Final results for the year ended 30 April 2026

Quantum Base grew revenue sharply but remains loss-making despite operational improvements and new contracts.

What the company is saying

Quantum Base frames FY26 as a year of commercial and operational progress, highlighting a successful £4.3 million fundraise in December 2025 and a near twentyfold revenue increase to £0.47 million, driven by ongoing work with an international security-printer (Customer #1) and a new long-term agreement with a global art registry startup (Customer #2). The company emphasizes product development, notably the launch of the v2.0 Q-ID® Scanner for iOS and Android, and claims major reductions in customer onboarding and print-trial times. Management attributes the narrowed operating loss (down £2.7 million to £2.4 million) to higher gross profit, a £2.7 million reduction in share-based payment charges, and the absence of prior-year listing costs, partially offset by higher staff and administrative expenses. The announcement stresses expanded intellectual property, improved governance, and a strengthened finance function, with Anthony Clayden stepping down as Interim Head of Finance at October’s end and a permanent replacement sought. The tone is confident, repeatedly referencing the scale of the counterfeiting problem ($2.8 trillion globally) and regulatory tailwinds, but operational and commercial specifics are limited.

What the data suggests

The company’s revenue rose from £0.02 million in FY25 to £0.47 million in FY26, a substantial increase but still modest in absolute terms. Operating loss improved from £5.1 million to £2.4 million, mainly due to a £0.4 million gross profit increase, a £2.7 million drop in share-based payment charges, and the elimination of £0.9 million in listing costs, though staff and administrative costs rose by £0.2 million and £1.1 million respectively. Adjusted EBITDA loss increased by £0.6 million to £1.9 million, reflecting higher ongoing operating costs. Cash and cash equivalents grew by £0.8 million to £3.1 million, supported by the December fundraise. Capitalised development and patents doubled to £3.3 million, with £0.9 million in internal staff costs, £0.7 million in external development, and £0.1 million in patents. Net cash outflow from operations improved by £0.9 million to £1.3 million. Total assets rose by £2.1 million to £6.6 million, and net assets by £2.0 million to £6.0 million. Operational claims about onboarding and print-trial speed are supported by stated reductions (from four to six weeks down to two to three days for print trials, and three to four months down to three to four weeks for onboarding), but no customer usage or contract value figures are disclosed. The financial disclosures are detailed, but evidence of scalable commercial traction remains limited.

Analysis

The announcement presents a positive tone, highlighting strong revenue growth (from £0.02m to £0.47m), a narrowed operating loss, and successful fundraising. These are supported by detailed financial disclosures, including operating loss, adjusted EBITDA loss, and cash position. However, the company remains loss-making, with adjusted EBITDA loss increasing and ongoing capitalised development spend. Many operational claims—such as deepened delivery with Customer #1, the long-term agreement with Customer #2, and improved onboarding—are described qualitatively without granular supporting data or quantified commercial impact. Forward-looking statements about expanding the customer base, pipeline conversion, and market tailwinds are prominent, but their realisation is not imminent and depends on future execution. The capital intensity flag is triggered by the ongoing investment in development and patents, with benefits not yet translating into profitability. Overall, the narrative is somewhat inflated relative to the modest scale of realised commercial progress.

Risk flags

• ●Sustained losses and negative adjusted EBITDA highlight ongoing cash burn, with FY26 operating loss at £2.4 million and adjusted EBITDA loss at £1.9 million. Without further revenue growth or cost control, future dilution or funding needs are likely.
• ●Commercial traction is unproven beyond two customers, with revenue still below £0.5 million despite product launches and operational improvements. The absence of multi-year contract values, customer usage metrics, or pipeline conversion details raises questions about scalability.
• ●Capital intensity remains high, as capitalised development and patents doubled to £3.3 million, indicating continued heavy investment in R&D and IP with uncertain near-term payback.
• ●Key personnel risk is present, with the Interim Head of Finance stepping down at October’s end and no permanent replacement yet named. This could affect financial oversight and continuity.
• ●Operational improvements are described in terms of process speed, but no quantitative evidence is provided for customer adoption, satisfaction, or revenue impact from these changes.

Bottom line

Quantum Base’s FY26 results show strong revenue growth and improved operating loss, but the business remains loss-making and dependent on ongoing capital raises. The company is making tangible progress in product development and claims major reductions in customer onboarding and print-trial times, yet commercial traction is limited to two customers and less than £0.5 million in annual revenue. Heavy investment in development and IP continues, and the company’s ability to convert technical advances into recurring, scalable revenue is unproven. The upcoming finance leadership transition adds uncertainty. Investors should watch for evidence of new contract wins, customer expansion, and a path to breakeven. The most important takeaway is that while operational metrics are improving, material commercial scale and profitability have yet to be demonstrated.

Announcement summary

(AIM: QUBE) Quantum Base Holdings plc, a United Kingdom-based quantum science company, announced its audited final results for the year ended 30 April 2026. The company completed a successful fundraise in December 2025, raising gross proceeds of £4.3 million. Revenue increased by £0.45 million to £0.47 million for FY26, compared to £0.02 million in FY25, driven by continued revenue from Customer #1, an international security-printer, and the addition of Customer #2, a startup focused on a global art registry. The operating loss decreased by £2.7 million to £2.4 million (FY25: £5.1 million), mainly due to a £0.4 million increase in gross profit, a £2.7 million reduction in share-based payment charges, and the absence of prior-year listing costs (£0.9 million), partially offset by approximately £0.2 million higher staff costs and £1.1 million higher other administrative costs. Adjusted EBITDA loss increased by £0.6 million to £1.9 million (FY25: £1.3 million), reflecting higher staff and operating costs, partly offset by increased gross profit. Cash and cash equivalents increased by £0.8 million to £3.1 million (FY25: £2.2 million), following the December 2025 fundraise. Capitalised development and patents increased by approximately £1.6 million to approximately £3.3 million (FY25: £1.7 million), including £0.9 million of internal development staff costs, £0.7 million of external development costs, and £0.1 million of patents. The share-based payment charge reduced by £2.7 million to £0.04 million (FY25: £2.8 million). Net cash outflow from operating activities decreased by £0.9 million to £1.3 million (FY25: £2.2 million). Total assets increased by £2.1 million to £6.6 million (FY25: £4.5 million), and net assets increased by £2.0 million to £6.0 million (FY25: £4.0 million). The company launched the initial version of v2.0 Q-ID® Scanner for iOS and, post-period, released v2.0 Q-ID® Scanner on Android, broadening handset compatibility. Customer implementation processes were significantly improved, reducing print-trial turnaround from approximately four to six weeks to two to three days, and programme onboarding from approximately three to four months to three to four weeks. The company expanded its intellectual property portfolio, with further patents granted or progressing towards grant. Phillip Speed was appointed Non-Executive Director from 28 July 2025 until his resignation on 18 August 2026. Anthony Clayden, Interim Head of Finance, is to step down at the end of October 2026, with the company seeking a permanent Head of Finance. The company continues to implement the QCA Corporate Governance Code and has formal Audit, Remuneration, and Nomination Committees. Quantum Base enters FY27 with two contracted customers in distinct end markets and aims to expand its customer base, deliver for existing customers, progress implementation of the Customer #2 agreement, convert pipeline opportunities, and reduce onboarding time and technical resource requirements. The company cites a Frontier Economics 2017 report estimating global counterfeiting costs at more than $2.8 trillion annually. Growing demand for smartphone-based authentication and regulatory shifts, such as the EU Digital Product Passport and GS1 Sunrise 2027, are expanding Quantum Base’s target market.

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