This article first appeared on GuruFocus .
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Cash Usage:$450,000 in the quarter, despite significantly ramped-up R&D and marketing spend.
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Cash Balance:Approximately $2.5 million, with zero debt.
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Recurring Revenue:Began accumulating from partner royalties (e.g., Hitachi), described as growing "slowly but surely."
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One-Time Engineering Fees:Collected in previous quarters; not present in Q3, impacting current revenue comparison.
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qONE Token Compensation:Received $22.5 million in qONE tokens plus a cash development fee for the qLABS Foundation quantum-safe crypto vault.
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IronCAP XMail Market Potential:Estimated $2.6 billion annual recurring revenue opportunity (based on 10% of ~730 million business email addresses at $3/month).
Release Date: September 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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01 Quantum Inc ( OONEF ) has a strong partner ecosystem including Hitachi, CGI, Thales, and PwC, providing global reach and cost-effective go-to-market.
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The company's Quantum AI Wrapper (QAW) technology addresses the critical AI data privacy issue and has been independently validated by Carleton University.
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01 Quantum Inc ( OONEF ) has a clean balance sheet with $2.5 million cash and zero debt, and low cash usage of $450,000 in the quarter.
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Recurring revenue from royalties has started and is expected to grow, with potential for more one-time engineering fees from new customer-funded projects.
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The company is targeting a massive $2.6 billion annual recurring revenue opportunity in quantum-safe email security with its IronCAP XMail product.
Negative Points
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01 Quantum Inc ( OONEF ) did not generate one-time engineering fees in Q3 2026, leading to lower revenue compared to previous quarters.
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Recurring revenue is still in early stages and accumulating slowly, which may not cover increasing R&D and marketing expenses.
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The AI marketplace and other key products are not expected until Q2 2027, creating uncertainty around near-term revenue growth.
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The company relies heavily on partners for sales and marketing, which may limit control over the sales process and revenue timing.
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The market for quantum-safe solutions is still emerging, and widespread adoption may take longer than anticipated, affecting growth prospects.
Q & A Highlights
Q: Can you expand upon the independent evaluation of the QAW (Quantum AI Wrapper) from Carleton University? Did it touch on the market opportunity? A: CEO Andrew Cheung explained that while the patent office vetted the uniqueness of QAW, third-party evaluation was needed to prove its efficiency. Carleton University evaluated the technology, confirming that it performs AI inference in an encrypted way while retaining reasonable and acceptable efficiency. He called this a "very, very important endorsement" for the QAW technology, addressing the major concern that homomorphic encryption would significantly slow down operations.
Q: Were the Canadian global system integrator mentioned in an earlier press release and CGI the same partner? Can you elaborate on any progress with joint promotions? A: CEO Andrew Cheung confirmed that CGI is indeed the Canadian global system integrator referenced in the earlier press release. He noted that CGI is a "huge global system integrator" whose PR department preferred not to be named in promotional press releases. He added that co-marketing activities are underway and that CGI is "very committed" to the crossover between quantum and AI.
Q: Can you elaborate on the customer-funded development projects and the timing with respect to revenue going forward? A: CEO Andrew Cheung explained that there were two customer-funded development projects in the past year one with Hitachi and one with qLABS Foundation which paid one-time engineering fees that boosted revenue in recent quarters. Moving forward, these partners will market the products themselves, and 01 Quantum will collect royalty fees as the SME. He emphasized that the most important aspect of these engineering fees is not the revenue amount but the partner's commitment, as "the partner will not commit to $1 million if they are not serious about the project."
Q: Is the opportunity with Hitachi DoMobile limited to Japan, or is it global in nature? A: CEO Andrew Cheung clarified that the Hitachi DoMobile product is strictly for the Japan market and is Hitachi's product. However, 01 Quantum also has its own post-quantum remote access product that it can market globally, which is separate from DoMobile.
Q: How rapidly is the market for Q-Day protection for digital assets and cryptocurrencies advancing? A: CEO Andrew Cheung highlighted that the HNDL (Harvest Now, Decrypt Later) attack is particularly dangerous for crypto because public keys are published on the blockchain. Hackers can collect public keys today and wait until Q-Day to decrypt and empty wallets. He noted that qLABS Foundation spent significant money on engineering to create the qVAULT and qONE token so customers can protect digital assets today. He also mentioned that qLABS is preparing a "Mythos Challenge" loading approximately $100,000 worth of qONE tokens into the qVAULT, intentionally publishing the private key, and challenging crypto hackers for 30 days to breach the protection, simulating a Q-Day scenario.
Q: Can you comment on when the AI marketplace SaaS-type product will be available and how you intend to bring it to market? Is there potential for development fee plus royalty agreements in the interim? A: CEO Andrew Cheung stated that all of the above are expected to happen. The AI marketplace is expected to be available around Q2 of 2027, with announcements of co-development with big partners. He emphasized that the crossover between AI, user data privacy, and quantum safety is "way larger" than the Hitachi and cryptocurrency projects combined, as user data privacy is the single largest obstacle preventing full AI adoption. The marketplace will operate like Hugging Face but with quantum-safe, fully encrypted AI inference. He also mentioned an upcoming government-related demonstration showing a neural network AI that can distinguish encrypted gibberish images such as identifying a military drone versus a bird or plane which is crucial for military and broader AI industry applications.
Q: What is the significance of the NVIDIA acquisition of Hugging Face and the OpenAI breach mentioned in your presentation? A: CEO Andrew Cheung noted that NVIDIA spent $14 billion to acquire Hugging Face, even though Hugging Face had been breached by an AI model from OpenAI two months prior. He used this to illustrate the value of 01 Quantum's AI marketplace approach, where both user data and AI models are protected even if the platform is compromised, unlike existing platforms.
Q: What is the market size opportunity for IronCAP XMail, and what is the go-to-market strategy? A: CEO Andrew Cheung stated that there are approximately 730 million business email addresses worldwide. If only 10% are serious about quantum safety for email and pay $3 per month, that represents a $2.6 billion annual recurring revenue potential. He noted that since IronCAP XMail is not a partner product, it requires 01 Quantum's own sales and marketing efforts, and the company is ready to enter this untapped market once marketing resources are available.
Q: What is the current financial position of the company, including cash usage and balance sheet? A: CEO Andrew Cheung reported that despite significantly ramped-up R&D and marketing, cash usage was only $450,000 in the quarter. The company maintains a clean balance sheet with approximately $2.5 million in cash and zero debt. Recurring revenue from partners has started accumulating "slowly but surely," and the company expects PQC revenue, especially AI-related business, to grow exponentially as the world scrambles for quantum safety before the end of 2029.
Q: What is the timeline for the QAW roadmap, including LLM privacy and the AI marketplace? A: CEO Andrew Cheung outlined the roadmap: Milestone 2 was already achieved at the Toronto Machine Learning Summit (TMLS) with the public demonstration of optimized privacy-preserved AI operations. By Q1 of next year (2027), the company expects to deliver a hybrid mechanism allowing large language models (LLMs) to achieve privacy. The AI marketplace is expected to be available around Q2 of 2027, with co-marketing projects with one or more partners aiming to build a privacy-preserved AI marketplace with various stages of commercial deliverables next year.
Q: What is the significance of the Trump executive order and the 2029-2030 timeline for quantum safety? A: CEO Andrew Cheung noted that quantum computing vendors like IBM, Microsoft, and Google are predicting Q-Day around 2029, echoed by Trump's June executive order mandating agencies to be quantum safe by 2030. However,
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
