WISeKey's Q2 2025: Contradictions Emerge on Quantix Project Margins, IC'ALPS Acquisition Impact

The above is the analysis of the conflicting points in this earnings call

Date of Call: September 26, 2025

Financials Results

• Revenue: $5.3M for H1 2025, up ~$0.1M YOY

Guidance:

• Full-year 2025 revenue expected at $18–$21M; strong H2 growth.
• H2 orders at SEALSQ already booked; drivers include recovery in traditional semis, consolidation of IC’ALPS from Aug 4, and growth in other divisions.
• 2026 backlog roughly 300% higher than at end-2025.
• Cash of $124.6M supports R&D and strategic investments.
• QS7001 post-quantum chip commercial launch targeted for Nov 22, 2025; WISeSat constellation expansion continues.

Business Commentary:

* Strategic Partnerships and Revenue Projections: - WISeKey secured the Quantix deal with a committed revenue of EUR 25 million over the next 3 years. - This partnership is expected to create synergies with other companies and expand into new markets like the United States, India, and South Korea.

• SEALSQ and Post-Quantum Chip Development:
• The $170 million revenue pipeline at September 8, 2025, includes significant contributions from SEALSQ's post-quantum chip developments.

• This growth is driven by the regulatory push for quantum resilience, enhancing the company's competitive positioning in the post-quantum cryptography market.

• Operating Performance and Strategic Investments:

• WISeKey's operating losses increased to $27.3 million in the first half of 2025, largely due to a stock-based compensation charge and increased research and development.

• Despite this, the company focuses on strategic investments, such as expanding its satellite constellation and developing technologies like SEALCOIN and WISe.ART.

• Commercial Launch of SEALSQ's Post-Quantum Chip:

• The world's first post-quantum chip, QS7001, is slated for commercial launch in November 2025.
• This launch is expected to trigger new revenue growth, boosting the company's financial performance in 2026 and beyond.

Sentiment Analysis:

• H1 2025 revenues grew slightly by $0.1M to $5.3M, while operating losses increased to $27.3M (driven by a $10.1M SBC charge and higher R&D/G&A). Net loss was $22.3M, up $6.8M YOY. Management expects strong H2 growth and full-year revenue of $18–$21M, cites a ~300% higher 2026 backlog vs end-2025, and reports $124.6M in cash.

Q&A:

• Question from Matthew Galinko (Maxim Group): Can you clarify Quantix’s $20M vs $25M revenue contribution over three years, expected margins, and potential for incremental product revenue?
  Response: Quantix is $25M over three years with blended equipment/services margins, and it should also drive near-term product sales before the center is fully operational.

• Question from Matthew Galinko (Maxim Group): How is the $170M three-year pipeline split among TPM and other applications?
  Response: Pipeline is diversified across QS7001 upgrades, TPM (rolling out later), and national personalization centers, with regulatory deadlines driving adoption.

• Question from Matthew Galinko (Maxim Group): What is the commercialization path for WISe.ART 3.0 and SEALCOIN into 2026?
  Response: WISe.ART pivots from NFTs to industrial digital twins, while SEALCOIN enables machine-to-machine payments (exchange listing planned), together forming the commercialization path into 2026.