Quantum Computing (QUBT) stock was up in the after-hours session after releasing its third-quarter results. Revenue surged 280% year-over-year to $384,000, driven by growth in R&D services, custom hardware contracts, and initial revenue from its Dirac-3 quantum optimization system. The top-line also easily surpassed the consensus estimate of $117,000.
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QUBT reported net earnings of $0.01 per share, which compared favorably with the analysts’ expectations of a $0.06 loss and improved from the prior-year loss of $0.06.
Gross margin improved to 33%, up from 9% a year ago. Meanwhile, operating expenses rose 91.5% to $10.5 million, due to increased investment in engineering, manufacturing, and product development.
On the liquidity front, QUBT ended the quarter with $352.4 million in cash, up $273.5 million from the end of 2024. The company also held $460.6 million in investments. Importantly, it raised $500 million during the third quarter through a private stock sale, followed by another $750 million after the quarter ended.
Is QUBT a Strong Buy?
Turning to Wall Street, QUBT stock has a Moderate Buy consensus rating based on two Buys assigned in the last three months. At $32.00, the average Quantum Computing stock price target implies a 203.32% upside potential.
It must be noted that analysts may update their price targets for QUBT stock after this earnings report.
