Quantum Computing (NASDAQ:QUBT) Issues Quarterly Earnings Results, Misses Estimates By $0.03 EPS

Quantum Computing (NASDAQ:QUBT) released its earnings results on Monday. The company reported ($0.07) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.04) by ($0.03), FiscalAI reports. The company had revenue of $9.50 million for the quarter, compared to analyst estimates of $7.61 million. During the same period in the prior year, the business posted $0.01 earnings per share.

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 Down 1.0%

Shares of NASDAQ QUBT traded down $0.07 during midday trading on Wednesday, hitting $6.24. 4,123,083 shares of the company’s stock were exchanged, compared to its average volume of 13,251,916. The firm has a market capitalization of $1.41 billion, a PE ratio of -41.56 and a beta of 3.95. Quantum Computing has a 12 month low of $5.39 and a 12 month high of $14.45. The company’s 50 day moving average price is $7.49 and its 200 day moving average price is $8.57.

Top Quantum Computing Stories

These are some of the QUBT stories that stood out recently:

• Positive Sentiment: QUBT reported record third-quarter revenue of $9.5 million, up from $384,000 a year earlier and above analyst expectations. Revenue was supported by acquired photonics and advanced-packaging businesses. Read More.
• Positive Sentiment: The company said it achieved its 2024–2026 roadmap objectives and expects to ship its first Dirac-3S optimization machine in the fourth quarter. It also highlighted manufacturing expansion and ended September with about $1.3 billion in cash, investments and accrued interest, plus a $39.1 million contract backlog. Read More.
• Neutral Sentiment: Wedbush maintained a Neutral rating and $12 price target, recognizing the photonics opportunity while profitability remains uncertain. Read More.

Analyst Ratings Changes

Several brokerages have recently weighed in on QUBT. Wall Street Zen upgraded Quantum Computing from a “strong sell” rating to a “sell” rating in a report on Saturday, October 31st. Wedbush reissued a “neutral” rating on shares of Quantum Computing in a research report on Tuesday. Ascendiant Capital Markets increased their price target on Quantum Computing from $30.00 to $32.00 and gave the company a “buy” rating in a research report on Wednesday, August 26th. Cantor Fitzgerald restated a “neutral” rating and issued a $10.00 price target on shares of Quantum Computing in a research note on Tuesday, August 11th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Quantum Computing in a research report on Monday, September 21st. Four research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Quantum Computing presently has an average rating of “Hold” and an average price target 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.