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Ionq, Inc. (IONQ)
:IONQ
US Market

IonQ (IONQ) AI Stock Analysis

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IonQ

(NYSE:IONQ)

Rating:59Neutral
Price Target:
$47.00
▲(5.03%Upside)
IonQ's overall score reflects strong technical momentum and strategic corporate actions, offset by financial challenges and a high-risk valuation. The company's strategic acquisitions and partnerships are positive, but profitability and cash flow issues are significant concerns.
Positive Factors
Financial Outlook
Despite share price recovery, further upside is seen for IonQ.
Strategic Acquisitions
IonQ's acquisition of Oxford Ionics is expected to enhance technology by incorporating Electronic Qubit Control, allowing for faster and cost-effective scaling.
Technological Advancements
IonQ announced significant advancements with quantum computer simulations of complex protein folding and neutrinoless double-beta decay, showcasing its hardware capabilities.
Negative Factors
Market Competition
Quantum computing remains in its infancy, posing challenges as IonQ navigates a competitive and rapidly evolving technological landscape.

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 Key Performance Indicators (KPIs)

Any
Any
Revenue by Geography
Revenue by Geography
Chart InsightsIonQ's U.S. revenue surged in 2024, peaking in Q3 before a sharp decline in Q1 2025, while international revenue showed a notable rebound in the same quarter. The earnings call highlights strategic acquisitions and partnerships, suggesting these moves may drive future growth, particularly in international markets. Despite increased operating expenses and net losses, IonQ's strong cash position and focus on expanding quantum capabilities through acquisitions like Lightsynq and Capella could enhance revenue streams and stabilize financial performance.
Data provided by:Main Street Data

IonQ Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 53.57%|
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 shows promising revenue growth, but faces significant profitability and cash flow challenges. Despite a strong equity position, persistent losses and cash burn are concerns.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.10M43.07M22.04M11.13M2.10M0.00
Gross Profit1.06M22.48M13.93M8.19M1.06M-143.00K
EBITDA-36.44M-213.80M-147.38M-80.14M-36.14M-14.33M
Net Income-106.19M-331.65M-157.77M-48.51M-106.19M-15.42M
Balance Sheet
Total Assets0.00508.39M553.58M597.99M642.03M60.48M
Cash, Cash Equivalents and Short-Term Investments59.53M340.29M355.44M355.80M522.47M36.12M
Total Debt0.0017.73M8.11M4.05M4.21M4.27M
Total Liabilities0.00124.53M68.59M29.78M50.80M6.78M
Stockholders Equity63.99M383.86M484.99M568.21M591.23M53.70M
Cash Flow
Free Cash Flow-36.56M-123.67M-98.36M-57.26M-36.56M-23.68M
Operating Cash Flow-26.54M-105.68M-78.81M-44.70M-26.54M-12.01M
Investing Cash Flow-213.78M82.73M68.77M-309.06M-213.78M-11.68M
Financing Cash Flow603.23M41.69M1.76M1.10M603.23M276.00K

IonQ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price44.75
Price Trends
50DMA
36.83
Positive
100DMA
31.47
Positive
200DMA
29.23
Positive
Market Momentum
MACD
1.58
Negative
RSI
60.47
Neutral
STOCH
74.78
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 44.75 is above the 20-day moving average (MA) of 40.09, above the 50-day MA of 36.83, and above the 200-day MA of 29.23, indicating a bullish trend. The MACD of 1.58 indicates Negative momentum. The RSI at 60.47 is Neutral, neither overbought nor oversold. The STOCH value of 74.78 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 66 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$33.61B6.06-11.53%1.82%5.53%-18.79%
59
Neutral
$11.71B-52.11%69.92%-79.18%
58
Neutral
$4.99B-154.89%121.61%-13.50%
57
Neutral
$2.91B-30.47%45.57%-35.70%
55
Neutral
$3.83B-85.28%-28.38%-29.15%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IONQ
IonQ
44.75
37.34
503.91%
QUBT
Quantum Computing
20.65
20.04
3285.25%
QBTS
D-Wave Quantum
16.79
15.69
1426.36%
RGTI
Rigetti Computing
13.45
12.46
1258.59%

IonQ Corporate Events

Executive/Board ChangesShareholder Meetings
IonQ Confirms Director Elections at Annual Meeting
Neutral
Jun 20, 2025

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.

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.

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.

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.Date of analysis: Jul 03, 2025