Pasqal (NASDAQ:PSQL) reported third-quarter 2026 revenue of EUR 3.3 million, down from EUR 5.7 million a year earlier, as growth in quantum processing unit services was offset by the absence of system sales.
QPU-related services revenue rose 53% to EUR 3.1 million from EUR 2 million, including initial hours consumed under the company’s quantum computing as a service arrangement with Aramco, CFO Stéphane Rougeot said. The year-earlier quarter included EUR 3.2 million in QPU sales revenue; Pasqal recorded no such sales in the latest period.
CEO Wasiq Bokhari acknowledged that the quarter was not strong in terms of reported revenue and the order book, but said the company had expanded its pipeline of enterprise, sovereign and public-sector opportunities. Pasqal’s order book, defined as firm orders not yet fulfilled, stood at EUR 69.8 million at the end of September, roughly unchanged from the end of June.
Aramco engagement and commercial pipeline
Bokhari said Pasqal’s QPU at Aramco’s data center in Dhahran was being used in line with expectations and that the number of use cases was growing. The CEO said the company was seeing “encouraging signals” of a return on investment relative to classical computing resources.
Rougeot said Pasqal had close to 10 use cases underway with Aramco. More advanced projects were consuming more QPU hours, while newer ones required work to define algorithms and demonstrate returns before usage increased, he said.
Pasqal is pursuing deeper relationships with existing customers while using those engagements to reach new clients in its priority industries: energy, material simulation and financial services. Bokhari said the company aims to build a library of business solutions that can be reused with other customers in the same sectors.
In Saudi Arabia, Pasqal announced an agreement with Eleven Ventures to form a commercial joint venture to deploy and scale its systems across the kingdom and the broader Middle East and North Africa region. It also signed a research collaboration with KACST’s National Center for Quantum Technologies focused on quantum solutions related to cryptography.
In materials, Pasqal formed a partnership with USA Rare Earth and Riven Systems to develop separation technology and potential extracting molecules for rare earth elements. With Saudi-based True Nexus, Pasqal said it used its neutral atom QPUs to encode protein structures tied to gelation, a process that gives foods structure and texture.
In financial services, Bokhari cited the company’s partnership with Crédit Agricole CIB in portfolio optimization and risk modeling. Initial production use cases are targeted as early as 2028, he said.
System deliveries and technology roadmap
Pasqal has three systems in production, some for internal use, and expects some deliveries toward year-end, Rougeot said. He reported no particular delivery issues but said commissioning and customer acceptance of an on-premise system generally take at least 12 months after an order, sometimes longer.
Rougeot declined to provide bookings guidance. He said QPU sales typically add a larger amount to the order book upfront but take at least a year to become revenue, while sales of QPU hours generally convert to revenue over a few months as customers develop and advance their use cases.
On technology, Bokhari reiterated Pasqal’s goal of delivering more than 10,000 physical qubits and more than 200 logical qubits with six nines of logical fidelity by the end of 2029. Over the next 12 months, he said, the company expects to demonstrate logical registers running error correction and declining logical error rates as it implements different codes.
Pasqal is also working to scale photonic chip technology that controls atoms with laser light. Bokhari said moving more of that control onto a chip could shrink the optical footprint of future processors by up to 50 times. In October, the company made an AI-assisted workflow available on Pasqal Cloud, allowing researchers to use agentic coding tools with its cloud QPUs, he said.
Cash and spending plans
Pasqal ended September with EUR 312.8 million in bank cash following its business combination. Government grant income was EUR 1 million for the quarter, up from EUR 0.7 million a year earlier.
Rougeot said hiring was on track, though taking slightly longer than desired, with the main focus on commercial roles. He said annual cash burn was between EUR 40 million and EUR 50 million in 2024 and 2025, and that he expected some increase but not a significant one. The CFO said the company’s cash provided several years of runway, until at least the end of the decade.
About Pasqal (NASDAQ:PSQL)
Pasqal is a France-based quantum computing company that develops quantum processors, software and application solutions based on neutral-atom technology. Its systems use individually controlled atoms to perform quantum computations and are designed to address complex problems that can be difficult to solve with conventional computing.
The company provides quantum computing hardware and access to its technology through cloud-based platforms, along with software tools that enable customers and researchers to develop, test and run quantum algorithms.
