QUBT Q2 Loss Matches, Revenues Beat, Stock Down in After-Market

Following the March 2 announcement, QUBT’s shares fell 0.1% in yesterday’s after-market trading session. This fall was due to investors’ concern about the company incurring a loss despite growth in revenues. 

QUBT's Revenue Mix Gains Scale

Second-quarter sales came from a broad mix of government, educational and commercial customers. Management said all business units contributed, with revenues primarily stemming from photonics products used in QCi's quantum roadmap and existing industrial applications.

Government work remains the largest end market. On the earnings call, management said roughly 70-80% of current business comes from government contracting, mainly through subcontracts, with commercial demand ranking second and education a distant third.

Quantum Computing's Cost Base Expands

The company posted a gross loss of $1.17 million versus a gross profit of $26 thousand a year earlier. Research and development expenses totaled $8.43 million, sales and marketing costs amounted to $1.93 million, and general and administrative expenses reached $11.49 million.

Operating expenses rose 114.3% year over year to $21.85 million. The increase reflected higher personnel and payroll costs tied to research and development, sales and marketing, along with $7.30 million of acquisition-related transaction expenses.

QUBT Advances Commercial Quantum Products

During June, QCi sold, delivered and installed its Dirac-3 quantum optimization machine at a leading global consulting firm. The system is intended to support enterprise customers on complex optimization applications, including portfolio optimization.

NeuraWave reached deployment readiness during the quarter. QUBT also entered into a framework agreement with Planck Dynamics that included an initial order for five systems and could support multiple dozens of units, with potential aggregate program value exceeding $10.00 million, if specified milestones are achieved. A leading university also ordered QCi's quantum secure communications system for research and development work.

Quantum Computing Adds Manufacturing Capacity

QCi completed the NHanced Semiconductors acquisition for cash and stock valued at $73.10 million, plus up to $72.00 million tied to performance targets. The deal launched Fab 2 ahead of schedule and added advanced packaging, semiconductor manufacturing and photonic integration capabilities. NHanced was QCi's third acquisition during the first half of 2026.

Management said the NHanced facility can currently process roughly 60,000 wafers annually. Planned upgrades are still being evaluated, with potential spending estimated at $50-$100 million, likely closer to $75 million, and little of that amount expected to be spent this year.

Quantum Computing Retains Financial Flexibility

Cash, cash equivalents and investments totaled about $1.30 billion as of June 30, down from about $1.40 billion as of March 31. The company used approximately $180 million in cash, including transaction expenses, for the Luminar Semiconductor, NuCrypt and NHanced acquisitions.

Interest and other income increased to $12.95 million from $1.84 million. The mark-to-market loss on the warrant derivative liability fell to $1.68 million from $28.10 million, helping narrow the quarterly net loss to $11.75 million from $36.48 million a year earlier.

Our View on QUBT Stock 

Quantum Computing ended the second quarter of 2026 with loss in line with estimates and revenues beating the same. The year-over-year revenue growth was supported by rising photonics sales and expanding commercial activity. The quarter featured the NHanced Semiconductors acquisition, a Dirac-3 deployment and further commercialization of the NeuraWave photonic computing platform. 

On a negative note, elevated operating costs and a gross loss continue to pressure profitability. 

QUBT’s Zacks Rank & Key Picks 

Quantum Computing currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the broader Zacks Computer and Technology sector are AppFolio APPF, Amkor Technology AMKR and Amphenol APH, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of AppFolio have plunged 14.2% year to date. The Zacks Consensus Estimate for APPF’s 2026 earnings is pegged at $6.90 per share, up 2.2% over the past 30 days, indicating an increase of 30.4% year over year.

Shares of Amkor Technology have jumped 41.5% year to date. The Zacks Consensus Estimate for AMKR’s 2026 earnings is pegged at $2.62 per share, up 17.5% over the past seven days, indicating a rise of 74.7% year over year.

Amphenol shares have surged 26.8% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $5.25 per share, up 7.8% over the past seven days, indicating an increase of 57.2% year over year.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."

Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research