Arqit Quantum Inc. (NASDAQ: ARQQ) and Sparkle, a Tier 1 global telecom operator, completed a proof‑of‑concept that embedded Arqit’s symmetric key agreement encryption directly into Sparkle’s optical transport layer in Athens, Greece. The demonstration, performed over Sparkle’s metropolitan optical ring, secured multi‑100 G optical links with quantum‑resistant protection while preserving full network performance.
The test proved that Arqit’s software can be deployed at the physical network layer (L1), delivering end‑to‑end encryption for high‑capacity data links without the latency or throughput penalties that typically accompany post‑quantum solutions. By achieving “speed‑of‑light” encryption, the company demonstrates a practical, low‑disruption path for operators to upgrade to quantum‑safe security as quantum threats materialize.
This milestone validates Arqit’s core technology in a real‑world telecom environment and expands its addressable market to large‑scale optical networks. It also reinforces Arqit’s competitive edge in the rapidly growing post‑quantum cryptography sector, positioning the company to win future contracts with operators seeking quantum‑safe solutions that do not compromise performance.
Arqit’s financial picture remains modest. Fiscal year 2024 revenue fell to $293,000 from $640,000 in fiscal year 2023, and first‑half fiscal year 2025 revenue was $67,000 versus $119,000 in the comparable period of fiscal year 2024. The company has shifted from perpetual enterprise licenses to operational licenses with annual recurring revenue, a strategy aimed at improving cash flow and scalability. A 25:1 reverse share split was completed in September 2024 to maintain Nasdaq compliance.
CEO Andy Leaver said, “Securing the world’s data networks against emerging threats requires solutions that are both effective and practical. Telecom operators are looking for proven, low‑disruption paths to quantum‑safe security, and this POC demonstrates a ready‑now path. It shows that quantum‑safe encryption can be embedded directly into existing optical infrastructure, protecting high‑capacity data links without disrupting performance or operations.”
The demonstration aligns with an industry trend toward quantum‑safe communications and positions Arqit to capture a growing share of the optical networking market. While the company’s revenue remains small, the successful deployment on a Tier 1 operator’s network signals a key step toward commercial viability and future revenue growth.
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