Quantum Computing (QUBT) AI Stock Analysis

• Market Cap: $2.13B
• Dividend Yield: N/A
• Average Volume (3M): 25.55M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• Revenue Growth: 45.57%
• EPS Growth: -35.70%
• Country: US
• Employees: 41
• Sector: Technology
• Sector Strength: 84
• Industry: Computer Hardware
• EPS (TTM): 0.11
• Shares Outstanding: 140,903,530
• 10 Day Avg. Volume: 25,387,182
• 30 Day Avg. Volume: 25,551,333
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.59
• Enterprise Value/Market Cap: 0.04
• Enterprise Value/Revenue: 60.96
• Enterprise Value/Gross Profit: 791.55
• Enterprise Value/Ebitda: -0.53
• 1Y Price Target: $14.00
• Price Target Upside: -26.20% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: $15.50 ▼(-18.29%Downside)

The overall stock score is driven by the weak financial performance, which is a significant concern, despite strong technical indicators and positive corporate developments. Strategic advancements and leadership changes are promising, yet profitability and cash flow challenges weigh heavily on the score.

Positive Factors

Financial Position

Quantum Computing has $79 million in cash and no debt, reflecting a strong balance sheet.

Industry Growth

As quantum computing hardware advances, demand for quantum software is expected to grow, benefiting Quantum Computing.

Product Development

Quantum's flagship software, Qatalyst, is well-positioned to capture and drive meaningful market share and industry growth.

Negative Factors

Valuation Concerns

Quantum’s stock has had a significant increase in valuation, which may raise concerns about potential overvaluation.

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

Quantum Computing (QUBT) generates revenue primarily through the sale and licensing of its quantum hardware and software solutions. The company offers a range of products, including quantum processors and software platforms, which it licenses to technology companies, research institutions, and government agencies seeking to harness the power of quantum computing for complex problem-solving and innovation. Additionally, QUBT provides consulting and professional services to businesses looking to integrate quantum technologies into their operations, generating additional service-based revenue. Strategic partnerships with leading tech companies and research institutions further contribute to its earnings by expanding its market reach and collaborative research opportunities.

Quantum Computing Financial Statement Overview

Summary

Quantum Computing's financial statements reflect significant challenges, with continuous negative net income, heavy reliance on equity financing, and negative free cash flow. Despite a slight revenue increase, the company's financial health remains precarious.

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
385.00K	373.00K	358.00K	135.65K	0.00	0.00
	Gross Profit
114.00K	112.00K	162.00K	74.71K	-9.00K	-6.61K
	EBIT
-27.91M	-25.94M	-26.24M	-36.58M	-17.13M	-17.34M
	EBITDA
-65.17M	-62.25M	-22.11M	-23.34M	-17.12M	-17.34M
	Net Income Common Stockholders
-45.12M	-68.54M	-27.02M	-2.05B	-38.89M	-33.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
166.43M	78.94M	2.06M	3.79M	16.74M	15.20M
	Total Assets
242.53M	153.56M	74.36M	89.30M	17.28M	15.27M
	Total Debt
1.06M	1.18M	2.77M	9.53M	18.08K	218.37K
	Net Debt
-165.37M	-77.76M	706.00K	5.73M	-16.72M	-14.98M
	Total Liabilities
21.71M	46.27M	5.65M	14.40M	1.08M	693.21K
	Stockholders Equity
220.83M	107.29M	68.70M	74.90M	16.20M	14.57M
Cash Flow		Free Cash Flow
-22.39M	-22.25M	-20.43M	-18.43M	-6.82M	-11.55M
	Operating Cash Flow
-16.20M	-16.21M	-18.32M	-17.56M	-6.80M	-11.54M
	Investing Cash Flow
-6.19M	-6.04M	-2.61M	-2.23M	-22.50K	-11.97K
	Financing Cash Flow
183.31M	99.14M	17.68M	8.35M	8.39M	26.65M

Quantum Computing Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 18.97 is above the 20-day moving average (MA) of 12.54, above the 50-day MA of 9.30, and above the 200-day MA of 6.81, indicating a bullish trend. The MACD of 1.80 indicates Negative momentum. The RSI at 77.84 is Negative, neither overbought nor oversold. The STOCH value of 75.95 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
QBTS	66 Neutral	$5.78B	―	-154.89%	―	121.61%	-13.50%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
IONQ	58 Neutral	$10.40B	―	-52.11%	―	69.92%	-79.18%
QUBT	56 Neutral	$2.13B	―	-30.47%	―	45.57%	-35.70%
RGTI	56 Neutral	$3.29B	―	-85.28%	―	-28.38%	-29.15%

Quantum Computing Corporate Events

Quantum Computing Announces New COO and CRO Appointments

On May 2, 2025, Quantum Computing Inc. announced the promotion of Dr. Milan Begliarbekov to Chief Operating Officer and Dr. Pouya Dianat to Chief Revenue Officer, effective immediately. These appointments are part of the company’s strategic growth plan, following the completion of its quantum photonic chip foundry in Tempe, Arizona, in March 2025. Dr. Begliarbekov will oversee day-to-day operations and the development of advanced photonic circuits, while Dr. Dianat will drive global commercial strategy and expand revenue streams. These leadership changes aim to strengthen QCi’s market position, particularly in the datacom and telecom sectors, and support the company’s efforts to meet the growing demand for high-performance TFLN solutions.

Quantum Computing CEO Dr. William McGann Announces Retirement

On April 11, 2025, Dr. William McGann announced his retirement as CEO and President of Quantum Computing Inc., effective May 12, 2025. Dr. McGann, who joined the company in 2021, played a pivotal role in launching the Dirac-3 quantum optimization machine and advancing the company’s core technologies. Dr. Yuping Huang, currently Chairman of the Board and Chief Quantum Officer, will serve as Interim CEO and President. Dr. Huang, with over 20 years of experience in quantum and optics technology, previously founded QPhoton, Inc., and has led significant quantum research initiatives. The board has initiated a search for a permanent CEO, while Dr. Huang will focus on contracting with the US government as part of his leadership duties.

Quantum Computing Appoints Eric M. Schwartz to Board

On March 26, 2025, Quantum Computing Inc. announced the appointment of Eric M. Schwartz to its Board of Directors. Schwartz, who brings two decades of experience in corporate finance, mergers and acquisitions, and corporate strategy, is expected to aid in the company’s strategic growth. His expertise in commercialization and manufacturing scale-up is seen as a valuable asset as QCi aims to enhance its market positioning and bring its TFLN chip foundry online. This appointment is anticipated to strengthen QCi’s efforts in building market acceptance for its quantum machines and creating lasting shareholder value.