tiprankstipranks
Trending News
More News >
Quantum Numbers Corp. (TSE:QNC)
:QNC

Quantum Numbers (QNC) AI Stock Analysis

Compare
160 Followers

Top Page

TSE:QNC

Quantum Numbers

(QNC)

Select Model
Select Model
Select Model
Neutral 54 (OpenAI - 5.2)
Rating:54Neutral
Price Target:
C$5.00
▲(5.26% Upside)
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
Conservative balance sheet leverage
Very low reported debt (≈$60k TTM) provides structural financial flexibility versus highly leveraged peers. This reduces near-term bankruptcy and interest-service risks, supporting continued R&D and partnership execution and making capital raises less pressured in the medium term.
Commercialization-oriented corporate developments
Ongoing partnerships, product announcements and certification steps are durable, strategic indicators of progress from lab to market. Such developments strengthen go-to-market capability, third-party validation and future revenue pathways, improving long-term commercialization prospects if execution continues.
Improving free cash flow trend
Although absolute FCF is negative, a reported improvement in the FCF growth trend suggests operational efficiency gains or tighter cash management. If sustained, this reduces burn rate, extends runway and lowers the frequency/size of future financing, aiding medium-term financial stability.
Negative Factors
No reported revenue
Zero revenue across reported periods is a fundamental commercial risk: it signals the company has not yet validated product-market fit or delivered consistent customer receipts. Lack of recurring sales prevents self-funded growth and makes the business reliant on external capital for survival and scaling.
Widening net losses
Material widening of net losses erodes shareholders' equity and increases future financing needs. Persistent and growing losses indicate the underlying business model has yet to achieve profitable unit economics, raising execution and sustainability concerns over the next several quarters.
Persistent negative operating cash flow
Consistent negative operating and free cash flow means the company is burning cash to run operations, forcing reliance on external funding. This structural cash outflow constrains investment flexibility, increases dilution or leverage risk, and threatens runway absent material revenue or financing improvements.

Quantum Numbers (QNC) vs. iShares MSCI Canada ETF (EWC)

Quantum Numbers Business Overview & Revenue Model

Company DescriptionQuantum 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 MoneyQuantum 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 Numbers 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
14
Very Negative
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
58
Neutral
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
22
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit-18.18K-22.31K0.00-22.30K-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 Assets26.13M1.86M1.65M4.04M3.10M672.68K
Cash, Cash Equivalents and Short-Term Investments24.71M1.45M1.08M3.51M2.04M20.09K
Total Debt60.27K46.35K40.00K40.00K53.57K31.89K
Total Liabilities555.19K519.61K226.81K377.75K389.43K450.90K
Stockholders Equity25.57M1.34M1.42M3.66M2.71M221.78K
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-25.17M668.49K-196.80K-21.03K-1.34M748.00
Financing Cash Flow28.70M2.49M0.003.21M3.81M52.50K

Quantum Numbers Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price4.75
Price Trends
50DMA
4.26
Positive
100DMA
3.39
Positive
200DMA
2.29
Positive
Market Momentum
MACD
0.17
Positive
RSI
51.10
Neutral
STOCH
21.12
Neutral
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 below the 20-day moving average (MA) of 4.89, above the 50-day MA of 4.26, and above the 200-day MA of 2.29, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 51.10 is Neutral, neither overbought nor oversold. The STOCH value of 21.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:QNC.

Quantum Numbers Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
C$1.10B17.2124.24%5.97%2.96%11.50%
69
Neutral
C$1.01B13.8612.20%5.69%-0.72%-9.27%
68
Neutral
C$609.69M13.8745.71%10.85%384.10%
63
Neutral
C$772.11M24.5849.99%16.25%31.71%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
54
Neutral
C$1.03B-112.59-58.71%-124.61%
54
Neutral
C$586.91M-11.80-18.09%12.20%-8.46%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:QNC
Quantum Numbers
4.83
4.11
570.83%
TSE:ET
Evertz Technologies
14.69
3.61
32.61%
TSE:ENGH
Enghouse Systems
17.66
-8.57
-32.67%
TSE:DCBO
Docebo
26.00
-33.61
-56.38%
TSE:DTOL
D2L
10.81
-8.44
-43.84%
TSE:CVO
Coveo Solutions
5.65
-0.61
-9.74%

Quantum Numbers Corporate Events

Business Operations and StrategyDelistings and Listing ChangesRegulatory Filings and Compliance
Quantum eMotion Moves to List Shares on NYSE American with Form 40-F Filing
Positive
Jan 22, 2026

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.

Business Operations and StrategyProduct-Related AnnouncementsRegulatory Filings and Compliance
Quantum eMotion Secures Perfect DeFi Audit Score as It Advances Quantum-Safe Certification
Positive
Dec 29, 2025

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.

Business Operations and Strategy
Quantum eMotion Becomes Top Holding in $3 Billion Defiance Quantum ETF
Positive
Dec 22, 2025

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.

Business Operations and StrategyProduct-Related Announcements
Greybox Launches Reimbursed Chronic Care Platform for U.S. Senior Living, Sets Up Irvine Hub
Positive
Dec 18, 2025

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.

Business Operations and StrategyProduct-Related Announcements
Aegis and Quantum eMotion Unveil Quantum-Secured Energy Storage for Extreme Conditions
Positive
Dec 2, 2025

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.

Business Operations and StrategyProduct-Related Announcements
Quantum eMotion and Exascale Labs Partner to Enhance AI Security
Positive
Nov 26, 2025

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.

Business Operations and StrategyProduct-Related Announcements
Quantum eMotion and Energy Plug Unite for Quantum-Secure Energy Storage
Positive
Nov 13, 2025

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.

Business Operations and StrategyProduct-Related Announcements
Krown Technologies and Quantum eMotion Unveil Quantum-Secured Hot Wallet ‘Qastle’
Positive
Nov 3, 2025

Krown Technologies and Quantum eMotion have launched Qastle, the first hot wallet secured by Quantum Entropy and Post-Quantum Encryption, aiming to disrupt the crypto-wallet market, which is projected to exceed $100 billion by 2033. Qastle’s innovative security features, leveraging Quantum Entropy-as-a-Service and post-quantum cryptography, provide unprecedented protection against cyber threats, positioning both companies at the forefront of the evolving digital asset security landscape, with significant revenue potential and user adoption anticipated.

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: Dec 30, 2025