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IonQ (IONQ)
NYSE:IONQ
US Market

IonQ (IONQ) AI Stock Analysis

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IonQ

(NYSE:IONQ)

Rating:58Neutral
Price Target:
$41.00
▲(3.17%Upside)
IonQ's strong revenue growth and strategic acquisitions are positive, but profitability and cash flow challenges weigh heavily on its overall score. The bullish technical trend provides some support, but valuation remains a concern due to negative earnings.
Positive Factors
Acquisitions
The acquisition of Oxford Ionics expands IonQ’s technology portfolio and solidifies the company’s leadership in trapped-ion quantum computing.
Financial Performance
IonQ strengthened its financial position by raising $373 million, providing a solid foundation to advance its computing and networking initiatives.
Revenue
Revenue exceeded expectations due to progress in commercialization and expansion in both existing and new partnerships, aligning with IonQ's roadmap and ecosystem growth.
Negative Factors
Investment Costs
Reduce PT to reflect higher EBITDA losses associated with recent acquisitions and accelerated investments.
Share Dilution
IonQ will issue between 21.1M and 35.2M shares, representing approximately 7–11% dilution based on the current share count.

IonQ (IONQ) vs. SPDR S&P 500 ETF (SPY)

IonQ Business Overview & Revenue Model

Company DescriptionIonQ, 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 MoneyIonQ generates revenue primarily through providing access to its quantum computing capabilities via cloud services. The company collaborates with major cloud providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, allowing users to access IonQ's quantum computers on a pay-per-use basis. Additionally, IonQ engages in partnerships with research institutions and enterprises to develop customized quantum solutions, further contributing to its revenue streams. The company's earnings are also supported by funding from government contracts and grants aimed at advancing quantum technology.

IonQ Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 36.38%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant strategic advancements through acquisitions, strong revenue performance, and global partnerships, indicating solid progress in IonQ's growth strategy. However, increased operating expenses and continued net losses present challenges that need to be managed as the company scales.
Q1-2025 Updates
Positive Updates
Strategic Acquisitions
IonQ announced the proposed acquisition of Lightsynq, which is expected to accelerate their quantum computing roadmap and quantum internet capabilities. Additionally, IonQ acquired Capella to enhance their space-based quantum communication capabilities.
Revenue Performance
IonQ recognized revenue of $7.6 million for Q1 2025, beating the midpoint of their guidance range.
Partnerships and Global Expansion
IonQ signed MOUs with G-QuAT in Japan and Toyota Tsusho and Intellian in Korea, expanding their global partnerships and presence in quantum networking and computing.
Financial Position
IonQ ended the quarter with nearly $700 million in cash equivalents, indicating a strong financial position to support future growth and investments.
New Commercial Contracts
IonQ sold a Forte Enterprise system to EPB of Chattanooga for $22 million, marking them as the first commercial customer with both a quantum network and computer.
Negative Updates
Increased Operating Expenses
Total operating costs and expenses for Q1 2025 were $83.2 million, up 38% from the prior year, driven by increased R&D and payroll-related expenses.
Net Loss
IonQ reported a net loss of $32.3 million in Q1 2025, although this was an improvement over the prior year's loss.
Adjusted EBITDA Loss
IonQ experienced an adjusted EBITDA loss of $35.8 million for Q1 2025, compared to a $27 million loss in the prior year.
Company Guidance
During IonQ's first quarter 2025 earnings call, management provided guidance emphasizing their strategic focus on revenue targets for the year and the delivery of AQ 64. The company reported first-quarter revenue of $7.6 million and ended with nearly $700 million in cash equivalents. Their adjusted EBITDA loss for the quarter was $35.8 million, an increase from the previous year, as they continue to invest in R&D and expand their workforce. Revenue guidance for the second quarter is projected between $16 million and $18 million. IonQ highlighted their robust financial position and the strategic acquisitions of Lightsynq and Capella, which are expected to accelerate their quantum computing and networking capabilities, and potentially influence future revenue growth and cost structures.

IonQ Financial Statement Overview

Summary
IonQ demonstrates robust revenue growth but is hindered by substantial net losses and negative cash flow, despite a strong equity base and low debt levels.
Income Statement
45
Neutral
IonQ's income statement shows significant revenue growth over the years, increasing from $2.1M in 2021 to $43.1M in TTM (Trailing-Twelve-Months) 2025. However, the company is still unprofitable with a negative net profit margin of -753.3% in TTM 2025. The EBIT and EBITDA margins are also deeply negative, indicating the company is struggling to cover its operational costs. Despite revenue growth, the high net losses are a concern.
Balance Sheet
60
Neutral
IonQ's balance sheet displays a strong equity base with a total stockholders' equity of $765M in TTM 2025, indicating financial stability. The debt-to-equity ratio is low at 0.02, suggesting minimal leverage and low financial risk. However, the company has been incurring losses, which could affect long-term equity if not reversed.
Cash Flow
40
Negative
The cash flow statement reveals negative free cash flow growth and operating cash flow, highlighting challenges in generating positive cash flow from operations. The free cash flow to net income ratio is negative, reflecting the company's ongoing cash burn. Despite substantial financing inflows, the company needs to improve its cash generation capabilities.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
43.06M43.07M22.04M11.13M2.10M0.00
Gross Profit
21.56M22.48M13.93M8.19M1.06M-143.00K
EBIT
-255.26M-232.46M-157.75M-85.75M-38.69M-15.73M
EBITDA
-234.00M-213.80M-147.38M-80.14M-36.14M-14.33M
Net Income Common Stockholders
-324.31M-331.65M-157.77M-48.51M-106.19M-15.42M
Balance SheetCash, Cash Equivalents and Short-Term Investments
59.53M340.29M355.44M355.80M522.47M36.12M
Total Assets
0.00508.39M553.58M597.99M642.03M60.48M
Total Debt
0.0017.73M8.11M4.05M4.21M4.27M
Net Debt
59.53M-36.67M-27.56M-40.32M-394.81M-31.85M
Total Liabilities
0.00124.53M68.59M29.78M50.80M6.78M
Stockholders Equity
63.99M383.86M484.99M568.21M591.23M53.70M
Cash FlowFree Cash Flow
-195.90M-123.67M-98.36M-57.26M-36.56M-23.68M
Operating Cash Flow
-164.43M-105.68M-78.81M-44.70M-26.54M-12.01M
Investing Cash Flow
-190.97M82.73M68.77M-309.06M-213.78M-11.68M
Financing Cash Flow
409.06M41.69M1.76M1.10M603.23M276.00K

IonQ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price39.74
Price Trends
50DMA
31.65
Positive
100DMA
31.54
Positive
200DMA
26.57
Positive
Market Momentum
MACD
2.30
Positive
RSI
56.11
Neutral
STOCH
28.37
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 39.74 is above the 20-day moving average (MA) of 39.21, above the 50-day MA of 31.65, and above the 200-day MA of 26.57, indicating a bullish trend. The MACD of 2.30 indicates Positive momentum. The RSI at 56.11 is Neutral, neither overbought nor oversold. The STOCH value of 28.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IONQ.

IonQ Risk Analysis

IonQ disclosed 65 risk factors in its most recent earnings report. IonQ reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

IonQ Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$11.90B10.64-7.50%2.90%7.41%-8.19%
60
Neutral
$1.93B-30.47%45.57%-35.70%
59
Neutral
$5.78B-154.89%121.61%-13.50%
58
Neutral
$9.67B-52.11%69.92%-79.18%
50
Neutral
$3.30B-85.28%-28.38%-29.15%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IONQ
IonQ
39.74
31.87
404.96%
QUBT
Quantum Computing
15.13
14.45
2125.00%
QBTS
D-Wave Quantum
16.93
15.77
1359.48%
RGTI
Rigetti Computing
11.24
10.19
970.48%

IonQ Corporate Events

Regulatory Filings and Compliance
IonQ Files Prospectus for Resale of Shares
Neutral
Jun 9, 2025

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.

The most recent analyst rating on (IONQ) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on IonQ stock, see the IONQ Stock Forecast page.

M&A Transactions
IonQ to Acquire Oxford Ionics for $1.075 Billion
Positive
Jun 9, 2025

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.

The most recent analyst rating on (IONQ) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on IonQ stock, see the IONQ Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
IonQ Completes Acquisition of Lightsynq Technologies
Positive
Jun 2, 2025

On May 30, 2025, IonQ completed its acquisition of Lightsynq Technologies Inc. The transaction involved the issuance of 12,377,433 shares of IonQ’s common stock, with some shares subject to vesting conditions. This acquisition is part of IonQ’s strategic efforts to enhance its market positioning and operational capabilities. A Registration Rights Agreement was also established, granting the sellers of Lightsynq shares certain rights related to the stock consideration.

The most recent analyst rating on (IONQ) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on IonQ stock, see the IONQ Stock Forecast page.

M&A Transactions
IonQ Acquires Controlling Stake in id Quantique
Neutral
May 6, 2025

IonQ, a company involved in the quantum computing industry, has completed its acquisition of a controlling stake in id Quantique SA on April 30, 2025. This transaction involved the issuance of 4,215,740 shares of IonQ’s common stock to the sellers, and a Registration Rights Agreement was established to provide certain rights to the sellers regarding the stock consideration.

Private Placements and FinancingBusiness Operations and Strategy
IonQ Ends ATM Equity Offering Amid Market Turbulence
Neutral
Mar 11, 2025

On March 10, 2025, IonQ, Inc. announced the termination of its At-the-Market (ATM) equity offering program, which had raised over $372 million through the sale of 16,038,460 shares. The decision to end the program was influenced by recent market disruptions and the company’s assessment that it had secured sufficient capital to meet its needs, boosting its pro forma year-end cash balance to over $700 million. This move reflects IonQ’s strategic positioning to maintain its leadership in the quantum computing and networking sectors, despite turbulent market conditions.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.