Quantum Computing (QUBT) AI Stock Analysis

• Market Cap: $2.80B
• Dividend Yield: N/A
• Average Volume (3M): 52.34M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: -21.56%
• EPS Growth: -103.08%
• Country: US
• Employees: 41
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): -0.26
• Shares Outstanding: 186,872,400
• 10 Day Avg. Volume: 44,483,039
• 30 Day Avg. Volume: 52,341,321
• PEG Ratio: -0.31
• Price to Book (P/B): 14.48
• Price to Sales (P/S): 4165.50
• P/FCF Ratio: -69.83
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 8.99K
• Enterprise Value/Gross Profit: -788.02
• Enterprise Value/Ebitda: -33.89
• 1Y Price Target: $32.50
• Price Target Upside: 94.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 49 Neutral
• Price Target: $16.50 ▼(-1.26% Downside)

Quantum Computing's overall stock score is primarily impacted by its significant financial challenges, including declining revenues and severe profitability issues. While the earnings call highlighted strategic achievements and financial strengthening, these were offset by increased losses and revenue decline. Technical indicators suggest a bearish trend, and valuation metrics reflect ongoing financial distress.

Positive Factors

Strategic Partnerships

Securing orders from prominent institutions like Delft University and a major US bank enhances QUBT's market credibility and opens new revenue channels, reinforcing its position in the quantum computing sector.

Financial Strengthening

The significant cash reserves from recent financing provide QUBT with the flexibility to invest in R&D and strategic initiatives, crucial for sustaining long-term growth and technological leadership.

Technological Advancements

The operational quantum photonic chip facility positions QUBT to scale production, potentially increasing future revenue and solidifying its technological edge in quantum computing.

Negative Factors

Revenue Decline

The significant decline in revenue highlights challenges in monetizing products and services, which could hinder QUBT's ability to sustain operations and invest in future growth without further financial support.

Profitability Issues

The severe negative profit margin indicates deep financial distress, raising concerns about QUBT's ability to achieve profitability and maintain financial health, potentially affecting long-term viability.

Increased Operating Expenses

Rising operating expenses without corresponding revenue growth strain QUBT's financial resources, potentially limiting its ability to invest in strategic initiatives and impacting future profitability.

Quantum Computing Business Overview & Revenue Model

Company Description

Quantum Computing, Inc. focuses on providing software tools and applications for quantum computers in Virginia. The company offers Qatalyst, a quantum application accelerator that enables developers to create and execute quantum-ready applications on conventional computers, while being ready to run on quantum computers as well as provides multiple quantum processing units including DWave, Rigetti, and IonQ. It focuses on serving commercial and government entities. The company, formerly known as Innovative Beverage Group Holdings, Inc. Quantum Computing, Inc. was founded in 2018 and is based in Leesburg, Virginia.

How the Company Makes Money

QUBT generates revenue through multiple streams, primarily by selling quantum computing hardware to research institutions and commercial enterprises. Additionally, the company offers subscription-based access to its cloud-based quantum computing platform, allowing clients to utilize its quantum resources for their computational needs. Another key revenue stream comes from consulting services, where QUBT provides expertise to organizations looking to implement quantum solutions in their operations. Strategic partnerships with technology firms and academic institutions also contribute to its earnings, enabling joint research projects and access to new markets. Furthermore, QUBT may engage in licensing its proprietary algorithms and technologies, providing an additional layer of revenue generation.

Quantum Computing Financial Statement Overview

Summary

Quantum Computing's financial performance is weak, with continuous negative net income and cash flow issues. Despite a strong equity ratio, the company heavily relies on equity financing, indicating financial instability.

Income Statement

The income statement reveals a challenging financial situation for Quantum Computing with continuous negative net income over the years, suggesting struggles in achieving profitability. The TTM data shows a slight increase in revenue by 3.2% from the previous year, but the company is still operating at a significant loss, with a negative net profit margin and EBIT margin. This indicates the company is facing difficulties in managing its operating expenses relative to revenue generation.

Balance Sheet

The balance sheet displays a relatively high stockholders' equity compared to total debt, resulting in a low debt-to-equity ratio, which is positive. However, the company has been relying heavily on equity financing, as evidenced by substantial equity injections over recent years. The equity ratio is strong at approximately 91.1%, indicating that most of the company's assets are financed by equity. This could be a sign of investor confidence but also reflects the company’s reliance on external funding to sustain operations.

Cash Flow

Cash flow analysis highlights a negative trend with continuous negative free cash flow, indicating that the company is unable to generate sufficient cash from operations to cover its capital expenditures. The operating cash flow to net income ratio is negative, underscoring inefficiencies in converting revenue into cash. The heavy reliance on financing activities, especially equity financing, raises concerns about sustainability if such funding sources become unavailable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	263.00K	373.00K	358.00K	136.00K	0.00	0.00
Gross Profit	-3.00M	-3.69M	-3.15M	-1.79M	-9.00K	-6.61K
EBITDA	-69.76M	-62.25M	-22.11M	-23.34M	-27.61M	-18.72M
Net Income	-76.41M	-68.54M	-27.02M	-25.98M	-27.90M	-24.73M
Balance Sheet
Total Assets	426.08M	153.56M	74.36M	89.30M	17.28M	15.27M
Cash, Cash Equivalents and Short-Term Investments	348.76M	78.94M	2.06M	5.31M	16.74M	15.20M
Total Debt	1.54M	1.18M	2.77M	8.27M	18.08K	218.37K
Total Liabilities	30.10M	46.27M	5.65M	14.40M	1.08M	693.21K
Stockholders Equity	395.98M	107.29M	68.70M	74.90M	16.20M	14.57M
Cash Flow
Free Cash Flow	-24.43M	-22.25M	-20.43M	-18.43M	-6.82M	-11.55M
Operating Cash Flow	-18.29M	-16.21M	-18.32M	-17.56M	-6.80M	-11.54M
Investing Cash Flow	-6.14M	-6.04M	-2.61M	-2.23M	-22.50K	-11.97K
Financing Cash Flow	371.25M	99.14M	17.68M	6.17M	8.39M	26.65M

Quantum Computing Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QUBT, the sentiment is Positive. The current price of 16.71 is below the 20-day moving average (MA) of 18.22, below the 50-day MA of 17.88, and above the 200-day MA of 13.10, indicating a neutral trend. The MACD of -1.00 indicates Positive momentum. The RSI at 46.78 is Neutral, neither overbought nor oversold. The STOCH value of 44.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QUBT.

Quantum Computing Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
QBTS	―	$12.35B	―	-83.70%	―	120.20%	-143.95%
IONQ	―	$20.90B	―	-57.06%	―	67.83%	-154.69%
QUBT	―	$2.80B	―	-32.63%	―	-21.56%	-103.08%
RGTI	―	$13.78B	―	-48.81%	―	-37.20%	-58.82%

Quantum Computing Corporate Events

Quantum Computing Secures $750M in Private Placement

On October 5, 2025, Quantum Computing Inc. announced it had entered into securities purchase agreements for an oversubscribed private placement of 37,183,937 shares of common stock, resulting in gross proceeds of $750 million. The closing occurred on October 8, 2025. The funds will be used to fully fund commercialization, pursue strategic acquisitions, and expand production and personnel. This placement strengthens QCi’s financial position, making it the best-capitalized among publicly traded quantum computing firms, supporting its transition to a leading quantum hardware manufacturer.

The most recent analyst rating on (QUBT) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Quantum Computing stock, see the QUBT Stock Forecast page.

Quantum Computing Secures $500M in Oversubscribed Placement

On September 21, 2025, Quantum Computing Inc. announced a securities purchase agreement for a private placement of 26,867,276 shares of common stock, resulting in gross proceeds of $500 million. The placement, which closed on September 24, 2025, was oversubscribed and led by existing shareholders and a new global asset manager. The funds will support the company’s commercialization efforts, strategic acquisitions, and expansion of sales and engineering teams. This financing strengthens QCi’s financial position, enabling the execution of its growth plan and enhancing its manufacturing capabilities.

The most recent analyst rating on (QUBT) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Quantum Computing stock, see the QUBT Stock Forecast page.

Quantum Computing’s Earnings Call: A Mixed Outlook

The recent earnings call for Quantum Computing, Inc. painted a mixed picture of the company’s current standing and future prospects. While significant strides were made in securing key orders and partnerships, and in advancing technological capabilities, these achievements were overshadowed by a decline in revenue and an increased net loss. The financial setbacks were largely attributed to non-cash derivative liabilities, which tempered the overall positive sentiment of the call.

Quantum Computing Inc. Reports Increased Loss Amid Rising Expenses

Quantum Computing Inc. is a Delaware-based company specializing in developing quantum computing solutions using integrated photonics and non-linear quantum optics, primarily for applications in reservoir computing, remote sensing, imaging, and cybersecurity. The company is notable for its machines that operate at room temperature and low power levels, distinguishing it from other quantum systems in the market.