Will QUBT's Strong Q3 Progress and Cash Position Drive Momentum Ahead?

Quantum Computing Inc. QUBT reported solid third-quarter 2025 results as it continues to shift from development to early commercialization. Revenues rose to $384,000 from $101,000 last year, driven by expanded R&D contracts and initial revenues from cloud access to the Dirac-3 quantum optimization platform. Gross margin improved to 33%, although fluctuations are expected at current volumes.

Operating expenses increased to $10.5 million as the company invested further in R&D, engineering and manufacturing. Despite higher spending, QUBT reported net income of $2.4 million, primarily due to a $9.2 million fair-value gain on a derivative liability and $3.5 million in interest income.

The balance sheet strengthened significantly, with total assets reaching $898.2 million, and cash and investments totaling $352 million and $461 million, respectively, supported by $1.25 billion in private placements. Liabilities declined to $20.3 million, boosting shareholder equity to $877.9 million.

Operational highlights included its first U.S. commercial quantum cybersecurity sale to a top-five bank, ongoing work with NASA, progress at its thin-film lithium niobate foundry, increased industry engagement and strategic hiring to support future scaling.

Peer Update

Rigetti Computing’s RGTI third-quarter update shows steady progress despite lower revenues. Growing demand for its on-premises quantum systems, new Novera orders, and a three-year Air Force contract strengthen future revenue visibility. With $446.9 million in cash and no debt, Rigetti has room to invest. Its roadmap targets a 150-plus qubit system in 2026 and 1,000-plus qubits in 2027, signaling a clearer path toward scalable quantum computing.

D-Wave Quantum QBTS reported $3.7 million in third-quarter revenues, doubling year over year, with bookings amounting to $2.4 million, up 80% sequentially. Customer activity expanded with both new and renewed deals across sectors including aviation, semiconductors, financial services and research. Key operational achievements included the launch of new hybrid quantum applications, the successful deployment of an operational Advantage2 system in Alabama, growing industry recognition and continued advancement toward scalable gate-model quantum hardware.

QUBT’s Price Performance

Over the past year, QCi’s shares have gained 91.5%, outperforming the industry’s 4.3% growth. The S&P 500 composite has grown 16.3% in the same period.

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Expensive Valuation

QUBT currently trades at a forward 12-month Price-to-Sales (P/S) of 1860.30X compared with the industry average of 5.59X.

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QUBT Stock Estimate Trend

In the past 30 days, its loss per share estimate for 2025 has narrowed 6 cents to 19 cents.

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QUBT stock currently has a Zacks Rank #3 (Hold). 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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