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In the last reported quarter, the company’s adjusted loss of 2 cents per share was narrower than the Zacks Consensus Estimate of a loss of 5 cents. Its earnings beat estimates in one of the trailing four quarters and matched in the remaining three, delivering an average surprise of 15.00%.
The Zacks Consensus Estimate for revenues is currently pegged at $4.7 million, implying a massive 7733.3% improvement from the year-ago period’s level.
The consensus estimate for loss per share has remained unchanged at 12 cents over the past 30 days.
QUBT's Earnings Estimate Revision Trend
Image Source: Zacks Investment Research
During the second quarter, QCi’s share price experienced 46.1% growth, mainly due to a series of strategic acquisitions, rapid commercialization efforts and expansion into photonic AI. Yet, the company is expected to have incurred a loss during the second quarter, potentially reflecting gross margin pressure from low utilization at its Fab 1 facility and the relatively limited scale of its legacy business.
The Zacks Internet - Software industry and the S&P 500 benchmark index gained 5.6% and 14.5%, respectively, during the second quarter. Other industry players, such as Rigetti (RGTI - Free Report) and IonQ (IONQ - Free Report) , gained 43.1% and 91.6%, respectively.
QUBT's Q2 Price Performance Comparison
Image Source: Zacks Investment Research
Let’s see how things might have shaped up for QUBT prior to the announcement:
Key Factors to Note Before QCi's Q2 Earnings Release
QCi completed three strategic acquisitions within six months. It acquired Luminar Semiconductor for $110 million, adding capabilities in lasers, detectors, advanced packaging and manufacturing to complement its TFLN photonics platform. The company also acquired NuCrypt for $5 million to expand its quantum communications and photonics portfolio.
Additionally, QCi acquired NHanced Semiconductors for $73.1 million in cash and stock, with up to $72 million in additional performance-based payments. The deal likely strengthened domestic manufacturing, supply-chain resilience and advanced photonic chip development. These developments may have positively impacted the quarter to be reported.
QCi also continued advancing the next generation of its Dirac quantum optimization platform. During the previous quarter, the company placed a Dirac-3 machine on Quantum Corridor’s multi-state quantum-safe commercial communications network. The collaboration is expected to have provided institutions and commercial customers with secure, on-demand access to the Dirac-3 platform. Meanwhile, Fab 1 continued ramping up small-batch manufacturing and began generating early revenues, providing another potential growth driver for the second quarter.
However, QCi remained loss-making in the first quarter, while operating expenses more than doubled due to increased staffing, research and development, product development, sales and marketing activities. General and administrative expenses also rose sharply, reflecting nearly $6 million in acquisition-related legal, due diligence and banking costs. These elevated expenses may have continued to weigh on profitability in the quarter under review.
QUBT’s Valuation
QCi stock is currently expensive compared with its industry, as shown in the chart below.
QUBT is currently trading at a forward 12-month price-to-sales (P/S) ratio of 64.52X, higher than its industry's median of 4.42X.
Image Source: Zacks Investment Research
Our Take
QCi’s second-quarter results are likely to reflect strong revenue growth, supported by recent acquisitions, expanding commercialization efforts and early contributions from Fab 1. However, elevated operating expenses, integration costs and continued manufacturing underutilization are expected to have kept profitability under pressure. Investors will closely watch revenue contributions from the acquired businesses, progress on the Dirac platform and signs of improving gross margins.
Given the valuation trend and stock price surge, we advise investors who already hold this Zacks Rank #3 (Hold) stock to maintain their positions, while prospective investors may consider waiting for a more favorable entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
View the Zacks #1 Rank List
Image: Bigstock
Quantum Computing Stock Pre-Q2 Earnings Release: To Buy, Hold or Sell?
Key Takeaways
Quantum Computing Inc. (QUBT - Free Report) or QCi is expected to report second-quarter 2026 results on Aug. 10, after market close.
In the last reported quarter, the company’s adjusted loss of 2 cents per share was narrower than the Zacks Consensus Estimate of a loss of 5 cents. Its earnings beat estimates in one of the trailing four quarters and matched in the remaining three, delivering an average surprise of 15.00%.
The Zacks Consensus Estimate for revenues is currently pegged at $4.7 million, implying a massive 7733.3% improvement from the year-ago period’s level.
The consensus estimate for loss per share has remained unchanged at 12 cents over the past 30 days.
QUBT's Earnings Estimate Revision Trend
Image Source: Zacks Investment Research
During the second quarter, QCi’s share price experienced 46.1% growth, mainly due to a series of strategic acquisitions, rapid commercialization efforts and expansion into photonic AI. Yet, the company is expected to have incurred a loss during the second quarter, potentially reflecting gross margin pressure from low utilization at its Fab 1 facility and the relatively limited scale of its legacy business.
The Zacks Internet - Software industry and the S&P 500 benchmark index gained 5.6% and 14.5%, respectively, during the second quarter. Other industry players, such as Rigetti (RGTI - Free Report) and IonQ (IONQ - Free Report) , gained 43.1% and 91.6%, respectively.
QUBT's Q2 Price Performance Comparison
Image Source: Zacks Investment Research
Let’s see how things might have shaped up for QUBT prior to the announcement:
Key Factors to Note Before QCi's Q2 Earnings Release
QCi completed three strategic acquisitions within six months. It acquired Luminar Semiconductor for $110 million, adding capabilities in lasers, detectors, advanced packaging and manufacturing to complement its TFLN photonics platform. The company also acquired NuCrypt for $5 million to expand its quantum communications and photonics portfolio.
Additionally, QCi acquired NHanced Semiconductors for $73.1 million in cash and stock, with up to $72 million in additional performance-based payments. The deal likely strengthened domestic manufacturing, supply-chain resilience and advanced photonic chip development. These developments may have positively impacted the quarter to be reported.
QCi also continued advancing the next generation of its Dirac quantum optimization platform. During the previous quarter, the company placed a Dirac-3 machine on Quantum Corridor’s multi-state quantum-safe commercial communications network. The collaboration is expected to have provided institutions and commercial customers with secure, on-demand access to the Dirac-3 platform. Meanwhile, Fab 1 continued ramping up small-batch manufacturing and began generating early revenues, providing another potential growth driver for the second quarter.
However, QCi remained loss-making in the first quarter, while operating expenses more than doubled due to increased staffing, research and development, product development, sales and marketing activities. General and administrative expenses also rose sharply, reflecting nearly $6 million in acquisition-related legal, due diligence and banking costs. These elevated expenses may have continued to weigh on profitability in the quarter under review.
QUBT’s Valuation
QCi stock is currently expensive compared with its industry, as shown in the chart below.
QUBT is currently trading at a forward 12-month price-to-sales (P/S) ratio of 64.52X, higher than its industry's median of 4.42X.
Image Source: Zacks Investment Research
Our Take
QCi’s second-quarter results are likely to reflect strong revenue growth, supported by recent acquisitions, expanding commercialization efforts and early contributions from Fab 1. However, elevated operating expenses, integration costs and continued manufacturing underutilization are expected to have kept profitability under pressure. Investors will closely watch revenue contributions from the acquired businesses, progress on the Dirac platform and signs of improving gross margins.
Given the valuation trend and stock price surge, we advise investors who already hold this Zacks Rank #3 (Hold) stock to maintain their positions, while prospective investors may consider waiting for a more favorable entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.