IonQ (IONQ) AI Stock Analysis

• Market Cap: $8.67B
• Dividend Yield: N/A
• Average Volume (3M): 17.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.25
• Revenue Growth: 69.92%
• EPS Growth: -79.18%
• Country: US
• Employees: 407
• Sector: Technology
• Sector Strength: 76
• Industry: Computer Hardware
• EPS (TTM): -0.14
• Shares Outstanding: 247,783,080
• 10 Day Avg. Volume: 16,569,457
• 30 Day Avg. Volume: 17,087,445
• PEG Ratio: -0.20
• Price to Book (P/B): 17.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -41.20
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 55.28
• Enterprise Value/Gross Profit: 337.19
• Enterprise Value/Ebitda: -9.96
• 1Y Price Target: $40.00
• Price Target Upside: 14.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

IonQ's strong revenue growth and strategic acquisitions are positive indicators, but challenges with profitability and cash flow weigh heavily. Technical momentum supports a moderate score, yet valuation concerns and ongoing losses are significant risks.

Positive Factors

Commercialization and Partnerships

IonQ reported better than expected revenue and reiterated its revenue guide.

Financial Performance

IonQ strengthened its financial position by raising $373 million, providing a solid foundation to advance its computing and networking initiatives.

Strategic Partnerships

IonQ announced a distributor agreement with Toyota Tsusho, enhancing its visibility and adoption in Japan's tech ecosystem.

Negative Factors

Revenue Guidance

The lack of upside to full-year revenue guidance and specifics on organic growth indicate a slowing in the systems business and a shift of management focus towards other opportunities in quantum.

Strategic Acquisitions

The acquisition of quantum interconnect company Lightsynq could suggest that the company now believes its prior strategy in that space may not be as viable as hoped.

IonQ Business Overview & Revenue Model

Company Description

IonQ, Inc. engages in the development of general-purpose quantum computing systems. It sells access to quantum computers with 20 qubits. The company makes access to its quantum computers through cloud platforms, such as Amazon Web Services' (AWS) Amazon Braket, Microsoft's Azure Quantum, and Google's Cloud Marketplace, as well as through its cloud service. IonQ, Inc. was founded in 2015 and is headquartered in College Park, Maryland.

How the Company Makes Money

IonQ generates revenue primarily through the provision of quantum computing services. The company offers access to its quantum computers on a pay-per-use basis via cloud platforms, including partnerships with major providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud. These collaborations allow IonQ to reach a broader market by integrating its quantum computing solutions into existing cloud ecosystems, thus providing scalable and flexible computing resources to clients. Additionally, IonQ engages in direct partnerships with enterprises across various industries to develop customized quantum solutions, enabling them to tackle specific computational challenges. Revenue is also derived from research grants, collaborations with academic institutions, and government contracts aimed at advancing quantum technology research and development.

IonQ Financial Statement Overview

Summary

IonQ's financial performance indicates strong revenue growth but faces significant profitability challenges. Despite a solid equity base and low leverage, the company has substantial net losses and negative cash flows, which need to be addressed for sustainable growth.

Income Statement

IonQ has demonstrated significant revenue growth, with a revenue increase from $2.1 million in 2021 to $43.1 million in 2024. However, the company is experiencing substantial losses, with a net income of -$331.6 million in 2024, indicating ongoing challenges in profitability. The gross profit margin improved to 52.2% in 2024, showing better cost management, but the net profit margin remains deeply negative.

Balance Sheet

The balance sheet shows a strong equity position with a stockholders' equity of $383.9 million in 2024. The debt-to-equity ratio remains low at 0.046, indicating limited leverage use. However, the return on equity is negative due to consistent net losses, suggesting challenges in generating returns for shareholders.

Cash Flow

IonQ's cash flow statement reflects negative operating cash flows, with a free cash flow of -$123.7 million in 2024, indicating cash burn. While the operating cash flow to net income ratio shows consistency in cash flow relative to net losses, the company needs to focus on improving cash generation to support growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
43.07M	22.04M	11.13M	2.10M	0.00
	Gross Profit
22.48M	13.93M	8.19M	1.06M	-143.00K
	EBIT
-232.46M	-157.75M	-85.75M	-38.69M	-15.73M
	EBITDA
-213.80M	-147.38M	-80.14M	-36.14M	-14.33M
	Net Income Common Stockholders
-331.65M	-157.77M	-48.51M	-106.19M	-15.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
340.29M	355.44M	355.80M	522.47M	36.12M
	Total Assets
508.39M	553.58M	597.99M	642.03M	60.48M
	Total Debt
17.73M	8.11M	4.05M	4.21M	4.27M
	Net Debt
-36.67M	-27.56M	-40.32M	-394.81M	-31.85M
	Total Liabilities
124.53M	68.59M	29.78M	50.80M	6.78M
	Stockholders Equity
383.86M	484.99M	568.21M	591.23M	53.70M
Cash Flow		Free Cash Flow
-123.67M	-98.36M	-57.26M	-36.56M	-23.68M
	Operating Cash Flow
-105.68M	-78.81M	-44.70M	-26.54M	-12.01M
	Investing Cash Flow
82.73M	68.77M	-309.06M	-213.78M	-11.68M
	Financing Cash Flow
41.69M	1.76M	1.10M	603.23M	276.00K

IonQ Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IONQ, the sentiment is Positive. The current price of 34.99 is above the 20-day moving average (MA) of 29.74, above the 50-day MA of 25.91, and above the 200-day MA of 23.90, indicating a bullish trend. The MACD of 2.10 indicates Negative momentum. The RSI at 68.05 is Neutral, neither overbought nor oversold. The STOCH value of 77.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IONQ.

IonQ Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$11.59B	10.39	-7.23%	2.94%	7.46%	-10.76%
QUBT	56 Neutral	$1.81B	―	-30.47%	―	45.57%	-35.70%
QBTS	55 Neutral	$3.58B	―	-154.89%	―	121.61%	-13.50%
IONQ	55 Neutral	$8.67B	―	-52.11%	―	69.92%	-79.18%
RGTI	51 Neutral	$3.44B	―	-85.28%	―	-28.38%	-29.15%

IonQ Corporate Events

IonQ Acquires Controlling Stake in id Quantique

IonQ, a company involved in the quantum computing industry, has completed its acquisition of a controlling stake in id Quantique SA on April 30, 2025. This transaction involved the issuance of 4,215,740 shares of IonQ’s common stock to the sellers, and a Registration Rights Agreement was established to provide certain rights to the sellers regarding the stock consideration.

Spark’s Take on IONQ Stock

According to Spark, TipRanks’ AI Analyst, IONQ is a Neutral.

IonQ’s overall score reflects strong revenue growth and strategic advancements in quantum networking, counterbalanced by significant profitability and cash flow challenges. The company’s strategic acquisitions and new leadership aim to position it as a prominent player in the industry. However, ongoing financial headwinds and a challenged valuation underline the need for improved profitability to enhance shareholder value.

To see Spark’s full report on IONQ stock, click here.

IonQ Ends ATM Equity Offering Amid Market Turbulence

On March 10, 2025, IonQ, Inc. announced the termination of its At-the-Market (ATM) equity offering program, which had raised over $372 million through the sale of 16,038,460 shares. The decision to end the program was influenced by recent market disruptions and the company’s assessment that it had secured sufficient capital to meet its needs, boosting its pro forma year-end cash balance to over $700 million. This move reflects IonQ’s strategic positioning to maintain its leadership in the quantum computing and networking sectors, despite turbulent market conditions.

IonQ Announces $500 Million Equity Offering Program

On February 26, 2025, IonQ announced an ‘at the market’ equity offering program, allowing the company to sell up to $500 million in common stock through Morgan Stanley and Needham as sales agents. The proceeds are intended for general corporate purposes, including scaling its quantum computing and networking businesses. The sales will depend on market conditions and other factors, with no obligation for IonQ to sell any shares.

IonQ Announces Acquisition to Boost Quantum Leadership

IonQ reported its financial results for the fourth quarter and full year of 2024, highlighting a significant year-over-year revenue growth of 95%, reaching $43.1 million. The company exceeded its financial guidance and secured $95.6 million in bookings for the year. IonQ also announced a definitive agreement to acquire a controlling stake in ID Quantique SA to bolster its leadership in quantum networking. The acquisition, along with strategic partnerships and expansions, positions IonQ as a prominent player in the global quantum industry, with a robust pipeline expected to drive future growth.