IonQ (IONQ) AI Stock Analysis

• Market Cap: $12.21B
• Dividend Yield: N/A
• Average Volume (3M): 17.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.66
• Revenue Growth: 67.83%
• EPS Growth: -154.69%
• Country: US
• Employees: 407
• Sector: Technology
• Sector Strength: 85
• Industry: Computer Hardware
• EPS (TTM): -0.70
• Shares Outstanding: 297,682,400
• 10 Day Avg. Volume: 12,998,812
• 30 Day Avg. Volume: 17,028,166
• PEG Ratio: -0.27
• Price to Book (P/B): 23.18
• Price to Sales (P/S): 206.58
• P/FCF Ratio: -68.84
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 196.17
• Enterprise Value/Gross Profit: 17.21K
• Enterprise Value/Ebitda: -22.73
• 1Y Price Target: $49.88
• Price Target Upside: 13.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 52 Neutral
• Price Target: $41.00 ▼(-6.52% Downside)

IonQ's overall score reflects strong strategic initiatives and revenue growth, tempered by significant profitability and cash flow challenges. The company's aggressive expansion and strategic partnerships are positive, but financial stability and valuation concerns remain critical.

Positive Factors

Revenue Growth

IonQ's ability to surpass revenue expectations indicates strong demand for its quantum computing services, suggesting robust market positioning and potential for sustained growth.

Strategic Partnerships

Strategic partnerships enhance IonQ's market reach and credibility, providing a foundation for long-term growth and innovation in quantum computing.

Technological Advancements

Breakthroughs in quantum hardware development position IonQ as a leader in the industry, potentially accelerating the adoption and application of quantum technologies.

Negative Factors

Profitability Challenges

Significant net losses highlight ongoing profitability challenges, which could impact IonQ's ability to sustain operations without further capital infusion.

High Operating Costs

Rising operating costs due to increased R&D and sales expenses may pressure IonQ's margins, affecting its financial health and ability to invest in future growth.

Negative Cash Flow

Negative operating cash flow indicates challenges in generating sufficient cash from core operations, potentially limiting IonQ's financial flexibility and growth capacity.

IonQ Business Overview & Revenue Model

Company Description

IonQ, Inc. engages in the development of general-purpose quantum computing systems. It sells access to quantum computers with 20 qubits. The company makes access to its quantum computers through cloud platforms, such as Amazon Web Services' (AWS) Amazon Braket, Microsoft's Azure Quantum, and Google's Cloud Marketplace, as well as through its cloud service. IonQ, Inc. was founded in 2015 and is headquartered in College Park, Maryland.

How the Company Makes Money

IonQ generates revenue primarily through the sale of quantum computing services, which include access to its quantum computers via cloud platforms. The company offers subscription models and pay-per-use pricing for its quantum computing services, allowing businesses and researchers to leverage its technology for specific applications. Additionally, IonQ has established partnerships with major technology firms, such as Microsoft and Amazon, to integrate its quantum computing capabilities into their cloud services. These collaborations not only expand IonQ's market reach but also provide crucial revenue streams through joint offerings. Furthermore, IonQ engages in research partnerships and grants that contribute to its earnings, while also exploring licensing agreements for its technology.

IonQ Financial Statement Overview

Summary

IonQ shows strong revenue growth but faces significant challenges with profitability and cash flow. The low debt-to-equity ratio indicates financial stability, yet negative return on equity and operating cash flows highlight ongoing operational issues.

Income Statement

IonQ's income statement shows a significant revenue growth rate of 21.63% in the TTM period, indicating strong top-line expansion. However, the company faces challenges with profitability, as evidenced by negative net profit margins and EBIT margins. The gross profit margin has decreased over time, reflecting potential cost pressures or pricing challenges.

Balance Sheet

The balance sheet reveals a low debt-to-equity ratio, suggesting conservative leverage and financial stability. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholder investments. The equity ratio is relatively healthy, but the negative ROE highlights profitability concerns.

Cash Flow

IonQ's cash flow statement shows improvement in free cash flow growth, but the operating cash flow remains negative, raising concerns about cash generation from operations. The free cash flow to net income ratio is positive, indicating some efficiency in converting earnings to cash, yet the overall cash flow position is weak due to negative operating cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	52.37M	43.07M	22.04M	11.13M	2.10M	0.00
Gross Profit	597.00K	3.82M	3.56M	2.58M	-1.49M	-1.40M
EBITDA	-451.93M	-312.93M	-147.35M	-42.91M	-103.64M	-14.02M
Net Income	-463.58M	-331.65M	-157.77M	-48.51M	-106.19M	-15.42M
Balance Sheet
Total Assets	1.35B	508.39M	553.58M	597.99M	642.03M	60.48M
Cash, Cash Equivalents and Short-Term Investments	546.85M	340.29M	355.44M	355.80M	522.47M	36.12M
Total Debt	19.27M	17.73M	8.11M	4.05M	4.21M	4.27M
Total Liabilities	168.16M	124.53M	68.59M	29.78M	50.80M	6.78M
Stockholders Equity	1.16B	383.86M	484.99M	568.21M	591.23M	53.70M
Cash Flow
Free Cash Flow	-159.85M	-129.25M	-98.36M	-57.26M	-36.56M	-23.68M
Operating Cash Flow	-144.24M	-105.68M	-78.81M	-44.70M	-26.54M	-12.01M
Investing Cash Flow	-170.07M	82.73M	68.77M	-309.06M	-213.78M	-11.68M
Financing Cash Flow	413.22M	41.69M	1.76M	1.10M	603.23M	276.00K

IonQ Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IONQ, the sentiment is Positive. The current price of 43.86 is above the 20-day moving average (MA) of 40.84, above the 50-day MA of 41.98, and above the 200-day MA of 35.74, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 57.31 is Neutral, neither overbought nor oversold. The STOCH value of 70.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IONQ.

IonQ Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$36.58B	11.16	-10.39%	1.86%	8.71%	-7.09%
RGTI	57 Neutral	$4.91B	―	-48.81%	―	-37.20%	-58.82%
IONQ	52 Neutral	$12.21B	―	-57.06%	―	67.83%	-154.69%
QUBT	51 Neutral	$2.44B	―	-32.63%	―	-21.56%	-103.08%
QBTS	46 Neutral	$5.27B	―	-83.70%	―	120.20%	-143.95%

IonQ Corporate Events

IonQ Appoints Inder M. Singh as CFO and COO

IonQ announced the appointment of Inder M. Singh as Chief Financial Officer and Chief Operating Officer, effective September 4, 2025. Singh, who brings over 30 years of financial and strategic leadership experience, is expected to support IonQ’s ambitious goal of reaching 2 million physical and 80,000 logical qubits by 2030. Singh’s previous roles include CFO of Arm and leadership positions at Unisys and Cisco, where he was instrumental in driving financial strategies and growth. His appointment is seen as a strategic move to strengthen IonQ’s financial foundation and scale its commercial reach, positioning the company for accelerated growth in quantum computing and networking.

IonQ Files Prospectus for Resale of Shares

On August 28, 2025, IonQ, Inc. filed a prospectus supplement with the SEC for the resale of over 12 million shares of common stock by certain stockholders. This filing is part of the company’s ongoing regulatory compliance and could impact its stock market activities and shareholder dynamics.

IonQ Appoints Jim Frankola to Board of Directors

IonQ announced the appointment of Jim Frankola, former CFO of Ariba and Cloudera, to its Board of Directors on August 28, 2025. Frankola’s expertise in scaling enterprise cloud and software businesses is expected to bolster IonQ’s growth and enhance its capabilities in quantum computing solutions. His appointment underscores IonQ’s commitment to strengthening its leadership team as it aims to deliver powerful quantum computing solutions across various sectors, including drug discovery, materials science, and cybersecurity.

IonQ Approves Executive Equity Grants and Salary Increase

On August 11, 2025, IonQ‘s Board approved equity grants for its executives to align incentives with shareholder results. CEO Niccolo de Masi received RSUs for 485,319 shares and a salary increase, while CLO Paul T. Dacier was granted RSUs for 109,197 shares, both vesting over three years.

IonQ Files Prospectus for Stock Resale

On August 11, 2025, IonQ, Inc. filed a prospectus supplement with the SEC for the resale of 13,220,367 shares of common stock by certain stockholders. This filing is part of the company’s ongoing efforts to manage its stockholder equity and maintain compliance with SEC regulations.

IonQ Completes Acquisition of Capella Space Corporation

On July 11, 2025, IonQ completed its acquisition of Capella Space Corporation, a company specializing in synthetic aperture radar and satellite solutions. This acquisition is a significant step for IonQ in developing a space-based quantum key distribution network, which aims to enable secure global communications. The integration of Capella’s satellite capabilities with IonQ’s quantum technology positions IonQ to pioneer advancements in quantum networking and secure communications, benefiting commercial applications, global defense, and intelligence missions.

IonQ Enters Underwriting Agreement with J.P. Morgan

On July 7, 2025, IonQ, Inc. entered into an underwriting agreement with J.P. Morgan Securities LLC for the sale of shares and warrants, including 14,165,708 shares of common stock and 39,898,087 warrants. This strategic move is expected to enhance IonQ’s financial position and support its growth in the quantum computing market. The closing of the offering is anticipated to occur on July 9, 2025, potentially impacting stakeholders by increasing the company’s capital and enabling further technological advancements.

IonQ Confirms Director Elections at Annual Meeting

IonQ, Inc. held its annual meeting of stockholders on June 17, 2025, where key proposals were voted on. The election of two Class I directors, Niccolo de Masi and Inder M. Singh, was confirmed, and the compensation of named executive officers was approved on a non-binding basis. Additionally, Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

IonQ Files Prospectus for Resale of Shares

On June 9, 2025, IonQ, Inc. filed a prospectus supplement with the SEC for the resale of 903,195 shares of its common stock by certain stockholders. This filing is part of a registration rights agreement and includes a legal opinion from Paul, Weiss, Rifkind, Wharton & Garrison LLP, indicating compliance with regulatory requirements.

IonQ to Acquire Oxford Ionics for $1.075 Billion

On June 7, 2025, IonQ announced its agreement to acquire Oxford Ionics for $1.075 billion, combining IonQ’s quantum computing stack with Oxford Ionics’ ion-trap technology. This acquisition is expected to accelerate the development of powerful quantum computers, enhancing capabilities in various fields and expanding IonQ’s presence in the UK. The transaction is anticipated to close in 2025, subject to customary conditions.