results on an Earnings Call whose transcript is dated November 12, 2026. The company is building fault-tolerant quantum computers using photonic chips and also develops the PennyLane software platform. The CFO said R&D rose on wafer spend for upcoming chip tape-outs, process work tied to a new foundry collaboration with GlobalFoundries and more engineers. Headcount reached 361 from 306 at the end of the second quarter. Capital Expenditure was about USD 8.4 million versus USD 6.1 million. Management expects costs and capital spending to grow again in the fourth quarter.

Why the Net Loss Fell From the Second Quarter

The USD 32.2 million net loss was lower than the USD 42.1 million of the second quarter mainly because that quarter carried a USD 10.6 million Fair Value loss on earn-out share liabilities, since settled, and a USD 1.9 million loss on Derivatives tied to the synthetic at-the-market facility. Adjusted EBITDA, which excludes such items, moved the other way and worsened. General and administrative expense fell on lower professional fees, and the quarter included about USD 1.1 million of non-recurring costs versus USD 2.3 million. Revenue of USD 1.3 million is not expected to be a material driver, and management said it fluctuates with contract timing. The call gave no per-share figures.

Funding Sources and the Hardware Roadmap

The company signed a definitive agreement for about USD 140 million of Government of Canada funding for its Inception facility, to be received over time as qualifying R&D is spent. It also announced provisional approval for up to USD 10 million of extra DARPA project funding. Management targets up to 200 logical qubits in 2029, up to 500 the next year and 1,000 or more by 2031, and says a commercially viable computer is expected around 2029 or 2030. It cited a 7 milli-dB optical switch loss, down from roughly 20 milli-dB. Partnerships with GlobalFoundries, ASML and Bluefors target Manufacturing scale, waveguide loss and cooling.

Where Things Stand

Higher R&D drove the wider adjusted loss. Xanadu Quantum Technologies (NASDAQ:XNDU) is spending on wafer runs, engineers and equipment to hit its roadmap, and management guided to more spending in the fourth quarter. The lower net loss versus the second quarter reflects the absence of earn-out and derivative charges, not cost control. Cash of USD 286.5 million and non-dilutive Canadian funding give room, though the Canadian money arrives only as costs are incurred. Revenue is minor, and the company says milestones matter more. Next markers are the fourth-quarter loss, the first-quarter loss roadmap update and early use of the Inception facility.