SEALSQ Corp (LAES) Q4 2025 Earnings Report, Transcript and Summary

Greetings, ladies and gentlemen, and welcome to the SEALSQ Fiscal Year 2025 Financial Results Earnings Conference Call. As a reminder, this conference call contains forward-looking statements. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause actual results financial condition, performance or achievements of SEALSQ to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. SEALSQ is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information future events or otherwise. These risks are also discussed in our filings with -- made with the Securities and Exchange Commission. Please be advised that our fiscal year 2025 earnings release was issued on Tuesday, March 31, 2026. Also, our Form 10-K for the full year ended December 31, 2025, which was filed with the SEC on Tuesday, March 31, 2026, can be found by visiting the Investors section of SEALSQ website. at https://investors.sealsq.com. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to introduce Carlos Moreira, Founder and Chief Executive Officer of SEALSQ. Mr. Moreira, please go ahead.

Thank you very much, Kevin, and good morning in the United States, and good afternoon in Europe to everybody. Welcome to our full year 2025 earnings call. I am joined today by our Chief Financial Officer, John O'Hara. I'll begin with an overview of our key highlights and major developments from the year. John will then walk you through the financial results in more detail. After that, I'll return to share our outlook for 2026 and beyond, I will conclude by opening the line for your questions. 2025 was a defining year for SEALSQ. It was a year where we stepped decisively into the role we had been building towards since our founding that of the world-leading platform for post-quantum secure semiconductor and trusted digital infrastructure. Every investment, product launch and partnership this year advances one central thesis that the quantum threat to encryption is real. It is accelerating and hardware rooted post-quantum security is the only durable answer. Let me walk you through those accomplishments one by one. In October 2025, SEALSQ market valuation surpassed $1 billion, and we achieved an upgrade to the NASDAQ Global Select market, its highest year. This reflects our growing scale, institutional governance standards and investors' recognition and our positioning at the interception of semiconductor, cybersecurity and quantum resilience. November 2024, we have raised more than $530 million in capital, providing us with a substantial financial flexibility to accelerate our growth strategy and deepen our investment in innovation. This founding strengthens our balance sheet and enables us to scale product development, expand our commercial reach and support the industrialization of our next-generation secure semiconductor platform. It also positions us to advance key strategic initiatives, including post-quantum product development, certification programs and potential partnerships or acquisitions that we can enhance our technology capabilities and market presence. I will provide more detailed color shortly on our use of capital and how we are allocating these resources to drive long-term value creation. I will start with our QS7001, the world's first post-quantum semiconductor. The most consequential milestone of 2025 was the commercial launch of the Quantum Shield QS7001 in Q4. This is the most first commercial available secure semiconductor embedding NIST standardized post-quantum cryptography algorithms, such as MLK, MLA KEM and MLA DSA directly in hardware delivering up to 10x higher performance than PQC software implementation. We unveiled the QS7001 at the IQT Quantum and AI conference in New York in October, and formally launched development kits at Las Vegas Grand Prix in November. The pipeline on QS7001 and QVault TPM has already grown to over $60 million for 2026 to 2029, up from approximately $11.4 million at the same point last year. I will now discuss the SEALSQ made in U.S. strategy and recent development. The U.S. government and enterprise market increasingly required Root of Trust, PKI infrastructure and cryptographic provisioning on American soil, driven by national security imperative and regulatory mandates. In November 2025, we launched a sovereign U.S. post-quantum Root of Trust, the first of its kind, marking a foundational milestone in or made in U.S. strategy. This initiative ensures that the entire trust chain from silicon design to cryptographic provisioning can be executed within the United States under the highest level of certification and control. To operationalize this vision, we engage Trusted Semiconductor Solution, TSS, as our U.S. manufacturing and distribution partner and establishing a U.S.-based secure personalization hub in 2026, reinforcing supply chains sovereignty and resilience. This strategy further strengthen through key partnerships collaboration with Lattice Semiconductor enables the integration of low-power FPGA technologies, supporting flexible, secure and post quantum-ready hardware architectures for defense, IoT and HAI applications. At the same time, engagement with Paradrone extends secure Root of Trust capability into autonomous and defense trade UAV system where [indiscernible] resilient and trusted communications are mission-critical. Trusted Semiconductor Solution, TSS, a Category 1A trusted accredited company meeting the highest standard for 100 classified and mission-critical macro electronics has announced a strategic partnership to co-develop Made in U.S., PPC enabled semiconductors, secure semiconductor solution. These solutions are designed to reach the highest level of hardware certification required by U.S. defense and government agencies. Leveraging TSS' established a relationship and trusted position within the U.S. Defense ecosystem, this collaboration has strengthened SEALSQ footprint and accelerate access to sensitive national security market. TSS serves us as a critical interface to U.S. agencies, insurance compliance with the Department of Defense, DoD and federal requirements while enabling the developer mind of SEALSQ quantum resistance silicon, [indiscernible] chip design, advanced certification and secure personalization technologies. [indiscernible] represents the quantum computer layer of this long-term vision. Its electron on Helium approach enables Quantum Processor as small as a funnel and compatible with the standard semiconductor manufacturing processes. This breakthrough aligns directly with the objectives of building an end-to-end sovereign quantum security stack bringing today post-quantum cryptography chips with tomorrow Quantum processors. The follow-on investment in February 2026 reflects a strong conviction in this trajectory and reinforces the strategic position and the intersection of semiconductors cybersecurity and quantum computing. By combining U.S.-based manufacturing and personalization through TSS programmable secure hardware, the Lattice Semiconductor trusted autonomous system with Parodrone and future quantum capabilities enabled by [indiscernible], we are establishing a vertical integrated sovereign and quantum resilient security ecosystem tailored to the most demanding requirements of U.S. defense, critical infrastructure and next-generation AI system. Our total activity -- sorry, our total active pipeline across all products, stands to an estimate $200 million in March 2026, which publishes a certification road map confirming all the products variant, which are QS701,V1,QS7001, V2, QVault TPN 183, QVault TPN 185, which are on track for CC EAL 5 plus FIPS 14-3 and TCG certification through Q4 2026. While our customers are actively testing development kits and progressing through the design in progress, signaling strong engagement and readiness for adaptation, we see that gating factor for conversion to revenue are twofold. First is the certification completion or CC EAL 5 and FIPS 143 milestones remain on track through Q4 2026, and customers in regulated sectors typically require the certifications before committing to volume purchases. As already mentioned, the laboratory has confirmed that the common criteria evaluation required to achieve evaluation Assurance Level EAL 5+, namely fault injection and side channel attacks, pass in March certification as anticipated. Second, integration cycles in the semiconductor industry, the past from design into full production usually expand 6 to 18 months. We are actively accelerating this timeline through co-development partnerships and close collaboration with customers shortening the time from prototyping to deployment. Critically regulatory pressures, such as the CNSA 2.0 in the United States and the European Union or cyber resilient act are creating tangible urgency. These deadlines are not theoretically, they are influencing procurement decisions today, and we are seeing this urgency directly reflected in commercial conversations driven faster designing and a strong early adoption. This combination of mature pipeline, accelerating integration and regulatory-driven demand positions us well for meaningful near-term revenue growth while laying the foundation for continued expansion through 2028. Now moving to acquisitions. In 2025, we completed the acquisition of IC'ALPS SASU, a leading ASIC design, a specialized company based in Grenoble and Toulouse in France. This added approximately 100 high skill engineers, bringing our global workforce to approximately 300 people. IC'ALPS bring expertise in custom chip design for health care, automobile and IoT and position us to develop the QASIC, which is the quantum ASIC, a purpose-built post-quantum cryptographic ASIC. ASIC revenues also grew from $1.4 million in Q3 to $2.2 million in Q4, confirming the value of this acquisition. Additionally, last month, we signed a letter of intent to acquire 100% of Miraex, a Swiss developer for photonics-based Quantum interconnected solution. Miraex represents a strategic asset in completing our Quantum vertical stack. This technology provides a critical interconnect layer linking quantum computing networking and post-quantum cryptography into a unified architecture. Once completed, the acquisition is expected to accelerate our QS OC initiative and strengthen our ability to deliver resilient end-to-end quantum secure infrastructure across both terrestrial and space-based environment. Another key milestone in the establishment of our Quantum fund and a strategic investment made through it. Our Quantum Fund launched in 2025 with a $20 million initial allocation has grown now to $200 million as today. We deployed approximately $30 million across IC'ALPS, [indiscernible], EeroQ, WISeSat, Quantix Edge Security and the WeCan Group, each reinforcing our Quantum vertical from silicon to space. On November 2025, investment in EeroQ deepened with a follow-on in February 2025, is particularly strategic. EeroQ is building a quantum processor based on single electron on super fluid helium, a design approach that yields processor as small as a thumbnail manufactured on a standard semiconductor processes. This underlines our Made in U.S. vision and our long-term Root-to-Qubit ecosystem. The U.S. government and enterprise market increasingly requires Root of Trust, PKI infrastructure and cryptographic provision on American soil. In November 2025, we launched a sovereign U.S.-based post Quantum Root of Trust, the first of its kind. We engaged Trust semiconductor solution as U.S. manufacturing and distribution partner and we are building a U.S. personalization hub in 2026. EeroQ is the quantum computer layer of this vision. Their electron on Helium approach allows processor as small as a thumbnail to be manufactured on a standard semiconductor processes directly aligned with our long-term goal of an end-to-end server in quantum security stack from post-quantum chips today to quantum processors in the future. The follow-on investment in February 2026 reflects our conviction in this direction. All these advances tie well with our Quantum highway global expansion strategy. We advanced our Quantum highway linking industrial capabilities around several locations like Murcia, Toulouse, Grenoble, Geneva and Chicago, connecting Spain, France and the United States and Switzerland. In September 2025, we signed a EUR 40 million joint venture with the Spanish government to establish Quantum Edge security in a city located in the southern part of Spain, Murcia. Spain's first Quantum -- first Quantum Semiconductor personalization Center. We are establishing 2 additional hubs in the U.S. and in Asia in 2026. In November 2025, we launched a sovereign U.S.-based post Quantum Root of Trust, enabling U.S. government agencies to manage Quantum secure digital identities in U.S. oil. In November 2025, SEALSQ invested $10 million in WISeSat to develop a Quantum secure satellite infrastructure platform. The complemented -- the contemplated model is based on an anticipated remarkable right of use over 12 satellites. WISeSat will remain ownership of the operation while SEALSQ will secure dedicated capacity for Quantum Spatial Orbit cloud initiative, delivering quantum key distribution, Quantum run their number generation and post-quantum identity services as a subscription offering to enterprises and government. The WISeSat 3.0 launch in June 2025 already included a proof of concept for SEALCOIN machine-to-machine transaction, secure bio semiconductor stack. While there cannot be no assurance that the contemplated arrangement will be completed on currently anticipated terms, we believe this represents a significant long-term opportunity as the world's first Quantum Secure Orbital cloud. I am turning now the call to John, who will discuss financial results for the year 2025. Go ahead, John.

Thank you, Carlos, and hello to everybody on the call. So SEALSQ delivered total revenue of $18.3 million in fiscal year '25, representing growth of 66% compared to 11%, and second, the addition of our new ASIC segment, which contributed $3.6 million following our acquisition of IC'ALPS in August 2025, representing 5 months of consolidated revenue. Within the semiconductor segment, we saw particular strength in our smart card reader SCR 200 product line, which delivered 51% revenue growth year-on-year, driven by expanded deployments at key customers. Our Secure Element product lines, notably the VIC 405 and VIC 408 also saw significant bond growth in smart metering and secure communications applications. Trust Services, which include our PKI and provisioning solutions, grew by almost 600% year-on-year, both from a small base and currently represent just 2% of total revenue. Geographically, North America remains our largest market at 57% of revenue. We are pleased to report strong momentum, in particular, in Asia Pacific, where revenue grew 95% year-on-year, driven by adoption of the MATA protocol in smart home and HVAC applications. We also recognized some small revenues relating to sampling of the QS7001 quantum resistant chip as clients commenced their first testing of this product, and we expect first production revenues from the QS7001 in the second half of 2026. Gross profit improved substantially to $8.6 million in 2025, up from $3.7 million in the prior year, with gross margin expanding 13 percentage points to 47%. This was primarily driven by the addition of the ASIC segment which carries significantly higher margins at 88%, reflecting the design service and nature of that business with low directly attributable costs. Semiconductor segment gross margin partially recovered to 37%, up from 34% in 2024, as shipments of new products for our existing customer base resumed following a period where customers were drawing down their own inventory. Total operating expenses were $48.4 million in 2025 compared to $20.9 million in 2024, an increase of 132%. However, I want to be clear about what is driving this increase as context matters significantly here. The single largest factor is a noncash stock-based compensation charge of $11.2 million. Following the significant change in SEALSQ's market capitalization since our original listing, Management made the deliberate decision alongside the Compensation Committee to issue equity awards to our staff and senior staff as recognition of their commitment and to align their interest with our shareholders. This is a onetime accounting charge with no cash involved. Beyond that, the increase in operating expenses reflects 3 structural changes in our business. The consolidation of 5 months of IC'ALPS operating expenses following the August acquisition, the build-out of our own management team with C suite and central functions that were previously provided by our parent, WISeKey, now directly employed by SEALSQ from January 2025 and continued investment in research and development and sales and marketing to support our post-quantum product road map. Net of stock-based compensation, in particular, R&D expenditure was $10.1 million, representing 25% of our total operating expenses and reflecting the investment required to bring our Quasar post-quantum product program to commercial launch. The net loss for the year was $34.2 million compared to $21.2 million in 2024 and a meaningful offset to our operating loss came from the nonoperating income of $8.9 million, the majority of which $6.1 million was interest income earned on our substantial cash balance throughout the year. Turning to the balance sheet and liquidity. We ended the year with cash and cash equivalents of $417.7 million with short-term investments of $10 million on top of that, which was up from $84.6 million at the end of 2024. Working capital was positive at $421 million. This cash position is a result of highly successful equity capital markets activity throughout 2025, and in aggregate, since November 2024 until the current date, SEALSQ has raised over $575 million in cash for a series of [indiscernible] direct offerings, warrant exercises and our at the market facility. This puts us in a genuinely strong position to execute on our strategy in the years ahead, and Carlos will come back to that later in the call. Operating cash outflow for the year was $31.3 million reflecting our continued investment phase. Investing activities consumed $35.3 million, primarily comprising of acquisitions and strategic investments, including the acquisition of IC'ALPS, our investments in EeroQ, WISeSat, the WeCan Group and Quantix Edge Security in Spain. Total debt at the year-end was a modest $1.7 million, all of which relates to French government-supported loans acquired with IC'ALPS. The balance sheet is therefore essentially debt-free at the parent company level. Based on our cash projections through to March 2027, we have confirmed sufficient liquidity to fund operations and the business is not dependent on further capital raises for its immediate operational continuity. Moving on to our balance sheet. Total assets grew to over $500 million at the end of 2024 -- at the end of 2025, principally reflecting the increase in cash. Noncurrent assets grew from $4.5 million to $54.5 million which was driven by the IC'ALPS acquisition, which added $5.7 million of goodwill and $21 million of intangible assets net of amortization as well as our strategic investment portfolio. On the other hand, total liabilities were $42.7 million at the year-end and the cumulative deficit at $76 million, up from $41.9 million in the prior year, reflecting the net loss for the period. Looking to 2026, there are a number of important milestones we are targeting. On revenue, we expect fiscal '26 to represent a year of acceleration. The ASIC segment will contribute a full 12 months of IC'ALPS revenue for the first time. We anticipate the first production revenues from the QS7001 and the QVault TPM in the second half of 2026. The estimated combined pipeline for these 2 products is at $60 million as of December 31, 2025, and as of today, and that's across approximately 115 potential customers. Just for clarity, this is a management estimate and is subject to convert -- conversion risk, customer validation, timelines and the certification process. R&D expenditure is expected to continue to increase in 2026, with a particular focus on our post-quantum cryptography road map and the build-out of our test and personalization infrastructure in Spain and prospectively in the United States and Asia. Finally, we expect to continue executing on our strategic investment program. The Quantum funded a total allocation of $200 million, of which we have spent just over $30 million to date. We will continue to evaluate opportunities in quantum computing, quantum as a service, secure semiconductor technologies aligned with our road map. We have $530 million in cash, generating meaningful interest income, and we are investing from a position of strength. Part profitability, we believe, runs through revenue scaling with a $200 million pipeline for 2026 to 2029, revenue expected to grow by between 50% and 100% in 2026, Q1 expected to more than double year-on-year and gross margins certainly trending upward, we are confident in that trajectory. Now I'll turn the call back to Carlos who will provide additional details on our growth strategy. Carlos, please go ahead.

Thank you, John. So let me start with 2 milestones that we believe will define our 2026 product calendar. So first is the full scale commercial deployment of the QVault TPM or RISC-V-based semiconductor controller which marks SEALSQ's formal entry into the trusted platform module market and is expected to drive significant new revenue in H2 2026, as indicated by John. Second, we anticipate a custom post-quantum ASIC engagement with contractualization in H2 2026, reflecting IC'ALPS contribution to the QASIC initiative. Furthermore, our $200 million pipeline, which spans from 2026 to 2029 and the near-term portion, particularly the QS-7001 and QVault TPM program, is at the most advanced stage with customers actively running development kits and moving through design in processes. This is a traditional practice in this industry where the testing kits are used and completed before further acquisition of the product. The key conversion factors are: First certification completion or CC EAL 5 plus the 143 milestones are on track through Q4 2026, and regulated sector customers required this before committing to volume. Second, integration cycles in semiconductor design to production typically runs 6 to 18 months. We are actively compressing this through codevelopment and partnerships CNSA 2.0 and EU CRA deadlines are creating a genuine urgency, we see directly in our commercial conversation. This to be completed with the announcement yesterday and Google of the acceleration of the Quantum Day and Quantum thread on cryptography and cryptographic tuck-ins, which will also create an urgency aspect in the market and the consumer application of this technology. Let me now discuss regulatory tailwinds hard deadline set for 2026. The regulatory environment is no longer a distant tailwind. It is creating binding new terms demand that is actively shaping customer purchasing decision. By September 2026, the Cyber Resilient Act mandates security life cycle, documentation for all products with digital elements sold in the European Union. Noncompliant risk incurring fines up to $50 million or 2.5% of the global turnover. This has driven urgency among manufacturers and OEMs to reassess the security architecture and ensure long-term compliance. In parallel in the U.S., the NSA, CNSA 2.0 requires traditional networking equipment to prefer post quantum algorithm by 2026. This effectively accelerates the replacement cycle for a wide range of infrastructure embedded system. Importantly, these are not long-dated policy [indiscernible], they are active enforceable deadlines. As a result, we are seeing a clear shift from evaluation to execution and customer engagements. Against this backdrop, SEALSQ's unique position, SEALSQ is one of the very few companies in the world with certified hardware native solution ready today. This gives us a meaningful first mover advantage as customers move quickly to secure compliance, future-proof solutions. So now moving on to global infrastructure expansion. In 2026, we plan to commence the establishment of 2 additional custom design, tech and personalization hubs, 1 in the United States and 1 in Asia, complementing the Murcia Spain center and significantly expanding our global footprint. These hubs will not only enhance our operational resilience and proximity to key market, but also will create a distributed sovereign grid infrastructure aligned with evolving geopolitical and cybersecurity requirements. At the same time, we will accelerate the development of the SEAL Quantum Spatial Orbit cloud, a strategic initiative that reflects a fundamental shift in how digital infrastructure must evolve in the quantum area. As a complement last -- only yesterday, we launched the new satellite, which is a WISeSat 3U already with a post-quantum chip embedded, which is the beginning of this infrastructure. The convergence of Quantum technology and space-based infrastructure is no longer optional. It's becoming essential. First, security at the quantum level requires a new infrastructure layer, retrial network are increasingly vulnerable in a post-quantum world, a space-based system enabled Quantum Key Distribution, QKD and ultra-secure communications beyond the reach of conventional cyberattack ensuring that data sovereignty is guaranteed and resilient for government and enterprises. Second, latency coverage and independence are critical. Space-based quantum cloud allows computation, secure data exchange and AI processing to occur close to the edge, anywhere on earth without reliance on fragmented terrestrial infrastructure. This is particularly important for critical sectors such as defense, finance, energy and smart infrastructure. Third, data sovereignty and geopolitical fragmentation are reshaping the cloud landscape. Nations and regions increasingly require trusted independent infrastructure. So Orbital Quantum cloud platforms provide a neutral sovereign and tamper-resistant layer enabling countries and organizations to operate securely across border without compromising control over the data. Fourth, scalability on Quantum services depend on cloud delivery. Just as a classical cloud computing, democratized access to computing power, Quantum cloud will be the gateway to Quantum capabilities. Integrating these services with satellite infrastructure ensures global accessibility, including in regions where terrestrial connectivity is limited or insecure. Finally, space enables true resilience. Orbital infrastructure is inherently more robust against physical disruption, geopolitical conflicts and centralized points of failure. For Quantum companies, this resilience is not just a technical advantage, it is a strategic necessity. Let me now discuss the steps we have taken in building the Quantum cloud economy. Throughout the WISeSat Quantum Spatial Orbit club, we are positioning ourselves as the intersection of quantum computer, cybersecurity, satellite infrastructure and AI. This platform will support secure quantum communications, QQD and post-quantum cryptography, distributed quantum computer access via cloud services and infrastructure, trusted AI processing in a space-based environment and global IoT edge services authentication secured by quantum resistant technology. In parallel, we will continue disciplined investment through the Quantum Fund, supporting innovation and accelerating the commercialization of Quantum and post-quantum solutions across our ecosystem. With that context, I will now turn to our recent capital raises, including March 2026 financing and outline how we are deploying this capital, particularly in support of the U.S. semiconductor personalization center. During March 2026, SEALSQ raised an additional $125 million bringing our total cash position to approximately $530 million. This capital raise was undertaken with a clear and specific strategic rationale to fund the development of SEALSQ's Semiconductor personalization center in the United States, which is a high capital-intensive activity. This center provides localized high secure environment certified to common criteria such as ELS, EAL 5+ and specifically designed to customize program and inject cryptographic identities into semiconductor transforming them into trusted post-quantum resilient devices, compliant with the NSA, CNSA 2.0 framework. These are significant capital investments. Each U.S. center requires approximately $100 million in company investment, reflecting the specialized infrastructure, security accreditation and operational capabilities required to deliver this level of certification. EAL 5 plus grade cryptographic personalization at the scale. SEALSQ is already developing a comparable center in Murcia, Spain designed to serve the European market and aligned with the European Union legislation requirement. In addition, we are establishing a center in India in partnership with Cain Semiconductor that just yesterday inaugurated their OSAT, extending our personalization capability into one of the world's fastest-growing semiconductor market. Once operationally, these centers will serve as a dual strategic purpose. First, will generate higher revenue from semiconductor personalization center and cryptographic provision services, representing a meaningful and recruiting contribution to SEALSQ's top line from countries that today we are not able to reach. Second and equally important, they will provide essential physical infrastructure to support the Quantum vertical stack, the company is developing. Our ultimate vision goes beyond security as a cost, we aim to transform security into a strategic value driver by enabling new services and business model such as secure in vehicle transaction, electricity exchange between vehicles and grid, authenticated drone delivery, autonomous robotic assets control, et cetera. SEALSQ is strongly convinced of the conversions between post-quantum cryptography and Quantum technologies. We will continue to build a broader quantum strategy, particularly around our collaboration with EeroQ for their partnership in Quantum based on their line semiconductor technologies are also under active discussion. This includes ASIC design, in particular, the development of a unique cryo CMOS capability as well as the integration of advanced security to support fully secure quantum computer system. Through this approach, SEALSQ is positioned itself at the intersection of secure semiconductor, post-quantum cryptography and Quantum technology with the ambition to become a key player in building the next generation of trusted digital infrastructure in the United States. This position, nobody currently in the market has it. I will now turn back to the operator for a Q&A session, and I thank you very much for your attention for the moment.

[Operator Instructions] Our first question today is coming from Matthew Galinko from Maxim.

Congratulations on the year. Maybe just firstly on the pipeline for the new Quantum products. I think you might have mentioned you have 10 customers better in kind of very active stages. I guess with the kind of with regulations starting to have an impact and teeth maybe in late '26, do you expect the number of customers you're engaging with to increase in that over the course of the year? So exiting '26, would we expect to have a significantly greater number of customer engagements on the Quantum products?

Matt, nice to talk to you again. Yes, I mean, I think there are several factors that is going to accelerate or sales in QS7001 post-quantum, not only at the silicon level but also the software level. One of them, as I mentioned, during the presentation is the CNSA 2.0 and their equivalent regulatory framework and basically is saying that companies, especially companies that they are dealing with technology that serves the purpose of critical infrastructure needs to be previously compliant. And this is an important driver because that means that governments around the world are putting that level of urgency. The second one is that we are gradually getting the certifications that they are require. This is a long process. Sometimes people don't understand how long it takes for the laboratories to certify those products. And many companies, they have expressed, as you can see on the $200 million pipeline, they have expressed strong objectives to deploy, but obviously, they want to deploy a certified product, especially the companies and organizations and they are working with government defense and critical infrastructure, which is the second driver. And I would say the third driver is the urgency created by the fact that there is now common consensus that the QD is actually arriving faster than everybody thought. Remember, last year, in January last year, we were still thinking that quantum computers will be only able to break RSA, triple desk in 30 years' time. This was reduced to 10 and now Google announced yesterday that they are actually dividing that by 10. The urgency is actually very large. And sectors like the possibility of breaking Bitcoin, let's say, then you break on wallet, imagine the consequences for the entire Bitcoin community. If one of those wallets will be compromisable because they have a quantum attack. Now Quantum companies are also expanding faster their Qubits generation. The company we have invested and the ones that we are in the process of investing, they are already able to generate between 10 and 100 Qubits. And some of them, they are predicting to be able to reach the 500 Qubits, which is what Google say that will actually be enough to break cryptocurrencies. So these factors are obviously accelerating the demand of the product in the market. We are also -- we have our first player advantage here, which is obviously hard to replicate it, even for very large companies that they don't necessarily have a PQC chip are now approaching us and say, can we come with you because one public information is Lattice Semiconductor, right, then they will be teaming with us to be able to offer to their clients PQC chips. So this is obviously -- this is a very big entry into the market because a Lattice has thousands of customers, and they will accelerate the sales of those Microchip. So I know that sometimes it looks like it's slow, but actually, this is a total different computational architecture. This is not just improving or patching cybersecurity issues. This is actually redesigning the entire infrastructure that requires time and be sure that your product is to the level to solve that problem.

And then I guess my follow-up would be on the personalization center. It sounds like you're moving forward in the U.S. It sounds like in 2026, but is it reasonable to expect that you'd be making those investments in '26 and maybe generating revenue? And sort of opening the centers in '27? Or what's a reasonable timeframe to think about for the U.S. center and then the second one that you discussed?

Yes. So you remember, originally, we had the idea to build a personalization center furnace crash from the beginning. And this is obviously a 4 to 5 year investment of time and resources. That obviously is a real estate problem, right? You have to get the authorization, the land, the building the contractors. It is a tedious process, especially now with the huge demand on data center infrastructure. So it's hard to find the right people to build those infrastructures. So this was the original old thinking, and we will build our own thing. Then we move into a more, I would say, pragmatic and fast thinking, which is let's only team with somebody that has already a legacy infrastructure, operational that they are in the same sector than we are, and they will like to upgrade their existing infrastructure to become a PQC personalization semiconductor center, which is -- it's a bit the model we have actually also in Spain. So that reduces the time to market by nearly 3 years. So that takes only around 6 months to 1 year by the time you are operational. That obviously requires buying machines because it's a big investment. You still need -- and this is the reason we raised money is because this was not in our budget, right, to develop a full personalization center, with some existing infrastructure. We have several states and they have approached us with incentives to do it in their states. We are now combining this intention to bring us to one of those states with semiconductor company, then they will be operational already in the state, and they would like to team with us to do that. So we shall be able to announce very soon. I guess, before the end of June, we should be able to announce where it's going to be located. And this obviously will have a huge potential for our deployment. That means on the chips will be personalized in the United States. That means that we will be fully CNSA 2.0 compliant because they will be chips that will be verifiable in a localized place. People can see them, can test them, can be assured and all the cryptographic keys has been located at the center itself. That will also -- we are still a Swiss French company. So many of our clients, they are saying, guys, coming to the U.S. if you want to be bigger and grow your revenue. And obviously, that satisfied that requirement. So we are -- we believe that by the end of this year, we shall be able to have something very concrete in this area.

[Operator Instructions] We do have a follow-up from Matthew Galinko from Maxim.

Carlos, you mentioned some of the intense demand for land and power resources coming from the AI industry. I'm curious with some of the influence that's had on the semiconductor industry, I'm curious if that's having any impact on demand cycles from your customers or pricing or anything around margins that we might expect to hit you in 2026?

You mean from the energy sector, in particular?

Just broadly, we've seen some things about memory prices being incredibly high, storage prices being high, from high demand from AI data center builds. I'm just wondering if that ends up influencing kind of the end customer that you're selling into for your products, if that changes anything about their timelines or sourcing, pricing or anything that ends up impacting you?

We don't have that information. Obviously, there are different type of semiconductors, right? I think the -- I mean, there is an interesting debate now that quantum computers will actually redesign a bit the current infrastructure because you need less data center space, you need less computer, traditional compute capabilities. And at the end of the day, you need less chips from the memory companies, right, as quantum computers have a much powerful processing capability. What we believe is going to happen is that those chips that we are selling, it sells basically first to companies that like smart meters companies, then they want to secure smart meters because they are connecting smart meters to grids, and they are now in the process of learning how to tokenize the energy, they process through their smart meters. And also the energy that is reverted back again to the grid. So there is -- this is where we launched SEALCOIN, which is a crypto tuck-in that basically allows this market to be exchangeable and transactional between devices. So this is something that will have the first client we announced partnerships with Landis & Gyr, which is already 40 million of Landis & Gyr meters are already equipped with the software component of it and the future meters will increasingly be PQC compliant. So this is the industries which are booming now and because the current situation with oil and everything related to that is forcing companies to diversify the energy sources. And at least in Europe, this is becoming a very, very big now and our technology solves that problem because not only you secure the transaction, you authenticate the meter, you tokenize the energy collected by that meter, let's say, from a solar panel and you sell that energy to another meter in a peer-to-peer transactional process. So this is an area we see a big expansion for our capabilities.

[Operator Instructions] We reached the end of our question and answer. I'd like to turn the floor back over for any further closing comments.

So thank you very much, everyone. SEALSQ sits at an extraordinary inflation point. As I mentioned during our presentation, quantum computer is no longer a distant theoretical risk. Major technology companies, government and institutions are converging on timelines that make the quantum threat to encryption near-term reality. Regulators have responded. NISA standardized post quantum algorithm. The NSA has issued CNSA, 2.0 mandates and the European Union Cyber Resilient Act, is creating binding legal obligation. SEALSQ has the product, the certification in process, the pipeline, the partnerships, the capital and the strategic vision to lead this transformation. To our employees, I would like to thank for their extraordinary commitment this year, to our partners, customers and investors, thank you for your trust and continued support. We look forward to updating you throughout the year, and we wish you all a secure and prosper year-end -- year ahead. This concludes today the call. Thank you very much for your attention. Thank you. That does conclude today's teleconference webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.