Imagine a world where complex problems are solved in seconds rather than years; this is the promise of Quantum Computing, Inc. As a trailblazer in the computer hardware sector, it offers groundbreaking tools like Qatalyst, empowering developers to create applications that bridge the gap between classical and quantum computing. With a reputation for innovation and a focus on both commercial and government clients, I’m eager to explore whether its impressive fundamentals can sustain the current market valuation and growth trajectory.
Table of contents
Company Description
Quantum Computing, Inc. (QUBT), founded in 2018 and headquartered in Leesburg, Virginia, specializes in developing software tools and applications tailored for quantum computers. The company is a notable player in the Computer Hardware industry, offering its flagship product, Qatalyst—a quantum application accelerator that allows developers to create applications compatible with both conventional and quantum computing environments. Serving a diverse range of commercial and government clients, Quantum Computing, Inc. is positioned at the forefront of quantum technology innovation. By providing access to various quantum processing units, the company is shaping the future of computing and solidifying its role as a leader in the burgeoning quantum ecosystem.
Fundamental Analysis
In this section, I will analyze Quantum Computing, Inc.’s income statement, financial ratios, and dividend payout policy to provide a comprehensive overview of its financial health.
Income Statement
Below is the Income Statement for Quantum Computing, Inc. (QUBT), highlighting key financial metrics over the latest fiscal years.
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 0 | 0 | 136K | 358K | 373K |
| Cost of Revenue | 6.6K | 8.998K | 1.924M | 3.503M | 4.059M |
| Operating Expenses | 17.3M | 17.1M | 26.9M | 23.1M | 22.3M |
| Gross Profit | -6.6K | -8.998K | -1.788M | -3.145M | -3.686M |
| EBITDA | -18.7M | -27.6M | -23.3M | -22.1M | -62.2M |
| EBIT | -18.7M | -27.6M | -25.2M | -25.4M | -66.0M |
| Interest Expense | 6.0M | 0.278M | 0.772M | 1.602M | 2.496M |
| Net Income | -24.7M | -27.9M | -25.9M | -27.0M | -68.5M |
| EPS | -0.88 | -0.96 | -0.48 | -0.42 | -0.73 |
| Filing Date | 2021-03-18 | 2022-03-15 | 2023-03-30 | 2024-04-01 | 2025-03-20 |
Interpretation of Income Statement
Over the last five years, Quantum Computing, Inc. has shown a gradual increase in revenue, from 0 in 2020 to 373K in 2024. However, the company continues to face significant losses, with net income deteriorating sharply to -68.5M in the most recent year. Operating expenses have remained relatively stable, yet gross profit has worsened, indicating cost pressures outweighing revenue growth. The recent fiscal year reflects a critical downturn, particularly in EBITDA, which suggests operational challenges that may need addressing for future profitability.
Financial Ratios
The table below summarizes the key financial ratios for Quantum Computing, Inc. (QUBT) over the years provided.
| Metrics | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 0% | 0% | -191.01% | -75.48% | -183.76% |
| ROE | -161.97% | -1.72% | -34.69% | -39.33% | -63.89% |
| ROIC | -117.24% | -1.06% | -33.90% | -36.72% | -17.41% |
| P/E | -15.95 | -3.56 | -3.25 | -2.25 | -22.67 |
| P/B | 27.07 | 6.14 | 1.13 | 0.89 | 14.48 |
| Current Ratio | 21.98 | 15.93 | 1.19 | 0.55 | 17.36 |
| Quick Ratio | 21.98 | 15.93 | 1.19 | 0.54 | 17.36 |
| D/E | 0.014 | 0.001 | 0.110 | 0.040 | 0.011 |
| Debt-to-Assets | 1.43% | 0.10% | 9.26% | 3.72% | 0.77% |
| Interest Coverage | -2.89 | -61.46 | -37.10 | -16.38 | -10.39 |
| Asset Turnover | 0% | 0% | 0.00152 | 0.00481 | 0.00243 |
| Fixed Asset Turnover | 0% | 0% | 0.059 | 0.091 | 0.038 |
| Dividend Yield | 0% | 0% | 0.0093 | 0.0142 | 0.0138 |
Interpretation of Financial Ratios
Analyzing Quantum Computing, Inc. (QUBT) financial ratios from FY 2024 reveals significant concerns regarding its financial health. The liquidity ratios are exceptionally strong, with a current ratio of 17.36 and a quick ratio of 17.36, indicating a robust ability to cover short-term liabilities. However, profitability ratios are troubling: the gross profit margin stands at -9.88%, while the net profit margin is a staggering -183.76%, suggesting severe operational inefficiencies. The solvency ratio is negative at -1.40, which raises red flags about long-term financial stability. Furthermore, the company’s return on equity is -0.64, highlighting inadequate returns on shareholder investments. Overall, the ratios indicate a company struggling with profitability despite good liquidity.
Evolution of Financial Ratios
Over the past five years, QUBT’s financial ratios have shown a downward trend in profitability, with net profit margins deteriorating from 0% in 2021 to -183.76% in 2024. While liquidity ratios improved significantly, the ongoing operational losses pose a substantial risk to the company’s future.
Distribution Policy
Quantum Computing, Inc. (QUBT) does not pay dividends, reflecting its strategy to reinvest in growth initiatives and R&D. This approach is common for companies in high-growth phases, prioritizing long-term value creation over immediate shareholder returns. While QUBT engages in share buybacks, the lack of dividends, coupled with significant negative margins and cash flow issues, raises concerns about sustainability. Overall, this distribution strategy may not currently support robust long-term shareholder value creation.
Sector Analysis
Quantum Computing, Inc. operates in the Computer Hardware industry, specializing in quantum software tools and applications, facing competition from major players in the quantum computing space.
Strategic Positioning
Quantum Computing, Inc. (QUBT) operates in a niche yet rapidly evolving market, focusing on quantum software tools and applications. With a market cap of $1.75B, the company holds a competitive position within the computer hardware industry, particularly in quantum computing solutions. However, it faces significant competitive pressure from established players and emerging startups that are innovating in this space. The technological disruption posed by advancements in quantum computing can create both challenges and opportunities, making it essential for QUBT to continuously innovate and adapt its offerings to maintain its market share and appeal to commercial and government clients.
Revenue by Segment
The following chart illustrates the revenue distribution by segment for Quantum Computing, Inc. during the fiscal year ending December 31, 2024.
In FY 2024, the primary revenue contribution came from the “Services Member” segment, which generated $346K. Given that this is the only reported segment, it highlights a focused revenue stream. However, the lack of diversification raises potential risks concerning concentration. As the company continues to evolve, investors should monitor whether additional segments emerge to mitigate reliance on a single source of income, which could be crucial for sustained growth.
Key Products
Below is a table of key products offered by Quantum Computing, Inc. that highlight their contributions to the quantum computing landscape.
| Product | Description |
|---|---|
| Qatalyst | A quantum application accelerator that allows developers to create and execute quantum-ready applications on classical computers, ensuring compatibility with future quantum systems. |
| Quantum Processing Units (QPUs) | Offers access to multiple QPUs, including DWave, Rigetti, and IonQ, enabling users to leverage various quantum computing architectures for diverse applications. |
| Quantum Software Tools | A suite of software tools designed to enhance the development and execution of quantum algorithms and applications, facilitating easier transition from classical to quantum computing. |
These products position Quantum Computing, Inc. as a significant player in the technology sector, particularly in the realm of quantum computing solutions.
Main Competitors
The competitive landscape for Quantum Computing, Inc. reveals several significant players in the technology sector, particularly focused on computer hardware and related applications.
| Company | Market Cap |
|---|---|
| Axcelis Technologies, Inc. | 2.82B |
| Alarm.com Holdings, Inc. | 2.60B |
| Oddity Tech Ltd. | 2.57B |
| DXC Technology Company | 2.54B |
| Grindr Inc. | 2.54B |
| BigBear.ai Holdings, Inc. | 2.53B |
| Concentrix Corporation | 2.39B |
| Vishay Intertechnology, Inc. | 2.06B |
| Navitas Semiconductor Corporation | 2.04B |
| Quantum Computing, Inc. | 1.75B |
| WEBTOON Entertainment Inc. | 1.82B |
The primary competitors operate predominantly in North America and showcase a variety of technological advancements within the computer hardware sector. This competitive environment highlights the diverse opportunities and challenges Quantum Computing, Inc. faces in its pursuit of growth and innovation.
Competitive Advantages
Quantum Computing, Inc. (QUBT) holds a unique position in the burgeoning field of quantum computing. Its flagship product, Qatalyst, streamlines the development of quantum-ready applications, bridging the gap between conventional and quantum computing. By collaborating with leading quantum processing units like D-Wave, Rigetti, and IonQ, the company is well-poised to capitalize on the growing demand for advanced computational solutions across various sectors. Looking ahead, opportunities in government contracts and expanding into new markets could significantly enhance its growth trajectory. However, the high beta of 3.802 indicates increased volatility, emphasizing the need for cautious investment strategies.
SWOT Analysis
The following SWOT analysis provides a clear overview of Quantum Computing, Inc.’s strategic position in the technology sector.
Strengths
- Innovative technology
- Strong market potential
- Experienced management team
Weaknesses
- High operational costs
- Limited brand recognition
- Dependency on niche market
Opportunities
- Growing demand for quantum solutions
- Expansion into government contracts
- Strategic partnerships with tech leaders
Threats
- Intense competition
- Rapid technological changes
- Economic downturns affecting funding
The overall SWOT assessment indicates that while Quantum Computing, Inc. has significant strengths and opportunities, it also faces notable weaknesses and threats. The company should leverage its innovative technology and market potential to enhance brand recognition and reduce operational costs, ensuring resilience in a competitive landscape.
Stock Analysis
Over the past year, Quantum Computing, Inc. (QUBT) has experienced significant price fluctuations, culminating in a remarkable bullish trend characterized by a staggering 1515.09% increase in stock price. However, recent dynamics indicate a shift, with a notable decline of 44.82% observed in the last few months.
Trend Analysis
Analyzing the stock’s performance over the past year reveals an impressive price change of +1515.09%. This substantial increase categorizes QUBT’s overall trend as bullish. Despite this, the recent trend, spanning from September 21 to December 7, 2025, shows a price decrease of -44.82%, indicating a bearish shift during this shorter period. The overall trend exhibits deceleration, and the stock has fluctuated between a high of 24.62 and a low of 0.5, reflecting significant volatility with a standard deviation of 7.06.
Volume Analysis
In examining trading volumes over the last three months, we find total volume of approximately 9B shares, with buyer-driven activity accounting for 63.56% of the overall trading. Current volume trends are increasing, although in the most recent period, buyer volume dropped to 34.5%, suggesting a seller-dominant environment. This shift may indicate a cautious sentiment among investors, potentially reflecting uncertainty in the stock’s future direction.
Analyst Opinions
Recent analyst recommendations for Quantum Computing, Inc. (QUBT) indicate a cautious outlook. Analysts have rated the stock with a C+ and an overall score of 2, suggesting a mix of concerns and potential. The discounted cash flow score is relatively strong at 3, reflecting some positive expectations about future cash flows. However, the return on equity and return on assets scores are low at 1, indicating inefficiencies. Given these assessments, the consensus leans towards a hold rather than a buy, signaling caution for investors considering QUBT in their portfolios.
Stock Grades
Quantum Computing, Inc. (QUBT) has received consistent ratings from reputable grading companies, indicating a steady outlook. Below is a summary of the latest stock grades:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Lake Street | Maintain | Buy | 2025-11-17 |
| Ascendiant Capital | Maintain | Buy | 2025-10-03 |
| Ascendiant Capital | Maintain | Buy | 2025-06-06 |
| Ascendiant Capital | Maintain | Buy | 2025-04-28 |
| Ascendiant Capital | Maintain | Buy | 2024-11-13 |
| Ascendiant Capital | Maintain | Buy | 2023-11-24 |
Overall, the trend in grades for QUBT shows a consistent “Buy” recommendation from various analysts, highlighting a strong confidence in the stock’s performance over time. Such stability in grades suggests that investors can view it as a solid option for their portfolios.
Target Prices
The consensus target prices for Quantum Computing, Inc. (QUBT) indicate a range of expectations among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 40 | 10 | 22 |
Analysts expect the stock to potentially reach a high of 40, with a consensus target of 22, reflecting a cautious optimism in the market.
Consumer Opinions
Consumer sentiment towards Quantum Computing, Inc. (QUBT) reflects both excitement for its innovative technology and concerns about its market viability.
| Positive Reviews | Negative Reviews |
|---|---|
| “Innovative technology that could revolutionize industries.” | “High volatility makes it a risky investment.” |
| “Strong potential for growth in the tech sector.” | “Struggles with customer support and communication.” |
| “Impressive advancements in quantum algorithms.” | “Limited real-world applications currently available.” |
Overall, consumer feedback highlights strong enthusiasm for QUBT’s innovative technology and growth potential, while concerns about volatility and customer support persist.
Risk Analysis
In this section, I present a concise overview of the potential risks associated with investing in Quantum Computing, Inc. (QUBT).
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in the tech sector affecting stock prices | High | High |
| Regulatory Changes | Potential impacts from new regulations on technology | Medium | High |
| Competitive Pressure | Increased competition from larger tech firms | High | Medium |
| Technology Risks | Rapid changes in quantum tech may outpace QUBT | Medium | High |
| Funding Risks | Dependence on external funding for R&D | Medium | Medium |
The most significant risks for QUBT include high market volatility and regulatory changes, which can dramatically affect the company’s performance based on recent trends in the tech sector.
Should You Buy Quantum Computing, Inc.?
Quantum Computing, Inc. (ticker: QUBT) has shown negative profitability with a net income of -68.54M for the fiscal year 2024, indicating value destruction as its return on invested capital (ROIC) of -17.41% is below the weighted average cost of capital (WACC) of 21.85%. The company maintains a low debt-to-equity ratio of 0.011, suggesting manageable debt levels. The fundamentals have evolved with significant operating losses, and the company holds a rating of C+, which indicates room for improvement in various financial metrics.
Favorable signals
I have identified a few favorable elements in the data for Quantum Computing, Inc. The company has a favorable debt-to-equity ratio of 0.01, indicating a low level of debt relative to equity. Additionally, the current ratio stands at 17.36 and the quick ratio is also 17.36, suggesting a robust liquidity position. Lastly, the price-to-earnings (PE) ratio of -22.67 is considered favorable despite its negative value.
Unfavorable signals
There are several unfavorable elements present in the data for Quantum Computing, Inc. The gross margin is reported at -988.2%, which is significantly negative, and the net margin is also deeply negative at -18375.87%. The company has a return on equity (ROE) of -63.89% and a return on invested capital (ROIC) of -17.41%, indicating value destruction. Furthermore, the interest coverage ratio is unfavorable at -26.46, and the company has a negative trend in gross profit growth at -17.2%.
Conclusion
Given the unfavorable global opinion of the income statement and ratios, along with a recent seller volume surpassing buyer volume, it might be prudent to wait for buyers to return before considering any investment.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Quantum Computing (QUBT) Jumps 9.7% on Bargain-Hunting – Yahoo Finance (Dec 04, 2025)
- Quantum Computing (QUBT): Reassessing Valuation After First Profit, Cybersecurity Win, and New AI Partnerships – Yahoo Finance (Dec 06, 2025)
- Is Quantum Computing Inc. Stock a Buy Now? – The Motley Fool (Oct 30, 2025)
- POET Technologies and Quantum Computing Inc. to Co-Develop 3.2 Tbps Optical Engines for CPO and Next-Gen AI Connectivity – PR Newswire (Nov 11, 2025)
- Quantum Computing Stocks’ Q3 Earnings Preview: IONQ, QBTS and More – Zacks Investment Research (Nov 04, 2025)
For more information about Quantum Computing, Inc., please visit the official website: quantumcomputinginc.com
