QuEL (Osaka University spinout) reports ¥670M revenue and ¥61.69M net profit
In the quantum-computing industry, headlines often focus on massive fundraising, aggressive investment despite losses, and flashy technology roadmaps targeting years or decades ahead. At the same time, it can be hard to see how many companies already sell products and operate as viable businesses today.
Amid that landscape, there is a somewhat atypical quantum startup in Japan.
It is an Osaka University spinout called QuEL.
QuEL does not develop quantum computers themselves but builds control hardware that drives qubitsqubitsQubit / Quantum Bit / QubitThe basic unit of information in a quantum computer. It can represent not only 0 or 1 but also a quantum state that is a superposition of them.QI NoteHaving more qubits does not necessarily mean higher performance. Error rates, connectivity, coherence time, and the number of logical qubits are also important.. The company began shipping products in 2022, selling 45 units in the fiscal year ended June 2024 and 39 units in the fiscal year ended June 2025, reporting ¥670 million in revenue and ¥61.69 million in net profit for the latter period.
While commercialization of quantum technologies is often said to be still some way off, QuEL is already selling products and generating profit.
To properly assess QuEL’s position, it’s necessary to look beyond unit sales and profitability to ask who is buying the products and in what markets the business is viable.
Selling the control hardware that runs quantum computers
QuEL was founded in 2021 to commercialize quantum-computer control technology developed at Osaka University.
The company’s flagship product, the “QuEL-1,” is a control system that sends microwave signals to qubits and reads out computation results. The product is designed so multiple units can be synchronized to scale up the number of qubits.
In quantum computing, attention often falls on quantum processors developed by companies such as IBM, Google, and Quantinuum. But a quantum processorquantum processorQuantum Processor / Quantum Processor / Quantum Processing Unit / QPUThe central part of the hardware that houses qubits and performs quantum computational operations such as quantum gates and measurements.QI NoteThe performance of a QPU cannot be judged by the number of qubits alone. Gate fidelity, connectivity, speed, error rates, and other factors must be considered together. alone does not make a functioning computer.
Classical electronic equipment is also required to deliver high-precision signals to qubits, synchronize them, and read their states.
QuEL specializes in that classical control layer.
In other words, rather than selling a finished quantum computer that may arrive in the future, QuEL’s business is to sell equipment that organizations currently developing quantum computers need right now.
That distinction is significant.
Because control hardware will be needed as long as quantum R&D continues, QuEL can generate demand without waiting for quantum computers to become widely commercial. The company is creating revenue from an existing research-and-development market rather than a future consumer market for quantum computers.
2 units, 25 units, 45 units
The sales record is clear.
An interview by the Organization for Small & Medium Enterprises and Regional Innovation (SMRJ) reports that in its first commercial year QuEL sold two units to AIST (National Institute of Advanced Industrial Science and Technology). The following year the company received orders for 25 units, most of which went to RIKEN.
Sales grew to 45 units in the fiscal year ended June 2024.
That alone already sets QuEL apart from many Japanese quantum startups.
Rather than being limited to collaborative research, proofs of concept, or contract research, QuEL is producing a clear product—the “control system”—that customers purchase outright.
Moreover, QuEL’s control systems have been adopted in domestic quantum-computer development projects, including RIKEN’s first domestically developed superconducting quantum computersuperconducting quantum computerSuperconducting Quantum Computing / Superconducting Quantum Computing / Superconducting QubitAn implementation approach for quantum computers that operates superconducting circuits at ultra-low (cryogenic) temperatures and uses electrical quantum states as quantum bits (qubits).QI NoteCharacterized by fast gate operations, but performance is not determined by qubit count alone. Gate fidelity, coherence time, connectivity, and support for error correction should also be verified. and projects at Osaka University. QuEL is one of the development companies providing control hardware for the fully domestic superconducting quantum computer that became operational in July 2025.
This is not merely a case of having developed a product; the product is used in real quantum-computer development environments and continues to sell. That is a clear advantage for QuEL.
¥670M revenue, ¥61.69M net profit
Another noteworthy point is the business scale.
QuEL’s disclosed results for the fiscal year ended June 2025 show 39 control units sold, with ¥670 million in revenue and ¥61.69 million in net profit.
At the very least, QuEL is not at the stage where “a product exists but sales scale is largely unknown.”
It is also significant that a research-and-development company has reported profit.
Earlier reports indicated the company was profitable from its first year, but that initial profitability was in part due to receiving a NEDO research contract, so it would be inaccurate to interpret that as “profit from product sales alone from the start.”
On the other hand, reaching ¥670 million in revenue and ¥61.69 million in net profit by the fourth fiscal year after founding suggests the company cannot simply be dismissed as reliant solely on research grants.
At minimum, QuEL has turned research results into a product, continued to sell that product, and generated profit. In that respect, it stands a step ahead of many quantum startups.
Caution on how “45 units sold” is interpreted
From here, it’s necessary to read the numbers carefully.
Consider, for example, the figure of “45 units sold in a year.”
As a specialized device for quantum computers, selling 45 units is not insignificant. It can give the impression that products are spreading across multiple research institutions and companies.
However, for QuEL, most of the 25-unit order received in its second year went to RIKEN.
A quantum-control system is used in multiple units within a single quantum-computer system. QuEL’s product itself highlights a design that expands qubit count by synchronizing multiple units.
Therefore, an increase in units sold does not necessarily equal an increase in the number of customers. Selling 45 units does not mean those units went to 45 distinct customers.
Based on currently available information, it is not possible to determine how many customers generated the ¥670 million in revenue or what proportion of sales the largest customer represents. But looking at past sales, there is a reasonable possibility that the company depends significantly on a few large customers.
When judging QuEL’s business expansion, customer count and customer composition are more important indicators than annual unit sales.
Selling to national labs and universities versus selling in the global market
Another point to consider is the nature of the market QuEL currently serves.
Publicly known adopters of QuEL include AIST, RIKEN, and Osaka University—Japanese universities and national research institutions driving the country’s quantum R&D. Adoption in environments used by quantum experts is an important indicator of the control system’s technical reliability.
Japan’s quantum R&D receives substantial public funding. QuEL itself participates in national research projects such as JST’s Moonshot-type research program, and its current business is closely linked to a market expanding alongside domestic public investment in quantum research.
Capturing this domestic demand is a business strength. But selling into domestic R&D projects is not the same as competing in and selling to the global commercial market.
It would be premature to conclude from current results that QuEL’s competitiveness in the global market has been proven.
That said, the market QuEL targets is itself broadening.
To date the company’s core market has been control systems for superconducting quantum computers. But in the JST Moonshot program starting in 2026, QuEL will work not only on large-scale control systems for superconducting quantum computers but also on classical control systems for ion-trap systems aimed at the 100–1,000 qubit scale.
In other words, QuEL is evolving from a supplier specialized in superconducting systems toward a company that applies control technology across different qubit modalities.
If that work leads to commercial products, QuEL’s growth potential will no longer be limited to the superconducting quantum-computer market.
“Success as a startup” versus “success as a quality manufacturer”
There is also a more fundamental question.
What kind of company is QuEL aiming to become?
As of 2025 QuEL had 14 employees. Rather than repeatedly raising large VC rounds and rapidly expanding headcount, the company began with founders’ personal funds and used bank loans to finance operations when the large 25-unit order required working capital.
That model differs somewhat from a typical deep-tech startup.
It is not a strategy of raising tens or hundreds of millions of dollars and accepting losses to capture future market share in a huge market.
Based on its current profile, QuEL more closely resembles a small, high-value manufacturer of specialized equipment.
A company with roughly 14 employees that generates ¥670 million in revenue and over ¥60 million in net profit can be considered a successful, sustainable business in its own right.
However, “success as a profitable niche manufacturer” and “success as a rapidly scaling startup” are not the same thing.
When evaluating QuEL, it is important not to conflate these two outcomes. It will also be important to watch which path QuEL itself chooses going forward.
The key question is the next customers
In that light, the most important metric to watch is not unit sales.
Who buys QuEL’s products?
After building a track record with domestic research institutions such as RIKEN, Osaka University, and AIST, can QuEL expand its customer base to include domestic and international commercial quantum-hardware companies?
QuEL says it has inquiries from companies at home and abroad as of 2025, but it has not disclosed specific overseas customers or sales volumes.
Many overseas quantum-hardware companies develop their own control systems in-house. If QuEL can convince those companies that “buying from QuEL is better than building in-house,” its position would change dramatically.
That would transform QuEL from a domestically focused equipment supplier supporting national quantum R&D into a supplier integrated into the global quantum-computing industry.
It is already a clear achievement that QuEL sells products into the market of organizations currently developing quantum computers, generating ¥670 million in revenue and profit rather than just waiting for future commercialization.
The next question is how far the business can be expanded.
More important than the next 45 units sold will likely be which five new customers QuEL secures.
