Horizon Quantum Holdings Ltd. (NASDAQ: HQ) reported a net loss of $115.2 million for the fiscal second quarter ended June 30, 2026, a number driven almost entirely by an accounting charge on warrants rather than by money the Singapore company spent. The results, released on August 4, 2026, also showed cash and cash equivalents of $113.3 million at the end of the quarter, a net increase of $16.7 million from $96.6 million at the end of the quarter ended March 31, 2026, after holders of the company’s listed warrants exercised in volume.
Horizon Quantum builds software tools for quantum computers and operates its own hardware testbed. It became a listed company on March 19, 2026 through a business combination with dMY Squared Technology Group, Inc., and its Class A ordinary shares and public warrants began trading on Nasdaq on March 20, 2026 under the symbols HQ and HQWWW. The company recorded no revenue in the second quarter, against $38,462 a year earlier.
What the company reported
Loss from operations was $7.2 million, against $2.7 million in the second quarter of 2025. Total operating expenses were $7,175,504, compared with $2,782,488 in the year-earlier quarter. Below the operating line sat a $108.3 million non-cash loss from the remeasurement of warrant-related derivative liabilities, which the company attributed to a rise in the trading price of its Class A ordinary shares. Net loss came to $115,227,348, or $2.20 per ordinary share, against a net loss of $2,902,313, or $0.07 per ordinary share, in the second quarter of 2025. On the company’s own adjusted basis, which strips out the derivative movement, share-based compensation and business combination costs, Adjusted EBITDA was a loss of $5.5 million against a loss of $2.1 million a year earlier.
The balance sheet at June 30, 2026 carried total assets of $124,045,763, of which cash and cash equivalents were $113,254,440. Total liabilities were $80,370,229, and derivative liabilities on warrants accounted for $76,778,574 of that. Total stockholders’ equity stood at $43,675,534, against a negative $4,662,625 at December 31, 2025, and the accumulated deficit reached $152,439,504.
For the six months ended June 30, 2026 the net loss was $118,786,726 and total operating expenses were $13,674,878. Net cash used in operating activities over the half was $9,283,188, and the company spent $5,521,276 on property and equipment including construction in progress. Financing brought in $98,167,633 from the merger and PIPE transaction net of costs, $27,186,518 from warrant exercises and $2,500,000 from SAFE notes.
The cost base behind the operating loss
Research and development expenses were $2.6 million in the quarter against $1.2 million a year earlier, an increase of 117%. Excluding share-based compensation and non-recurring compensation adjustments of $0.7 million and $0.3 million in the respective periods, the company put the underlying increase at 100%, attributing it mainly to headcount and, to a smaller degree, to the cost of setting up the hardware testbed. General and administrative expenses were $3.8 million against $1.1 million, an increase of 236%, or 191% once share-based compensation, non-recurring compensation adjustments and one-time business combination expenses of $1.5 million and $0.3 million are excluded. Sales and marketing expenses were $0.4 million against $0.2 million, up 51% as reported and 63% excluding $0.08 million and $0.07 million of compensation items, which the company linked to trade show activity.
The direction was already visible one quarter earlier. In the first quarter of 2026 Horizon Quantum reported an operating loss of $6.5 million against $4.7 million a year before, a net loss of $3.6 million or $0.09 per ordinary share, and an Adjusted EBITDA loss of $4.1 million against $1.8 million. The difference in the second quarter is not the pace of spending, which moved by roughly a million dollars, but the direction of the warrant mark.
Operationally, the company said Beryllium, its object-oriented quantum programming language, reached early access users at the end of the quarter, following a preview in December 2025 at the Quantum to Business trade show. Ember-1, the Singapore testbed system running since December 2025, was opened to selected first users. In June 2026 Horizon Quantum said a 256-qubit trapped-ion system would go to its European headquarters in Dublin, Ireland, and in July 2026 it announced a collaboration with Quantum Machines on embedded calibration. The trapped-ion machine comes from a Quantum Systems Agreement signed with IonQ Quantum, Inc. on March 31, 2026 for aggregate consideration of $35 million. IonQ held a 7.8% equity interest in Horizon Quantum at June 30, 2026.
Warrants, and what is left of them
Horizon Quantum assumed 6,044,160 warrants at the close of the business combination, made up of 3,159,500 public warrants and 2,884,660 private warrants, all exercisable at $11.50 per share and expiring five years after completion. During the six months to June 30, 2026 holders exercised 2,393,946 public warrants for total proceeds of approximately $27.5 million, of which $27.2 million had been received by the balance sheet date and $0.3 million sat as equity proceeds receivable. As of August 3, 2026 roughly 2.5 million public warrants, or 79% of those outstanding at the close of the combination, had been exercised, generating gross proceeds of about $28.7 million.
That leaves 3,650,214 warrants outstanding at June 30, 2026: 765,554 public and 2,884,660 private. The public warrants are marked to their listed price and were carried at $12,248,864 as a Level 1 measurement. The private warrants, valued by Monte Carlo simulation with Level 3 inputs, were carried at $64,529,710. The warrant liability opened at $20,526,410 on recognition at the close of the combination, absorbed a $103,041,494 increase in fair value over the half, and shed $46,789,330 that was reclassified into equity as warrants were exercised. No public warrants have been redeemed by the company.
The redemption terms matter to that arithmetic. Horizon Quantum may call the public warrants for cash at $0.01 each if the closing price of the Class A ordinary shares is at or above $18.00 for any 20 trading days within a 30-trading day period ending three trading days before the notice. A second feature allows redemption at $0.10 per warrant on 30 days’ notice once the closing price reaches $10.00 on the same 20-day test, with holders able to exercise on a cashless basis for a number of shares set by an agreed table, capped at 0.361 shares per warrant.
Analysis: a headline loss that measures the share price, not the business
The $115.2 million figure is a valuation outcome, not a spending outcome. Because the assumed warrants are classified as liabilities and remeasured to fair value at every reporting date, a rise in the share price raises the amount the company must carry as an obligation, and the increase runs through the income statement. The mechanism is symmetrical and it already ran the other way: the first quarter of 2026 carried a non-cash gain on derivative liabilities, and the reported net loss that quarter, $3.6 million, was smaller than the operating loss of $6.5 million. Reading the two quarters together, the derivative line has moved the reported result by more than a hundred million dollars in six months while operating expenses moved by about seven million.
The disclosure establishes two things a reader can rely on. The first is the cash position and its source: $113,254,440 at June 30, 2026, of which the entire quarterly increase came from warrant exercises rather than from operations, since the business used $9,283,188 of cash in the half and has no revenue. The second is the shape of the cost base, which is now weighted toward general and administrative expense at $3.8 million against $2.6 million of research and development, a mix the company explains by the transition to public company status.
The disclosure carries less measurement on the technology. Beryllium reaching early access users and Ember-1 opening to first users are milestones the company defines itself; neither is attached to a revenue figure, and revenue for the quarter was nil. The $35 million IonQ commitment and the $5,521,276 of capital spending in the half are the figures that measure what the testbed programme is drawing from the balance sheet.
For the next filing, the useful lines are narrow. The public warrant count, 765,554 left of the original 3,159,500, sets a ceiling on how much more cash can arrive from that source at $11.50 a share. The private warrants, at $64,529,710 of the $76,778,574 liability, are the part valued with unobservable inputs, so most of the volatility in future headline losses now sits in a Level 3 estimate rather than in a quoted price. And the gap between the $9,283,188 of operating cash burn in the half and the $5,521,276 of capital spending shows which of the two is growing faster against a cash balance the company has said it considers sufficient for the foreseeable future.
