Quantum Computing (NASDAQ:QUBT) Issues Quarterly Earnings Results

Key Points

• Quantum Computing reported quarterly EPS of -$0.07, missing the -$0.04 consensus estimate, while revenue of $9.5 million exceeded forecasts and rose sharply from $384,000 a year earlier, largely due to acquired photonics businesses. Gross margin was 4.5%, and the company reported a $15.1 million net loss.
• The company ended the quarter with about $1.3 billion in cash, cash equivalents, and investments, which management says can fund operations for at least 12 months. It plans to invest roughly $70–$80 million in manufacturing expansion related to NHanced.
• QCi announced its Dirac-3S optimization system, designed for problems with up to 9,980 variables, and expects to ship the first unit to a customer in Q4. Management is shifting its focus toward manufacturing scale-up and commercial deployments.

Quantum Computing (NASDAQ:QUBT - Get Free Report) issued its earnings results on Monday. The company reported ($0.07) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.04) by ($0.03), FiscalAI reports. The company had revenue of $9.50 million during the quarter, compared to the consensus estimate of $7.61 million.

Here are the key takeaways from Quantum Computing's conference call:

• Q3 revenue reached a record $9.5 million, up from $384,000 a year earlier and largely driven by acquired photonics businesses. Gross margin was 4.5%, while operating expenses rose to $29 million and the company reported a $15.1 million net loss.
• QCi ended the quarter with about $1.3 billion in cash, cash equivalents, and investments and said its liquidity should fund operations for at least 12 months. The company plans roughly $70–$80 million of investment in its NHanced-related manufacturing expansion, with much of that spending expected by March 2027.
• The company announced Dirac-3S, an optimization system designed for problems with up to 9,980 variables, and expects its first customer shipment in Q4. Management said its published tests showed better time-to-solution and solution quality than Hexaly on most tested problems, while acknowledging results varied by problem and further application testing is needed.
• Contract backlog was about $39.1 million; management said awards and revenue are lumpy and backlog typically converts over 12–18 months. Roughly 70% is currently tied to aerospace and government work, and the company did not provide revenue guidance, though it expects a solid backlog heading into 2027.
• QCi said it has completed the objectives in its 2024–2026 technology roadmap and is shifting focus toward scaling manufacturing and commercial deployments. Management expects to demonstrate heterogeneous integrated circuits within 12–18 months, but emphasized that integration, production scaling, and customer adoption remain ongoing work.

Quantum Computing Stock Up 8.4%

Shares of NASDAQ QUBT traded up $0.53 during midday trading on Monday, reaching $6.86. The company had a trading volume of 11,248,048 shares, compared to its average volume of 13,312,824. Quantum Computing has a one year low of $5.39 and a one year high of $14.45. The firm's fifty day moving average price is $7.55 and its 200-day moving average price is $8.62. The stock has a market cap of $1.55 billion, a PE ratio of -97.99 and a beta of 3.95.

Analyst Upgrades and Downgrades

Several research firms have commented on QUBT. Cantor Fitzgerald reaffirmed a "neutral" rating and set a $10.00 price objective on shares of Quantum Computing in a report on Tuesday, August 11th. Ascendiant Capital Markets boosted their price target on shares of Quantum Computing from $30.00 to $32.00 and gave the company a "buy" rating in a research report on Wednesday, August 26th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $22.00 price target on shares of Quantum Computing in a report on Monday, October 19th. Wedbush started coverage on Quantum Computing in a research report on Monday, August 3rd. They issued a "neutral" rating and a $12.00 price objective on the stock. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Quantum Computing in a research report on Monday, September 21st. Four equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $18.67.

Quantum Computing Company Profile

Quantum Computing Inc (QCi) develops quantum computing hardware and software, with a focus on photonics and systems designed to operate at room temperature. The company aims to make quantum technology more accessible for commercial and research applications.

Its offerings include the Dirac quantum computing systems and software for optimization problems. QCi also develops photonic technologies for applications such as quantum sensing and cybersecurity.

The company serves customers and organizations pursuing quantum computing and related technologies.

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