QUBT Earnings: Quantum Computing Stock Rises as Company Turns Profitable

Quantum Computing’s (QUBT) stock is up 3% after the company reported its first ever profit.

The New Jersey-based quantum technology company reported earnings per share (EPS) of $0.11, which was much better than a loss of -$0.07 forecast among analysts. However, revenue for the calendar first quarter totaled $39,000, below the consensus estimate of $300,000 that was expected on Wall Street. Revenue was up 44% from a year earlier.

Management said the company’s operating expenses increased to $8.3 million in Q1 from $6.3 million the previous year, due primarily to higher employee compensation. Gross margins at Quantum Computing decreased to 33% from 41% in the first quarter of 2024.

Quantum Computing’s growth. Source: Main Street Data

New Foundry

The company said in its earnings release that it completed construction of its Quantum Photonic Chip Foundry in Tempe, Arizona during the quarter and has already received five initial foundry orders. Quantum Computing also secured a $406,000 NASA subcontract and additional quantum machine orders from Delft University in the Netherlands.

The balance sheet of Quantum Computing also strengthened in Q1 with its cash position increasing to $166.4 million. Management acknowledged that the net income improvement was primarily driven by a non-cash gain, not operational improvements at the company. QUBT stock has fallen 44% this year.

Is QUBT Stock a Buy?

The stock of Quantum Computing is not widely followed by analysts on Wall Street. So instead we’ll look at the company’s three-month share price performance. As one can see in the chart below, QUBT stock has risen 25.20% in the last 12 weeks.