New Capital Positions QUBT for Major Rebound: Is the Stock a Buy Now?

Quantum Computing QUBT, also known as QCi, recorded a 15.6% decline in its stock price over the past three months, an underperformance relative to the industry’s 10% drop. The stock likely fell because QUBT issued a large number of new shares to raise over $1.5 billion in capital, causing dilution, while still generating limited revenues. However, the company’s third-quarter 2025 results highlight strategic progress that may position the stock for long-term recovery.

Let’s delve deeper.

QUBT's Long-Term Strength Shines Amid Near-Term Weakness

While the stock has faced short-term pressure, the company is advancing on multiple fronts like capital, technology, manufacturing readiness and customer adoption, suggesting that its long-term prospects remain compelling despite recent market volatility.

QCi strengthened its balance sheet by raising more than $1.5 billion in capital, enabling aggressive investment in engineering, manufacturing and commercialization.

Management reiterated that its room-temperature integrated photonic architecture, offering significant size, weight, power and cost advantages, continues to differentiate QCi in a market still struggling with scalability. Commercial traction is building, supported by revenue contributions from NASA’s LiDAR initiative, new engagements in the automotive and financial sectors and expanding foundry activity in Tempe. With Fab 1 now fully operational and the groundwork for a high-volume Fab 2 underway, QCi is transitioning from prototype development toward scalable production.

The company also delivered meaningful financial improvements in the third quarter of 2025, underscoring stronger operational execution. Revenues grew to $384,000 from $101,000 a year earlier, driven by an increasing number of higher-value research, development and custom hardware contracts, as well as the first contributions from cloud access to its DIRAC-3 quantum optimization system.

Gross margin expanded sharply to 33% from 9% last year, reflecting improved contract mix and more efficient delivery, even though margins may fluctuate with a small contract base. Notably, QCi reported a net income of $2.4 million in the third quarter against a $5.7 million loss in the prior year period, a shift aided by interest income generated from its strengthened cash position and a gain from the mark-to-market of derivative liabilities. Together, these improvements signal that the company is progressing not only technologically but also financially, reinforcing confidence in its execution capabilities.

Three Months Price Comparison

Over the past three months, the stock has underperformed the industry, sector and the S&P 500. It has also underperformed rivals like IonQ IONQ and D-Wave Quantum QBTS during this period.

Average Target Price Shows Strong Near-term Upside

Based on short-term price targets, Quantum Computing is currently trading 84.4% below its average Zacks price target.

Estimate Revision Trend

Estimates for QUBT have narrowed from a loss of 25 cents per share to a loss of 19 cents per share for 2025 over the past 30 days.  

Buy QCi Now

Despite near-term stock volatility largely due to dilution-related pressure, QUBT is moving rapidly from early-stage development to scalable commercialization, backed by more than $1.5 billion in fresh capital, expanding customer adoption, a differentiated room-temperature photonic architecture and meaningful financial improvements. With the stock trading far below its average target price and earnings estimates trending upward, the current pullback appears more like a reset than a reflection of deteriorating business quality. Investors with a long-term horizon may consider this Zacks Rank #2 (Buy) stock,  given its technological edge, manufacturing ramp, growing institutional engagement and improved financial footing. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

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

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