Quantum Computing Inc. (NASDAQ: QUBT) reports Q3 profit, 280% revenue growth, and $1.5bn cash war chest

Quantum Computing Inc. (NASDAQ: QUBT) posted its first quarterly profit in the third quarter of 2025 and reported a surge in revenue driven by increasing commercial adoption and strategic government partnerships. The quantum optics and photonics technology firm reported a net income of $2.4 million for the three-month period ended September 30, 2025, reversing a net loss of $5.7 million in the same period last year. Revenues rose 280 percent year-over-year to $384,000, with the company citing new hardware and R&D contracts, as well as the launch of its Dirac-3 quantum optimization system via cloud-based access.

Investors reacted positively, pushing the stock up by 5.68 percent during regular trading on November 14 to close at 10.60 US dollars. The rally continued after hours with an additional 13.68 percent jump, bringing the share price to 12.05 US dollars. This rebound came despite a broader five-day decline of nearly 21 percent, indicating that the market interpreted the company’s financial and strategic disclosures as materially positive for long-term growth potential.

The headline financial figure was supported by a $9.2 million mark-to-market gain related to a derivative liability and $3.5 million in interest income. While some of these drivers are one-time in nature, the return to net profitability nonetheless marks a milestone for Quantum Computing Inc., which has historically operated in deep development mode. At a time when many quantum computing firms remain pre-revenue or research-focused, the shift toward monetization signals a transition from prototype to early-stage commercial scale.

How did Quantum Computing Inc. manage to reverse losses and achieve profitability in Q3 2025?

The financial results for the third quarter demonstrate how targeted execution across R&D, client acquisition, and strategic capital raises can reshape the trajectory of a deep-tech firm. The company reported revenue of 384,000 US dollars, compared to 101,000 US dollars in the prior-year period. Though the top line remains modest by traditional tech industry benchmarks, analysts following the quantum hardware space have emphasized that the nature of revenue at this stage is more important than its scale.

In Quantum Computing Inc.’s case, the revenue uptick was attributed to an increase in both the number and scope of R&D services and custom hardware engagements. The company also began recognizing income from its Dirac-3 quantum optimization platform, which became available via cloud access during the quarter. Gross margin improved to 33 percent from 9 percent in Q3 2024, though management noted that margin variability should be expected at current revenue levels due to the project-specific nature of early-stage deployments.

Operating expenses nearly doubled to 10.5 million US dollars, up from 5.4 million US dollars in the third quarter of the previous year. The increase reflects deliberate investment in research, engineering, and photonic manufacturing capabilities as Quantum Computing Inc. prepares for commercial scale. Despite this expense growth, the bottom line swung to a net income position due to non-operating gains and growing interest earnings on its expanded investment base.

What strategic deals and customer wins boosted institutional confidence in QUBT?

One of the standout developments in the quarter was the confirmation of a commercial purchase order from a top five United States bank for quantum-secured cybersecurity solutions. The contract represents the company’s first U.S. commercial sale in this domain and was widely viewed as a major milestone in validating its quantum cybersecurity platform.

In parallel, the firm continued its collaboration with the National Aeronautics and Space Administration’s Langley Research Center. Under this initiative, Quantum Computing Inc. is applying its Dirac-3 system to enhance LiDAR data fidelity by reducing solar noise in atmospheric measurements. This problem, long considered a bottleneck in daytime remote sensing, now has a potential quantum-based solution, underscoring the company’s growing credibility as a government research partner.

These two developments, which include the validation of real-world commercial use cases and the deepening of strategic partnerships with federal agencies, have collectively reinforced the narrative that Quantum Computing Inc. is transitioning beyond its role as a niche photonics firm into a full-spectrum quantum solutions provider.

How is the foundry strategy unfolding and what does it mean for manufacturing scale?

Quantum Computing Inc. also provided updates on its thin-film lithium niobate (TFLN) photonic chip foundry located in Tempe, Arizona. Known as Fab 1, the facility has begun small-batch production runs while refining its fabrication processes for consistency, quality, and throughput. Management indicated that early customer orders are now being fulfilled and that conversations with both commercial and academic partners are advancing.

Plans are already in motion for Fab 2, a larger follow-up facility intended to support higher-volume photonic chip manufacturing. This second fab is being positioned as a long-term capacity expansion that will allow Quantum Computing Inc. to meet future demand from telecom, defense, and AI sectors. The integrated foundry strategy distinguishes the company from many of its quantum computing peers, which often rely on outsourced fabrication or university labs with limited capacity.

By internalizing photonic chip production, Quantum Computing Inc. is building not just a product but an end-to-end supply chain around room-temperature, low-power quantum computing systems that can be deployed in practical environments.

How does Quantum Computing Inc.’s rapidly expanding cash position and reduced liabilities shape its ability to fund large‑scale quantum and photonic manufacturing over the next several years?

As of September 30, 2025, Quantum Computing Inc. reported 352.4 million US dollars in cash and 460.6 million US dollars in investments, totaling more than 800 million US dollars in liquid assets. After the close of the quarter, the company raised an additional 750 million US dollars in gross proceeds through a private placement of common stock. This brought its total liquidity to well over 1.5 billion US dollars, positioning the company to fund long-term growth without near-term financing pressure.

Total assets surged to 898.2 million US dollars from 153.6 million US dollars at the end of December 2024, reflecting not only the capital raises but also significant reductions in liabilities. Most notably, the derivative liability related to QPhoton warrants declined by 25.8 million US dollars, contributing to a net reduction in overall liabilities to 20.3 million US dollars. Shareholders’ equity stood at 877.9 million US dollars at the end of the third quarter.

The balance sheet strength provides a meaningful cushion for scaling hiring, ramping chip production, and investing in new product lines, particularly as demand for room-temperature quantum systems accelerates globally.

How are investors interpreting Quantum Computing Inc.’s Q3 profit, liquidity surge, and stock volatility as they assess the company’s growth potential heading into 2026?

Quantum Computing Inc. closed at 10.60 US dollars on November 14, marking a 5.68 percent gain for the day. In after-hours trading, the stock rose further to 12.05 US dollars, up another 13.68 percent. This recovery came after a steep five-day decline of 20.98 percent, suggesting that while investor sentiment had recently cooled, the latest financial disclosures helped restore confidence.

The company’s market capitalization now stands at approximately 2.37 billion US dollars. No price-to-earnings ratio is currently available, as the firm only recently posted its first profit and has historically recorded net losses. Analysts tracking the stock noted that the valuation continues to reflect future growth expectations, with institutional investors now looking for sustained revenue expansion and operational profitability in subsequent quarters.

Key areas of interest heading into 2026 include the commercialization cadence of the Dirac-3 system, the timeline for Fab 2 deployment, and the conversion of pilot contracts into recurring revenue streams. Investors are also watching whether additional enterprise or government clients join the firm’s roster and whether strategic hiring can outpace execution risk in highly competitive sectors like AI and quantum cybersecurity.

Quantum Computing Inc. is no longer being viewed solely through the lens of speculative innovation. With a solid cash position, early commercial traction, and integrated manufacturing capabilities, the company is beginning to occupy a more mature place on the quantum infrastructure map. The path to consistent profitability and scaled deployment remains long, but the foundations laid in the third quarter provide a compelling base from which the company can pursue deeper market penetration.

What are the most important takeaways from Quantum Computing Inc.’s Q3 results and stock movement?

• Quantum Computing Inc.’s third quarter financial and strategic disclosures offer multiple insights for investors and analysts tracking the evolution of early-stage quantum firms. Here is a concise summary of key developments:

• Quantum Computing Inc. reported its first quarterly profit of 2.4 million US dollars for Q3 2025, driven by a 280 percent year-over-year increase in revenue and non-operating gains from derivatives and interest income.

• Total revenue reached 384,000 US dollars, supported by a mix of custom hardware engagements, research and development contracts, and cloud-based access fees for the Dirac-3 quantum optimization system.

• The company secured a milestone commercial order for its quantum cybersecurity platform from a top five United States bank, indicating progress toward mainstream adoption.

• Strategic collaboration with the National Aeronautics and Space Administration advanced, with its Dirac-3 system used in solar noise removal from LiDAR atmospheric data.

• Its Fab 1 photonic chip foundry in Tempe, Arizona, entered small-batch production, while plans for a larger Fab 2 facility are underway to scale capacity.

• Operating expenses rose to 10.5 million US dollars, reflecting deliberate investment in engineering, manufacturing, and commercial expansion.

• Cash and investments as of September 30, 2025, totaled over 800 million US dollars, with a further 750 million US dollars raised after the quarter, bringing total liquidity to more than 1.5 billion US dollars.

• The company’s total liabilities decreased to 20.3 million US dollars, down from 46.3 million US dollars at year-end 2024, largely due to adjustments related to QPhoton warrants.

• Shareholder equity increased to 877.9 million US dollars, and total assets surged to 898.2 million US dollars from 153.6 million US dollars.

• The stock closed at 10.60 US dollars on November 14, up 5.68 percent for the day, and gained another 13.68 percent in after-hours trading, reaching 12.05 US dollars.