Q2 and half-year 2026 financial report (management's discussion and analysis)

STRONG REVENUE INCREASE IN THE FIRST HALF OF 2026, DRIVEN BY HIGHER SALES OF ON-PREMISE QUANTUM COMPUTERS.

Six Months ended June 30, 2026 in brief

Three Months ended June 30, 2026 in brief

CEO Review

The first half of 2026 marked an important period in IQM’s development. We continued to execute on our strategy of bringing full-stack quantum computers directly into high-performance computing centers, research institutions and enterprise environments. Our progress during the period reinforces our founding thesis: quantum computers will increasingly operate as specialized accelerators alongside classical CPUs, GPUs and AI infrastructure.

Our commercial scale continued to increase. As of June 30, 2026, since inception we have sold 26 full-stack quantum computers globally, built more than 50 systems and delivered 17 systems to customers, with a further eight systems in production. Our customers include some of the world’s leading supercomputing centers, research institutions and enterprises. Four of the world’s ten largest supercomputing centers use IQM full-stack quantum computers, demonstrating the performance, reliability and relevance of our technology.

During the six months ended June 30, 2026, we expanded into several new markets, including Japan, and Spain through new customer wins and customer engagements. Additionally, we have completed customer deliveries in the United States and Europe. Following deliveries in late 2025 to CINECA supercomputing center in Italy as well as to universities in Finland, Germany and Poland, we have, in the first six months of 2026, delivered to the U.S. Department of Energy’s Oak Ridge National Laboratory in Tennessee. Revenue increased by 47% to EUR 8.9 million for the six months ended June 30, 2026 as compared to EUR 6.0 million for the six months ended June 30, 2025.

Our order backlog remained exceptionally strong during the six months ended June 30, 2026. We entered the year with an order backlog of EUR 67.3 million. During the six months ended June 30, 2026, we added a further EUR 10.7 million through new order intake, while EUR 8.9 million was converted into revenue. As a result, our order backlog increased to EUR 69.1 million as at June 30, 2026.

Since the end of the six months ended June 30, 2026, IQM was selected to integrate a quantum computer into the LUMI AI Factory, connected to one of the world’s leading supercomputers. This added a further EUR 33.0 million to our order backlog, bringing the total to more than EUR 102.1 million. .This subsequent increase demonstrates the continued demand for our quantum computing solutions and provides us with greater visibility over future revenue.

During the period, we continued to invest in our manufacturing capabilities. We are investing more than EUR 40 million in the expansion of our fabrication facility in Espoo, Finland. This investment will double our cleanroom capacity and establish the capability to produce up to 30 full-stack quantum computers annually. These investments will support our ability to meet increasing customer demand and execute against our long-term technology roadmap.

Our reported operating loss amounted to EUR 30.9 million for the three months ended June 30, 2026 and EUR 60.5 million for the six months ended June 30, 2026. The operating loss reflects the significant investments we continue to make in research and development, our product roadmap and the capabilities required to scale our business. We believe our product roadmap is world-leading, and its implementation remains well on track. In addition, we incurred one-off expenses during the six months ended June 30, 2026 in connection with the business combination, which closed in July 2026, and the dual listing, which adversely affected our operating result.

We also continued to strengthen our position at the intersection of quantum computing, artificial intelligence and high-performance computing. Our systems are designed to integrate directly into customers’ existing computing environments rather than operate as standalone machines. Partnerships with NVIDIA, AWS and HPE support this integration and enable IQM systems to operate alongside classical CPUs and GPUs in hybrid computing architectures.

Shortly after the reporting period, we completed our business combination and entered the public markets under the ticker IQMX. Trading commenced on the Nasdaq Global Select Market in New York, followed by a listing on Nasdaq Helsinki. Completing the transaction within five months of its announcement reflects the organizational strength and execution capability we have built over recent years. The dual listing is an important milestone for IQM and provides an enhanced platform to attract international investment, expand our global presence and pursue our long-term growth strategy.

Dr. Jan Goetz
Co-Founder and CEO

Listings on Nasdaq (U.S.) and Nasdaq Helsinki

On February 22, 2026, we entered into a Business Combination Agreement with Real Asset Acquisition Corp (“RAAQ”), a special purpose acquisition company whose securities were listed on Nasdaq. On July 2, 2026, IQM’s American Depositary Shares commenced trading on the Nasdaq Global Select Market under the ticker symbol “IQMX”. As a result, IQM became the first European quantum computing company listed on a major U.S. stock exchange.

The funds made available to the combined group primarily comprised the remaining proceeds held in RAAQ’s trust account after giving effect to shareholder redemptions and the payment of deferred underwriting commissions, funds held by RAAQ outside the trust account and proceeds from the related private investment in public equity transactions, net of transaction expenses.

Separately from the business combination and related US Listing, the Company pursued an initial listing in Finland on the Nasdaq Helsinki exchange. On July 3, 2026, the listing was successfully completed, and the Company’s shares commenced trading on Nasdaq Helsinki.

Key Factors Impacting Our Performance

We believe that the performance and future success of our business depend on several factors. While these factors present significant opportunities, they also pose risks and challenges that we must address to improve our results of operations.

Technologically Advanced Product Portfolio

Our success depends in part on our ability to deliver high-performance quantum computers and related solutions designed to meet the evolving requirements of our customers, including research institutions, governments and enterprises. We specialize in building quantum computers for high-performance computing, research applications and industry use-cases, and our technology focuses on scalable architecture and integrated quantum processors designed for fault-tolerant systems. Our technology roadmap includes advancing qubit fidelity, error correction, and modular designs to enable large-scale quantum systems. We intend to invest heavily in research and development to extend our technology leadership and advance our portfolio of quantum computers.

Expansion of Partnerships

Our success also depends in part on our ability to identify and enter into strategic partnership opportunities to accelerate the development of our technological capabilities and the broader quantum computing ecosystem. To date, we have established partnerships with major research institutions and government agencies across Europe, North America and Asia. We are also working on projects with various industrial partners to develop solutions for quantum-based applications in material science, finance, energy, chemistry, and logistics. We intend to continue to seek new partnership opportunities that we believe accelerate our technology roadmap and growth strategy.

Customer Acquisition and Retention

Our success in achieving our growth objectives will depend on our ability to increase adoption of quantum computing technology and sales of our quantum computers. We believe that we are well-positioned to benefit from the development of quantum computing technology. As adoption of quantum computing technology increases, we believe the intuitive and accessible user experience provided by our quantum computers will enable us to attract new customers and commercial partners. As we execute on our strategy, we believe the reliability

and use of our platform will create virtuous network effects, driving adoption of quantum computing technologies, which will further encourage investment in quantum computing and thereby accelerate our product roadmap.

Our ability to attract new and retain existing customers will depend on a number of factors, including the technological capabilities of our quantum computers, the offerings of our competitors and the effectiveness of our go-to-market and partnership activities. We will need to dedicate significant resources to further develop our commercial and manufacturing capabilities.

Industry Trends

The quantum computing market is projected to grow significantly as industries seek solutions for optimization, material science, and cryptography. To date, we have benefited from Europe’s strong push for technological sovereignty and quantum investments. However, the industry is characterized by rapid technological development, and global competition from North American and Asian players with larger funding pools poses a risk. Our success will depend on our ability to achieve quantum advantage and demonstrate practical use cases for our quantum computers. Additionally, the demand for talent is increasing as the quantum computing market grows, creating challenges for companies in the industry to attract and retain talent, leading to talent shortages. Classical computing is also advancing technologically which could delay quantum adoption.

Availability of Capital

The success of our growth strategy is contingent upon significant and sustained capital investment to achieve the necessary technological and commercial scale. We intend to invest significantly to accelerate our technology roadmap and scale our manufacturing processes. Realizing our growth objectives will require material financial commitment to both hardware infrastructure development and the expansion of our scientific and commercial teams to support and service a global customer base. Our ability to secure adequate capital will therefore be critical to achieve our growth objectives and facilitate enterprise adoption of quantum computing.

Macroeconomic Environment

Our results of our operations may vary based on the impact of changes in the global economy. Negative conditions in the general economy in countries where we operate, including conditions resulting from changes in gross domestic product growth, inflation, interest rates, financial and credit market fluctuations, international trade relations and tariffs, pandemics, political turmoil, natural catastrophes, warfare, terrorist attacks, and geopolitical impacts on global supply chains, could negatively affect our business, including progress toward the development of quantum computing. It is not possible at this time to estimate the long-term impact that these and related events could have on our business, as this will depend on future developments that are highly uncertain and cannot be predicted. If any such adverse conditions occur, persist and deepen, our customers may slow their spending on quantum computing technology and we may experience a decrease in demand for our products. We may also experience an inability to access additional capital if needed which could negatively impact our liquidity.

Key Components of Results of Operations

Revenue from Contracts with Customers

We primarily generate revenue from sales of our on-premises quantum computer systems, including co-development projects, and related professional services such as training, maintenance and technical support. In addition, we generate revenue from cloud-based usage of our quantum computers.

We recognize revenue from sales of customized quantum computer systems over time and recognize at a point in time when control transfers to the customer for standardized products or system sales. Revenue from cloud-based access is recognized based on usage. Revenue from service, maintenance, and technical support is recognized over time on a straight-line basis over the contract term. Training revenue is either recognized as part of performance obligation of a delivery project or as separate performance obligation at point in time when the service is delivered.

Cost of Revenue

Cost of revenue consists primarily of all direct and indirect expenses related to delivering projects, which typically involve the design, fabrication, delivery, and installation of advanced quantum computing systems. The costs are directly linked to the performance obligations under customer contracts. Cost of revenue also includes depreciation and amortization of assets which support the delivery of our projects, as well as costs related to

logistics and warranty. In addition, there are allocated overhead costs for corporate functions and related costs such as depreciation, healthcare benefits, training and software.

Operating Expenses

Selling expenses

Selling expenses consist primarily of personnel-related expenses, including salaries, bonuses, benefits, stock-based compensation and social security for sales and business development personnel, marketing activities, advertising, travel expenses related to sales activities, external agency support, and public engagement initiatives. Selling expenses also include costs related to customer success teams and technical support staff. In addition, a portion of overhead costs are allocated to selling expenses for corporate functions and related costs such as depreciation, healthcare benefits, training and software.

General and Administrative Expenses

General and administrative expenses primarily consist of personnel-related expenses, including salaries, bonuses, benefits, stock-based compensation and social security for personnel in corporate functions such as finance, legal, human resources, and executive management. Fees for external consultants and professional service providers supporting strategic and compliance-related activities as well as communications and enterprise IT infrastructure costs are also included in general and administrative expenses. There is also a portion of overhead costs allocated to general and administrative expenses for corporate functions and related costs such as depreciation, healthcare benefits, training and software.

Research and Development Expenses

Research and development expenses relate to the advancement of our quantum computing technologies and system integration capabilities. These include personnel-related expenses, including salaries, bonuses, benefits, stock-based compensation and social security for physicists, engineers, and other technical staff involved in hardware, software, and algorithm development related to our quantum computers. Research and development costs also include expenses for specialized equipment, development software, as well as infrastructure costs such as computer resources, hosting services, and data centers which support these activities. Additionally, a portion of overhead costs are allocated to research and development expenses for corporate functions and related costs such as depreciation, healthcare benefits, training and software.

Impairment losses on financial assets

Impairment losses on financial assets include the allowance for expected credit losses on trade receivables.

Other operating income

Other operating income consists primarily of income from government grants.

Result of Operations

Comparison of the Periods Ended June 30, 2026, and 2025

The following table sets forth our results of operations for the periods presented:

Revenue from Contracts with Customers

Revenue increased by EUR 2.8 million, or 47%, to EUR 8.9 million for the six months ended June 30, 2026 as compared to EUR 6.0 million for the six months ended June 30, 2025. Revenue increased by EUR 1.4 million, or 28%, to EUR 6.7 million for the three months ended June 30, 2026 as compared to EUR 5.2 million for the three months ended June 30, 2025.

The increases were primarily driven by standardized quantum computer system delivery and higher continued progress on customer projects for which revenue is recognized over time, compared to the corresponding periods in 2025.

We expect revenue to grow as we deliver against both our order backlog and new orders and achieve milestones on our technology roadmap.

Cost of Revenue

Cost of revenue increased by EUR 1.6 million, or 45%, to EUR 5.3 million for the six months ended June 30, 2026 as compared to EUR 3.6 million for the six months ended June 30, 2025. Cost of revenue increased by EUR 0.5 million, or 15%, to EUR 3.6 million for the three months ended June 30, 2026 as compared to EUR 3.2 million for the three months ended June 30, 2025.

The increases were primarily in line with the higher revenue generated during the respective periods and reflected the increased use of personnel and material resources required to support higher sales volumes and progress on customer projects.

We expect cost of revenue to increase with growing sales of our quantum computer systems.

Operating Expenses

Selling Expenses

Selling expenses increased by EUR 4.7 million to EUR 7.0 million for the six months ended June 30, 2026 as compared to EUR 2.4 million for the six months ended June 30, 2025. Selling expenses increased by EUR 2.4 million to EUR 3.8 million for the three months ended June 30, 2026 as compared to EUR 1.4 million for the three months ended June 30, 2025.

The increase for the six months ended June 30, 2026 was primarily due to an increase of EUR 2.2 million in personnel-related costs, an increase of EUR 0.5 million in consulting fees, and an increase of EUR 0.2 million in conference expenses, trade shows and other marketing related events.

The increase for the three months ended June 30, 2026 was mainly attributable to higher personnel-related costs of EUR 1.4 million, consulting fees of EUR 0.3 million, and expenses for conferences, trade shows and other marketing-related events of EUR 0.1 million.

We expect selling expenses to increase due to a scale up in the sales force as well as higher marketing expenses.

General and Administrative Expenses

General and administrative expenses increased by EUR 19.3 million to EUR 26.2 million for the six months ended June 30, 2026 as compared to EUR 6.9 million for the six months ended June 30, 2025. General and administrative expenses increased by EUR 11.1 million to EUR 15.5 million for the three months ended June 30, 2026 as compared to EUR 4.4 million for the three months ended June 30, 2025.

The increase in the six months and three months ended June 30, 2026 were primarily attributable to approximately EUR 9.9 million of transaction costs incurred in connection with the business combination and the commencement of US trading, the PIPE agreements and the Finnish initial public offering, as discussed above.

Ordinary general and administrative expenses also increased during the period, primarily due to EUR 5.0 million higher personnel-related expenses resulting from the expansion of the workforce and increased share-based payment expenses. In addition, accounting and audit expenses increased by EUR 1.6 million, mainly reflecting the enhanced financial reporting, audit and regulatory requirements associated with becoming a publicly listed company.

We expect general and administrative expenses to increase due to the overall growth of the business. However, this will be partially offset by a decrease in listing related costs.

Research and Development Expenses

Research and development expenses increased by EUR 8.4 million, or 33%, to EUR 34.0 million for the six months ended ended June 30, 2026 as compared to EUR 25.7 million for the six months ended June 30, 2025. Research and development expenses increased by EUR 4.5 million, or 38%, to EUR 16.3 million for the three months ended June 30, 2026 as compared to EUR 11.8 million for the three months ended June 30, 2025.

The increase in research and development expenses was primarily driven by the continued expansion of the Company’s quantum computing development activities. This included higher personnel-related costs as well as increased expenditure for prototype development, testing, laboratory equipment and materials.

We expect research and development expenses to increase due to overall growth of the business and progress on our technology roadmap.

Impairment Losses on Financial Assets

Expected credit losses on trade receivables and contract assets decreased by EUR 24 thousand, resulting in a net reversal of the expected credit loss allowance of EUR 20 thousand for the six months ended June 30, 2026, compared with expected credit losses of EUR 4 thousand for the six months ended June 30, 2025.

For the three months ended June 30, 2026, movement allowance on financial assets and contract assets increased by EUR 138 thousand to EUR 133 thousand, compared with a reversal of movement allowance of EUR 4 thousand for the three months ended June 30, 2025.

The decrease for the six months ended June 30, 2026 primarily reflects the reversal of previously recognized movement allowances following improved collection expectations and the settlement of certain outstanding receivables. The increase for the three months ended June 30, 2026 was mainly driven by the recognition of additional movement allowances on specific trade receivables and contract assets based on updated assessments of their recoverability.

Other Operating Income

Other operating income increased by EUR 2.2 million to EUR 3.1 million for the six months ended June 30, 2026 as compared to EUR 0.9 million for the six months ended June 30, 2025. Other operating income increased by EUR 1.1 million to EUR 1.7 million for the three months ended June 30, 2026 as compared to EUR 0.6 million for the three months ended June 30, 2025.

The increase was mainly driven by higher grant income resulting from newly funded research and development projects.

Financial Result

Finance Income

Finance income increased by EUR 4.1 million to EUR 5.1 million for the six months ended June 30, 2026 as compared to EUR 1.0 million for the six months ended June 30, 2025. Finance income increased by EUR 1.1 million to EUR 1.7 million for the three months ended June 30, 2026 as compared to EUR 0.6 million for the three months ended June 30, 2025.

The increase was largely driven by fair value gains of EUR 4.1 million on financial assets measured at fair value through profit or loss, arising from fluctuations in the foreign currency component of the PIPE subscription agreements entered into during the six months ended June 30, 2026.

Finance Costs

Finance costs increased by EUR 15.6 million to EUR 19.4 million for the six months ended June 30, 2026 as compared to EUR 3.8 million for the six months ended June 30, 2025. Finance costs increased by EUR 6.7 million to EUR 7.3 million for the three months ended June 30, 2026 as compared to EUR 0.6 million for the three months ended June 30, 2025.

The increase was primarily attributable to a share price-driven increase in the fair value of the Kreos Loan warrants of EUR 5.1 million, an increase of EUR 9.0 million in the fair value of the derivative financial liability relating to the conversion option embedded in the Aalto loan agreement, and revisions to the estimated future cash flows of the Kreos Loan.

As the Company exercised its prepayment option, the Kreos loan agreement was terminated. As a result, the deferred transaction costs attributable to Tranche B in the amount of EUR 2,196 thousand were expensed in full as of June 30, 2026.

Key Operating Metric

In addition to the measures presented in our consolidated financial statements, we use Order Backlog as an indicator of future revenues from existing signed orders. This approach provides management with a transparent bridge from confirmed orders to revenue, linking sales performance with revenue realization, while remaining consistent with the external definition of backlog as confirmed, not yet recognized orders.

We believe this metric provides useful information for the market to understand and evaluate our results of operations in the same manner as our management team.

Order Backlog represents the value of binding customer orders that have been confirmed but not yet recognized as revenue at a point in time. We calculate Order Backlog as the point in time balance of Order Intake less recognized revenue. Order Intake represents the total monetary value of binding customer orders signed during the period, excluding pipeline or expected orders, and reflects new business secured and future revenue generation.

This metric is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with IFRS Accounting Standards, and may differ from similarly titled metrics or measures presented by other companies. Certain judgments and estimates are inherent in our processes to calculate this metric.

The table below sets forth our Order Backlog (movement) as of June 30, 2026 and June 30, 2025.

Order Backlog increased by EUR 1.8 million, or 3%, to EUR 69.1 million during the six months ended June 30, 2026. The Group calculates Order Backlog as the point in time balance of Order Intake less recognized revenue. Order Intake represents the total monetary value of binding customer orders signed during the period, excluding pipeline or expected orders, and reflects new business secured and future revenue generation. For the six months ended June 30, 2025, Order Intake amounted to EUR 51.5 million while revenue recognition was comparatively low and amounted to EUR 6.0 million. That strong Order Intake in 2025 is still feeding revenue today, with recognized revenue rising by 47% to EUR 8.9 million for the six months ended June 30, 2026.

In July 2026, after the reporting date, the Company entered into an additional customer agreement for the development, manufacture and delivery of quantum computing hardware, with a contract value of EUR 33.0 million.

Liquidity and Capital Resources

As of the reporting date on June 30, 2026, we held cash of EUR 113.4 million and have, to-date, primarily funded our operations through issuances of equity securities, raising net proceeds of EUR 489.5 million, as well as borrowings under debt facilities. Following the closing of the Business Combination on July 1, 2026 we held cash of EUR 309.4 million. Based on current forecasts, management believes our existing resources are sufficient to meet operating and capital expenditure needs for at least the next twelve months from this reporting date. We anticipate that we will meet our long-term cash requirements and obligations through operating cash flows and future equity or debt financings.

We have incurred net losses since inception and experienced negative cash flows from operations. During the six months ended June 30, 2026 and 2025, we incurred net losses of EUR 74.9 million and EUR 34.6 million, respectively. For the three months ended June 30, 2026 and 2025, our net loss was EUR 36.6 million and EUR 15.0 million, respectively. As of June 30, 2026, we had an accumulated deficit of EUR 307.1 million. We expect to incur additional losses and higher operating expenses for the foreseeable future as we continue to invest in research and development programs.

Our primary uses of cash are to fund our operations as we continue to grow our business. We will require a significant amount of cash for expenditure as we invest in ongoing research and development and business operations. Until such time as we can generate significant revenue from cloud-based quantum computer offering and our professional services, we expect to finance our cash needs through public or private equity or debt

financings or other capital sources. However, we may be unable to raise additional funds or enter into such other arrangements, when needed, on favorable terms or at all. If we are unable to raise additional funds through equity or debt financing when needed, we may be required to delay, limit, or substantially reduce our development efforts. Our future capital requirements and the adequacy of available funds will depend on many factors, including those set forth in the section titled “Risk Factors.”

Prepayment notice of Kreos Capital loan and Warrants Exercise

We are party to a loan and security agreement (the “Kreos Loan Agreement”) with Kreos Capital VII (UK) Limited (“Kreos”), dated December 23, 2025. The Kreos Loan Agreement provides for a term loan facility of up to EUR 50.0 million aggregate principal amount, to be drawn in two loans: (i) a first loan of EUR 5.0 million, to be drawn in one tranche on or prior to January 15, 2026, and (ii) a second tranche of EUR 45.0 million, to be drawn in one or more tranches on or prior to July 31, 2026. On January 15, 2026, we drew EUR 5.0 million pursuant to the first loan under the Kreos Loan Agreement.

By the end of June 2026, we delivered a prepayment notice to Kreos pursuant to which we elected to prepay the outstanding principal amount under the Kreos Loan Agreement amounting to EUR 5.0 million. As a result of the notice, the outstanding loan amount was repaid in full on July 31, 2026, after the reporting date, together with accrued interest, a contractual prepayment fee of EUR 0.8 million and any other amounts due under the Kreos Loan Agreement. Following completion of the prepayment, no further amounts will be available to be drawn under the Kreos Loan Agreement.

In connection with our entry into the Kreos Loan Agreement, we issued warrants (the “Kreos Warrants”) to Kreos Capital to acquire a number of our ordinary shares equal to EUR 5.0 million divided by the applicable subscription price. On July 9, 2026, subsequent to the reporting date, Kreos Capital exercised the Kreos Warrants in accordance with their contractual terms. As a result of the exercise, the Kreos Warrants were settled through the issuance of ordinary shares and ceased to be outstanding.

Conversion of Loan Agreements with Aalto University Foundation SR

On June 30, 2026, the two convertible loan agreements (collectively, the “Aalto Loan Agreements”) with Aalto University Foundation SR (“Aalto”) were fully converted into equity in accordance with their contractual terms. Immediately prior to the conversion, the embedded derivative financial liability was remeasured at fair value, resulting in a fair value loss of EUR 9.0 million recognized within finance expenses for the six months ended June 30, 2026. Upon conversion, the carrying amounts of both the host loan liability and the embedded derivative financial liability were derecognized and recognized directly in equity. Accordingly, no Aalto loan liability remained outstanding as of June 30, 2026.

Material Cash Requirements

Our material contractual commitments as of June 30, 2026 primarily relate to purchases of production material, transaction and placement fees, capital expenditures and existing lease commitments.

Certain material transaction fees became payable upon closing of the Business Combination and the PIPE agreements, after the reporting date on July 1, 2026. A significant portion of the underlying services had already been rendered during the six months ended June 30, 2026. The related fees amounted to EUR 13.5 million in aggregate.

As of June 30, 2026, we have total lease obligations of EUR 15.2 million, with EUR 2.8 million payable within 12 months. Other than lease commitments, capital expenditures and production material purchases, cash requirements for fiscal year 2026 are expected to consist primarily of operating expenses.

Cash Flows

The following table sets forth our cash flows for the period indicated:

Cash Flows Used in Operating Activities

Net cash used in operating activities during the six months ended June 30, 2026 was EUR 50.0 million, resulting primarily from a net loss of EUR 74.9 million, adjusted for non-cash charges including depreciation and amortization of EUR 6.5 million and share-based compensation related expenses of EUR 8.8 million as well as finance costs of EUR 14.2 million. These were partially offset by changes in inventories of EUR 12.0 million, EUR 7.4 million in working capital adjustments and other non-cash items of EUR 0.1 million.

Net cash used in operating activities during the six months ended June 30, 2025 was EUR 27.5 million, resulting primarily from a net loss of EUR 34.6 million, adjusted for non-cash charges including depreciation and amortization of EUR 6.2 million. These were partially offset by changes in inventories of EUR 2.2 million, EUR 1.7 million in working capital adjustments and other non-cash items of EUR 0.3 million. Additional adjustments included EUR 2.3 million in share-based payments, and EUR 2.8 million in finance cost.

Cash Flows Used in Investing Activities

Net cash used in investing activities during the six months ended June 30, 2026 was EUR 5.2 million representing additions of EUR 7.2 million in property and equipment primarily related to the development and upgrade of our quantum computing systems. This outflow was partially offset by interest received of EUR 1.0 million. In addition, during the six months ended June 30, 2026, an industrial system under development, which was presented within other current assets as of year-end due to our intention to sell the asset back to the supplier, was sold to the original supplier for EUR 1.0 million.

Net cash used in investing activities during the six months ended June 30, 2025 was EUR 2.1 million, primarily due to purchases of property, plant, and equipment totaling EUR 2.7 million. This outflow was partially offset by interest received of EUR 0.6 million.

Cash Flows Provided by Financing Activities

Net cash provided by financing activities during the six months ended June 30, 2026 was EUR 22.0 million, primarily reflecting exercise of warrants of EUR 20.5 million and proceeds from loans and borrowings relating to the Kreos Loan agreement net of paid transaction costs of EUR 4.2 million. This inflow was partially offset by repayments of lease liabilities of EUR 1.3 million and interest paid of EUR 0.6 million.

Net cash provided by financing activities during the six months ended June 30, 2025 was EUR 125.7 million, primarily driven by proceeds from equity contribution of EUR 155.6 million and share buybacks of EUR 22.4 million. This inflow was partially offset by repayments of lease liabilities of EUR 1.9 million and interest paid of EUR 0.4 million.

Risk Factors

IQM and its business are exposed to a number of risks and uncertainties which include but are not limited to:

In addition to the risks set out above, we note that our full-year 2026 revenue outlook depends on two key factors: (i) the scheduled delivery and customer acceptance of our first 150-qubit system, and (ii) the conversion of our existing order backlog into revenue as planned. Any delay in the delivery or acceptance of the 150-qubit system, or in the conversion of our order backlog, could cause our results to differ materially from our guidance.

Other than as disclosed in this report, there have been no material changes to the risk factors specified under Risk Factors above, as well as those disclosed in the Company's listing prospectus published on 1 July 2026 and its Registration Statement on Form F-4, each as previously filed.

Critical Accounting Estimates

Our interim financial statements have been prepared in accordance with IFRS Accounting Standards. The preparation of these interim financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. We also make estimates and assumptions that affect the reported amounts and related disclosures for the periods presented. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ significantly. Additionally, changes in assumptions, estimates or assessments due to unforeseen events or otherwise could have a material impact on our financial position or results of operations.

The critical accounting estimates, assumptions and judgments that changed compared to the consolidated financial statements as of December 31, 2025 are listed hereinafter:

Embedded Derivatives – Conversion feature in Aalto Loan Agreement

The measurement of the embedded conversion feature requires the use of significant estimates and judgment. In particular, management is required to estimate the fair value of the Company's underlying equity, which is not directly observable in the market. The embedded conversion feature is measured at its intrinsic value, calculated as the excess of the estimated share price over the fixed conversion price of EUR 289.84 per share under the loan agreement; no time value is attributed to the conversion feature and no option-pricing model inputs, such as expected volatility, are applied. As of June 30, 2026, a share price of EUR 846.45 was applied in the valuation, and the embedded derivative was recognized with a carrying amount of EUR 15.1 million.

As of June 30, 2026 the Lender exercised the conversion option. The total carrying amount was reclassified directly in capital reserve.

Warrants – Kreos Capital Loan Agreement

The warrants issued in connection with the Kreos financing arrangement are classified as derivative financial liabilities and have been measured at fair value using the Black-Scholes option pricing model with the exception of the exercise of the warrants where the intrinsic value was used.

On July 6, 2026, the Kreos warrant holder elected to exercise the warrants. As the exercise occurred shortly after the reporting date and provided additional evidence regarding conditions existing as at June 30, 2026, it was considered an adjusting event after the reporting period. Accordingly, the fair value measurement of the warrant liability as at June 30, 2026 was updated to reflect the final exercise value determined on July 6, 2026, rather than an estimated value derived from a valuation model.

Accounting Policies as a result of the pending transaction

The Business Combination closed in July 2026, immediately after the reporting date. The following section describes the expected future accounting implications of the transaction:

The Business Combination will be accounted for as a capital reorganization in accordance with IFRS. Under this method of accounting, RAAQ will be treated as the “acquired” company and IQM will be treated as the accounting acquirer for financial statement reporting purposes. Accordingly, the Business Combination will be treated as the equivalent of IQM issuing shares for the net assets of RAAQ, accompanied by a recapitalization. The net assets of RAAQ will be stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to and following the Business Combination will be those of IQM.

IQM has been determined to be the accounting acquirer based on evaluation of the following facts and circumstances with regard to the combined entity immediately after the Closing, applicable to both the “no redemption” and “contractual maximum redemption” scenarios:

It has been determined that RAAQ does not meet the definition of a “business” pursuant to IFRS 3 Business Combinations, hence the transaction is accounted for within the scope of IFRS 2 (“Share-based payment”). In accordance with IFRS 2, the difference in the fair value of IQM’s equity instruments deemed issued to RAAQ shareholders, over the fair value of identifiable net assets of RAAQ represents a service for listing and is accounted for as a share-based payment which is expensed as incurred.

Emerging Growth Company Status

In connection with our listing in the United States, we qualify as an “emerging growth company” under applicable U.S. federal securities laws and may therefore benefit from certain reduced reporting and disclosure requirements.

We are an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, and for so long as we are an emerging growth company, we may take advantage of certain reduced disclosure and other requirements that are otherwise applicable generally to public companies that are not public companies, including not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002 and, to the extent we no longer qualify as a foreign private issuer pursuant to which standards we are not required to provide detailed compensation disclosures or file proxy statements, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. We would cease to be an emerging growth company on the date that is the earliest of (i) the last day of the fiscal year following the fifth anniversary of the date of the completion of this offering; (ii) the last day of the fiscal year in which we have total annual gross revenue of $1.235 billion or more; (iii) the date on which we have, in any three year period, issued

more than $1.0 billion in nonconvertible debt securities; or (iv) the date on which we first qualify as a large accelerated filer under the rules of the Securities and Exchange Commission.

Annual General Meeting

The Annual General Meeting (AGM) of shareholders of IQM Quantum Computers Oyj was held on June 12, 2026 in Espoo. The following resolutions were among the resolutions made:

The financial statements for 2025 were approved and the members of the Board and the President and CEO were discharged from liability for the year 2025.

The AGM approved that no dividend would be paid for the financial year ended December 31, 2025, and that the loss for the financial year be transferred to retained earnings.

The AGM resolved that conditional upon the completion of the listing of the company’s American Depositary Shares on The Nasdaq Stock Market LLC, a total annual remuneration of EUR 380,000 be paid to certain members of the Board of Directors in the form of shares.

Sierk Poetting, Alex Doll and Hannu Martola were re-elected and Jan Goetz and Barbara Venneman were elected as members of the Board of Directors. Sierk Poetting was re-elected as Chair of the Board.

The AGM resolved that, conditional upon and effective as of the completion of the business combination, the company’s business name be changed to IQM Quantum Computers Oyj and, in English, IQM Quantum Computers Plc.

Personnel

As of June 30, 2026, we had 460 employees globally. Of these, 333 employees were based in Finland, representing the majority of our workforce. A further 117 employees were located in other European countries, including 104 employees in Germany and employees in France, Spain, Italy and Poland. We also employed eight employees in the United States and two employees in APAC, comprising one employee in Singapore and one employee in Japan.

Changes in Management and Board of Directors

In the six months ended June 30, 2026, IQM announced the following changes in its management:

On January 26, 2026, IQM announced its transition from a Co-CEO structure to a single Chief Executive Officer model. Dr. Jan Goetz, previously Co-CEO, became IQM’s sole CEO with effect from January 1, 2026. In addition, Dr. Søren Hein was appointed Chief Operating Officer and Deputy CEO. Mikko Välimäki stepped down from his role as Co-CEO and continued to support IQM as an advisor until March 31, 2026, to facilitate an orderly transition.

On June 19, 2026, IQM announced the appointment of Dr. Craig Ciesla as Chief Technology Officer. In this role, he is responsible for advancing IQM’s technology strategy and its implementation across the company’s systems and products. At the same time, Dr. Inés de Vega was appointed Chief Scientist, transitioning from her previous role as Vice President of Quantum Solutions. In her new role, she is responsible for ensuring scientific feasibility and system-level consistency across IQM’s technology.

Following the annual general meeting on June 12, 2026 the Board of Directors consisted of Sierk Poetting (Chairman), COO of Nasdaq-listed BioNTech; Alex Doll, co-founder of PGP Corporation and Managing Partner at 1011 VC; Dr. Jan Goetz, Co-founder and CEO of IQM; Hannu Martola, President and CEO of Detection Technology and Barbara Venneman, former Global Head of IT at Deloitte and a board member at Vanguard. Following the listing July 2, 2026, Juho Sarvikas, CEO of Nasdaq-listed Inseego and former President of Qualcomm North America and Jeff Tuder, an experienced investor and board professional joined the Board.

Changes in Shares and shareholders

During the six months ended June 30, 2026, our share capital structure changed significantly in connection with the Business Combination and the related capital restructuring described above under Business Combination Transaction and Helsinki Stock Exchange Listing.

At the beginning of the reporting period, our issued share capital consisted of 1,586,301 shares across five classes: Class A, Class B, Class C, Class D and Class E shares. During the three months ended June 30, 2026, Aalto University Foundation exercised special subscription rights granted to it and subscribed for 27,208 new

Class A shares at a subscription price of EUR 289.84 per share, for an aggregate subscription price of EUR 7.9 million. The subscription price was settled in full by way of set-off against Aalto University Foundation's claim under its convertible loan agreement with us, and the related host liability and embedded conversion derivative were derecognized upon conversion. Separately, holders of outstanding warrants relating to our Class E shares exercised warrants for 43,092 new Class E at an average subscription price of EUR 474.86 per share, for aggregate subscription proceeds of EUR 20.5 million.

On June 30, 2026, prior to the closing of the Business Combination, all outstanding preferred shares - Class B, Class C, Class D and Class E - were converted into our ordinary (Class A) shares on a one-for-one basis. Our Board of Directors subsequently resolved to carry out a share split at a ratio of 96.44-for-1 (96.439869), in order to align our per-share price with the USD 10.00 reference price used for the share issuances made in connection with the Business Combination. In addition, we recognized 102,700,000 shares as treasury shares issued to ourselves; these treasury shares do not carry dividend or voting rights until conveyed to third parties. As a result of these transactions, we had 262,462,360 issued ordinary shares of a single class outstanding as of June 30, 2026, of which 102,700,000 were held in treasury, compared with 1,334,753 shares outstanding as of June 30, 2025 (see Note 6).

Because the conversion, share split and recognition of treasury shares described above closed only in the final days of the reporting period and immediately ahead of the Business Combination, they had only a limited effect on the weighted average number of shares used in our basic and diluted loss per share calculation for the six months ended June 30, 2026 (see Note 4.4).

In connection with the change of our legal form from a private limited liability company (osakeyhtiö) to a public limited liability company (julkinen osakeyhtiö, or "Oyj") before completion of the Business Combination, we increased our registered share capital by EUR 77,500, from EUR 2,500 to EUR 80,000, the minimum share capital required under the Finnish Companies Act for a public limited liability company. This increase was implemented as a transfer from our reserve for invested unrestricted equity and, consistent with Finnish company law, did not involve the issuance of new shares: our shares do not carry a nominal or par value, and our registered share capital is not tied to the number of shares outstanding.

On February 27, 2026, our shareholders unanimously resolved, without convening a general meeting and conditional upon completion of the Business Combination, to authorize our Board of Directors to repurchase up to 25,000,000 of our own shares in one or more tranches, using only unrestricted equity. This authorization became effective upon closing of the Business Combination on July 1, 2026 and is valid for 18 months, until August 27, 2027.

At our Annual General Meeting held on June 12, 2026, our shareholders further resolved to increase our Board of Directors' existing authorization to issue new shares and/or convey treasury shares, and to issue special rights entitling their holders to shares under Chapter 10, Section 1 of the Finnish Companies Act, from a maximum of 37,000,000 shares to a maximum of 95,500,000 shares. This authorization may be used for share-based incentive programs, corporate acquisitions, and other purposes determined by our Board of Directors, including issuances in derogation of shareholders' pre-emptive subscription rights where we have a weighty financial reason to do so, and is valid for five years, until June 12, 2031.

Subsequent to the reporting period, on July 1, 2026, we completed the Business Combination and received total gross proceeds of approximately EUR 209.5 million in exchange for the issuance of 28,929,747 treasury shares to former RAAQ investors and PIPE investors. Our American Depositary Shares commenced trading on the Nasdaq Global Select Market under the ticker symbol "IQMX" on July 2, 2026, and our ordinary shares commenced trading on the regulated market of Nasdaq Helsinki Ltd on July 3, 2026 (see Note 12). On July 6, 2026, Kreos exercised in full, on a cashless basis, the warrants granted to it under the Warrant Agreement dated December 23, 2025, resulting in the issuance of 577,237 additional shares; no warrants remained outstanding as of the date of this report.

As our shares were not admitted to trading on any regulated market during the six months ended June 30, 2026, no share price, trading volume, market capitalization or shareholder count information is presented for the reporting period.

Espoo, Finland, August 4, 2026

IQM Quantum Computer Qyj

Board of Directors