Quantum eMotion (QNC) AI Stock Analysis

• Market Cap: C$977.27M
• Dividend Yield: N/A
• Average Volume (3M): 3.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: N/A
• EPS Growth: -124.61%
• Country: CA
• Employees: 39
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): >-0.01
• Shares Outstanding: 219,118,670
• 10 Day Avg. Volume: 1,816,585
• 30 Day Avg. Volume: 3,283,675
• PEG Ratio: -6.53
• Price to Book (P/B): 197.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -125.07
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: C$5.00 ▲(5.26% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is held down primarily by weak financial performance (no revenue, widening losses, and continued cash burn). This is partly balanced by strong technical momentum and a favorable stream of positive corporate developments, but valuation remains constrained by ongoing losses and no dividend support.

Positive Factors

Low balance-sheet leverage

The company carries extremely low reported debt (~60K), limiting bankruptcy and interest-rate stress. Durable benefit: minimal leverage preserves financial flexibility, reduces short-term solvency risk, and leaves optionality to fund R&D or operations via equity or partnerships rather than servicing large debt burdens.

Stronger reported equity and asset base

Reported growth in equity and assets increases the company’s book stability and collateral base. Over a multi-month horizon this can support larger commercial contracts, partner confidence, or additional capital raises, improving the firm’s ability to execute product certification and commercialization steps.

Commercialization progress and visibility

Recent corporate developments—partnerships, product announcements, certification progress and ETF inclusion—represent structural moves to commercialize technology and broaden visibility. These steps can create durable customer pipelines, validation for partners, and longer-term market access beyond short-term sentiment shifts.

Negative Factors

No reported revenue

The company reports zero revenue across periods, indicating the core business model has not yet produced commercial sales. Over 2–6 months this remains a critical structural risk: without proven customer revenue the firm depends on external funding, delaying path to self-sustaining operations and scaling.

Persistent negative cash flow / burn

Operating and free cash flow are both meaningfully negative (~-3.3M TTM), demonstrating real cash burn rather than non-cash losses. This sustained outflow shortens runway, forces recurring capital raises or financing, and materially increases dilution risk unless commercialization accelerates or costs are reduced.

Consistently negative returns on capital

Despite asset and equity growth, returns on equity remain negative and the company is not generating earnings. Structurally, this indicates poor capital efficiency: book strength is not translating into profit generation, leaving long-term investor returns dependent on a major change in commercialization or cost structure.

Quantum eMotion Business Overview & Revenue Model

Company Description

Quantum eMotion Corp. engages in the development of cryptographic solutions based on quantum random number generators in Canada. It develops and markets encrypted data and communication solutions for financial, military, mobile, and internet telecommunication sectors. The company was formerly known as Quantum Numbers Corp. and changed its name to Quantum eMotion Inc. in June 2021. Quantum eMotion Corp. was incorporated in 2007 and is headquartered in Montreal, Canada.

How the Company Makes Money

Quantum Numbers (QNC) generates revenue primarily through the sale and licensing of its quantum random number generators (QRNGs). The company's revenue model is based on direct sales to businesses and institutions that integrate these QRNGs into their security infrastructure. Additionally, QNC enters into licensing agreements with third-party technology providers, allowing them to incorporate QNC's QRNG technology into their own products, generating royalty-based income. The company also explores strategic partnerships with major players in the technology and cybersecurity sectors to expand its market reach and enhance its product offerings, which contributes to its revenue streams.

Quantum eMotion Financial Statement Overview

Summary

Overall fundamentals are weak: the income statement shows zero revenue across periods with widening losses (TTM net loss ~7.7M), and cash flow remains negative with ongoing cash burn (TTM operating/FCF about -3.3M). A partial offset is the low balance-sheet leverage (very low total debt ~60K), but persistent losses and negative cash generation dominate the risk profile.

Income Statement

The income statement is weak: revenue is reported as zero across all periods, while losses have persisted and generally widened, culminating in a much larger loss in TTM (Trailing-Twelve-Months) (net loss of about 7.7M vs. ~3.0M in 2024). Gross profit is negative and operating profitability remains deeply negative, indicating the business has not yet demonstrated a sustainable commercial model. A modest positive is that losses were smaller in 2020–2023 versus the sharp deterioration in the latest TTM period, but the overall trajectory is unfavorable.

Balance Sheet

The balance sheet looks relatively conservative on leverage, with very low total debt (about 60K in TTM (Trailing-Twelve-Months)) compared with equity, implying limited balance-sheet debt risk. However, profitability-driven strain is evident: returns on equity are consistently negative, and the company is not generating earnings to support its capital base. Equity and assets appear to have increased substantially by TTM (Trailing-Twelve-Months), which helps stability on paper, but without improving profitability this strength is less durable over time.

Cash Flow

Cash flow is pressured: operating cash flow and free cash flow are negative in every period provided, including TTM (Trailing-Twelve-Months) (operating cash flow about -3.3M; free cash flow about -3.3M). While free cash flow decline appears to be improving on a growth basis in the latest TTM data (positive growth rate reported), the absolute level remains meaningfully negative, indicating ongoing cash burn. Free cash flow roughly tracks net losses (free cash flow to net income near ~1), suggesting losses translate into cash outflows rather than being mainly non-cash accounting charges.

Breakdown	TTM	Mar 2025	Mar 2024	Dec 2022	Dec 2021	Mar 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-18.18K	-22.31K	0.00	-22.30K	-22.30K	-24.64K
EBITDA	-7.63M	-2.94M	-2.09M	-2.17M	-1.53M	-773.40K
Net Income	-7.71M	-2.97M	-2.39M	-2.80M	-1.56M	-799.25K
Balance Sheet
Total Assets	26.13M	1.86M	1.65M	4.04M	3.10M	672.68K
Cash, Cash Equivalents and Short-Term Investments	24.71M	1.45M	1.08M	3.51M	2.04M	20.09K
Total Debt	60.27K	46.35K	40.00K	40.00K	53.57K	31.89K
Total Liabilities	555.19K	519.61K	226.81K	377.75K	389.43K	450.90K
Stockholders Equity	25.57M	1.34M	1.42M	3.66M	2.71M	221.78K
Cash Flow
Free Cash Flow	-3.34M	-2.11M	-2.43M	-1.63M	-1.81M	-320.79K
Operating Cash Flow	-3.32M	-2.11M	-2.08M	-1.62M	-1.47M	-320.79K
Investing Cash Flow	-25.17M	668.49K	-196.80K	-21.03K	-1.34M	748.00
Financing Cash Flow	28.70M	2.49M	0.00	3.21M	3.81M	52.50K

Quantum eMotion Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.75
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:QNC, the sentiment is Neutral. The current price of 4.75 is above the 20-day moving average (MA) of 4.70, below the 50-day MA of 4.84, and above the 200-day MA of 2.70, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 47.17 is Neutral, neither overbought nor oversold. The STOCH value of 15.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:QNC.

Quantum eMotion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ET	77 Outperform	C$1.21B	14.79	24.24%	5.97%	2.96%	11.50%
DCBO	72 Outperform	C$748.45M	16.69	56.90%	―	16.25%	31.71%
ENGH	69 Neutral	C$998.73M	15.58	12.20%	5.69%	-0.72%	-9.27%
DTOL	68 Neutral	C$519.67M	38.77	45.71%	―	10.85%	384.10%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
QNC	54 Neutral	C$977.27M	-46.33	-58.71%	―	―	-124.61%
CVO	54 Neutral	C$489.78M	-16.02	-18.09%	―	12.20%	-8.46%

Quantum eMotion Corporate Events

Quantum eMotion Moves to List Shares on NYSE American with Form 40-F Filing

Quantum eMotion Corp. has filed a Form 40-F registration statement with the U.S. Securities and Exchange Commission as part of its application to list its common shares on the NYSE American exchange. The proposed U.S. listing, which remains subject to SEC effectiveness of the filing, NYSE American approval and satisfaction of all regulatory and listing requirements, would broaden the company’s capital markets presence and potentially enhance its visibility and access to investors in the rapidly evolving quantum cybersecurity sector.

The most recent analyst rating on (TSE:QNC) stock is a Hold with a C$4.50 price target. To see the full list of analyst forecasts on Quantum Numbers stock, see the TSE:QNC Stock Forecast page.

Quantum eMotion Secures Perfect DeFi Audit Score as It Advances Quantum-Safe Certification

Quantum eMotion announced that its quantum entropy technology has demonstrated strong real-world security performance across decentralized finance, quantum-attack simulations and formal certification processes, anchored by a perfect 100/100 security audit score and 5-star confidence rating for the Krown Network and KrownDEX, which use its QRNG2 engine for hardware-grade randomness. Building on earlier IBM Qiskit-based simulations showing that QRNG-enhanced architectures significantly increase the difficulty of Grover-style quantum brute-force attacks, the company is now pursuing FIPS 140-3 validation of its Quantum Crypto Module with NIST-accredited Lightship Security, creating a layered validation stack that strengthens its positioning for deployment in regulated U.S. and Canadian sectors such as government, defence, healthcare, financial services and critical infrastructure.

Quantum eMotion Becomes Top Holding in $3 Billion Defiance Quantum ETF

Quantum eMotion has become the largest single holding in the Defiance Quantum ETF (QTUM) after the fund increased its position to about 2.18% of its portfolio, or 18.48 million shares, following a semi-annual index rebalancing. The move, within a $3 billion ETF dedicated to quantum computing and machine learning, signals heightened institutional recognition of Quantum eMotion’s quantum cybersecurity and entropy technologies and reflects its improved liquidity, strong market performance, and growing commercial footprint across healthcare, AI infrastructure, energy systems, and digital assets, boosting its visibility with U.S. institutional investors and supporting its push to accelerate commercialization, expand partnerships, and pursue U.S. market initiatives.

Greybox Launches Reimbursed Chronic Care Platform for U.S. Senior Living, Sets Up Irvine Hub

Greybox Solutions Inc., in partnership with Quantum eMotion and Vigilant Care Monitoring, has launched what it calls the first fully reimbursed chronic care and remote patient monitoring platform tailored for senior living communities in the United States, while establishing Irvine, California as its U.S. headquarters. Leveraging CMS reimbursement pathways for Remote Patient Monitoring and Chronic Care Management, the TAKECARE platform enables assisted living operators to monitor high-acuity seniors in real time, automate clinical workflows, and secure recurring Medicare revenue, addressing industry challenges such as staffing shortages, rising clinical risk, and increasing resident acuity. The model, initially rolled out in Brian Schott’s California assisted living operations with plans for broader expansion, positions Greybox at the intersection of value-based care and advanced cybersecurity, using quantum-safe architecture to protect sensitive health data and bolster resilience for AI-driven analytics and connected care ecosystems, a particularly critical safeguard for vulnerable senior populations.

Aegis and Quantum eMotion Unveil Quantum-Secured Energy Storage for Extreme Conditions

Aegis Critical Energy Defence Corp., in collaboration with Quantum eMotion and other partners, has launched the Tough Bhoy™, a quantum-secured energy storage system designed for extreme environments such as Arctic conditions, remote communities, and critical infrastructure. This innovative system provides resilient power, integrates seamlessly with existing assets, and is fortified with advanced cybersecurity measures, ensuring reliable energy continuity and system resilience in harsh and isolated settings.

Quantum eMotion and Exascale Labs Partner to Enhance AI Security

Quantum eMotion Corporation and Exascale Labs have announced a multi-year partnership to integrate quantum-grade cryptographic technology into large-scale AI compute infrastructure. This collaboration aims to create a highly secure environment for AI workloads by combining Exascale’s GPU platform with QeM’s Quantum Random Number Generator technology. The initiative is expected to enhance AI infrastructure security, protect against cyber threats, and safeguard sensitive data across various sectors, aligning with the growing AI and quantum cryptography markets.

Quantum eMotion and Energy Plug Unite for Quantum-Secure Energy Storage

Quantum eMotion Corp. and Energy Plug Technologies Corp. have formed a Joint Development Steering Committee to integrate Quantum eMotion’s Quantum Random Number Generator (QRNG) chips into Energy Plug’s energy storage systems. This collaboration aims to enhance cybersecurity in critical infrastructure, addressing increasing threats to Canada’s energy sector by providing quantum-secure battery solutions that generate cryptographic keys with true quantum randomness, thus eliminating certain remote-exploitation attacks.