Breaking Down Quantum Computing, Inc. (QUBT) Financial Health: Key Insights for Investors

You're looking at Quantum Computing, Inc. (QUBT) and seeing a stock that just raised over $1.5 billion in capital in 2025, which is a staggering amount for a company with a small commercial footprint, and you defintely want to know what this means for the balance sheet. The headline numbers from the Q3 2025 report are certainly eye-catching: revenue surged 280% year-over-year to $384,000, and the company reported a net income of $2.4 million, a swing to profitability from a loss a year ago. But as a seasoned analyst, I have to point out that the net income was largely driven by a $9.2 million mark-to-market gain on a derivative liability, not core operations; the real story is the massive liquidity cushion, with $352.4 million in cash and $460.6 million in investments on the books as of September 30, 2025, giving them a long runway to execute on their technology roadmap. This is a capital-intensive, pre-scale business, and the key question for investors is how effectively management will deploy that war chest to bridge the gap between their current revenue and the average analyst price target of around $23.67.

Revenue Analysis

You need to know if Quantum Computing, Inc. (QUBT) is finally translating its quantum research into commercial traction, and the Q3 2025 numbers defintely show a dramatic shift, though from a small base. The direct takeaway is that QUBT's revenue is accelerating, driven by a strategic pivot toward commercial quantum security and cloud access, moving beyond just R&D contracts.

For the third quarter ended September 30, 2025, Quantum Computing, Inc. reported revenue of approximately $384,000. Here's the quick math: this represents a year-over-year (YoY) revenue growth rate of roughly 280% compared to the $101,000 reported in the same quarter of 2024. This kind of percentage jump is impressive, but still, the absolute revenue figure remains small, which is typical for a company in the early commercialization phase of deep technology like quantum computing.

The core of Quantum Computing, Inc.'s revenue streams is shifting. Historically, the revenue was heavily weighted toward government and academic contracts for research and development (R&D) services and custom hardware contracts. Now, we are seeing two new, critical commercial segments emerge, which is a key opportunity for investors to monitor:

• Custom Hardware and R&D Services: This segment still contributes the bulk of the revenue increase, stemming from larger and more numerous contracts.
• Quantum Security Solutions: The company secured its first U.S. commercial sale of its quantum cybersecurity solutions to a top 5 U.S. bank in Q3 2025. This is a huge proof point for market validation.
• Cloud-Based Access: QUBT started recognizing revenue from cloud-based access to its Dirac-3 quantum optimization system in Q3 2025. This marks the start of a potentially recurring software-as-a-service (SaaS) model.

The most significant change in the revenue mix is this move to commercial sales and cloud subscriptions. What this estimate hides is the true segment contribution breakdown, as QUBT doesn't fully segment the $384,000, but the narrative is clear: they are transitioning from a pure R&D shop to a product and service provider. The gross margin also improved, rising to 33% in Q3 2025 from just 9% a year prior.

For a better perspective on the near-term financial health, here is a comparison of the Q3 2025 performance:

This jump in revenue and margin is a strong signal that the market is starting to pay for their integrated photonics (quantum optics) technology. You can dive deeper into the full financial picture in our comprehensive analysis, Breaking Down Quantum Computing, Inc. (QUBT) Financial Health: Key Insights for Investors.

Profitability Metrics

You're looking at Quantum Computing, Inc. (QUBT) and seeing a mix of numbers that don't quite line up with a traditional business model, and you're right to pause. The key takeaway is this: the company is still deep in the pre-commercial, high-R&D phase, so its true operating profitability is heavily negative, but its gross margin is showing a positive trend.

For the third quarter of 2025 (Q3 2025), Quantum Computing, Inc. reported total revenue of just $384,000, which is a 280% year-over-year increase, but still a very low figure for a publicly traded company. This low revenue base is why the profitability ratios look extreme. Here's the quick math on the core margins:

• Gross Profit Margin: The margin was 33% in Q3 2025, a significant jump from 9% in Q3 2024. This means for every dollar of revenue, 33 cents is left after paying the direct costs of providing the service or product. This is a defintely positive trend in cost management and revenue quality.
• Operating Profit Margin: The company reported an operating loss of $10.4 million in Q3 2025. Given the low revenue, this translates to a massive negative operating margin of approximately -2706%. This is the cost of building a quantum business.
• Net Profit Margin: The reported net income was $2.4 million, which gives a net profit margin of roughly 625%. But don't be fooled-this is not from core operations.

The reported net income is an accounting anomaly, not a sign of operational success. The $2.4 million net income was primarily driven by a $9.2 million non-cash gain from the mark-to-market adjustment of a derivative liability, plus $3.5 million in interest income from their substantial cash reserves. Strip out those one-time, non-operational items, and the company's core business is running at a significant loss, which is typical for this stage.

When you compare these numbers to industry averages, you see a clear picture of an early-stage, high-tech hardware company. A general technology hardware maker typically has a gross margin around 36.2%. Quantum Computing, Inc.'s 33% gross margin is close, which is encouraging for a company still scaling its manufacturing (like their Fab 1 small-batch TFLN production).

However, the operating loss is the real story. The average operating margin for the broader technology sector is actually -5.76% right now, largely due to aggressive spending in AI and early-stage tech. Quantum Computing, Inc.'s -$10.4 million operating loss is driven by $10.5 million in operating expenses, which includes heavy spending on Research & Development (R&D) and general administrative costs. For context, the Biotechnology industry, another high-R&D, pre-profit sector, has an average net profit margin of -169.5%. Quantum Computing, Inc.'s operational loss is far steeper, but it highlights the nature of their massive investment in new technology. This is a land-grab phase, not a harvest phase.

If you want to dig deeper into the balance sheet and valuation, you can read the full analysis at Breaking Down Quantum Computing, Inc. (QUBT) Financial Health: Key Insights for Investors. Your next step should be to track the gross margin trend over the next two quarters. If that 33% margin continues to climb toward the higher end of the hardware range (say, 40%), it signals real operational efficiency gains that will matter once revenue truly scales.

Debt vs. Equity Structure

The core takeaway for Quantum Computing, Inc. (QUBT)'s financing is simple: they are a company overwhelmingly funded by equity, not debt. This strategy maps directly to their high-growth, pre-profit stage, where investors are funding the long-term vision instead of banks financing short-term operations.

As of mid-2025, the company's financial structure shows minimal reliance on borrowing. For the quarter ending June 2025, Quantum Computing, Inc.'s Short-Term Debt and Capital Lease Obligation was $0.00 Million, with Long-Term Debt and Capital Lease Obligation sitting at a small $1.54 Million (in millions of USD). This is defintely a clean balance sheet.

This minimal debt load translates into a near-zero financial leverage ratio. The company's Debt-to-Equity Ratio for the quarter ending June 2025 was 0.00, which is exceptionally low, even for a technology company. This is a crucial point for investors, as it means the company is not burdened by significant interest expense, giving it maximum flexibility to invest in its TFLN chip foundry and quantum machine development.

Here is a snapshot of the key financing metrics as of Q2/Q3 2025:

The company's growth financing in 2025 has been almost entirely equity-driven, which is typical for a capital-intensive, pre-scale technology business. To date in 2025, Quantum Computing, Inc. has raised over $1.5 billion in capital, primarily through private placements of common stock. This massive influx of cash fortifies the balance sheet and is the primary source of funding for their long-term vision, including the transition to volume production.

The focus on equity over debt is a clear strategic choice, allowing the company to fund its significant R&D and manufacturing scale-up without the restrictive covenants or mandatory interest payments that come with debt. Here's the quick math: a total debt of just over $1.5 million against an equity base of $877.9 million (as of September 30, 2025) shows the clear preference. This preference for equity has also helped to clean up other liabilities.

• Raised $500 million via private placement in Q3 2025.
• Secured an additional $750 million after Q3 2025 close.
• Total liabilities decreased by $26.0 million in Q3 2025.

This liability reduction was mainly a non-cash adjustment of $25.8 million related to a derivative liability from the QPhoton warrants, not a payoff of traditional debt. The bottom line is that the company is using investor capital to fund its operations and expansion, which is why understanding the shareholder base is crucial. You can dive deeper into who is funding this growth by Exploring Quantum Computing, Inc. (QUBT) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

You want to know if Quantum Computing, Inc. (QUBT) has the cash to execute its ambitious roadmap, and the short answer is a resounding yes, for now. The company's liquidity position is defintely fortified, but it's crucial to understand how that cash arrived. The entire picture is dominated by a massive capital raise in 2025.

As of the latest reporting period, the company's liquidity ratios are extraordinary, reflecting a balance sheet flush with cash. The Current Ratio, which measures current assets against current liabilities, stands at a staggering 88.17. For context, a ratio between 1.5 and 3 is typically considered healthy.

The Quick Ratio (or acid-test ratio), which excludes inventory-assets that are harder to turn into cash-is nearly identical at 88.08. This tiny difference tells you inventory is negligible, which is common for a high-tech services and early-stage hardware company. They have more than enough cash on hand to cover all short-term debts 88 times over.

• Current Ratio: 88.17 (Exceptional short-term coverage).
• Quick Ratio: 88.08 (Minimal reliance on inventory).
• Net Current Asset Value: $320.12 million (TTM).

Analysis of Working Capital Trends

The working capital trend is one of dramatic expansion in 2025. Total assets at September 30, 2025, reached $898.2 million, a huge jump from the end of 2024. This was not driven by operational revenue, but by financing. The firm's cash and cash equivalents alone were $352.4 million, plus an additional $460.6 million in investments. The working capital is strong because current assets have ballooned while total liabilities have actually decreased to $20.3 million, primarily due to a reduction in a derivative liability.

Here's the quick math on their liquid resources: after the Q3 2025 close, the company raised an additional $750 million, bringing their total liquid position to over $1.5 billion. That's a massive cash runway.

Cash Flow Statements Overview

The cash flow statement reveals the core dynamic of this growth-stage company.

The cash from operating activities is negative-they are burning cash to grow, which is expected for a pre-profit, high-growth tech firm. This is why the financing activity is so critical; it's the engine covering the operational shortfall.

Potential Liquidity Concerns or Strengths

The strength is the sheer size of the cash cushion. A liquid position of over $1.5 billion gives Quantum Computing, Inc. the financial flexibility to weather market downturns, fund aggressive R&D, and pursue strategic acquisitions, which the CFO has indicated they are evaluating. The company is debt-free, which is excellent.

The primary risk is the reliance on equity financing. The negative cash flow from operating activities means the company is not yet self-sustaining; it relies on capital markets to fund its operations and growth. If the capital markets were to seize up, that $1.5 billion runway, while long, is not infinite. You can read more about their long-term goals here: Mission Statement, Vision, & Core Values of Quantum Computing, Inc. (QUBT). The company must convert its commercial traction-like the first U.S. commercial sale of quantum cybersecurity solutions to a top-5 U.S. bank-into materially larger, recurring revenue streams.

Valuation Analysis

Is Quantum Computing, Inc. (QUBT) overvalued? The short answer is that traditional valuation metrics suggest it's a high-risk, high-reward growth story, not a value play. You can't use a simple price-to-earnings (P/E) ratio to judge a company that's still in the early commercialization phase, but its price-to-book (P/B) ratio of 2.26 as of November 2025 suggests the market is willing to pay a premium for its assets and future potential. This is a classic case where the intrinsic value is tied to future technology breakthroughs, not current cash flow.

The company's core valuation ratios are negative, which is typical for a pre-revenue or early-stage technology stock. For instance, the trailing 12-month (TTM) P/E ratio is around -15.10, and the Enterprise Value-to-EBITDA (EV/EBITDA) sits near -32.70 as of November 19, 2025. This simply means Quantum Computing, Inc. is not yet profitable at the earnings before interest, taxes, depreciation, and amortization (EBITDA) level, which is what you defintely expect in this sector. You're buying the promise of a quantum future, not present-day profits.

Here's the quick math on the key valuation indicators:

The Price-to-Book (P/B) ratio of 2.26 is the most tangible valuation anchor right now. It tells you that for every dollar of net assets on the balance sheet, the market is assigning a value of over two dollars. This premium reflects the significant cash position-reported at approximately $352 million in Q3 2025-which is crucial for funding the multi-year research and development (R&D) runway needed to commercialize quantum technology.

Looking at the stock price trends, Quantum Computing, Inc. has been a wild ride over the last 52 weeks, trading in a massive range between a low of $2.85 and a high of $27.15. This volatility, which includes a 52-week change of over 246%, shows that the stock is highly sensitive to news, especially around product rollouts like the new Neurawave system and Q3 2025 revenue of $384,000. The stock does not pay a dividend, with a 0% yield and payout ratio, as all capital is focused on growth.

The analyst community is generally optimistic, with a consensus rating of 'Buy'. The average 12-month price target is $23.67, which suggests a significant upside from the current price, though the estimates range widely from a low of $15.00 to a high of $40.00. This wide range is a clear signal of the uncertainty inherent in valuing a company in an emerging market. You must factor in the company's long-term vision, which you can review in their Mission Statement, Vision, & Core Values of Quantum Computing, Inc. (QUBT).

So, what's the takeaway for your portfolio?

• Expect extreme volatility; the stock's beta is high.
• Focus on revenue growth, not P/E or EBITDA.
• Treat this as a long-term, speculative growth investment.

Your next step is to model a scenario where Quantum Computing, Inc. hits the low-end analyst target of $15.00 and assess the risk tolerance for that trade-off.

Risk Factors

You're looking at Quantum Computing, Inc. (QUBT) and seeing a stock that surged 271.0% over the last year, but you have to ask: what's the real operational risk beneath that massive run-up? Honestly, the financial fundamentals still signal extreme risk, even with the recent capital infusion.

The core challenge is that the quantum computing industry is still in its infancy-the technology is defintely years away from widespread commercial application. This creates a huge disconnect between the company's high market capitalization of approximately $2.37 billion and its minimal commercial revenue.

The Q3 2025 earnings report, while showing a net income of $2.4 million, hid a crucial detail: that profit wasn't from selling quantum computers. Here's the quick math: the net income was primarily driven by a non-operational $9.2 million mark-to-market derivative gain and $3.5 million in interest income. Strip those out, and the operational reality is clearer.

Operational and Financial Risks

The financial statements highlight a few key areas of operational weakness that you need to watch. The company is spending heavily to build out its technology and manufacturing, which is necessary, but it's still a massive cash burn.

• Minimal Revenue: Q3 2025 revenue was only approximately $384,000, despite a 280% year-over-year increase. That's tiny for a multi-billion-dollar market cap company.
• Extreme Unprofitability: The Operating Margin for QUBT is a staggering -12474.9%, suggesting the core business is far from scalable or efficient right now. Loss from operations for Q3 2025 was $10.4 million.
• Dilution Risk: To fund its multi-year R&D, the company raised over $1.5 billion in capital in 2025, primarily through private placements of common stock. This stock issuance dilutes the value of existing shares.

External and Strategic Headwinds

The external landscape is a minefield of competition and technological uncertainty. QUBT is up against not just other pure-play quantum companies like IonQ and D-Wave Quantum, but also tech giants investing billions into the space. A breakthrough from a competitor, like Google's Willow chip, could quickly devalue QUBT's current technology. Plus, the stock's high beta of 5.73 means it's extremely volatile, amplifying any market-wide sell-off.

Mitigation and Forward Strategy

To be fair, management is taking clear steps to mitigate these risks. Their primary defense is the massive liquidity buffer of over $1.5 billion, which gives them a long runway to reach industrial scale. Their strategic focus is on integrated photonics, which they believe offers a differentiator-room temperature, low power, and affordability-compared to the superconducting quantum computers that need ultra-cold environments.

They are also showing some commercial traction, including a first U.S. commercial sale of quantum cybersecurity solutions to a top-5 U.S. bank, and ongoing collaboration with NASA using their Dirac-3 system. These milestones are key, as they validate the technology's real-world use cases. You can read more about their long-term goals here: Mission Statement, Vision, & Core Values of Quantum Computing, Inc. (QUBT).

Still, the transition to volume production is a long-term goal, and without sustainable margin improvement, their ambitious plans for M&A and further development risk becoming a costly expansion cycle. We need to see that $384,000 revenue figure grow by orders of magnitude, not just a few hundred percent.

Growth Opportunities

You're looking for a clear map of where Quantum Computing, Inc. (QUBT) goes from here, and the answer is simple: they are transitioning from a technology innovator to a volume manufacturer. This shift is backed by a massive capital infusion and a technology-photonic quantum computing-that sidesteps a major hurdle for competitors.

The company's growth drivers are highly specific, moving beyond just research and development (R&D) and into commercial traction. For the nine months ended September 30, 2025, total revenue was still small at $484 thousand, but the third quarter alone showed a 280% year-over-year revenue surge to $384,000, with gross margin improving to 33%. That's a huge jump in revenue quality, even if the absolute numbers are low.

• Secured sale of quantum security solutions to a top 5 U.S. bank.
• Completed a sale of a quantum computer to a major automotive manufacturer.
• Advanced partnership with NASA on the LiDAR initiative.

Scaling and Strategic Partnerships

The real story isn't the current revenue; it's the runway. Quantum Computing, Inc. has raised over $1.5 billion in capital in 2025, giving them a substantial liquid position to aggressively pursue their growth roadmap. This war chest is funding a push for industrial scale, which is the only way to win on unit economics in this space.

Here's the quick math on their manufacturing plan: their Fab 1 facility in Tempe, Arizona, is fully operational, and it's the only U.S. facility fabricating Thin-Film Lithium Niobate (TFLN). This is defintely a key strategic asset. Now, they are in the early stages of planning for Fab 2, which is their printing press, targeting volume production of 'hundreds of millions of chips per year' to reduce the unit cost dramatically.

Strategic alliances are also key to their product innovation. Their collaboration with POET Technologies is aimed at integrating their technology for impressive data-transfer speeds, which is critical for connectivity solutions in AI and data centers. Also, they are actively pursuing strategic acquisitions to quickly gain customers and complementary product lines, which is a faster path to growth than pure organic build-out.

Competitive Edge and Future Projections

The company's core competitive advantage is its use of photons (light particles) in its quantum computers. This photonic approach is a game-changer because it allows the devices to operate at room temperature, unlike many competitors who need expensive, complex cryogenic equipment. Plus, photons enable miniaturization and speed-of-light data transfer over long distances, which is perfect for self-driving vehicles and networking quantum systems.

Analyst consensus for the full 2025 fiscal year projects a net loss, with an estimated EPS of -$0.25 on revenue of about $0.4 million. But looking ahead, the forecast for the next fiscal year is for revenue to jump to around $2.2 million, which reflects the expected ramp-up from their scaling and commercial wins. Still, the market is highly competitive, so execution on the Fab 2 plan is crucial.

If you want to understand the foundational principles driving this strategy, you should read their core documents: Mission Statement, Vision, & Core Values of Quantum Computing, Inc. (QUBT).