Core Insights - SEALSQ Corp is focused on developing and selling semiconductors, PKI, and post-quantum technology hardware and software products [2] - The company will present its new post-quantum chip, Quantum Shield "QS7001", at the IQT Quantum + AI 2025 event [3][7] - The QS7001 chip features post-quantum cryptography with NIST-standardized algorithms and is designed for various applications including IoT and automotive systems [4][5] Company Developments - CEO Carlos Moreira will deliver the keynote titled "AI Meets Quantum: Building Unbreakable Post-Quantum Security" at the upcoming event [2][7] - The QS7001 has successfully completed the cryptographic toolbox validation stage, confirming the performance of post-quantum cryptographic algorithms [3] - SEALSQ is pursuing Common Criteria EAL5+ certification for the QS7001 with Serma labs [3] Product Features - The QS7001 is a RISC-V-based secure hardware platform that offers flexibility and quantum-resistant security [4] - Key features include low-power design, hardware accelerators for encryption, and tamper-resistant security measures [4] - The chip aims to provide quantum-resistant protection across various industries, ensuring regulatory compliance and cost efficiency [5] Future Plans - SEALSQ is also developing the QVault TPM, targeting PCs, laptops, and IoT devices, expected to launch in H1 2026 [6] - The company emphasizes the importance of building a security foundation to protect critical infrastructure and data against future threats [6][8]

Company Overview - SEALSQ Corp focuses on developing and selling semiconductors, PKI, and post-quantum technology hardware and software products [1][6] - The company is pioneering post-quantum semiconductors that provide robust protection for sensitive data across various applications, including healthcare, defense, and industrial automation [8] Upcoming Satellite Launch - SEALSQ's engineering team is preparing for the next WISeSat satellite launch scheduled for November 2025, which will deploy post-quantum-ready satellites [1] - This mission aims to enhance the security of space-based communications and financial transactions [1] Technological Innovations - The WISeSat satellite will embed SEALSQ's Post-Quantum Cryptographic (PQC) chip to establish a quantum-resilient transaction framework in orbit [2] - The integration of blockchain technology and quantum-resistant encryption aims to create the world's first PQC-enabled blockchain-secured satellite ecosystem [2] Market Growth - The global satellite communication market was valued at approximately USD 90 billion in 2024 and is projected to grow to USD 159.6 billion by 2030, with a CAGR of over 10% [3] - The Mobile Satellite Services (MSS) segment is expected to grow from USD 5.5 billion in 2023 to between USD 8.6 billion and USD 9.6 billion by 2030, with some estimates projecting USD 19.5 billion by 2032 [3] Future Plans - Following a successful mission in January 2025, SEALSQ and WISeSat plan to launch five PQC-enhanced satellites by the end of 2026, starting with the November 2025 launch [4] - Each new satellite will feature enhanced PQC hardware and deeper integration with Hedera for secure transactions [4]

Financial Data and Key Metrics Changes - For the first half of 2025, the company reported revenue of $4.8 million, consistent with the first half of 2024, reflecting a strategic transition period ahead of new technology launches [18] - Gross profit was $1.6 million, with a gross profit margin increase of 15 percentage points from 19% in the previous year to 34% [19] - Cash reserves increased to $121 million as of June 30, 2025, up from $19 million at the same point last year and $85 million at the end of 2024 [20] Business Line Data and Key Metrics Changes - The company achieved significant progress in its product and technology milestones, including the Quasar program and the QVOL TPM, with initial revenues expected in 2026 [5][7] - The TPM engagement more than doubled from 35 customers at the end of 2024 to 82 customers by mid-2025, validating the relevance of the company's roadmap [8] Market Data and Key Metrics Changes - The global embedded security chip market is projected to reach nearly $10 billion by 2028, with a scarcity of suppliers offering certified secure products, presenting a significant opportunity for the company [4] - The company is expanding its global footprint by opening a sales office in India and appointing distribution in Asia, Europe, and Turkey [9] Company Strategy and Development Direction - The company is focused on delivering quantum-resistant semiconductor solutions and secure digital infrastructure, with a strong emphasis on regulatory compliance and resilience against emerging threats [3][4] - The acquisition of IC'ALPS has strengthened the company's ASIC capabilities, particularly in the medical, automobile, and IoT industries [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong momentum and financial resources, positioning it to capitalize on growing demand for post-quantum resilient technology [23] - The outlook for 2025 anticipates revenues between $17.5 million and $20 million, representing a growth of 59% to 82% year-on-year [15][21] Other Important Information - The company has allocated $4.7 million for research and development in the first half of 2025, with a total budget of $7.2 million for the year [13][20] - A strategic project with the Swiss Army has been signed, focusing on the use of the company's satellite technology [12] Q&A Session Summary Question: Clarification on full-year R&D budget - The company mentioned a one-off expense for stock-based compensation that affected the first half's R&D spending [27] Question: Annual R&D run rate estimate - The estimated run rate for R&D, excluding the one-time expense, would be around $500,000 to $550,000 per month [36] Question: Pipeline estimate process - The pipeline estimate of $170 million includes identified opportunities evaluated with a low success percentage initially, moving through various stages until reaching design win [39]

Financial Data and Key Metrics Changes - For the first half of 2025, the company reported revenue of $4.8 million, consistent with the first half of 2024, reflecting a strategic transition period ahead of new product launches [18][19] - Gross profit was $1.6 million, with a gross profit margin increase of 15 percentage points from 19% in the previous year to 34% [19] - Cash reserves increased to $121 million as of June 30, 2025, up from $19 million at the same point last year and $85 million at the end of 2024 [20] Business Line Data and Key Metrics Changes - The company achieved significant progress in its product and technology milestones, including the Quasar program and the QVOL TPM, with initial revenues expected in 2026 [5][7] - The number of customers for TPM engagement more than doubled from 35 at the end of 2024 to 82 by mid-2025, indicating strong demand for the company's offerings [8] Market Data and Key Metrics Changes - The global embedded security chip market is projected to reach nearly $10 billion by 2028, with a scarcity of suppliers offering certified secure products, presenting a significant opportunity for the company [4] - The company is expanding its global footprint by opening a sales office in India and appointing distribution in Asia, Europe, and Turkey [9] Company Strategy and Development Direction - The company is focused on delivering quantum-resistant semiconductor solutions and secure digital infrastructure, positioning itself to capitalize on the growing demand for post-quantum technologies [3][4] - The acquisition of IC'ALPS has strengthened the company's ASIC capabilities, particularly in the medical, automobile, and IoT industries [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong momentum and financial resources, anticipating a critical year in 2026 for the quantum industry, particularly with regulatory frameworks favoring PQC adoption [22][23] - The company expects revenues for 2025 to be between $17.5 million and $20 million, representing a growth of 59% to 82% year-on-year [21][15] Other Important Information - The company has allocated $4.7 million for research and development in the first half of 2025, with a total budget of $7.2 million for the year, up from $5 million in the prior year [13][20] - The company is also investing in space technologies, deploying a secure quantum-ready satellite constellation, with plans to scale to 102 satellites by 2027 [11][12] Q&A Session Summary Question: Clarification on full-year R&D budget - The CFO clarified that the first half included a one-off expense for stock-based compensation under R&D, which would not repeat in the second half [27] Question: Annual R&D run rate estimate - The CFO estimated the underlying business R&D run rate to be around $500,000 to $550,000 per month after adjusting for the one-time expense [36] Question: Pipeline estimate process - The CFO explained that the pipeline estimate of $170 million includes identified opportunities evaluated with a low success percentage initially, moving through stages of qualification and design-in before reaching design win [39][40]

Financial Data and Key Metrics Changes - For the first half of 2025, the company reported revenue of $4.8 million, consistent with the first half of 2024, reflecting a strategic transition period ahead of new product launches [17][18] - Gross profit was $1.6 million, with a gross profit margin increase of 15 percentage points from 19% in the previous year to 34% [18] - Cash reserves increased to $121 million as of June 30, 2025, up from $19 million at the same point last year and $85 million at the end of 2024 [19] Business Line Data and Key Metrics Changes - The company achieved significant progress in its product and technology milestones, including the Quasar program and the QVOL TPM, with initial revenues expected in 2026 [5][6] - The number of customers for TPM engagement more than doubled from 35 at the end of 2024 to 82 by mid-2025, indicating strong demand for the company's offerings [8] Market Data and Key Metrics Changes - The global embedded security chip market is projected to reach nearly $10 billion by 2028, with a scarcity of suppliers offering certified secure products, presenting a significant opportunity for the company [4] - The company is expanding its global footprint by opening a sales office in India and appointing distributors in Asia, Europe, and Turkey [9] Company Strategy and Development Direction - The company is focused on delivering quantum-resistant semiconductor solutions and secure digital infrastructure, positioning itself uniquely to meet regulatory compliance and resilience against emerging threats [4][5] - The acquisition of IC'ALPS, a French ASIC design specialist, is expected to enhance the company's capabilities in post-quantum ASIC technology [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial position and momentum entering the second half of 2025, with a clear vision to lead in quantum resilience and cybersecurity [23] - The outlook for 2025 anticipates revenues between $17.5 million and $20 million, representing a growth of 59% to 82% year-on-year [20][15] Other Important Information - The company has allocated $4.7 million for research and development in the first half of 2025, with a total budget of over $7 million for the year, up from $5 million in the prior year [19][13] - The company is also investing in space technologies, with plans to expand its secure quantum-ready satellite constellation to 102 satellites by 2027 [12] Q&A Session Summary Question: Clarification on full-year R&D budget - Management confirmed that the first half included a one-off expense for stock-based compensation, which would not repeat in the second half [25][26] Question: Annual R&D run rate estimation - The estimated run rate for R&D, excluding the one-time expense, would be around $500,000 to $550,000 per month [38] Question: Pipeline estimate process - The pipeline estimate of $170 million includes opportunities identified over the next three years, with a standard process of evaluating and applying success percentages at various stages [39][40]

HALF YEAR REPORT 2025 January to June 2025 INDEX | 1. INTRODUCTION | ന | | --- | --- | | 1.1. CEO LETTER TO SHAREHOLDERS : SEALSQ MID-YEAR UPDATE AND OUTLOOK | ব | | 1.2. INTRODUCTION | 00 | | 1.3. MANAGEMENT DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND | 10 | | RESULTS OF OPERATIONS | | | 1.3.1. H1 2025 KEY FINANCIAL MILESTONES | 10 | | 1.3.2. DISCUSSION & ANALYSIS | JJ | | 2. BUSINESS UPDATE | 17 | | 2.1. PRODUCT PORTFOLIO EVOLUTION | 18 | | 2.1.1. QVAULT TPM PROGRAM UPDATE | 18 | | 2.1.2. POST-QUANTU ...

Core Insights - SEALSQ Corp reports interim financial results for H1 2025, highlighting a strong balance sheet and operational milestones achieved, with a focus on growth opportunities for 2026 and beyond [1][4][7] Financial Performance - H1 2025 revenue stands at $4.8 million, consistent with H1 2024, reflecting a strategic transition ahead of new product launches [5] - Cash reserves increased to $121 million as of June 30, 2025, up from $19 million a year earlier [5] - Operating loss for H1 2025 was $21.2 million, primarily due to a one-off stock-based compensation charge of $9.9 million [5] - FY 2025 revenue guidance is set between $17.5 million and $20.0 million, indicating year-on-year growth of 59% to 82% [5] Growth Catalysts - The company anticipates 2026 will see further growth driven by new revenue streams, including the full-year impact of the IC'ALPS acquisition and the launch of the QVault™ TPM post-quantum resistant chip [5][6] - A new business pipeline of $170 million has been identified for 2026-2028, driven by demand for quantum-resistant security solutions [5][6] Strategic Developments - SEALSQ completed the acquisition of IC'ALPS, enhancing its custom chip and IP development capabilities [12] - The Quantix Edge Security Joint Venture is expected to contribute to revenue growth and global expansion [4][12] - Significant investments in R&D amounting to $4.7 million in H1 2025, with a total of over $7 million allocated for the year [5][16] Market Positioning - SEALSQ is positioned to lead in the transition to quantum-resilient security standards, with a focus on post-quantum technology solutions [6][22] - The global embedded security chips market is projected to reach $7.3 billion in 2025, presenting a significant opportunity for SEALSQ [8] Regulatory Environment - SEALSQ's product portfolio aligns with emerging regulatory requirements, including the EU Cyber Resilience Act and U.S. Cyber Trust Mark, positioning the company favorably in the market [18]

Core Insights - SEALSQ Corp is expanding its Semiconductor Personalization Center to enhance secure deployment of trusted chips and quantum-resistant devices for critical industries globally [4][6] - The center personalizes chips for various sectors, ensuring compliance with industry-specific security standards [5][6] - SEALSQ aims to create a Quantum Corridor, interconnecting its facilities to provide a resilient infrastructure against quantum threats [8][15] Company Strategy - The Semiconductor Personalization Center is designed to uniquely program and customize chips, embedding cryptographic identities for secure operation [5][6] - SEALSQ's strategy includes global expansion with new facilities planned in locations such as Spain, the USA, and the UAE [6] - The company focuses on providing sovereign, quantum-resistant security solutions across Europe, North America, and the Middle East [7] Technology and Innovation - SEALSQ integrates Post-Quantum Cryptography into its semiconductor solutions to protect against emerging quantum computing threats [9][10] - The center operates under a Common Criteria Certified Environment (CCEAL5+), ensuring the highest security standards [6] - The company supports satellite applications through its WISeSat.Space initiative, personalizing semiconductors for secure communications [6] Market Position - SEALSQ is positioned as a leader in Post-Quantum Technology, addressing urgent security challenges posed by advancements in quantum computing [9][10] - The company emphasizes the importance of secure supply chain management by controlling the chip personalization process [6] - Clients benefit from low-latency, sovereign, and scalable access to SEALSQ's personalization and security services [15]

Core Insights - SEALSQ Corp is making significant advancements in developing quantum-resistant hardware security modules, positioning itself as a leader in the post-quantum technology space [2][4][8] Industry Context - The U.S. Government has mandated compliance with quantum-resistant cryptography for National Security Systems by January 1, 2027, highlighting the urgency for organizations to adopt post-quantum cryptography [3] - The National Institute of Standards and Technology (NIST) has finalized the first post-quantum cryptography standards, which will form the foundation for secure infrastructures in the future [3] Company Positioning - SEALSQ is on track to deliver the first post-quantum cryptography-capable Trusted Platform Module (TPM) samples, integrating advanced algorithms directly into the chip's design for enhanced security and efficiency [4][5] - Unlike competitors, SEALSQ's QVault TPM will provide full post-quantum cryptography capabilities across all functions, ensuring faster and more secure cryptographic operations [5] Applications and Use Cases - Trusted Platform Modules are essential for modern security architectures, supporting secure boot processes, cryptographic key storage, and device authentication, with applications in various critical industries [6] - The introduction of quantum-resistant TPMs will extend the use cases of TPMs, safeguarding sensitive infrastructures and digital identities against future quantum threats [6] Leadership Perspective - The CEO of SEALSQ emphasized the importance of providing trusted hardware that meets current and future security standards, indicating a proactive approach to the challenges posed by quantum computing [7]

Core Insights - SEALSQ Corp has announced a roadmap to protect cryptocurrencies from quantum computing threats, emphasizing the importance of post-quantum technology in securing digital assets [1][6][13] - The VaultIC 408 Secure Microcontroller has achieved NIST FIPS 140-3 Security Level 3 certification, reinforcing SEALSQ's position in secure IoT and smart grid solutions [7][8][11] Quantum Threat Understanding - Quantum computers are expected to undermine traditional cryptographic systems, posing a systemic risk to the global cryptocurrency market, with billions of dollars at stake [2] - Public-key cryptosystems are particularly vulnerable, as demonstrated by the potential for quantum computers to break schemes like ed25519 [3] Cryptographic Solutions - SEALSQ is integrating post-quantum algorithms into blockchain protocols to enhance transaction validation and wallet authentication [6] - The company is also providing hardware-based protection for crypto wallets through quantum-resistant secure element chips and Trusted Platform Modules (TPMs) [9] Key Management and Security - SEALSQ is developing a next-generation Public Key Infrastructure (PKI) platform that incorporates quantum-safe certificates to protect private keys across exchanges and custody services [9] - The integration of post-quantum cryptography will secure consensus mechanisms such as Proof-of-Work and Proof-of-Stake against quantum threats [9] Market Position and Growth - The IoT market is projected to reach $1.1 trillion by 2030, and the Smart Grid market is expected to grow at a 20.8% CAGR through 2032, positioning SEALSQ to capture rising demand for secure semiconductors [12] - SEALSQ's VaultIC 408 is designed for various applications, including smart homes, industrial automation, and healthcare, ensuring robust data integrity and device security [10]