Arqit Quantum
Arqit Quantum secures critical data with quantum-safe encryption software; primary offerings Encryption Intelligence and NetworkSecure serve governments and enterprises.
- 91
- Public company
- London, GBUnited Kingdom
Arqit Quantum secures critical data with quantum-safe encryption software; primary offerings Encryption Intelligence and NetworkSecure serve governments and enterprises.
What could change its growth trajectory, and what would confirm it?
Signing new contracts may support revenue growth, but when recognition starts determines whether delivery and continued customer performance prove decisive. Arqit signed 3 contracts in the second half of fiscal year 2026 for Encryption Intelligence, and revenue recognition under those deals began late in that half or will begin in the first quarter of fiscal year 2027.
Second-half revenue for fiscal year 2026 was hurt when recognition ceased on a material customer contract in the Middle East.
What is the investment case, and what must be true for it to hold?
Arqit Quantum can expand revenue through Encryption Intelligence agreements if contracted products reach delivery and customers uphold their contracts, though a material Middle East contract disruption poses a demonstrated risk to that path. The company signed three such contracts in the second half of fiscal 2026, with revenue recognition under them starting late in that period or in the first quarter of fiscal 2027. That recognition relies partly on successful product delivery and on clients avoiding cancellation, delay, or amendment of terms.
Arqit Quantum's second-half fiscal 2026 revenue suffered from halted recognition under a material Middle East customer contract after geopolitical events impaired that client's capacity to meet its obligations.
Which risks could break the thesis, and what would warn of them?
Execution and customer-performance dependencies expose Arqit's contract revenue path: revenue recognition under existing contracts hinges partly on successful product delivery and on customers that do not cancel, delay, or amend terms.
Arqit's revenue for the second half of fiscal 2026 was adversely affected by the cessation of revenue recognition under a material customer contract in the Middle East, whose capacity to perform had been affected by geopolitical events in the region.
How does it make money per customer, and what is still unknown?
Arqit sells Encryption Intelligence at an annual subscription price, but with revenue and cost per customer undisclosed, contribution per customer cannot be determined. The EI (SaaS) Managed Cloud licence runs one year with single tenancy and basic support included, priced at £38,000 with a minimum order of one. Its data collection and analysis probes collect, analyze, and forward data that gives organizations insight into encryption usage and risk.
Arqit projects preliminary revenue of $975,000 to $1,000,000 for fiscal year 2026, against $530,000 in fiscal year 2025.