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Why QUBT Stock Is Outperforming the Industry Despite Near-Term Risks

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Key Takeaways

  • QUBT shares gained 7.9% in the past year against the industry's decline of 6.6% over the same period.
  • QUBT raised over $1.5B, strengthening its balance sheet to fund technology, fabs and commercialization.
  • QCi boosted Q3 revenues and margins, supported by NASA LiDAR work and an operational Tempe Fab 1.

Quantum Computing Inc. (QUBT - Free Report) , also known as QCi, has strengthened its financial position by raising more than $1.5 billion in capital, giving it ample resources to invest in technology development, manufacturing expansion and commercial execution.

QCi’s core strength lies in its room-temperature integrated photonic quantum architecture. This approach offers major advantages in size, power usage, cost and scalability compared with competing systems, many of which still struggle to move beyond lab-scale designs. Management believes this technology positions QCi well as demand for practical and scalable quantum solutions grows.

Commercial activity is also picking up. Revenues are being supported by NASA’s LiDAR program, along with new customer engagements in the automotive and financial sectors. At the same time, QCi’s foundry operations in Tempe are expanding. With Fab 1 now fully operational and early planning underway for a higher-volume Fab 2, the company is shifting from prototype development toward scalable manufacturing.

Financial performance improved notably in the third quarter of 2025. Revenues rose to $384,000 from $101,000 a year earlier, while gross margin increased to 33% from 9%. QCi also reported net income of $2.4 million, compared with a loss last year, reflecting better execution and benefits from its stronger cash position.

Competitors' Position

D-Wave Quantum (QBTS - Free Report) : It has shown strong commercial momentum throughout 2025 as its quantum systems transition from research focus to growing sales, especially driven by a significant jump in first-quarter 2025 revenues and expanding gross margins. Revenues continued rising through subsequent quarters, supported by system sales such as its Advantage2 machines and notable €10 million bookings for Italy. With a robust cash position after major equity raises, QBTS is well capitalized to fund R&D, partnerships and commercial expansion into 2026.

Rigetti Computing (RGTI - Free Report) : Its 2025 performance portrayed a mixed picture. Revenue growth was uneven and modest, with continued operating losses despite technical progress and new system orders. The company completed a strategic equity raise, boosting cash to over $570 million and it has made advances with multi-chip systems, aiming for 100+ qubits by late 2025 and scaling further. However, revenues remain small relative to costs and near-term growth depends heavily on government contracts and technical milestones rather than broad commercial adoption.

QUBT's Price Performance

In the past year, QUBT’s shares have gained 7.9% against the industry’s 6.6% decline. The S&P 500 composite has grown 14.9% in the same period.

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Expensive Valuation

QUBT currently trades at a forward 12-month Price-to-Sales (P/S) of 843.1X compared with the industry average of 4.35X.

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QUBT Stock Estimate Trend

Over the past 30 days, its loss per share estimate for 2025 has remained unchanged at 15 cents.

 

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QUBT stock currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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