Quantum Computing (QUBT) AI Stock Analysis

• Market Cap: $2.83B
• Dividend Yield: N/A
• Average Volume (3M): 17.02M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.69
• Revenue Growth: -21.56%
• EPS Growth: -103.08%
• Country: US
• Employees: 41
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): -0.26
• Shares Outstanding: 159,883,200
• 10 Day Avg. Volume: 20,524,425
• 30 Day Avg. Volume: 17,020,886
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 6.14K
• Enterprise Value/Gross Profit: 20.74K
• Enterprise Value/Ebitda: -60.83
• 1Y Price Target: $19.50
• Price Target Upside: 6.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 51 Neutral
• Price Target: $15.50 ▼(-15.53% Downside)

Quantum Computing's overall stock score is primarily influenced by its weak financial performance and valuation. The technical analysis provides some support, but the most significant positive factor is the recent corporate event, which bolsters financial resources for future growth.

Positive Factors

Financial Strengthening

The significant cash infusion enhances Quantum Computing's ability to invest strategically in growth and operations, bolstering its financial stability.

Technological Advancements

The operational facility supports future revenue growth by scaling production capabilities, enhancing Quantum Computing's competitive edge in quantum technology.

Strategic Partnerships

Partnerships with prestigious institutions like NASA highlight the company's value in scientific applications, potentially opening new markets and opportunities.

Negative Factors

Revenue Decline

The significant revenue decline indicates challenges in market penetration and sales execution, potentially impacting long-term growth prospects.

Increased Operating Expenses

Rising operating expenses without corresponding revenue growth can strain profitability and cash flow, limiting financial flexibility.

Continuous Negative Cash Flow

Persistent negative cash flow suggests operational inefficiencies and reliance on external funding, posing risks to long-term sustainability.

Quantum Computing Business Overview & Revenue Model

Company Description

Quantum Computing, Inc. focuses on providing software tools and applications for quantum computers in Virginia. The company offers Qatalyst, a quantum application accelerator that enables developers to create and execute quantum-ready applications on conventional computers, while being ready to run on quantum computers as well as provides multiple quantum processing units including DWave, Rigetti, and IonQ. It focuses on serving commercial and government entities. The company, formerly known as Innovative Beverage Group Holdings, Inc. Quantum Computing, Inc. was founded in 2018 and is based in Leesburg, Virginia.

How the Company Makes Money

QUBT generates revenue through multiple streams, primarily by selling quantum computing hardware to research institutions and commercial enterprises. Additionally, the company offers subscription-based access to its cloud-based quantum computing platform, allowing clients to utilize its quantum resources for their computational needs. Another key revenue stream comes from consulting services, where QUBT provides expertise to organizations looking to implement quantum solutions in their operations. Strategic partnerships with technology firms and academic institutions also contribute to its earnings, enabling joint research projects and access to new markets. Furthermore, QUBT may engage in licensing its proprietary algorithms and technologies, providing an additional layer of revenue generation.

Quantum Computing Financial Statement Overview

Summary

Quantum Computing's financial statements reflect a company in the growth and development phase, struggling to achieve profitability and positive cash flow. While there is slight revenue growth, substantial losses and reliance on equity financing are significant concerns. The company must enhance its operational efficiency and revenue generation to improve its financial health and move towards self-sustainability.

Income Statement

The income statement reveals a challenging financial situation for Quantum Computing with continuous negative net income over the years, suggesting struggles in achieving profitability. The TTM data shows a slight increase in revenue by 3.2% from the previous year, but the company is still operating at a significant loss, with a negative net profit margin and EBIT margin. This indicates the company is facing difficulties in managing its operating expenses relative to revenue generation.

Balance Sheet

The balance sheet displays a relatively high stockholders' equity compared to total debt, resulting in a low debt-to-equity ratio, which is positive. However, the company has been relying heavily on equity financing, as evidenced by substantial equity injections over recent years. The equity ratio is strong at approximately 91.1%, indicating that most of the company's assets are financed by equity. This could be a sign of investor confidence but also reflects the company’s reliance on external funding to sustain operations.

Cash Flow

Cash flow analysis highlights a negative trend with continuous negative free cash flow, indicating that the company is unable to generate sufficient cash from operations to cover its capital expenditures. The operating cash flow to net income ratio is negative, underscoring inefficiencies in converting revenue into cash. The heavy reliance on financing activities, especially equity financing, raises concerns about sustainability if such funding sources become unavailable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	385.00K	373.00K	358.00K	136.00K	0.00	0.00
Gross Profit	114.00K	-3.69M	-3.15M	-1.79M	-9.00K	-6.61K
EBITDA	-38.87M	-62.25M	-22.11M	-23.34M	-27.61M	-18.72M
Net Income	-45.12M	-68.54M	-27.02M	-25.98M	-27.90M	-24.73M
Balance Sheet
Total Assets	242.53M	153.56M	74.36M	89.30M	17.28M	15.27M
Cash, Cash Equivalents and Short-Term Investments	166.43M	78.94M	2.06M	5.31M	16.74M	15.20M
Total Debt	1.06M	1.18M	2.77M	8.27M	18.08K	218.37K
Total Liabilities	21.71M	46.27M	5.65M	14.40M	1.08M	693.21K
Stockholders Equity	220.83M	107.29M	68.70M	74.90M	16.20M	14.57M
Cash Flow
Free Cash Flow	-22.39M	-22.25M	-20.43M	-18.43M	-6.82M	-11.55M
Operating Cash Flow	-16.20M	-16.21M	-18.32M	-17.56M	-6.80M	-11.54M
Investing Cash Flow	-6.19M	-6.04M	-2.61M	-2.23M	-22.50K	-11.97K
Financing Cash Flow	183.31M	99.14M	17.68M	6.17M	8.39M	26.65M

Quantum Computing Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QUBT, the sentiment is Positive. The current price of 18.35 is above the 20-day moving average (MA) of 15.83, above the 50-day MA of 16.30, and above the 200-day MA of 12.08, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 64.93 is Neutral, neither overbought nor oversold. The STOCH value of 84.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QUBT.

Quantum Computing Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RGTI	53 Neutral	7.13B	-32.53	-29.79%	―	-37.20%	-58.82%
IONQ	52 Neutral	19.48B	-33.12	-39.91%	―	67.83%	-154.69%
QUBT	51 Neutral	$2.83B	―	-32.63%	―	-21.56%	-103.08%
QBTS	46 Neutral	7.71B	-22.78	-229.67%	―	120.20%	-143.95%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Quantum Computing Corporate Events

Quantum Computing Raises $200M in Private Placement

On June 22, 2025, Quantum Computing Inc. entered into securities purchase agreements to issue 14,035,089 shares of common stock in a private placement, resulting in gross proceeds of approximately $200 million. The closing occurred on June 24, 2025, with Titan Partners Group acting as the sole placement agent. The company plans to use the net proceeds to accelerate commercialization efforts, strategic acquisitions, and general corporate purposes. The issuance was not registered under the Securities Act, and QCi has agreed to file a resale registration statement. Directors and executives have agreed to a 60-day lock-up period post-closing, and the company will not issue new shares for 75 days without consent from the placement agent.

Quantum Computing Appoints New CFO and General Counsel

Quantum Computing Inc. announced the retirement of its Chief Financial Officer, Christopher Boehmler, effective June 19, 2025, without any disagreements regarding company operations. Christopher Roberts, who has extensive experience in corporate finance and government contracting, was appointed as the new CFO and General Counsel effective June 20, 2025. The company held its annual meeting on June 18, 2025, where new directors were elected, and BPM LLP was ratified as the independent accounting firm for the fiscal year ending December 31, 2025.