Quantum Computing Q2 2025 Earnings Report

Quantum Computing EPS Results

• Actual EPS: -$0.06
• Consensus EPS: -$0.06
• Beat/Miss: Met Expectations
• One Year Ago EPS: N/A

Quantum Computing Revenue Results

• Actual Revenue: $0.06 million
• Expected Revenue: $0.10 million
• Beat/Miss: Missed by -$39.00 thousand
• YoY Revenue Growth: N/A

Quantum Computing Announcement Details

• Quarter: Q2 2025
• Date: 8/14/2025
• Time: After Market Closes
• Conference Call Date: Thursday, August 14, 2025
• Conference Call Time: 4:30PM ET

Quantum Computing (NASDAQ:QUBT), an integrated photonics company, offers accessible and affordable quantum machines. The company offers Dirac systems are portable, low power, and room temperature qubit and qudit entropy quantum computers (EQC); reservoir computing; remote sensing; and single photon imaging. It also provides Quantum random number generator (uQRNG), a portable device that provides genuine random numbers directly from quantum processes; and quantum authentication which eliminates vulnerabilities inherent in classical cryptographic schemes by offering a comprehensive entanglement-based quantum cyber solution that seamlessly integrates into existing telecom fiber and communication infrastructure. The company was formerly known as Innovative Beverage Group Holdings, Inc. Quantum Computing, Inc. was incorporated in 2018 and is based in Hoboken, New Jersey.

Quantum Computing Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: We secured multiple commercial orders for our quantum systems and photonic components, including a quantum photonic vibrometer from a top Dutch university and our first commercial entangled photon source in South Korea.
• Positive Sentiment: We closed a $200,000,000 financing in June, ending the quarter with $349,000,000 in cash and equivalents to fund strategic investments and growth.
• Negative Sentiment: Revenue for Q2 totaled $61,000, down from $183,000 in the prior year period, underscoring low current sales levels.
• Negative Sentiment: Net loss widened to $36,000,000 ($0.26 per share), driven primarily by a non-cash $28,000,000 warrant derivative liability adjustment.
• Neutral Sentiment: The state-of-the-art Tempe photonic chip foundry is now fully operational, fulfilling pre-orders and positioned to scale production with significant revenue expected in the next 12–18 months.

Presentation

[Operator]

Ladies and gentlemen, greetings, and welcome to the Quantum Computing Inc. Second Quarter twenty twenty five Shareholder Update Call. At this time, all participants are in a listen only mode. Please note this call is being recorded. Following management's remarks, the call line will be open for questions.

[Operator]

It is now my pleasure to introduce your host, Rosalyn Christian with IMS Investor Relations.

[Rosalyn Christian, Account Manager at IMS Investor Relations]

Thank you, and I want to welcome everyone to the Quantum Computing Inc. Second quarter twenty twenty five shareholder update call. Before we begin, I'd like to remind everyone that this conference call may contain forward looking statements based on our current expectations and projections regarding future events and are subject to change based on various important factors. In light of these risks, uncertainties and assumptions, you should not place undue reliance on these forward looking statements, which speak only as of the date of this call. For more details on factors that could affect these expectations, please see our filings with the Securities and Exchange Commission.

[Rosalyn Christian, Account Manager at IMS Investor Relations]

On the call today, we have Doctor. Yuping Huang, Interim CEO and Chairman, and Chris Roberts, CFO. The team will provide an update on the business, followed by a question and answer session. With that, I would like to turn the call over to management. Please go ahead, Yu Ping.

[Yuping Huang, CEO & Chairman at Quantum Computing]

Thank you, everyone, for joining us today to hear about Q Sight's progress in the 2025. Having reached the halfway point of 2025, I wanted to take a moment to reflect on the progress we have made so far this year. I'm very pleased with how the business is evolving, particularly on the commercial front. We're seeing growing validation of our technologies through customer orders across both our quantum systems and our photonic chip foundry. And we continue to deepen our engagement with government, academic and industry partners around the world.

[Yuping Huang, CEO & Chairman at Quantum Computing]

These early wins reflect the real world value of our technologies and the unique position holds in the market. And our core QCI is focused on solving hard problems with practical high performance quantum and photonic technologies. What sets us apart from others in the quantum computing space is that we are not chasing theoretical performance, instead we are delivering purpose built machines and the components that customers are deploying today. Our growth strategy is centered on two complimentary revenue streams. First, our quantum machines, which tackle complex optimization, machine learning and sensing challenges across areas like biomedical research, transportation and national security.

[Yuping Huang, CEO & Chairman at Quantum Computing]

And second, our thin film nissanitebet photonic tube foundry, which delivers essential components for next generation communication, AI and quantum applications. These two key areas uniquely position us to serve both the present and future needs of quantum economy supporting long term growth. We are operating in a space that is entering a period of rapid acceleration. The world is increasingly aware of the critical role quantum technologies will play in enabling breakthroughs in areas like climate science, defense, drug discovery and secure communications. In parallel, there is strong momentum around domestic semiconductor and photonic manufacturing, opening up new commercial opportunities for foundry.

[Yuping Huang, CEO & Chairman at Quantum Computing]

This is a period of time for the industry and Q CESS business is scaling to meet the demand. Importantly, QSAS stands apart with a quantum architecture that offers significant swap C advantages, including the ability to operate at room temperature, thanks to our integrated photonic platform. At a time when energy consumption has become a major constraint on the growth of AI and digital infrastructure. Our room temperature energy efficient approach offers a timely and compelling solution to one of the most pressing challenges facing the tech industry today. Now I will walk through some of the key milestones we have achieved this quarter.

[Yuping Huang, CEO & Chairman at Quantum Computing]

First, we continue to see encouraging signs of commercial adoption across both our quantum and photonic production lines. During the quarter, we have secured an order for our quantum photonic vibrometer from the Department of Aerospace Structures and Materials at DEV, University of Technology in The Netherlands, one of the world's top technical research institutes. This system will support their advanced work in non destructive testing and structural health monitoring. We also shipped our first commercial entangled photon source to a leading research institution in South Korea. This system enables secure quantum communication experiments, our conventional fiber networks and the marks a meaningful step in bringing in our lab developed quantum networking technologies into commercial deployment.

[Yuping Huang, CEO & Chairman at Quantum Computing]

This quarter, we saw new traction in our Quanti AI portfolio. During the quarter, a major global automotive manufacturer purchased one of our EMUCORE reservoir computing systems, which will be used to explore edge based machine learning applications such as time series prediction and image recognition. This is an important proof point for real world use of our reservoir computing platform. Subsequent to the quarter in July 2025, we announced a new commercial order from a top five US bank, marking the first domestic commercial sale of our Quantum cybersecurity solution, underscoring recent demand for Quantum's secure data protection. We also advanced our work with strategic government partners.

[Yuping Huang, CEO & Chairman at Quantum Computing]

During the quarter, we were awarded a subcontract valued at over 400,000 to support NASA's Landy Research Center. Under this contract, we are applying our Direct3 quantum optimization machine to develop a quantum based technology for removing solar noise from space based LiDAR data, an issue that has historically limited NASA's ability to collect reliable data atmosphere observations. This builds on our prior work with NASA and highlights the real world value of our quantum systems for scientific applications. Continue to be a significant partner to government institutions remains a key goal for us. And we continued to make progress subsequent to this quarter announcing a Tiflin chip contract from the US Department of Commerce National Institute of Standards and Technology last week.

[Yuping Huang, CEO & Chairman at Quantum Computing]

Turning to our foundry developing those chips, we announced on our last call that construction of our state of the art quantum photonic chip facility in Tempe, Arizona was completed in March. In May, we celebrated the grand opening with a ribbon cutting ceremony alongside May Corey Woods and regional industrial stakeholders. The facility is now fully operational, fulfilling customer pre orders and positioned to scale production of thin film niacinamide chips for use across telecom, telecom, advanced sensing and quantum computing. As we scale the foundry, we expect revenue to slowly grow and targeting a significant revenue contribution in the next twelve to eighteen months as we ramp. We look forward to providing more updates on our foundry strategy later this year.

[Yuping Huang, CEO & Chairman at Quantum Computing]

We also made several key leadership appointment during this quarter to support our next phase of execution. I was honored to step into the role of interim CEO and we welcome Chris Roberts as our new Chief Financial Officer. In addition, promoted Milai Begley Bekov to Chief Operating Officer and Puya Dana to Chief Revenue Officer. Each of these individuals bring deep expertise and executional focus on leadership team and they are already making, meaningful contributions as we scale the business. Finally, we are proud to be added to the Russell three thousand and Russell two thousand indices at the conclusion of their annual reconstitution in June.

[Yuping Huang, CEO & Chairman at Quantum Computing]

This inclusion increases our visibility across institutional investors and reflects growing recognition of QSET's progress and the potential in delivering commercially relevant quantum and photonic technologies. With that, I will turn the call over to our CFO, Chris Roberts to walk through our financials.

[Chris Roberts, CFO at Quantum Computing]

Thank you, Yiping. It's my pleasure to present the results of our second quarter. Revenue during our second quarter totaled approximately $61,000 compared to 183,000 in the prior year second quarter. Our gross margin for the second quarter increased to 43% from 32% in the '24. However, it's important to keep in mind that gross margin continues to be variable at our current revenue level.

[Chris Roberts, CFO at Quantum Computing]

We substantially strengthened our capital position during the second quarter, closing on a 200,000,000 financing in June. As a result, we ended the second quarter with cash and equivalents of $349,000,000 on our balance sheet. This gives us the resources to make strategic investments in key growth areas to advance both our quantum machine program and our thin film lithium niobate chip foundry initiatives. Operating expenses for the second quarter totaled $10,200,000 compared to $5,300,000 the same quarter last year. Employee based expenses were the main driver of the year over year increase.

[Chris Roberts, CFO at Quantum Computing]

The company reported a net loss attributable to common stockholders of $36,000,000 for the second quarter or $0.26 per share compared to a net loss of $5,000,000 in the '24. The increase in net loss this quarter was primarily due to a twenty eight million dollars non cash loss on the value of our company's warrant related derivative liability, which comes from our merger with Q Photon in June 2022. For the six months ended 06/30/2025, the company reported a net loss of $19,500,000 or 14¢ per share compared to a loss of $11,600,000 or $0.13 per share in the first six months of twenty twenty four. As of 06/30/2025, total assets stood at $426,000,000 up from 154,000,000 in the year end 2024. Cash and equivalents increased by $270,000,000 in the first '6 months of twenty five to $349,000,000 bolstered by net proceeds of $188,000,000 raised in the second quarter through an offering of common stock.

[Chris Roberts, CFO at Quantum Computing]

Total liabilities at the end of the second quarter were $30,000,000 which is a decrease of approximately $16,000,000 compared to year end 2024. This decrease is driven primarily by the previously mentioned non cash mark to market adjustment for the Q Photon warrant derivative liability. Finally, stockholders' equity rose to $396,000,000 as of 06/30/2025, again reflecting our strengthened capital position. Now I will turn the meeting back over to you, Ben.

[Yuping Huang, CEO & Chairman at Quantum Computing]

Thank you, Chris. In closing, I wanted to, thank our team, partners and shareholders for their continued support as we execute our vision. We have made a significant progress in the first half of the year, particularly in translating our technology into commercial traction across quantum sensing, AI communications, and photonic chip manufacturing. As the broader quantum ecosystem continues to evolve, we believe QSAY is well positioned with differentiated technologies and a focused strategy to deliver real world solutions. I look forward to what we will accomplish in the 2025 and beyond.

[Yuping Huang, CEO & Chairman at Quantum Computing]

With that, we will now open the call for questions. Operator, please go ahead.

[Operator]

Certainly. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press 2 if you would like to remove your question

[Troy Jensen, Managing Director at Cantor Fitzgerald]

Hey, gentlemen. Congrats on all the traction here. Maybe first off for you, Pen. I guess, I'd curious, know, to me revenues aren't really important. They won't be for several years to meet technical milestones.

[Troy Jensen, Managing Director at Cantor Fitzgerald]

So could you just kinda lay out, you know, what are the two or three most important milestones that we need to see from you guys over the next one to three years?

[Yuping Huang, CEO & Chairman at Quantum Computing]

Thank you, Troy. Over the next two to three years, in fact, focus would be to integrate our quantum machines with our nanophotonic chips. So that has been our technology roadmap. As you have seen that over the past three years, we have really pushed to testing and to demonstrate the quantum machine using discrete optical components. And then in March 2025 this year, so we have finished semifin lithium ion battery and then now that gives us another platform that we will for us to translate our quantum photonic technology that we have demonstrated with discrete optical components to on chip.

[Yuping Huang, CEO & Chairman at Quantum Computing]

So over the next two years, we are going to use our thin film, this in the nanophotonic chips in our direct machine and use it to enhance the performance of our quantum photonic reservoir system and also to use for our quantum sensing system and in particular the quantum photonic vibrometer. With the integration of nanophotonic chips, we can expect to significantly reduce the size, weight, power, and also the cost of our quantum machines. And we will also be able to post the performance. And in the meanwhile, so our foundry can not only support further development of our quantum machines, but also offer services to others. In fact, so we have received pre orders and orders for our foundry services.

[Yuping Huang, CEO & Chairman at Quantum Computing]

So this is going to a pretty fun ramp up journey for us over the next two years.

[Troy Jensen, Managing Director at Cantor Fitzgerald]

Yep, understood. Good answers. Maybe a follow-up here for Chris. Just curious on OpEx. I mean, obviously, you guys have a much larger balance sheet now.

[Troy Jensen, Managing Director at Cantor Fitzgerald]

And is there any intentions to accelerate spending or do M and A? Or just kind of maybe give us some color on what you think kind of second half R and D and G and A expenses might look like?

[Chris Roberts, CFO at Quantum Computing]

Well, it's a good question Troy. We are certainly hiring additional people. You can see from the results we've announced that our labor costs have grown quite a bit since last year. We're bringing on additional engineers and sales staff and moving to accelerate the development of our technology. We do not have any anything to announce relating to acquisitions, but as we previously stated, looking at strategic opportunities is part of the plan.

[Chris Roberts, CFO at Quantum Computing]

And we're in the process of talking with bankers and looking for opportunities that will enable us to fill out our technology roadmap, as well as accelerate revenue development. Revenue generation, sorry.

[Troy Jensen, Managing Director at Cantor Fitzgerald]

Yeah. Understood. Okay. So we'll keep up the good work.

[Chris Roberts, CFO at Quantum Computing]

Thank you. Thank you, Sheila.

[Operator]

As a reminder, if you would like to ask a question, please press 1. We have reached the end of the question and answer session, I will now turn the call over to management for closing remarks.

[Yuping Huang, CEO & Chairman at Quantum Computing]

Thank you everyone for joining and participating in today's call. I encourage you to follow us on our social media channels, including LinkedIn, where we regularly post updates and insights into our business and the technology. Should you have any questions, please do not hesitate to reach out to Investor Relations. Have a great rest of your day. Thank you.

[Operator]

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

Participants

Executives

• Yuping Huang, CEO & Chairman
• Chris Roberts, CFO

Analysts

• Rosalyn Christian, Account Manager at IMS Investor Relations
• Troy Jensen, Managing Director at Cantor Fitzgerald