# Horizon Quantum's Q3 profit came from a $43 million warrant gain > Horizon Quantum reported $33.4 million of third-quarter net income on no revenue. Its operating loss more than doubled to $10.5 million. - Published: 2026-11-10 - Publisher: Many Worlds, published by Many Worlds Capital (https://news.manyworlds.vc/) - Canonical: https://news.manyworlds.vc/news/horizon-quantum-q3-2026-results/ - Answers: Horizon Quantum Q3 2026 results Entropica Labs - Tickers: HQ - Topics: earnings, m-and-a, software, public-markets --- ## Main takeaways - Horizon Quantum (HQ) reported third-quarter net income of $33.4 million, driven by a $43.1 million non-cash gain on its warrants. - It recorded no revenue in the quarter. The operating loss was $10.5 million, up from $4.9 million a year earlier. - Cash was $102.8 million on September 30, down $10.5 million from June 30. - Horizon plans to buy Entropica Labs for about $27 million of its own Class A shares, under a non-binding letter of intent. - Next: the deal still needs due diligence, audits and definitive agreements. Horizon has not given a closing date. Horizon Quantum Holdings (HQ) reported net income of $33.4 million, or $0.61 a share, for the third quarter on no revenue, according to its [results release](https://www.sec.gov/Archives/edgar/data/2088256/000121390026117746/ea031142601ex99-1.htm), attached to a 6-K filed on November 10. The profit came from a $43.1 million non-cash accounting gain on its warrants, while the cost of running the business more than doubled from a year earlier. The operating loss was $10.5 million, up from $4.9 million in the third quarter of 2025, the release said. Research and development spending rose to $4.5 million from $2.0 million, and general and administrative costs to $5.2 million from $2.3 million. The company attributed the increase to more staff and the costs of becoming a public company, which it did through a merger with dMY Squared Technology Group that closed on March 19, 2026. Horizon carries its warrants (rights to buy its shares at a set price) as a liability, revalued at fair value every quarter. Its share price fell during the third quarter, which lowered that value and produced the gain. The gain did not affect cash, and future moves in the share price "could result in additional non-cash gains or losses", the release said. Over the first nine months of 2026 the same line was a $62.2 million loss, and the nine-month net loss was $85.4 million. The warrant liability stood at $32.4 million on September 30. On the company's own adjusted measure, which strips out the warrant revaluation, share-based pay and merger costs, the quarter's loss was $6.3 million, against $3.0 million a year earlier. Cash and cash equivalents were $102.8 million on September 30, down from $113.3 million at the end of June. Over nine months, operations used $16.4 million and Horizon spent $11.0 million on property and equipment. It raised $98.2 million from the merger and a private placement, and $28.7 million from warrant exercises, the cash flow statement shows. ## What is Horizon buying? Horizon sells software for writing quantum programs that run on different makers' machines. Entropica Labs is a Singapore company that specializes in error correction, the techniques that spread information across many [qubits](https://news.manyworlds.vc/learn/qubit/) so a machine can catch and fix its own errors. It is developing Loom, a compiler meant to let hardware companies run error-corrected programs, Horizon said when it [first announced the letter of intent](https://www.sec.gov/Archives/edgar/data/2088256/000121390026116109/ea030995901ex99-1.htm) on November 5. The anticipated price is $27 million, paid in Horizon Class A shares. The release mentions no cash. The deal is subject to due diligence, audits, definitive agreements and other customary conditions, and no closing date was given. At the November 10 close of $12.59 (Yahoo Finance), $27 million equals about 2.1 million shares, or about 4% of the 54.6 million Class A and Class B shares outstanding on September 30. The release does not say at what price the shares would be counted. ## Why it matters - Company: Horizon Quantum (HQ), valued at about $687 million at the November 10 Nasdaq close of $12.59 (Yahoo Finance), on the 54.6 million shares in its September 30 balance sheet. - The quarter's profit is an accounting result. The business had no revenue and a wider operating loss, and the net result will move with the share price while the warrants are outstanding, the company says. - Cash of $102.8 million equals about 10 quarters of the third quarter's $10.5 million decline. - Paying for Entropica in shares would add to the share count rather than use cash. The next step is a definitive agreement, for which Horizon has given no date. **The Many Worlds Team** Last checked 2026-11-12 ## Sources - Horizon Quantum, third-quarter 2026 results release, Exhibit 99.1 to the Form 6-K filed November 10, 2026: https://www.sec.gov/Archives/edgar/data/2088256/000121390026117746/ea031142601ex99-1.htm - Horizon Quantum, Form 6-K filed November 10, 2026: https://www.sec.gov/Archives/edgar/data/2088256/000121390026117746/ea0311426-6k_horizon.htm - Horizon Quantum, results release on Business Wire, November 10, 2026: https://www.businesswire.com/news/home/20261110949593/en/Horizon-Quantum-Announces-Third-Quarter-2026-Financial-Results - Horizon Quantum, letter of intent to acquire Entropica Labs, Exhibit 99.1 to the Form 6-K filed November 5, 2026: https://www.sec.gov/Archives/edgar/data/2088256/000121390026116109/ea030995901ex99-1.htm --- Many Worlds Capital invests in quantum companies and may hold positions in companies mentioned here. This is information, not investment advice. Prices can be delayed. Methodology: https://news.manyworlds.vc/methodology/