INFQ) flags revenue errors across 2024-26

Infleqtion (NASDAQ: INFQ) flags revenue errors across 2024-26

Filing Impact
(High)
Filing Sentiment
(Negative)
Form Type
NT 10-Q

Rhea-AI Filing Summary

Infleqtion, Inc. is delaying its Form 10-Q for the quarter ended June 30, 2026 while it completes an ongoing review of certain revenue recognition matters and related GAAP accounting for expected losses on projects. This review led to identification of errors requiring adjustments to previously issued financial statements for the years ended December 31, 2024 and December 31, 2025, the interim periods within those years, and the quarter ended March 31, 2026. The company determined these adjustments are not material to the prior-period financials and primarily affect the timing of revenue recognition, shifting some revenue from 2024 and 2025 into 2026. As adjusted, second-quarter 2026 total revenue increases from 12,633 to 13,538 and net loss narrows from 25,473 to 24,695. Management links the error to a previously disclosed material weakness in internal control over financial reporting and states it expects to file the Q2 Form 10-Q within the five-day extension allowed under Rule 12b-25.

Positive

• Q2 2026 total revenue is revised upward from 12,633 to 13,538, with gross profit rising from 1,389 to 2,167.
• Q2 2026 net loss improves after adjustments, narrowing from 25,473 to 24,695, and six‑month 2026 net loss narrows from 55,736 to 54,414.
• The company characterizes the identified adjustments as non-cash and primarily related to the timing of revenue and cost recognition, rather than changes in underlying business activity.
• Management states it expects to file the delayed Q2 2026 Form 10‑Q within the five‑calendar‑day extension period provided by Rule 12b‑25.

Negative

• The company reports errors in revenue recognition and GAAP methodology affecting multiple prior periods, requiring revisions to 2024, 2025 and early 2026 financial information.
• These errors are linked to a previously disclosed material weakness in internal control over financial reporting, specifically insufficient accounting personnel and review controls.
• Previously reported revenue for 2024 and 2025 will be reduced (for example, 2025 revenue adjusted from 32,464 to 31,108 and 2024 revenue from 28,836 to 28,094).
• Infleqtion is filing a late Form 10‑Q for the quarter ended June 30, 2026, reflecting the need for additional time to complete its evaluation and finalize the statements.

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As of August 17, the filing reports lower adjusted June 30 equity and unchanged weighted-average shares; the Q2 10-Q is still expected.

At the August 17, 2026
filing stage, the company says the Q2 Form 10-Q will include revisions that reduce June 30, 2026 total assets from $642,123
to $641,454
, increase total liabilities from $66,652
to $67,071
, and reduce total stockholders’ equity from $575,471
to $574,383
.

The filing’s June 30 tables also leave weighted average shares unchanged at 219,743,810
, so the listed revision changes reported accounting amounts rather than that share-count measure.

For prior periods, the revisions reduce reported 2025 revenue from $32,464
to $31,108
and change net loss from $31,795
to $32,228
; for 2024, revenue changes from $28,836
to $28,094
and net loss from $53,764
to $55,742
.

The remaining resolution point is the Q2 Form 10-Q: the company says it expects to file it on August 17, 2026
, within the five-calendar-day extension, but this notification does not itself establish that the quarterly report has been filed.

Total revenue Q2 2026 (as adjusted)13,538Three months ended June 30, 2026, after adjustments
Net loss Q2 2026 (as adjusted)24,695Three months ended June 30, 2026, after adjustments
Total revenue six months 2026 (as adjusted)23,445Six months ended June 30, 2026, after adjustments
Net loss six months 2026 (as adjusted)54,414Six months ended June 30, 2026, after adjustments
Total assets June 30, 2026 (as adjusted)641,454Condensed Consolidated Balance Sheet as of June 30, 2026, after adjustments
Accumulated deficit June 30, 2026 (as adjusted)287,910Accumulated deficit in stockholders’ equity as of June 30, 2026, after adjustments
Total revenue full year 2025 (as adjusted)31,108For the period ended December 31, 2025, after adjustments
Total revenue full year 2024 (as adjusted)28,094For the period ended December 31, 2024, after adjustments
revenue recognitionfinancial
“ongoing review of certain revenue recognition matters”
Revenue recognition is the accounting rule that determines when a company records a sale as income on its financial statements, which may differ from when cash actually arrives. It matters to investors because the timing and method used can change reported profits and growth, so understanding it is like knowing whether a scoreboard counts goals as soon as they’re scored or only after they’re confirmed — the timing affects comparisons, forecasts, and valuation.
material weaknessfinancial
“previously disclosed material weakness in the Company’s internal control”
A material weakness is a significant flaw in the systems and checks a company uses to ensure its financial reports are accurate, meaning errors or fraud could happen and not be caught. For investors it matters because it raises the risk that reported results are unreliable—similar to finding a hole in a ship’s hull—potentially leading to corrected financials, regulatory action, reduced trust, and negative effects on stock value and borrowing costs.
unbilled receivablesfinancial
“CURRENT ASSETS: Unbilled receivables”
Amounts for goods or services a company has delivered or completed but has not yet invoiced the customer; think of it as work done where the bill hasn’t gone out. For investors, unbilled receivables signal revenue that is likely to become billed and collected in the near term, affecting future cash flow and earnings, but large or growing balances can also indicate billing delays, contract disputes, or collectability risks.
contract liabilitiesfinancial
“CURRENT LIABILITIES: Contract liabilities”
Contract liabilities are amounts a company has been paid in advance for goods or services it still owes to customers — think of them like gift cards or prepaid subscriptions the company must fulfill later. For investors, they show promised future work or deliveries that will turn into revenue over time, reveal cash already collected, and help assess whether a firm has a backlog of obligations that could affect future earnings and cash flow.
Comprehensive lossfinancial
“Statements of Operations and Comprehensive Loss”
Comprehensive loss measures the total decrease in a company’s value over a reporting period by combining its regular profit-or-loss with other gains or losses that don’t show up on the main income line—things like currency swings, changes in the value of certain investments, or pension adjustments. For investors it matters because it reveals hidden hits to a company’s equity that aren’t reflected in net income, offering a fuller picture of financial health, similar to checking both your bank balance and the value of investments when assessing your net worth.

Why is Infleqtion (INFQ) delaying its Form 10-Q for the quarter ended June 30, 2026?

Infleqtion is delaying its Q2 2026 Form 10‑Q due to an ongoing review of revenue recognition and related GAAP accounting for expected project losses. The company needs more time to complete this evaluation and revise affected prior‑period financial information before filing.

How do the revenue recognition adjustments affect Infleqtion (INFQ)’s Q2 2026 results?

After adjustments, Infleqtion’s Q2 2026 total revenue increases from 12,633 to 13,538 and gross profit rises from 1,389 to 2,167. These changes reflect revised timing of revenue and cost recognition on certain contracts, not new business volume.

What is the impact of the corrections on Infleqtion (INFQ)’s Q2 and year-to-date 2026 net loss?

Q2 2026 net loss improves from 25,473 to 24,695 after adjustments. For the six months ended June 30, 2026, net loss narrows from 55,736 to 54,414. Management describes these as non‑cash adjustments tied to revenue and cost timing.

How are Infleqtion (INFQ)’s 2024 and 2025 full-year revenues and losses being revised?

For 2025, total revenue is revised from 32,464 to 31,108 and net loss from 31,795 to 32,228. For 2024, revenue is revised from 28,836 to 28,094 and net loss from 53,764 to 55,742, reflecting revenue timing changes.

When does Infleqtion (INFQ) expect to file its delayed Q2 2026 Form 10-Q?

Infleqtion states it expects to file the Q2 2026 Form 10‑Q on the date of the notification, within the five‑calendar‑day extension allowed under Rule 12b‑25 for a late quarterly report.

What internal control issues does Infleqtion (INFQ) disclose in connection with these adjustments?

The company links the errors to a previously disclosed material weakness in internal control over financial reporting, citing insufficient accounting personnel and ineffective controls over reviewing accounting transactions, including revenue recognition.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 08/17/2026 – 05:24 PM
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SECURITIES AND EXCHANGE COMMISSION

If the notification relates to a portion of the filing checked above, identify the Item(s) to which the notification relates:

INFLEQTION, INC.

1315
West Century Drive, Suite 150

Address of Principal Executive Office (Street and Number)

PART II — RULES 12b-25(b)
AND (c)

If the subject report could not be filed without unreasonable effort or expense and the registrant seeks relief pursuant to
Rule12b-25(b),
the following should be completed. (Check box if appropriate)

State below in reasonable detail the reasons why Forms 10-K,
20-F,
11-K,
10-Q,
10-D,
N-CEN,
N-CSR,
or the transition report or portion thereof, could not be filed within the prescribed time period.

Infleqtion, Inc. (the “Company”) was unable, without unreasonable effort or expense, to file its Quarterly Report on Form 10-Q
for the period ended June 30, 2026 (the “Q2 Form 10-Q”)
with the Securities and Exchange Commission (the “SEC”) within the prescribed time
period due to the ongoing review of certain revenue recognition matters. The Company requires additional time to complete its evaluation of these matters and finalize the related financial statements and disclosures.

In particular, during the preparation of the financial statements for the quarter ended June 30, 2026, the Company identified an error
related to revenue recognition and GAAP accounting methodology for the provision of expected losses for certain projects that required adjustments to its previously issued financial statements for the fiscal years ended December 31, 2024 and
December 31, 2025 (and the interim periods therein) and the fiscal quarter ended March 31, 2026. The Company determined that the adjustments were not material to the previously issued financial statements for the affected periods. The
revenue-recognition adjustments primarily affect the timing of revenue recognition. These adjustments are expected to increase revenue recognized in the year ending December 31, 2026, as a portion of revenue previously reported for the years ended
December 31, 2024 and December 31, 2025 will instead be recognized in 2026, with a corresponding reduction in previously reported revenue for those prior years. As a result, the Company will revise the financial information for the
affected periods in the Q2 Form 10-Q.

This error relates to the previously disclosed material
weakness in the Company’s internal control over financial reporting resulting from the Company’s lack of sufficient accounting personnel to perform effective risk assessment and maintain effective internal controls over the review of
accounting transactions.

The Company is working diligently to complete this evaluation and currently expects to file the Q2 Form 10-Q
on the date hereof, which is within the five-calendar-day
extension period provided under Rule 12b-25.

On August 12, 2026, the Company issued a press release announcing preliminary,
unaudited financial results for the quarter ended June 30, 2026 and comparing them to the Company’s results for the corresponding period of the last fiscal year (the “Press Release”), which Press Release was furnished as
Exhibit 99.1 to the Company’s Current Report on Form 8-K
filed with the SEC on August 12, 2026. The Company is updating those preliminary, unaudited financial results in this Notification of Late
Filing on Form 12b-25
(this “Form 12b-25”).

Since the issuance of the Press Release, the Company has identified certain non-cash adjustments to its preliminary results for the second
quarter of 2026 related to its recognition of revenue and cost of revenue from certain contracts and, due to the error described in Part III above, certain non-cash adjustments to previously issued financial statements that the Company intends to
reflect by revising the affected prior-period financial information in the Q2 Form 10-Q.

As a
result, the Condensed Consolidated Balance Sheet as of June 30, 2026 and Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and six months ended June 30, 2026 and June 30, 2025 included in the Q2 Form
10-Q
will include the adjustments set forth in the tables below, as compared to the financial information included in the Press Release.

Also, among the revisions described in Part III above that will be reflected in the Q2 Form 10-Q
are the adjustments to the Company’s Consolidated Balance Sheets as of December 31, 2025, the Company’s Condensed Consolidated Statements of Operations and Comprehensive Loss for the three
months ended March 31, 2026 and the Company’s Consolidated Statements of Operations and Comprehensive Loss for the fiscal years ended December 31, 2024 and December 31, 2025 set forth in the tables below.

Infleqtion, Inc.

(Name of Registrant as Specified in Charter)

has
caused this notification to be signed on its behalf by the undersigned hereunto duly authorized.