Infleqtion, Inc.

Infleqtion, Inc. (formerly Churchill Capital Corp X, or CCX) is engaged in the development and commercialization of quantum technology products, operating as a single reportable segment. The company's vision is to leverage quantum mechanics to expand human potential, focusing on quantum sensing, quantum computing, and software. Its integrated platform is built on neutral atoms, which are described as nature's ideal qubits, enabling an adaptable, scalable, and high-fidelity path to quantum advantage across various applications. Infleqtion's solutions are deployed in sectors such as defense and security, artificial intelligence (AI), energy optimization, space and frontier, materials discovery, and cybersecurity. The company works with a diverse set of global customers and strategic partners, including the U.S. Department of Defense, DARPA, NASA, SAIC, Lockheed Martin, NVIDIA, and the UK National Quantum Computing Centre ¹.

The core business model of Infleqtion involves generating revenue through direct product sales, quantum computing as a service via cloud-based access, software licensing, and government and commercial contracts. This diversified approach aims to support both near-term commercial traction and long-term strategic growth as scalable quantum systems mature. The company's quantum computing system, Sqale, uses neutral atoms as qubits, offering scalability and high-fidelity architecture for quantum computing. The same neutral atom technology also underpins its sensing products. Infleqtion's proprietary software, Superstaq, serves as a control panel for hybrid quantum-classical workflows, while its Contextual Machine Learning (CML) software, based on quantum physics principles, enhances AI performance on classical GPUs today ¹.

Infleqtion's product and service lines are categorized into quantum sensing, quantum computing, and quantum software. In quantum sensing, offerings include the Tiqker optical atomic clock, providing picosecond-level precision timing; the Sqywire quantum RF sensor for detecting and localizing electromagnetic signals; and the Exaqt suite of quantum inertial and gravitational sensors for GPS-denied navigation and geophysical monitoring. These sensors are designed for real-world deployment outside laboratory settings and are sold directly to end customers, including government agencies, and through strategic partners ¹.

The quantum computing segment is centered on the Sqale system, a room-temperature neutral atom quantum computer. As of December 31, 2025, Sqale has achieved 12 logical qubits and demonstrated a 99.73% two-qubit controlled-Z (CZ) gate fidelity. The system supports arrays of up to 1,600 trapped atoms, offers all-to-all connectivity, and enables reconfigurable geometries. Users access Sqale through Superstaq, the proprietary compiler and middleware stack, which optimizes quantum programs based on hardware-specific characteristics. This service is at an early stage of commercialization, with current revenue primarily from governmental research contracts, commercial service revenue, and software licenses ¹.

The quantum software portfolio includes Superstaq, which offers advanced quantum circuit optimization across multiple hardware backends, including third-party systems, and CML, a quantum-inspired classical AI tool. CML is designed to enhance AI workload performance for large-context, high-throughput tasks, delivering over 10x memory savings compared to Transformer technology by using quantum data carriers. Both software products are available via subscription, with optional customization and integration services. Government-funded contracts also contribute to revenue, advancing technical milestones in sensing, software, and computing platforms, and supporting efforts like sensor miniaturization and error correction ¹.

For the fiscal year ended December 31, 2025, Infleqtion reported a net loss of $66,931,068 ⁴. This loss was primarily driven by a change in the fair value of subscription agreement liability of $69,585,366 ⁵, general and administrative costs of $1,990,219 ⁶, and a subscription agreement expense of $6,044,986 ⁷. These were partially offset by income earned on marketable securities held in the Trust Account of $10,689,503 ⁸. For the period from January 4, 2024 (inception) through December 31, 2024, the company reported a net loss of $51,910 ⁹, consisting solely of general and administrative costs. As of December 31, 2025, cash and marketable securities held in the Trust Account amounted to $423,689,503 ¹⁰, with cash of $702,154 ¹¹. The company had a working capital deficit of $74,725,992 ¹² as of December 31, 2025. Total liabilities were $78,795,575 ¹³, and total shareholders' deficit was $(77,618,849) ¹⁴.

Comparing the fiscal year ended December 31, 2025, to the period from January 4, 2024, through December 31, 2024, the net loss significantly increased from $51,910 ⁹ to $66,931,068 ⁴. This substantial increase is primarily attributable to the change in fair value of subscription agreement liability and subscription agreement expense, which were not present in the prior period. Income earned on marketable securities in the Trust Account also emerged as a new positive contributor in 2025, totaling $10,689,503 ⁸. The company's financial structure shifted significantly with the IPO in May 2025, leading to the establishment of the Trust Account and related liabilities ¹.

Significant operational developments during the reported period include the consummation of the Initial Public Offering (IPO) on May 15, 2025, where 41.4 million Public Units were sold, generating gross proceeds of $414,000,000 ¹⁵. Concurrently, 300,000 Private Placement Units were sold for $3,000,000 ¹⁶. On September 8, 2025, CCX and ColdQuanta, Inc. (d/b/a Infleqtion) announced their Agreement and Plan of Merger and Reorganization, which was consummated on February 13, 2026, resulting in CCX being renamed Infleqtion, Inc. and its common stock and warrants moving from Nasdaq to the NYSE ¹. The company also acquired Super.tech in 2022, integrating its quantum software expertise ¹.

Infleqtion's near-term commercial strategy is centered on delivering and scaling sensing solutions in operational environments where quantum precision offers significant performance advantages. This includes compact optical atomic clocks for resilient timing, quantum RF sensors for contested electromagnetic environments, and gravimeters for GPS-denied navigation and geophysical monitoring. The company is also uniquely positioned to serve the growing market for space-based quantum technologies, having already demonstrated its neutral atom platform in orbit and continuing to ruggedize and space-enable its technologies. Simultaneously, Infleqtion is expanding access to its Sqale quantum computing platform through on-premise system sales and developer tools for hybrid algorithm development. The company is developing Sqale to efficiently perform quantum simulations and solve complex optimization problems that are intractable for classical computers ¹.

Infleqtion's growth initiatives encompass scaling sensor manufacturing, increasing the utilization of its computing platform through customer and partner engagements, and broadening the distribution of its software offerings, Superstaq and CML, within enterprise and national security domains. Government agencies and public-sector programs are identified as the largest buyers of quantum sensing and quantum computing technology globally, with national security initiatives representing a significant portion of the addressable market. Sales into this market, both direct and through strategic partners, are expected to accelerate the reduction of size, weight, power, and cost (SWaP-C), which will ultimately open high-value, high-volume enterprise and industrial markets ¹.

Longer term, Infleqtion aims to advance the fidelity and scale of its quantum computing systems to enable fault-tolerant applications at the 100+ logical qubit level, while maintaining a diversified portfolio of sensing, computing, and software products. The company has a near-term milestone target of 100 logical qubits, which is widely recognized as a threshold for achieving quantum advantage in commercially valuable applications. It has demonstrated 12 logical qubits and is aiming to reach 30 logical qubits in 2026 ¹. The quantum computing roadmap targets achieving 100 logical qubits by 2028 and demonstrating MegaQuOp scale in 2028, which measures one million sequential logical operations in a system ¹.

The company's vertically integrated, full-stack proprietary quantum platform, spanning neutral atom hardware, control systems, photonics, middleware, and application-layer software, is expected to accelerate innovation, ensure system performance, and improve manufacturability and financial performance. The commonality across subsystems is anticipated to enhance manufacturability and scalability. While the company currently develops hardware and software in-house, it may partner with third parties or outsource certain manufacturing aspects as it scales its commercial business ¹.

Infleqtion's planned capital allocation includes continued investment in research and development efforts to achieve technological goals and build scalable, commercial quantum solutions. The company believes its cash, cash equivalents, and marketable securities as of December 31, 2025, totaling $702,154 ¹¹ and $423,689,503 ¹⁰ respectively, should be sufficient to meet anticipated operating cash needs for at least the next 12 to 18 months based on its current business plan. However, the operating plan may change, necessitating additional funds sooner than planned through public or private equity or debt financings or strategic collaborations ¹.

Management has explicitly flagged several structural headwinds and execution risks to its growth plan. The technology is not mature, and there are significant research, development, and manufacturing challenges to overcome to produce commercially viable products. The company has a history of operating losses and may not achieve or sustain profitability. Failure to adequately fund R&D or use teams effectively could harm the business. There is a risk that the computers may fail to achieve broad quantum advantage, or that market opportunity estimates and growth forecasts may prove inaccurate. The company may not be able to scale its business quickly enough to meet demand, and effective growth management is crucial. The quantum technology industry is in its early stages and volatile, and if it develops slower than expected or in a manner not requiring Infleqtion's solutions, growth will be harmed. Inaccurate estimation of future supply and demand for products could lead to inefficiencies and hinder revenue generation. The company is also highly dependent on key employees with specialized knowledge and on sales to certain customers, including the U.S. government, which are subject to budgetary constraints and early termination risks ¹.

Geographic, regulatory, and macro factors identified as constraints include risks associated with international operations, such as complying with foreign laws, enforcing intellectual property rights, evolving legal frameworks for privacy and cybersecurity, and fluctuations in exchange rates. The company is subject to U.S. and international regulations on export controls, dual-use technologies, and trade sanctions, which could impair its ability to compete globally and subject it to liability for non-compliance. Regulations related to quantum computing are evolving, potentially leading to increased licensing requirements and restrictions. Unfavorable global macroeconomic and political conditions, including inflation, interest rates, and geopolitical instability, could disrupt business, limit growth, and negatively affect results of operations ¹.

Infleqtion faces material risks stemming from the immaturity of its core quantum technology, which presents significant barriers in producing products meeting technical specifications and achieving broad quantum advantage, a critical but uncertain milestone for commercial viability. The company has a history of operating losses, with net losses of $31.8 million and $53.8 million for the years ended December 31, 2025 and 2024, respectively, and an accumulated deficit of $231.1 million as of December 31, 2025, indicating that profitability is not assured and losses are expected to increase with expansion ¹. The quantum technology industry is nascent and volatile, and market opportunity estimates and growth forecasts may prove inaccurate, potentially leading to slower-than-expected market development or a failure to achieve forecasted growth rates. Operational risks include the inability to scale the business quickly enough to meet demand, potential defects in product design and manufacture, and challenges in managing growth effectively. The company is highly dependent on key employees with specialized knowledge, and the inability to attract and retain such talent could harm its business. A significant portion of revenue, approximately 60% for the fiscal year ended December 31, 2025, is derived from the U.S. government, and approximately 12% from the UK government, exposing the company to risks of budgetary constraints, early contract termination, and compliance with complex government contracting regulations ¹. Legacy Infleqtion identified material weaknesses in its internal control over financial reporting, including insufficient accounting personnel for segregation of duties and risk assessment, and inadequate monitoring controls for its UK subsidiary, with remediation efforts expected to extend into 2027 ¹. Cybersecurity threats, including phishing and ransomware attacks, and reliance on third-party cloud providers, pose risks to sensitive information and business operations, with potential for regulatory investigations, litigation, and reputational harm. The use of generative AI tools may also pose risks to proprietary software and systems and subject the company to legal liability due to unclear intellectual property protections and potential for erroneous outputs. International expansion exposes the company to foreign laws, privacy and cybersecurity standards, tariffs, and foreign currency exchange rate fluctuations. Licensing of intellectual property, particularly from the University of Colorado and Wisconsin Alumni Research Foundation, is critical, and termination or changes to these licenses could severely impact the business. Furthermore, some intellectual property developed through government funding is subject to federal regulations, including non-exclusive licenses for the U.S. government and "march-in" rights, which could limit exclusive rights and manufacturing flexibility ¹.

Management's message to shareholders emphasizes a strategic focus on leading the global transition of quantum technologies from research labs to scalable, real-world deployment, with a dual-track approach of advancing towards 100+ logical qubit systems while simultaneously commercializing quantum sensors that already deliver advantage. The company has demonstrated 12 logical qubits and is aiming to reach 30 logical qubits in 2026 ¹. The quantum computing roadmap targets achieving 100 logical qubits by 2028 and demonstrating MegaQuOp scale in 2028 ¹. Management believes that its cash, cash equivalents, and marketable securities of $702,154 ¹¹ and $423,689,503 ¹⁰ respectively, as of December 31, 2025, should be sufficient to meet anticipated operating cash needs for at least the next 12 to 18 months. However, they acknowledge that the operating plan may change, potentially requiring additional financing sooner than planned. Key strategic priorities include leveraging the neutral atom architecture for scalable quantum computing and high-value sensing products, maintaining a vertically integrated, full-stack platform for accelerated innovation and manufacturability, and executing a product-centric approach with a hybrid revenue and go-to-market model supported by a strategic partner ecosystem.