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QUBT Is Cash Rich but Its Revenues Are Poor: How to Play the Stock
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Key Takeaways
QUBT shares fell 5% post-Q2 results as revenues declined and missed expectations.
The company secured sales to Delft University, a top U.S. bank, and partnerships with NASA.
QUBT ended Q2 with $349M cash, boosted by financing and Russell index inclusion.
Quantum Computing Inc. (QUBT - Free Report) has seen its shares slip nearly 5% since reporting second-quarter 2025 results on Aug. 14, reflecting investor caution despite notable operational progress. Net loss per share was in line with the Zacks Consensus Estimate, but revenues missed expectations and declined year over year, underscoring the early-stage nature of its commercialization efforts. Still, Quantum Computing demonstrated meaningful traction across quantum sensing, AI and cybersecurity with new customer wins, its initial shipments to global research institutions and a strategic partnership with NASA.
The launch of Arizona-based quantum photonic chip foundry positions QUBT to scale across datacom, telecom and advanced sensing, while $349 million of cash and Russell index inclusion strengthen its balance sheet. However, investors remain cautious about the timeline for translating these milestones into sustainable revenue growth.
Let’s delve deeper
Three-Month Share Price Comparison of QUBT
Image Source: Zacks Investment Research
Over the past three months, QUBT stock has gained 21.1%, outperforming the broader industry, sector and S&P 500 Index’s gains of 11.8%, 14.8% and 10.5%, respectively.
Expanding Commercial Adoption and Government Partnerships
QUBT is steadily translating its technology portfolio into real-world use cases and also strengthening its role as a trusted government partner. In the second quarter of 2025, the company secured new customer wins such as the Department of Aerospace Structures and Materials at Delft University of Technology’s order for the Quantum Photonic Vibrometer, a South Korean institution’s purchase of an entangled photon source and the sale of its EmuCore reservoir computing system to a global automotive manufacturer. QUBT also achieved its first U.S. commercial sale of quantum cybersecurity solutions to a leading U.S. bank.
Also, government collaborations continue to provide momentum. The company was awarded a $406,478 subcontract with NASA’s Langley Research Center to apply its Dirac-3 quantum computer for atmospheric sensing. Its thin-film chip contract with the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) highlights rising federal interest.
Strengthened Capital Position and Institutional Recognition
QUBT exited the second quarter of 2025 with a strong balance sheet, reporting $349 million in cash and cash equivalents, up $270 million from 2024 end. This was largely supported by a $200 million financing round completed in June, which generated $188 million in net proceeds. The strengthened liquidity provides QUBT with the flexibility to accelerate hiring, scale its Arizona-based thin-film lithium niobate chip foundry and expand commercialization of its quantum machines and photonic solutions.
Management also highlighted that the capital base gives the company the option to pursue strategic acquisitions or partnerships that could enhance its technology roadmap and revenue generation.
On the institutional front, Quantum Computing achieved a milestone with its inclusion in the Russell 3000 and Russell 2000 indexes as part of the 2025 annual reconstitution. This inclusion increases its visibility among a broader base of institutional investors and index funds, which is likely to enhance liquidity in QUBT’s shares and broaden its shareholder base.
By comparison, IonQ (IONQ - Free Report) also ended the second quarter of 2025 with strong cash, emphasizing its focus on extending its runway while scaling commercial adoption. Rigetti Computing (RGTI - Free Report) , however, faced greater pressure, with a slimmer cash position and ongoing restructuring efforts to narrow losses.
Average Target Price Shows Strong Near-term Upside
Based on short-term price targets, Quantum Computing is currently trading 24.5% below its average Zacks price target.
Image Source: Zacks Investment Research
Near-term Glitches
QUBT continues to face near-term challenges. Second-quarter revenues fell significantly year over year and missed the Zacks Consensus Estimate by nearly 40%, reflecting the early stage of commercialization. The company posted significantly wider net loss compared to the year-ago period, primarily due to a $28 million non-cash warrant liability from its 2022 QPhoton merger and higher employee costs as it scales. Operating expenses nearly doubled, underscoring the heavy investment. While management highlights future traction from its foundry and product pipeline, the gap between rising losses and limited revenues keeps near-term investor caution elevated.
Estimate Revision Trend
Estimates for QUBT have widened from a loss of 7 cents per share to a loss of 17 cents per share for 2025 over the past seven days.
Image Source: Zacks Investment Research
Final Take
Quantum Computing is advancing in commercialization, government partnerships and manufacturing, supported by a strong balance sheet and growing institutional recognition. Yet, revenues remain minimal, losses have widened, and expenses are rising as the company scales ahead of sustainable growth. With shares outperforming recently but still below the average analyst target, QUBT has a Zacks Rank #3 (Hold), suggesting investors maintain positions while awaiting clearer visibility on revenues and profitability. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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QUBT Is Cash Rich but Its Revenues Are Poor: How to Play the Stock
Key Takeaways
Quantum Computing Inc. (QUBT - Free Report) has seen its shares slip nearly 5% since reporting second-quarter 2025 results on Aug. 14, reflecting investor caution despite notable operational progress. Net loss per share was in line with the Zacks Consensus Estimate, but revenues missed expectations and declined year over year, underscoring the early-stage nature of its commercialization efforts. Still, Quantum Computing demonstrated meaningful traction across quantum sensing, AI and cybersecurity with new customer wins, its initial shipments to global research institutions and a strategic partnership with NASA.
The launch of Arizona-based quantum photonic chip foundry positions QUBT to scale across datacom, telecom and advanced sensing, while $349 million of cash and Russell index inclusion strengthen its balance sheet. However, investors remain cautious about the timeline for translating these milestones into sustainable revenue growth.
Let’s delve deeper
Three-Month Share Price Comparison of QUBT
Image Source: Zacks Investment Research
Over the past three months, QUBT stock has gained 21.1%, outperforming the broader industry, sector and S&P 500 Index’s gains of 11.8%, 14.8% and 10.5%, respectively.
Expanding Commercial Adoption and Government Partnerships
QUBT is steadily translating its technology portfolio into real-world use cases and also strengthening its role as a trusted government partner. In the second quarter of 2025, the company secured new customer wins such as the Department of Aerospace Structures and Materials at Delft University of Technology’s order for the Quantum Photonic Vibrometer, a South Korean institution’s purchase of an entangled photon source and the sale of its EmuCore reservoir computing system to a global automotive manufacturer. QUBT also achieved its first U.S. commercial sale of quantum cybersecurity solutions to a leading U.S. bank.
Also, government collaborations continue to provide momentum. The company was awarded a $406,478 subcontract with NASA’s Langley Research Center to apply its Dirac-3 quantum computer for atmospheric sensing. Its thin-film chip contract with the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) highlights rising federal interest.
Strengthened Capital Position and Institutional Recognition
QUBT exited the second quarter of 2025 with a strong balance sheet, reporting $349 million in cash and cash equivalents, up $270 million from 2024 end. This was largely supported by a $200 million financing round completed in June, which generated $188 million in net proceeds. The strengthened liquidity provides QUBT with the flexibility to accelerate hiring, scale its Arizona-based thin-film lithium niobate chip foundry and expand commercialization of its quantum machines and photonic solutions.
Management also highlighted that the capital base gives the company the option to pursue strategic acquisitions or partnerships that could enhance its technology roadmap and revenue generation.
On the institutional front, Quantum Computing achieved a milestone with its inclusion in the Russell 3000 and Russell 2000 indexes as part of the 2025 annual reconstitution. This inclusion increases its visibility among a broader base of institutional investors and index funds, which is likely to enhance liquidity in QUBT’s shares and broaden its shareholder base.
By comparison, IonQ (IONQ - Free Report) also ended the second quarter of 2025 with strong cash, emphasizing its focus on extending its runway while scaling commercial adoption. Rigetti Computing (RGTI - Free Report) , however, faced greater pressure, with a slimmer cash position and ongoing restructuring efforts to narrow losses.
Average Target Price Shows Strong Near-term Upside
Based on short-term price targets, Quantum Computing is currently trading 24.5% below its average Zacks price target.
Image Source: Zacks Investment Research
Near-term Glitches
QUBT continues to face near-term challenges. Second-quarter revenues fell significantly year over year and missed the Zacks Consensus Estimate by nearly 40%, reflecting the early stage of commercialization. The company posted significantly wider net loss compared to the year-ago period, primarily due to a $28 million non-cash warrant liability from its 2022 QPhoton merger and higher employee costs as it scales. Operating expenses nearly doubled, underscoring the heavy investment. While management highlights future traction from its foundry and product pipeline, the gap between rising losses and limited revenues keeps near-term investor caution elevated.
Estimate Revision Trend
Estimates for QUBT have widened from a loss of 7 cents per share to a loss of 17 cents per share for 2025 over the past seven days.
Image Source: Zacks Investment Research
Final Take
Quantum Computing is advancing in commercialization, government partnerships and manufacturing, supported by a strong balance sheet and growing institutional recognition. Yet, revenues remain minimal, losses have widened, and expenses are rising as the company scales ahead of sustainable growth. With shares outperforming recently but still below the average analyst target, QUBT has a Zacks Rank #3 (Hold), suggesting investors maintain positions while awaiting clearer visibility on revenues and profitability. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.