Infleqtion

Q2 FY2026 EarningsQ2 FY2026 revenue significantly beat consensus at $13.5M vs. $10.6M expected, driven by surged activity in the NASA QGG and US Army Sapient contracts. However, profitability missed estimates across all levels, with a gross margin of 16.0% vs. 31.8% expected, and a normalized EPS of -$0.11 vs. -$0.05 consensus. The earnings miss was primarily attributed to a massive step-up in stock-based compensation ($12.1M) and non-recurring SG&A expenses following the February 2026 SPAC merger, alongside persistent material weaknesses in internal controls.