Should You Buy, Hold, Or Sell QUBT Stock Ahead of Q3 Earnings?

Quantum Computing Inc. QUBT is expected to report third-quarter 2025 results shortly.

The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $0.10 million, projecting no change year over year.

The consensus mark for the bottom line is currently pegged at a loss of 5 cents per share, an improvement by a penny over the past 30 days. In the year-ago quarter, QUBT incurred a loss of 6 cents per share.

Quantum Computing Inc. Price and EPS Surprise

Quantum Computing Inc. price-eps-surprise | Quantum Computing Inc. Quote

Factors to Focus on Ahead of QUBT's Q3 Earnings

Growing Commercial Momentum Across Quantum and Photonic Platforms: In the second quarter of 2025, QUBT secured multiple noteworthy deals, including orders from Delft University of Technology for its Quantum Photonic Vibrometer and from a South Korean research institute for an entangled photon source supporting secure quantum communications. Momentum is expected to have extended into the third quarter, too, as QUBT landed a commercial order from a top-five U.S. bank for its Quantum Cybersecurity Solution, marking a key domestic commercial win. This expanding base of institutional and enterprise customers suggests the company’s offerings are transitioning from research deployments to real-world commercial use, a critical inflection point for long-term revenue growth.

Foundry Ramp and Integration of Nano-Photonic Chips: A major growth catalyst lies in QUBT’s new state-of-the-art photonic chip foundry in Tempe, AZ, which became fully operational earlier this year. The facility produces thin-film lithium niobate chips, crucial for next-generation communication, AI, and quantum applications. Management, on the second-quarter earnings call, talked about meaningful revenue contribution from the foundry over the next 12–18 months, as preorders begin converting to shipments. This is likely to be reflected in the to-be-reported quarter’s results.

Additionally, the company emphasized that the next key milestone involves integrating the company’s quantum machines with its nano-photonic chips, a move expected to dramatically reduce system size, weight, and power requirements while enhancing performance. This, too, might have favorably impacted the third-quarter performance of QUBT.

Strong Balance Sheet to Fuel Execution and R&D: QUBT ended second-quarter 2025 with $349 million in cash and equivalents following a $200 million financing round, a substantial increase from $79 million at the end of 2024. This robust liquidity gives the company a clear runway to fund its technology roadmap, government contracts and commercial expansion efforts without near-term financing risk. Moreover, QUBT’s strengthened capital position coincides with growing federal engagement, including contracts with NASA’s Langley Research Center and the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST). Ahead of the third-quarter release, QUBT’s fortified balance sheet and expanding government partnerships position it well to advance R&D and accelerate commercialization—though the upcoming results will indicate whether these initiatives have begun to translate into tangible growth.

Potential Stumbling Blocks Ahead of Q3 Results

While QUBT’s strategic progress and funding strength are evident, near-term financial results may still face headwinds. The company’s revenue base remains small and variable, with second-quarter 2025 sales totaling just $61,000, down from $183,000 a year earlier, implying that commercial traction is still in early stages. Management also noted that gross margins fluctuate at current volumes, suggesting that scaling challenges could persist through the remainder of the year. Additionally, the company’s operating expenses more than doubled year over year as QUBT invests heavily in personnel and foundry ramp-up, which could continue to put pressure on margins and widen losses in the short term.

QUBT Shares Outperformed Industry, Sector and Peers

QUBT shares lost 1.2% during the third quarter (ending Sept. 30, 3025) compared to the broader Zacks Computer and Technology sector’s rise of 15.3% and the Internet - Software industry’s increase of 4.4%. The S&P 500 Index gained 9.6% during the period. QUBT’s direct peers like IonQ IONQ and D-Wave Quantum QBTS rallied 53.4% and 66.8%, respectively, during this period.

QUBT July-September Stock Performance

Average Target Price for QUBT Suggests a Strong Upside

Based on short-term price targets, Quantum Computing is currently trading 69.5% below its average Zacks price target.

What Should Investors Do With QUBT Stock Ahead of Q3 Earnings?

While Quantum Computing, a Zacks Rank #3 (Hold) stock, has made progress in commercialization and partnerships, its revenue base remains minimal and profitability distant. Heavy R&D spending and foundry ramp-up may continue to pressure margins, while the stock lags peers like IonQ and D-Wave Quantum. With shares trading mainly on future potential, the risk-reward remains uncertain, making it prudent for investors to hold the stock until clearer signs of revenue growth and operational leverage emerge.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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