QUBT

After a volatile stretch for quantum stocks, second-quarter 2026 results from IonQ IONQ and Quantum Computing Inc. QUBT or QCi, both offer long-term opportunity. IonQ clearly delivered the larger headline numbers. Revenues reached $80.1 million, up 287% year over year, while management raised 2026 revenue guidance to $280 million-$290 million. Yet QUBT may have delivered the more intriguing strategic quarter. Revenues jumped to $5.6 million from just $61,000 a year earlier. QCi also added Fab 2 through NHanced, prepared NeuraWave for deployment and installed Dirac-3 at a global consulting firm. The company ended June with $1.3 billion in cash, equivalents and investments. Its backlog was $42.5 million. Image Source: Zacks Investment Research Over the past 30 days, IONQ shares have gained 24.9%, compared with 12.1% for QUBT. Investors are still giving greater weight to IONQ’s stronger revenue growth and near-term commercialization progress. However, QUBT’s latest quarter points to a broader strategy, spanning photonics, chip manufacturing and quantum computing. While these businesses are still at different stages of commercialization, they give QUBT multiple potential sources of future revenues. Let's get into more detail. QUBT’s second-quarter revenues jumped to $5.6 million from $61,000 a year earlier and $3.7 million in the first quarter. Cash, cash equivalents and investments were $1.3 billion. The company also completed its NHanced Semiconductors acquisition, launching Fab 2 and expanding advanced packaging and U.S.-based semiconductor manufacturing. Commercial validation is emerging through the deployment of its Dirac-3 optimization machine, NeuraWave’s commercial readiness and a Planck Dynamics agreement that could support deployments of up to 100 systems with potential value exceeding $10 million, subject to milestones. The biggest concern is that QUBT remains at a very early revenue scale relative to its ambitious technology portfolio. Despite the revenue surge, second-quarter operating expenses more than doubled to $21.8 million, including $7.3 million of acquisition-related costs. The company also spent approximately $180 million on its three 2026 acquisitions, reducing cash and investments from roughly $1.5 billion at year-end 2025. With a $42.5 million backlog, investors still need evidence that acquisitions, manufacturing expansion and photonics products can translate into sustained, scalable revenues rather than primarily increasing costs and complexity. IonQ enters the second half of 2026 with a substantially larger and faster-growing commercial revenue base than QUBT. Second-quarter revenues surged 287% year over year to $80.1 million, while organic revenue growth reached 132%. Commercial customers accounted for about 60% of revenues, international revenue for about 50% and multi-product revenue for about 25%. RPO increased 297% year over year and IonQ raised 2026 revenue guidance to $280-$290 million, excluding SkyWater. Its acquisition of SkyWater also creates a vertically integrated U.S. quantum platform, while recent DARPA, NRO, Sandia and Canadian initiatives broaden its exposure to government, defense, networking and sensing markets. IonQ’s growth remains expensive. Second-quarter adjusted EBITDA loss was $120.3 million, while GAAP net loss reached $1.87 billion, largely driven by a noncash warrant mark-to-market impact. SkyWater-related spending also increased near-term costs. Excluding SkyWater spending, adjusted EBITDA loss would have been $95.6 million. More importantly, the $1.8-billion SkyWater acquisition raises execution and integration demands even as IonQ accelerates its hardware roadmap. For the full year, the Zacks Consensus Estimate for IONQ’s bottom line is pegged at a loss of $1.19 per share, implying a 34.6% improvement over the 2025 reported figure. Image Source: Zacks Investment Research In contrast, the Zacks Consensus Estimate for QUBT’S 2026 bottom line is pegged at a loss of 18 cents per share, implying a 63.6% widening over the 2025 reported loss. Image Source: Zacks Investment Research As of Aug. 21, both stocks remained near their 50- and 200-day SMAs. IonQ traded slightly above its 50-day SMA and essentially at its 200-day SMA, signaling a relatively balanced trend after its recent recovery. Image Source: Zacks Investment Research QUBT, on Aug, 21, was also just above its 50-day SMA but remained below its 200-day SMA, indicating weaker longer-term momentum. Image Source: Zacks Investment Research Based on short-term price targets offered by 12 analysts, the average price target for IonQ represents an increase of 67.54% from the last closing price of $41.53. Image Source: Zacks Investment Research Based on short-term price targets offered by six analysts, the average price target for QUBT represents an increase of 125.18% from the last closing price of $8.14. Image Source: Zacks Investment Research Despite IONQ’s stronger revenue growth and commercialization progress, QUBT’s substantially higher 125.18% price-target upside makes it more attractive at present. This view also aligns with its Zacks Rank #3 (Hold), versus IONQ’s Zacks Rank #4 (Sell). Investors may consider booking profits in IONQ after its strong recent run, particularly given its elevated valuation, significant losses and integration risks following the SkyWater deal. Meanwhile, QUBT’s strategic expansion, strong liquidity and higher upside support a hold stance while investors await further execution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 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 Quantum Computing Inc. (QUBT) : Free Stock Analysis Report IonQ, Inc. (IONQ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Monday, Aug. 10, 2026 at 4:30 p.m. ET Chief Executive Officer and Chairman - Dr. Yuping Huang Chief Financial Officer - Christopher Bruce Roberts Investor Relations - John Nesbett Operator: Ladies and gentlemen, greetings, and welcome to the Quantum Computing Inc. Second Quarter 2020 Shareholder Update Call. At this time, all participants are in a listen-only mode. Following management's remarks, the call line will be opened for questions. It is now my pleasure to introduce your host, John Nesbett with IMS Investor Relations. John Nesbett: Thank you, and I want to welcome everyone to Quantum Computing Inc. Second Quarter 26 Shareholder Update Call. Before we begin, please note that today's remarks may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 2 thousand including statements regarding expected results, operational plans, strategy, and market opportunities. These statements are made pursuant to the safe harbor provision of Section 27A of the Securities Act and Section 21E of the Exchange Act and are based on current assumptions and expectations. Forward looking statements are neither promises nor guarantees and involve risks and uncertainties that could cause actual results to differ materially. Important risk factors are discussed in our annual report on Form 10-K for the year ended 12/31/2025 and in subsequent SEC filings, including the quarterly report on Form 10 Q for the quarter ended 06/30/2026. We undertake no obligation to update these statements except as required by law. On the call today, we have Dr. Yuping Huang, chief executive officer and chairman, and Christopher Bruce Roberts, chief financial officer. The team will provide an update on the business followed by a question-and-answer session. With that, I will now turn the call over to management. Please go ahead, Yuping. Yuping Huang: Good afternoon, and thank you for joining us for Quantum Computing Inc. Second Quarter 26 Earnings call. During the second quarter, we continued to build on the momentum established in the first quarter executing on our quantum road map while expanding the technologies and manufacturing capabilities that enable both our quantum systems and a growing portfolio of commercial products and services. We also made meaningful progress in our transition toward scalable, cost effective production of miniaturized quantum products based on nanophotonics and advanced packaging. As I have said before, our goal is simple. To put quantum products and the technologies into the hands of everybody. Everything we do at QCI is focused on making quantum systems smaller more practical, more affordable, and ultimately more accessible. At our core, QCI is a quantum technology company Our long-term vision is to develop quantum systems built on nanophotonics and advanced packaging that can be manufactured at scale. And deployed across real-world applications. Supporting this strategy is the expansion of our portfolio of photonic components, lasers, detectors, photonic integrated circuits, thin-film lithium-niobate technologies, optical packaging, advanced packaging, and US based semiconductor manufacturing and foundry services. These products and services address growing commercial markets today while providing the core technologies and manufacturing capabilities that will enable our current customers access to the next generation quantum systems. This integrated approach is central to our strategy by investing in commercially relevant photonics and semiconductor technologies we are creating value today. While building the engineering expertise manufacturing scale, and the production infrastructure needed to enable our long-term quantum road map. During the first half of the year, we completed 3 strategic acquisitions that significantly expanded our commercialization efforts technical capabilities, manufacturing capacities, and engineering talent. Together, these acquisitions have strengthened our ability to across multiple high growth markets while creating a more integrated company serving customers in photonic semiconductor manufacturing, AI, defense, aerospace, telecommunications, and quantum technologies. Each acquisition contributes unique technologies and that strengthens our portfolio of intellectual property, and we are already seeing the benefits of integrating these organizations. Just as importantly. We have welcomed some of the industry's leading engineers and scientists who are now focused on advancing our mission to deliver practical, scalable, and accessible quantum solutions. During the second quarter, we completed the strategic acquisition of Enhanced Semiconductor, Inc., Allowing us to launch our Fab-2 initiative ahead of schedule to advance key road map development goals and expand manufacturing capabilities. Enhanced is the leading independent US based advanced package foundry with deep expertise in integration, hybrid bonding, chiplet architectures, silica interposers, photonic device integration, and advanced semiconductor packaging and manufacturing. The enhanced acquisition immediately expands our advanced packaging and semiconductor manufacturing capabilities in core nanophotonics area and beyond. While strengthening the production infrastructure supporting our thin-film lithium-niobate platform and the future quantum products. Importantly, it also adds to our customer base production capacity operational flexibility, and brings a experienced engineering team positioning us to better serve both commercial and the government customers today while accelerating commercial development of next generation photonic and quantum technologies. In April, we announced that Neurawave our next generation photonic reservoir computing platform, reached commercial readiness. Neurawave combines photonic and digital computing to deliver fast energy efficient AI inference and advanced signal processing at the edge. It is designed to support a broad range of applications across defense, telecommunications, autonomous vehicles, robotics, health care, industry monitoring, and other markets where real time intelligence and the low power operations are critical. Neurawave also demonstrate the versatility of our photonics platform. The technologies we are developing extend well beyond quantum computing. Enabling differentiated solutions across AI communications, sensing, and edge computing. This allows us to participate in large and growing commercial market while continuing to advance our quantum road map. In June, we successfully delivered and installed our Dirac-3 quantum optimization machine at a global consulting firm. Marking another important commercial milestone for QCI. The Dirac-3 system is being deployed to support our customers engagements with their enterprise customers on complex optimization challenges including portfolio optimization. This cell demonstrates the growing interest in practical quantum optimization solutions and reflects our continued progress in bringing commercially relevant quantum technologies into real-world customer environments. Also in June, we reached a framework agreement with Planck Dynamics that included a initial purchase order for 5 of our Neurawave photonic reservoir computing systems. Beyond this initial order, the agreement provides a pathway for the potential deployment of multiple dozens of Neurawave systems as customer milestones are achieved representing a potential aggregate program value of more than 10 million. We view this as an important validation of our photonic computing technology. Its commercial readiness and its ability to address emerging AI infrastructure requirements. On a commercial scale. We also expanded the commercial reach of our quantum communication portfolio with a purchase order from a world leading university for our Quantum secure communications system. The university plans to evaluate our technology as part of its broader research and development effort for quantum secure networking for next generation communication infrastructure. We believe this order reflects continued commercial traction for our quantum communications solution and growing recognition of the role quantum secure communications will play. In the networks of the future. During the second quarter, we attended 8 industry conferences to broaden our visibility and strengthen our strategic partnerships across the quantum ecosystem. These engagements including the 5th annual economist commercializing Quantum Global 26 Conference the Quantum Tech World Conference, and the optical quantum Industry Summit give us the opportunity to connect with customers government stakeholders, and prospective partners. While showcasing our expanding photonics, and quantum optics capabilities. Looking ahead, we remain focused on 2 complementary growth engines. First, we will continue to move aggressively along our quantum technology road map. Leveraging our differentiated room temperature photonic architecture to develop quantum systems that are smaller, more scalable, and more practical for real-world deployment. As these technologies become commercially viable, it allows us to better serve our existing customer base who will be exploring use cases for these systems. Second, we will continue to grow our commercial portfolio of photonic components lasers, detectors, photonic integrated circuits, thin-film lithium niobate technologies, optical packaging, advanced packaging, semiconductor, manufacturing, and other foundry services. These products and services generate revenue and address attractive market opportunities. Today while providing technologies manufacturing activities, and production scale that directly support and enable our long-term quantum strategy. Our scalable manufacturing strategy has accelerated significantly with the expansion from our Fab-1 facility in Tempe, Arizona. To the launch of Fab-2 through enhanced acquisition. Together, these facilities strengthen our ability to serve commercial customers across multiple industries. Support government programs, expand US based manufacturing services, and scale production as demand grows. We continue to see in our commercial validation through new customer engagements strategic partnerships, and government programs across both our commercial photonic business and our quantum products. We believe our unique combination of photonics innovation, semiconductor manufacturing, advanced packaging, and quantum technology positions QCI to create sustainable long-term value. By serving customers across a broad and expanded set of high growth markets while continue to build technologies that will define the future of quantum computing. As we execute on our road map, our focus remains unchanged. Putting quantum into the hands of everybody. We are moving quantum out of laboratory and into business, government agencies, critical infrastructure, and ultimately, everyday applications. Our room temperature chip scale, photonic architecture, is a key differentiator. Dramatically reducing system complexity, power consumption, and cost while enabling practical deployment in real-world environments. We believe the combination of our quantum technology leadership expanding photonics portfolio, and growing manufacturing capabilities positions QCI to help shape the next generation of information processing. While creating long-term value for our customers and shareholders. Now I am going to turn the call over to Christopher Bruce Roberts, who is going to review the financials. Christopher? Christopher Bruce Roberts: Thank you, Yuping. it is my pleasure to review QCI's financial performance for the second quarter. Revenue for the second quarter of 2026 totaled $5.6 million compared to $61 thousand in the second quarter of 2025, and $3.7 million in the first quarter of this year. All business units of the company contributed to the second quarter revenue. Which derives from a broad cross section of government, educational, and commercial customers, second quarter revenue came mainly from the sales of various photonics products that are critical to our quantum roadmap and a wide range of existing industrial applications. Operating expenses for the second quarter totaled $21.8 million compared to $10.2 million in the second quarter of 2025. An increase of 114%. The year over year increase was largely due to increase in personnel, and related payroll costs for R&D expense, efforts sales and marketing, as well as acquisition related transaction expenses of approximately $7.3 million Interest and other income for the quarter totaled $13 million compared to $1.8 million in the second quarter of 2025. The increase in interest income was due to interest generated from the company's larger cash position compared with last year. The company reported a net loss of $11.8 million. Or a loss of $0.05 per share for the second quarter of 2026 compared to a net loss of $36.5 million or $0.26 per basic share for the prior year period. The main reason for the decrease in net loss was the change in the fair value of a derivative liability. Give you some detail, in the second quarter of 2025, the company recognized a $28 million noncash loss on the mark to market valuation of the company's warrant derivative liability compared to a mark to market loss of only $1.7 million in the second quarter of 2026. I want to emphasize these are noncash losses and they are as previously disclosed, the derivative liability we are talking about is related to the merger with QPhoton in June 2022. And the warrants issued with that transaction. Our balance sheet continues to be strong. Total assets as of 06/30/2026 were approximately $1.6 billion relatively unchanged compared to December 31. Cash, cash equivalents and investments totaled approximately $1.3 billion as of 06/30/2026, compared to approximately $1.5 billion at year end 2025. The cash balance reported at the end of the second quarter reflects expenditures for our acquisitions of Luminar Semiconductor, NuCrypt, and Enhanced Semiconductor for which we used approximately $180 million in cash including transaction expenses. Total liabilities as of 06/30/2026 were $47.2 million an increase of $26.5 million compared to year end 2025. As of June 30, the company has stockholders' equity of $1.6 billion Our contract backlog as of June 30, 2026 was approximately $42.5 million. And I will now turn the call back over to Yuping. Yuping Huang: Thank you, Christopher. As we look ahead to the second half of 26, we remain focused on integrating our recent acquisitions and unlocking the full value of talent technology, and manufacturing capabilities they bring to QCI. We continue to advance our transition from research JV innovation and prototyping toward scalable commercial manufacturing positioning us to meet growing demand across our target markets. We are encouraged by the momentum in our commercial and government contract pipeline and remain committed to executing on the partnerships that extend our reach and credibility in the marketplace. As always, we will continue to evaluate targeted acquisition opportunities that strategically strengthen our organization and drive our path to scale. All of this is underpinned by a strong balance sheet which gives us the financial flexibility to invest in our organization and strategically pursue those opportunities from a position of strength. We remain guided by our core principle of practicality first scalability by design, and innovation with a purpose. As we build the future of quantum for everyone. Our strategy is straightforward. Move aggressively to commercialize quantum technologies while continuing to expand the photonics semiconductor, and advanced manufacturing capabilities that create value today and provide the foundation for the quantum industry of tomorrow. Thank you for your time today, and your continued support of Quantum Computing Inc. We look forward to updating you on our continued progress throughout the rest of the year. Operator, please open up the call for questions. Operator: Thank you. At this time, we will be conducting a question-and-answer session. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. 1 moment please while we poll for questions. And the first question today is coming from John McPeake from Rosenblatt Securities. John, your line is live. John McPeak: Thank you. Congrats to Yuping and Christopher, on closing Enhanced and the progress here. Thank you. And, yeah, no problem. And the question I have a few. The first 1 is on Dirac-3, the enhancements that we have been talking about relative to additional variables. Being enabled in the system. Anything you can talk about there, Yuping? Yuping Huang: Yep. Thanks, John. Certainly, on Dirac-3, we in the past, we reported, we have already seen clear advantages of using quantum effects. But we also realized that for wide adoption, we needed to provide more functionality and be able to more and more variables. I am very happy to report that, John. So we have made pretty good progress. On that. So I would-- I would advise you to watch out for some news coming out in the coming month. So personally, I am very happy and excited about the progress that we have made. Okay. So that could unlock some additional markets with more variables as the way I would think about it, I guess. Yeah. Yep. I am-- I am pretty confident on that. Alright. Great. John McPeak: And then if I just 1 follow-up. You know, with the enhanced acquisition, have your CapEx needs changed relative to Fab-2 because they are, you know, bringing some nice packaging and other capabilities to you guys. Christopher Bruce Roberts: that is a really good question. And I am a we are looking closely at what we need to do to upgrade the cap capability at the enhanced facility. They can currently do roughly 60 thousand wafers a year, so it is a substantial increase over our Fab-1. But there are some features we would like to have. We are looking at you know, less than we would take to build out a whole new facility. So probably in the $50 million to $100 million range. Probably $75 million is what we are looking at, but we do not have that. Yeah. it is still in the planning stages, and we are probably not gonna spend anywhere near that this year. John McPeak: Okay. Great. Thanks. I will get back in the queue. Thanks, guys. Yuping Huang: Okay. Thank you, John. Operator: The next question is coming from Max Michaels from Lake Street Capital Markets. Maxwell, your line is live. Max Michaelis: Yeah, guys. Hey. Few questions from me. I want to touch on the backlog Thanks for giving that data. $42.5 million at the end of June. Just curious to know how that is trended in the past month or 2? Christopher Bruce Roberts: Well, certainly, with the acquisition of are you talking about up to June 30 or after June 30? Well, after June 30, I kind of, yeah. $42.5 is up till June 30. So how's that kind of trended in the past month and a half or so? Just curious. Oh, with the kind of contracts we are dealing with, the backlog tends to move in fits and spurts. You know, there will be you know, quiet week, and then there will be a very big week. So there has not been a lot of change in the last 40 days. As you can imagine, a lot of that increase from the backlog we reported at the end of Q1, is related to Enhanced, but we have also had a pretty good run of business development success across the company. 1 way to think about the backlog is that these are not quick turn contracts. These are contracts that will be performed over a period of 12 to 18 months. So we are not we are not expecting to burn the backlog up between now and December. This is really if nothing else came in, this would keep us going until third quarter of next year, maybe a little bit longer. Max Michaelis: Perfect. And then just going off of the Q2 revenue, you touched on the range of government education and commercial customers. Just curious to know which end market you are you feel like you are having the best headway with right now in terms of customer conversations and potential orders? Just kinda maybe stack rank those end markets that you guys shared in the press release today. Christopher Bruce Roberts: Right now, we are primarily a provider to government agencies, whether it is mainly through subcontracts. So commercial would be a second. Ed is a distant third in terms of just markets. And that is true across the entire company that the large portion of the work that we are doing is in subcontracts to primes both on the civil side as well as on aerospace and defense. And we expect that is probably gonna continue for a while. But we are seeing a lot of interest in commercial markets for quantum and other products. So we think that the balance is going to gradually shift over time. But right now, roughly 70% to 80% of our business comes from government contracting. Mainly as a subcontractor. Yuping Huang: Yep. Max Michaelis: Alright, guys. that is it for me. Thanks for taking my questions. Christopher Bruce Roberts: Sure. Yuping Huang: Thank you. Operator: The next question will be from Troy Jensen from Cantor Fitzgerald. Troy, your line is live. Troy Jensen: Hey, gentlemen. Congrats on all the progress here. Maybe I will start with you, Yuping. I just got a question on Dirac. I guess I have seen a couple of optimization examples, and I was always a quantum computer in the background kind of driving it. So can you-- is this an app and that is-- we are-- Please help me create a computer. Christopher Bruce Roberts: Troy, you are breaking up a little bit. Yuping Huang: Yeah. Troy, I could not hear you well. Troy Jensen: Alright. I will try it again. I was just curious. Can you hear me, guys? Yes. Hello? Can you hear me now? Yuping Huang: Troy, your voice still breaks up a bit. Yep. Troy Jensen: I am gonna try 1 more time. Can you hear me now, guys? I can hear you. Christopher, can you hear me? Yeah. I can hear you. Okay. Okay. Perfect. I had to step outside. But so I guess I have seen a couple of these optimization examples in the past, and it seems like they are always being driven by a quantum computer in the background. I am just curious. Is this the Dirac, is this, like, an application that is working with other systems? Or just explain a little bit more, that would be great. Yuping Huang: Yep. So as you know, Troy, the Dirac-3 machines were designed specifically to solve some very complex NP-hard optimization problems. The purpose of Dirac-3 is really that look at how to utilize the quantum effects to better solve those NP hard problems that are very challenging to solve on the classical machines, usually trapped in what people usually call local minimum. And, and what we have found is that the quantum effects that we utilize in the Dirac machines can indeed help us hop out of the local minimum. So from that perspective. This-- so the advantage stems similarly from the say quantum annealing. But with the distinction that it is not a quantum annealing machine, Instead, it is room temperature and we use photonics. And as I just reported, in the past, as both our own engineers, and outside users. They have really benchmarked our machine against other optimization machines using quantum effects. And they have reported pretty clear advantage over both classical approaches and our other quantum machines that they can access in the market. On other hand, we also understand that for our technology to be widely adopted, we needed to continue to reduce the SWaP-C parameters while supporting more and more variables and improve the quality of the solutions. This is what our team has been focused on, and recently, we have made-- we have made some very exciting progress, and that would help us to connect with more customers, be able to give more and more quantum values to customers for the practical applications. Right. Gotcha. Okay. Troy Jensen: And then, maybe just a follow-up for Christopher. Could you give us any help on, like, a revenue or an OPEX contribution from the Enhance acquisition? Christopher Bruce Roberts: Sure. We are still not giving formal guidance, Troy. But I want to point you to the pro formas in the most recent Q that was filed this afternoon I think it is footnote 4. And those pro formas, which go back let's see, footnote 3. What you will see is the breakout by company of the revenue by quarter well, first 6 months of this year and first 6 months of last year. And the thing that leaks out is how variable the year over year revenue is. This is a business that tends to be lumpy. And in the first half of last year, enhanced did about $16 million. Yuping Huang: But Okay. Christopher Bruce Roberts: In the And we are hoping or the earn out goals for 2027 are predicated on a $35 million revenue target. But if you look at the pro formas, their numbers have gone down a bit. More recently as they have-- you know, some of the business mix has shifted. Some funding on a big navy contract has been pushed off for the next year. So we are you know, let me let me answer this in 2 parts. We are we are standing by what we said before. Which is the models that we have seen that showed QCI before enhanced doing $20 million to $25 million For this year, we stand by that. The estimate that enhanced will contribute is somewhere in between the $7.07 million and $16 million that they have done in the past. And it is it is really gonna be dependent on how quickly some of these projects are delivered and accepted by their customers, and that is frankly, it is hard to predict when you are doing cutting edge development work for a customer. Sometimes you get it done on the schedule, and sometimes it just takes a little bit longer. So we are trying to be cautious and not get over our skis on this. I hope that helps. We do have that. Yuping Huang: Thank you, Christopher. We have a growing backlog, but the due to the inherent challenges of the of, you know, technical completion and delivery, it is really hard to predict on a quarter by quarter basis. A little easier in the aggregate for a full year. Alright. Christopher Bruce Roberts: I am just I would caution to be-- on the backloading, if you are doing-- if you are doing a model. I will be CFO friendly. I promise. I appreciate it, Troy. Thanks. Thank you, Troy. Troy Jensen: Thank you. Operator: The next question will be from Nehal Chokshi. From Northland Capital Markets. Nehal, your line is live. Nehal Chokshi: Thank you. And Yuping, you mentioned that Dirac-3 has been benchmarked against other optimization machines, and you are seeing significant advantage. Is this data that has already been published and freely available to everybody else, or is this just information that you have received from the customer so far? Yuping Huang: I believe at least, a portion of the data, have been published in journals, and, I have also watched some of our customers' reporting the findings in their presentations. And most of our internal benchmark on the other hand, we have not published And, Nehal, I can, ask the team to provide you a collection of the papers presentation either by our own engineers. Or by their external users. Nehal Chokshi: That would be great. We would love to see that. Alright. And in the analog quantum computing space, I think you have 2 primary competitors. With 2 different modalities. You see 1 of those 2 competitors being a particularly stronger competitor that space? Yuping Huang: I would like to answer this question in this way. I think we all have our own understanding or our own design of quantum computers. But at the end of the day, it is going to be the customers. it is going to be the applications that define the value of any quantum machine, including quantum computers, that can create As of now, according to many market researchers and also according to our conversations with customers, it looks like optimization problems have perhaps the largest market potential This is 1 reason that, we started our business focusing on optimization using quantum effects. Down the road, I believe that gate based machines will find more and more applications. In fact, this has also been a part of our road map as well. So we started with the quantum optimization machine without having to use gate. But we have been working on the basis for the conjugate-based machine. Of course, using photonics, it is much harder but once we overcome the engineering challenges we can be looking at the opportunity to mass produce such quantum photonic based machines that, will support volume production, and reduce the unit price Because at QCI, our mission is really to democratize quantum. We our mission the North Star that guides everything we do is to put quantum into the hands of people. I am not talking about a small group of people I am talking about large population. This is why we have chosen this path. Again it is much, much harder to construct the gates. Quantum gates using single photons. But once we overcome this difficulty, the manufacturing would be much easier Think we are climbing, the last half mile of the mountain, and I am happy with the progress our team has been making on the gate based machine as well. So do not take me wrong. So we currently do not have gate based machine yet, but we have been making very good progress. that is awesome. Nehal Chokshi: Thank you. And just to follow-up on the quantum gate, you say once overcoming the engineering challenges, and you did mention single photon as being a key element here. Are there other elements, other engineering challenges other than managing photon optical loss to the point of where you can basically maintain the integrity of a single photon throughout the quantum computer path. Yuping Huang: that is a great question. And I was expecting you to ask this in-depth question, Nehal. To the gate based quantum machine using single photons. Yes. Photon-photon interaction is most critical and it is also most challenging because this is the basis for the logic. But in the meanwhile, so we are talking about building a machine. Right? So we are not talking about demonstrating the gate fidelity. To construct a complete machine that functions at the room temperature and be able to integrated into, say, other computing platforms such as GPU and CPU. So we needed to have a safe contained system that will require us to have, the lasers the single photon. Detectors, controlling electronics all integrated on a single chip. This is actually the fundamental reasons why we have acquired Luminar Semiconductor, Inc. Have acquired enhanced because we are looking at developing those heterogeneous integrated chips to support our quantum computing platform and all the other quantum technologies including the sensing including the communications, and the photonic AI. Nehal Chokshi: Great. Thank you very much. Thank you, Nehal. Operator: Thank you. And the next question is coming from Edward Woo from Ascendiant Capital. Edward, your line is live. Ed Woo: Yes. Congratulations on the progress. And congratulations on your increasing commercial scale. Would you have to invest significantly in a Salesforce as to expand your commercial opportunities? Thank you. Christopher Bruce Roberts: Actually, yes. We announced I guess, it was 2 weeks ago that we hired Susan G. Hunt as our new chief revenue officer and our previous CRO is now in charge of products, product management. And Susan has a, you know, an aggressive plan including hiring some key people. In both commercial and government sales. So while we do have a reasonable sized Salesforce today, we are very much going to emphasize sales going forward. And try and build that backlog up as fast as we can. Yuping Huang: Yep. Indeed. So as I also wanted to add that the reason that we have made this change is because our technology and the manufacturing capabilities have reached a inflection point. We are now really ready to embrace the market at a sizable scale. And, we are ready to bring our technology and the product into a much larger market. Because we are ready, on the technology side and also on the manufacturing readiness level. Ed Woo: Great. Thanks for answering my question, and I wish you guys good luck. Yuping Huang: Thank you. Christopher Bruce Roberts: Thanks, Edward. Operator: Thank you. That does conclude today's Q&A session. I would now like to hand the call back over to management for closing remarks. Yuping Huang: Thank you, everybody, for joining our earnings call. And if you have any further questions, feel free to reach out to our investor relations. I wish everybody have a nice rest of the day. Thank you. Operator: Thank you. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Quantum Computing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Quantum Computing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,511!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,960!* Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 17, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Quantum Computing (QUBT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Quantum Computing Inc.? Here are five stocks we like better. Q2 revenue rose to $5.6 million from $61,000 a year earlier, driven by photonics products, while the net loss narrowed to $11.8 million. The company held approximately $1.3 billion in cash and investments and had a $42.5 million backlog extending into at least the third quarter of 2027. Quantum Computing completed three acquisitions, including NHanced Semiconductors, to expand advanced packaging and manufacturing capacity. NHanced can process roughly 60,000 wafers annually, though potential facility upgrades could require up to $100 million in capital spending. The company advanced commercialization through NeuraWave’s commercial launch, a Dirac-3 installation at a global consulting firm, and a Planck Dynamics agreement involving an initial order for five systems with potential program value above $10 million. 2 Quantum Stocks That Could Challenge IonQ’s Leadership Quantum Computing (NASDAQ:QUBT) reported second-quarter 2026 revenue of $5.6 million, up from $61,000 a year earlier and $3.7 million in the first quarter, as photonics product sales contributed across its government, educational and commercial customer base. Chief Financial Officer Chris Roberts said the quarter’s revenue primarily came from photonics products used in the company’s quantum roadmap as well as existing industrial applications. He said government business, largely performed as a subcontractor to prime contractors in civil, aerospace and defense programs, currently represents about 70% to 80% of the company’s business. Commercial markets rank second, while educational customers represent a smaller portion, he said. → MarketBeat Week in Review – 08/03 - 08/07 2 Quantum Stocks Are Drawing Capital as AI Infrastructure Hits a Wall The company reported a net loss of $11.8 million, or $0.05 per share, compared with a net loss of $36.5 million, or $0.26 per basic share, in the second quarter of 2025. Roberts attributed much of the year-over-year improvement to a lower non-cash mark-to-market loss associated with warrant derivative liabilities related to the company’s 2022 merger with QPhoton. Operating expenses rose 114% to $21.8 million from $10.2 million a year earlier. The increase reflected higher personnel and payroll costs for research and development, sales and marketing, as well as approximately $7.3 million in acquisition-related transaction costs. → Quantum Earnings Week: Winners and Losers Are Finally Emerging A Quantum Shift: Why Speculative Money Is Ditching AI Interest and other income totaled $13 million, up from $1.8 million in the prior-year period, driven by interest generated from a larger cash position. At June 30, the company held approximately $1.3 billion in cash, cash equivalents and investments, down from about $1.5 billion at the end of 2025. Roberts said the decrease included roughly $180 million of cash used for the acquisitions of Luminar Semiconductor, NuCrypt and NHanced Semiconductors, including transaction expenses. Total assets were approximately $1.6 billion, while total liabilities were $47.2 million. Contract backlog stood at approximately $42.5 million at June 30. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War Roberts said backlog had not changed substantially in the roughly 40 days after quarter-end, though contract activity can occur unevenly. He said the contracts in backlog generally extend over 12 to 18 months and would support operations into the third quarter of 2027 or longer if no additional business were received. Chief Executive Officer and Chairman Yuping Huang said the company completed three acquisitions during the first half of 2026 to expand its commercialization efforts, technical capabilities, manufacturing capacity and engineering staff. In the second quarter, Quantum Computing completed its acquisition of NHanced Semiconductors, an independent U.S.-based advanced packaging foundry. Huang said the deal enabled the company to launch its Fab 2 initiative ahead of schedule and added capabilities in hybrid bonding, chiplet architectures, silicon interposers, photonic device integration and advanced semiconductor packaging. Roberts said NHanced can currently process roughly 60,000 wafers annually, representing a substantial capacity increase over the company’s Fab 1 facility in Tempe, Arizona. The company is evaluating upgrades at the NHanced facility that could require capital expenditures in a range of $50 million to $100 million, with Roberts identifying approximately $75 million as a current planning estimate. He said the company does not expect to spend close to that amount this year. Regarding revenue contribution, Roberts said Quantum Computing continues to support models projecting $20 million to $25 million of 2026 revenue for the company prior to the NHanced acquisition. He said NHanced’s contribution could fall between $7 million and $16 million, depending on the timing of project delivery and customer acceptance. He noted that NHanced generated about $16 million in the first half of 2025, but its more recent figures have been affected by business mix changes and the postponement of funding on a large U.S. Navy contract. Huang said the company reached commercial readiness in April for NeuraWave, its photonic reservoir computing platform designed for artificial intelligence inference and signal processing at the edge. The platform combines photonic and digital computing and targets applications in defense, telecommunications, autonomous vehicles, robotics, healthcare and industrial monitoring. During June, the company delivered and installed a Dirac-3 quantum optimization machine at a global consulting firm. Huang said the system will support the customer’s enterprise engagements involving complex optimization challenges, including portfolio optimization. The company also reached a framework agreement with Planck Dynamics that included an initial order for five NeuraWave systems. Huang said the agreement could provide a path to deployment of multiple dozens of systems as customer milestones are met, with a potential aggregate program value exceeding $10 million. Quantum Computing additionally received an order from a university for its quantum secure communications system, which the institution plans to evaluate as part of research and development related to quantum-secure networking. Management said it remains focused on two growth areas: advancing room-temperature photonic quantum systems and expanding commercial offerings in photonic components, lasers, detectors, photonic integrated circuits, thin-film lithium niobate technologies, optical packaging, advanced packaging and semiconductor foundry services. Huang said the company has made progress in expanding the number of variables supported by its Dirac-3 optimization system, though he did not provide specific technical details. He said the company expects to share further news in coming months. Huang also said the company is developing technology for a gate-based quantum machine using single photons, while emphasizing that it does not yet have a gate-based product. He described photon-photon interaction, component integration and the need to combine lasers, single-photon detectors and control electronics into a self-contained chip-scale system as key engineering considerations. Roberts said Quantum Computing recently hired Susan Hunt as chief revenue officer and plans to add sales personnel in commercial and government markets. Huang said the company believes its technology and manufacturing capabilities have reached an inflection point that supports broader commercial expansion. Quantum Computing Inc (NASDAQ: QUBT) is a provider of quantum computing and quantum-inspired algorithm solutions, headquartered in the United States with research and development operations in Europe. Originally incorporated as Unigrid Software in 2019, the company rebranded in 2021 to reflect its strategic focus on commercializing emerging quantum technologies for enterprise and government customers. The company's flagship product, Qatalyst, is a quantum-inspired optimization platform that applies advanced heuristic solvers to address complex combinatorial problems in logistics, supply chain management, finance and other data-intensive fields. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Quantum Computing Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is shifting the company's focus from research and prototyping toward scalable, cost-effective production of miniaturized quantum products using nanophotonics. The acquisition of Enhanced Semiconductor, Inc. accelerated the 'Fab-2' initiative, providing a US-based advanced package foundry to support thin-film lithium-niobate platforms. Performance is driven by a dual-growth engine: advancing the room-temperature quantum roadmap while growing a commercial portfolio of photonic components and foundry services. The company achieved commercial readiness for Neurawave, a photonic reservoir computing platform designed for energy-efficient AI inference at the edge. Strategic positioning centers on a room-temperature chip-scale architecture, which management claims reduces system complexity and power consumption compared to cryogenic alternatives. Revenue growth in Q2 was primarily driven by photonics products serving a cross-section of government, educational, and commercial customers. Management expects the business mix to gradually shift toward commercial markets, though government subcontracts currently represent 70% to 80% of the business. The company is focused on integrating three recent acquisitions to unlock engineering talent and manufacturing capacity for next-generation photonic technologies. Future development for the Dirac-3 system will focus on increasing the number of variables supported to unlock additional enterprise optimization markets. The long-term roadmap includes developing gate-based quantum machines using single photons, leveraging the heterogeneous integrated chips acquired through Luminar and Enhanced. Management intends to aggressively expand the sales organization following the appointment of a new Chief Revenue Officer to capitalize on manufacturing readiness. The significant year-over-year decrease in net loss was primarily attributed to a non-cash mark-to-market valuation change of a derivative liability related to the 2022 QPhoton merger. Operating expenses increased 114% year-over-year, driven by acquisition-related transaction expenses of approximately $7.3 million and increased R&D personnel costs. The company utilized approximately $180 million in cash for the acquisitions of Luminar Semiconductor, NuCrypt, and Enhanced Semiconductor. Revenue recognition remains 'lumpy' due to the nature of cutting-edge development contracts, with some funding for major projects occasionally shifting between fiscal periods. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is evaluating upgrades to the Enhanced facility, which currently produces roughly 60,000 wafers annually. Estimated CapEx for these upgrades is in the $50 million to $100 million range, though significant spending is not expected within the current calendar year. The $42.5 million backlog consists of long-term contracts expected to be performed over 12 to 18 months. Management noted that the backlog does not move linearly and is characterized by 'fits and spurts' rather than quick-turn cycles. Management claims Dirac-3 utilizes quantum effects to escape 'local minimum' traps in complex NP-hard problems more effectively than classical machines. Internal and external benchmarking reportedly shows advantages over both classical approaches and other available quantum machines. While the company currently lacks a gate-based machine, they are actively working on single-photon gates to enable mass production and democratization of quantum tech. The primary engineering challenge cited is managing photon-photon interaction for logic while integrating lasers and detectors on a single chip.

Quantum Computing Inc. QUBT framed its second-quarter earnings call around a shift from research and prototyping toward commercial manufacturing. CEO, president and chairman Yuping Huang said that the quantum roadmap is supported by revenue-producing photonics, semiconductor and advanced-packaging capabilities. Revenues of $5.6 million topped the Zacks Consensus Estimate of $4.70 million. The company reported a loss of $0.05 per share, which matched the consensus estimate. Quantum Computing Inc. price-consensus-eps-surprise-chart | Quantum Computing Inc. Quote Huang described two complementary growth engines. QUBT plans to advance room-temperature photonic quantum systems while expanding commercial photonics and semiconductor offerings. He said those products can generate revenue today while building the manufacturing base for future quantum systems. That linkage remains central to the strategy. NeuraWave reached commercial readiness, and Planck Dynamics ordered five systems. Huang said that the framework could expand to multiple dozens and more than $10 million in program value as milestones are achieved. Huang said that the NHanced Semiconductors acquisition accelerated Fab 2 and expanded advanced packaging, photonic integration and semiconductor manufacturing. The operation also adds customers and production flexibility. A Rosenblatt Securities analyst asked how NHanced changed capital needs. CFO Christopher Roberts said that the facility can handle roughly 60,000 wafers annually, while upgrades are in planning at $50 million to $100 million, probably closer to $75 million. Roberts said that QCi does not expect to spend anywhere near that amount this year. QCi ended June with about $1.3 billion in cash and investments after using roughly $180 million for three acquisitions. A Rosenblatt Securities analyst asked about expanding DIRAC-3 capacity. Huang said that QUBT has made progress increasing functionality and supported variables, with further news expected in the coming months. A Cantor Fitzgerald analyst asked how DIRAC-3 differs from other optimization approaches. Huang said that the room-temperature photonic system uses quantum effects for difficult optimization problems, with benchmarking showing advantages versus other approaches. Huang said that wider adoption requires smaller size, weight, power and cost, more variables and better solution quality. He noted that QUBT does not yet have a gate-based quantum machine. Roberts said that QCi is still not providing formal guidance. He continues to stand by models showing $20 million to $25 million of 2026 revenues before NHanced. For NHanced, Roberts discussed a contribution range of $7 million to $16 million. He said technical completion and customer acceptance make quarterly timing difficult. Roberts advised modelers to err toward backloading revenue. He said recent NHanced results were affected by business-mix changes and funding on a large Navy contract being pushed to next year. A Lake Street Capital Markets analyst asked about the $42.5 million June-end backlog. Roberts said that it had not changed much over the following 40 days and moves unevenly. He said the contracts generally run 12 to 18 months. The current backlog would extend into the third quarter of next year if no additional business were added. Roberts said that roughly 70% to 80% of QUBT’s business comes from government contracting, mainly through subcontracts. Commercial business ranks second, while education is a distant third. An Ascendiant Capital Markets analyst asked whether commercial expansion would require more sales investment. Roberts said that new chief revenue officer Susan Hunt plans key hires across commercial and government sales. Huang said that the change reflects an inflection point in technology and manufacturing readiness. He said QCi is prepared to address the market at greater scale. Roberts said that the company intends to emphasize sales and build backlog faster. Huang tied that effort to broader commercialization of QCi’s technology and products. Huang said that second-half priorities center on integrating recent acquisitions and moving from research-driven innovation toward scalable production. He also said QUBT will keep evaluating targeted acquisitions that strengthen its path to scale. The earnings call kept near-term attention on manufacturing capacity, product readiness and customer execution. Huang maintained the longer-term focus on commercializing quantum technologies alongside photonics and semiconductor capabilities. Presently, QUBT carries a Zacks Rank #3 (Hold). Its Value Score of F, Growth Score of C, Momentum Score of D and VGM Score of F place it below the A or B grades Zacks identifies as stronger style signals. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Zacks says Rank #3 can be held, but better Style Scores are preferable, with the strongest framework combining Rank #1 or #2 stocks with A or B scores. QUBT’s Zacks Rank can change as earnings estimates are revised after the just-reported results. 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 Quantum Computing Inc. (QUBT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: $5.6 million in Q2 2026, compared to $61,000 in Q2 2025 and $3.7 million in Q1 2026. Operating Expenses: $21.8 million in Q2 2026, up 114% year-over-year from $10.2 million in Q2 2025. Interest and Other Income: $13 million in Q2 2026, up from $1.8 million in Q2 2025. Net Loss: $11.8 million, or $0.05 per share, in Q2 2026, compared to a net loss of $36.5 million, or $0.26 per basic share, in Q2 2025. Cash, Cash Equivalents, and Investments: Approximately $1.3 billion as of June 30, 2026, down from approximately $1.5 billion at year-end 2025. Total Assets: Approximately $1.6 billion as of June 30, 2026. Total Liabilities: $47.2 million as of June 30, 2026, an increase of $26.5 million compared to year-end 2025. Stockholders' Equity: $1.6 billion as of June 30, 2026. Contract Backlog: Approximately $42.5 million as of June 30, 2026. Warning! GuruFocus has detected 3 Warning Signs with QUBT. Is QUBT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Quantum Computing Inc (NASDAQ:QUBT) reported a significant revenue increase to $5.6 million in Q2 2026, up from $61,000 in the same period last year, driven by contributions from all business units. The company completed the strategic acquisition of NHanced Semiconductors, launching its Fab 2 initiative ahead of schedule and expanding advanced packaging and semiconductor manufacturing capabilities. Quantum Computing Inc (NASDAQ:QUBT) achieved commercial milestones, including the delivery and installation of its DIRAC-3 Quantum optimization machine at a global consulting firm and a framework agreement with Planck Dynamics for NeuraWave systems, with a potential aggregate value exceeding $10 million. The company's balance sheet remains strong, with approximately $1.3 billion in cash, cash equivalents, and investments as of June 30, 2026, providing financial flexibility for future investments and acquisitions. Quantum Computing Inc (NASDAQ:QUBT) reported a contract backlog of approximately $42.5 million as of June 30, 2026, which is expected to sustain operations for 12 to 18 months. Quantum Computing Inc (NASDAQ:QUBT) reported a net loss of $11.8 million for Q2 2026, although this was an improvement from the $36.5 million loss in the prior year period. Operating expenses increased by 114% year-over-year to $21.8 million, largely due to higher personnel costs, R&D efforts, and acquisition-related transaction expenses of approximately $7.3 million. The company's revenue is heavily dependent on government contracts, with 70-80% of business coming from government subcontracts, which may be subject to funding delays and lumpy revenue patterns. Quantum Computing Inc (NASDAQ:QUBT) faces challenges in predicting revenue due to the inherent difficulties in technical completion and delivery of cutting-edge development projects, leading to potential backloading of revenue. The company's cash balance decreased from approximately $1.5 billion at year-end 2025 to $1.3 billion as of June 30, 2026, reflecting significant cash outlays of about $180 million for acquisitions. Q: Can you provide an update on the DIRAC-3 enhancements, specifically regarding the ability to support more variables in the system?A: Yuping Huang (CEO): We have made significant progress on expanding the functionality of DIRAC-3 to support more variables, which is critical for wider adoption. We are very excited about the progress and advise you to watch for news in the coming months. I am confident this will unlock additional markets. Q: With the NHanced acquisition, have your CapEx needs for Fab 2 changed given the capabilities they bring?A: Christopher Roberts (CFO): We are evaluating upgrades for the NHanced facility, which can currently handle roughly 60,000 wafers a year. We are looking at spending less than building a new facility, likely in the $50 million to $100 million range, closer to $75 million. However, this is still in the planning stages, and we won't spend near that amount this year. Q: How has the $42.5 million contract backlog trended since the end of June?A: Christopher Roberts (CFO): The backlog tends to move in fits and spurts, and there hasn't been a lot of change in the last 40 days. A significant portion of the increase from Q1 is related to NHanced. These are long-term contracts performed over 12 to 18 months, so we aren't expecting to burn through it by December. If nothing else came in, it would keep us going until the third quarter of next year. Q: Which end market (government, commercial, or educational) are you seeing the best headway with right now?A: Christopher Roberts (CFO): Currently, we are primarily a provider to government agencies, mainly through subcontracts to primes on both the civil and aerospace/defense sides. Commercial is second, and educational is a distant third. We expect this balance to gradually shift as we see more interest in commercial markets, but right now roughly 70% to 80% of our business comes from government contracting. Q: Can you explain how DIRAC-3 works and its advantage over other optimization machines?A: Yuping Huang (CEO): DIRAC-3 is designed to solve complex optimization problems by using Quantum effects to escape local minimums that trap classical machines. It is a room-temperature photonic system, not a gate-based Quantum machine. Both our engineers and external users have benchmarked it against other machines and reported clear advantages. We are focused on reducing size, weight, and power while supporting more variables to improve solution quality and drive wider adoption. Q: Can you provide any help on revenue or OpEx contribution from the NHanced acquisition?A: Christopher Roberts (CFO): We are not giving formal guidance, but I can point to the pro formas in the Q filed this afternoon. The business is lumpy. NHanced did about $16 million in the first half of last year, but their numbers have gone down recently due to business mix shifts and funding delays on a Navy contract. We stand by our previous estimate of $20 million to $25 million for QCi before NHanced. NHanced's contribution will likely be between $7 million and $16 million, depending on project delivery and acceptance. I would err on the backloading if you are building a model. Q: You mentioned DIRAC-3 has been benchmarked against other optimization machines. Is this data published and available to everyone?A: Yuping Huang (CEO): A portion of the data has been published in journals, and some customers have reported findings in their presentations. Our internal benchmarks have not been published. We can provide a collection of papers and presentations from our engineers and external users. Q: In the analog Quantum computing space, do you see one of your two primary competitors as being particularly stronger?A: Yuping Huang (CEO): Ultimately, customers and applications will define the value of any Quantum machine. Currently, optimization problems have the largest market potential, which is why we started there. We are also working on gate-based machines, which is much harder with photonics. Once we overcome the engineering challenges, we can mass-produce these machines at a lower unit price. Our mission is to democratize Quantum and put it into the hands of many people, which is why we chose this path. Q: Besides managing photon optical loss, are there other engineering challenges to maintaining the integrity of a single photon in a gate-based Quantum computer?A: Yuping Huang (CEO): Photon-photon interaction is the most critical and challenging part as it is the basis for logic. But building a complete machine requires a self-contained system with lasers, single-photon detectors, and controlling electronics integrated on a single chip. This is the fundamental reason we acquired Luminar Semiconductor and NHancedto develop heterogeneous integrated chips to support our Quantum computing platform and other technologies like sensing and communications. Q: Would you have to invest significantly in the sales force to expand your commercial opportunities?A: Christopher Roberts (CFO): Yes. We recently hired Susan Hunt as our new Chief Revenue Officer, and she has an aggressive plan to hire key people in both commercial and government sales. We want to emphasize sales going forward to build the backlog as fast as we can. Yuping Huang (CEO): We made this change because our technology and manufacturing capabilities have reached an inflection point. We are ready to bring our products to a much larger market. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Q2 revenue increases to $5.6 million from $61 thousand in Q2 '25 Company completes strategic acquisition of NHanced Semiconductors, Inc., launching Fab 2 to advance key roadmap initiatives and expand U.S.-based manufacturing capabilities Ends quarter with $1.3 billion in cash, cash equivalents and investments HOBOKEN, N.J., Aug. 10, 2026 /PRNewswire/ -- Quantum Computing Inc. ("QCi" or the "Company") (Nasdaq: QUBT), a vertically integrated quantum company pioneering photonics and semiconductor manufacturing, today released financial results for the three months ended June 30, 2026. Dr. Yuping Huang, Chief Executive Officer of QCi, commented, "During the second quarter, we continued to execute on our strategy of making our quantum products smaller, more practical and more accessible. Our room-temperature photonic architecture continues to differentiate QCi by providing a pathway to practical quantum systems with significantly lower complexity, cost and power requirements than competing approaches. At the same time, we are expanding the capabilities of fast prototyping and volume production that not only support our future quantum roadmap but also address growing commercial markets today. "With the acquisition of NHanced Semiconductors, Inc. ("NHanced") – our third acquisition this year – we launched Fab 2 ahead of schedule, significantly expanding our advanced packaging and semiconductor manufacturing capabilities and accelerating our transition toward scalable, cost-effective production of miniaturized nanophotonic quantum technologies. During the quarter, we also brought NeuraWave, our next-generation photonic reservoir computing platform, to commercial readiness, and subsequently entered into a framework agreement with Planck Dynamics. This agreement supports the deployment of our NeuraWave systems for next-generation AI applications, providing strong market validation of our photonic computing technology. "In addition, we successfully delivered and installed our Dirac-3 quantum optimization machine at a leading global consulting firm for use with its enterprise customers on complex optimization applications, including portfolio optimization. This deployment represents another important commercial milestone for QCi and demonstrates growing market demand for practical quantum optimization solutions. "We also received a purchase order from a world-leading university for our quantum secure communications system. This order represents continued commercial traction for our quantum communications portfolio and further recognition of our technology by a premier research institution. "Supported by a strong balance sheet, we remain well positioned to continue integrating our recent acquisitions, expand our commercial and government customer base and invest in the technologies and manufacturing capabilities that support both our commercial businesses and our long-term quantum roadmap. As we look to the second half of 2026, we stay focused on executing our roadmap and delivering on our mission of putting quantum into the hands of everybody." Second Quarter 2026 Financial Highlights Second quarter 2026 revenues totaled $5.6 million compared to $61 thousand in the second quarter of 2025, and $3.7 million in the first quarter of this year. Second quarter revenue was generated across QCi's integrated portfolio of quantum and photonics technologies, products and services, serving a diverse range of government, educational, and commercial customers. Revenue was primarily driven by sales of photonics products that support QCi's quantum technology roadmap while also addressing a broad range of existing aerospace, government and industrial applications. Operating expenses totaled $21.8 million compared to $10.2 million in the second quarter of 2025, up 114%. The year-over-year increase was largely due to higher headcount and related payroll costs for research and development efforts, sales and marketing, and acquisition-related transaction expenses of $7.3 million. Interest and other income totaled $13 million compared to $1.8 million in the second quarter of 2025. The increase was due to interest income generated from the Company's larger cash and investment positions. The Company reported a net loss of $11.8 million, or a loss of $0.05 per basic share for the second quarter of 2026, compared to a net loss of $36.5 million or a loss of $0.26 per basic share, for the prior year period. The main reasons for the decrease in net loss were the change in fair value of a derivative liability, and higher revenue and interest income. In the second quarter of 2025 the Company realized a $28 million non-cash loss on the mark-to-market valuation of the Company's warrant derivative liability, compared with a mark-to-market loss of only $1.7 million in the second quarter of 2026. As we have previously disclosed, the derivative liability is related to the merger with QPhoton in June 2022 and warrants issued with that transaction. Total assets as of June 30, 2026 were approximately $1.6 billion, relatively unchanged compared to December 31, 2025. Cash, cash equivalents and investments totaled approximately $1.3 billion as of June 30, 2026, compared to approximately $1.5 billion at year-end 2025. The cash balance reported at the end of the second quarter reflects our acquisitions of Luminar Semiconductor, Inc., NuCrypt, and NHanced Semiconductors, for which we used approximately $180 million in cash, including transaction expenses. Total liabilities as of June 30, 2026 were $47.2 million, an increase of $26.5 million compared to year-end 2025. As of June 30, 2026, the Company had stockholders' equity totaling $1.6 billion. As of June 30, 2026, contract backlog was approximately $42.5 million. Second Quarter 2026 Operational Highlights Sold and Delivered Dirac-3 Quantum Optimization System: During June, QCi successfully sold, delivered and installed its Dirac-3 quantum optimization machine at a leading global consulting firm. The Dirac-3 system will support enterprise customers on complex optimization applications, including portfolio optimization. This represents an important commercial milestone for QCi's quantum optimization business. Achieved Deployment-Ready NeuraWave: During the second quarter, QCi announced that NeuraWave, its next-generation photonic reservoir computing platform, reached deployment readiness. NeuraWave combines photonic and digital computing to deliver fast, energy-efficient AI inference and advanced signal processing for edge computing applications across defense, telecommunications, robotics, healthcare industrial monitoring and other markets. Executed Framework Agreement with Planck Dynamics for NeuraWave Deployment: During the second quarter, QCi entered into a framework agreement with Planck Dynamics supporting the deployment of up to multiple dozens of NeuraWave photonic reservoir computing systems as customer milestones are achieved. The agreement represents an important commercial validation of NeuraWave's readiness to address emerging AI infrastructure requirements and establishes a commercial framework with a potential aggregate program value in excess of $10 million, subject to the achievement of specified customer milestones and other conditions. Acquisition of NHanced Semiconductors, Inc.: During the second quarter, QCi completed the acquisition of NHanced Semiconductors, Inc., a U.S.-based advanced packaging foundry, for a combination of cash and QCi stock valued at $73.1 million, and up to an additional $72.0 million if certain performance targets are achieved. The NHanced acquisition launches Fab 2 ahead of schedule, significantly expanding QCi's advanced packaging, semiconductor manufacturing and photonic integration capabilities while broadening the customer base served by these capabilities. Received Purchase Order from A World-Leading University For Quantum Secure Communications System: During the second quarter, QCi received an order from a leading university for its quantum secure communications system. The order reflects continued commercial traction and growing recognition of QCi's quantum communications technology and will support the university's research and development efforts to evaluate quantum-secure communications solutions as part of its work to advance secure networks of the future. Expanded Industry Engagement: During the second quarter, QCi participated in eight industry conferences and events, including The Economist Commercialising Quantum Global 2026 conference, Quantum Tech World conference and the Optica Quantum Industry Summit, strengthening customer relationships, strategic partnerships and QCi's visibility across the photonics and quantum technology ecosystem. Earnings Conference Call The Company will host its second quarter 2026 call today, Monday, August 10, 2026, at 4:30 p.m. ET. To access the live webcast of the conference call, visit the QCi Investor Relations page at https://quantumcomputinginc.com/investor-relations. Investors may also access the webcast via the following link: https://www.webcaster5.com/Webcast/Page/3051/54283. To participate in the call by phone, dial (888) 506-0062 approximately five minutes prior to the scheduled start time. International callers please dial (973) 528-0011. Callers should use access code: 222858. A replay of the teleconference will be available until August 24, 2026, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 54283. About Quantum Computing Inc. Quantum Computing Inc. (Nasdaq: QUBT) is a vertically integrated quantum company pioneering photonics and semiconductor manufacturing, and delivering accessible, scalable, and cost-effective quantum machines, photonics products, and advanced packaging. The Company provides foundry services for photonic chips and semiconductor manufacturing and offers a vertically integrated portfolio spanning photonics and electronic components, subsystems, and full-stack systems. Designed to operate at room-temperature with low-power requirements, QCi's technologies enable practical deployment across high-growth markets, including high-performance computing, artificial intelligence, cybersecurity, aerospace and defense, and advanced sensing and imaging. Headquartered in Hoboken, New Jersey, QCi also has operations in Arizona, California, Illinois, Indiana, Massachusetts, North Carolina and Virginia. By combining advanced materials, device engineering, and scalable manufacturing, QCi delivers integrated quantum, photonics, and semiconductor technologies, accelerating commercialization and real-world adoption. Company Contact:John Nesbett/Zach NevasIMS Investor [email protected] Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our expectations of future results, operational expansion and business strategy are forward-looking statements. The words "believe," "may," "will," "estimate," "potential," "continue," "anticipate," "intend," "expect," "strategy," "future," "could," "would," "project," "plan," "target," and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to, future demand for quantum and photonic products, the Company's ability to scale its technology and manufacturing capabilities, the Company's ability to integrate and benefit from recent acquisitions, and the factors, risks and uncertainties included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as such factors may be updated from time to time in our other filings with the Securities and Exchange Commission (the "SEC"), accessible on the SEC's website at www.sec.gov and the Investor Relations section of our website at https://quantumcomputinginc.com/investor-relations, which could cause our actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management's estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. View original content to download multimedia:https://www.prnewswire.com/news-releases/quantum-computing-inc-reports-second-quarter-2026-financial-results-302847440.html

Download the Complete Report Here Key Takeaways: XNDU’s 2Q26 hardware progress and higher fabrication activity are beginning to translate post-listing capital into faster roadmap execution. XNDU’s second public-company quarter provided more tangible evidence that its expanded capital base is supporting measurable photonic-component improvements and a faster development cadence. The company achieved average edge-coupling loss of 0.085 dB per facet, supported by its internal advanced photonic chip-packaging facility, customized fiber and fiber-array work with Corning, and wafer-singulation support from DISCO. The 0.085 dB result represents a significant component-level improvement and, according to XNDU, may be the lowest edge-coupling loss achieved in the industry. XNDU’s remaining 5-10x loss gap provides a more measurable framework for tracking progress toward fault tolerance. The aggregate optical-loss gap has declined by as much as 200x over roughly four years, with a further 5-10x reduction still required to reach the threshold for scalable fault-tolerant operation. This gives investors a clearer benchmark for evaluating whether future hardware improvements are translating into meaningful progress against the company’s long-term roadmap. XNDU is addressing the remaining loss gap through both hardware improvement and architectural simplification. Progress is coming from more chip runs and improvements across fabrication, packaging, propagation loss, coupling, and detector efficiency, while architectural changes are designed to reduce the number of components and optical operations photons must traverse. XNDU expects to provide a more detailed loss and hardware roadmap around the end of summer or Analyst Day, consolidating these contributors into two principal optical paths and extending the framework toward 2029-2030. The update should be an important near-term catalyst by providing clearer benchmarks around current performance, required thresholds, timing, and system dependencies. Higher wafer throughput should accelerate development cycles across the company’s two core material platforms. Fabrication activity increased approximately 75% for thin-film lithium niobate and 50% for silicon nitride. Silicon-nitride availability through NY CREATES increased from approximately 100 to 150 wafers, while thin-film-lithium-niobate activity through WaferTech, a UMC subsidiary, increased from slightly above 100 to approximately 175 wafers per month. XNDU expects both corridors to increase further. Albany expansion should strengthen XNDU’s access to U.S. semiconductor infrastructure and engineering talent. XNDU is expanding its U.S. operations around Albany, New York, where proximity to semiconductor research, photonics infrastructure, foundry partners, and government stakeholders should improve coordination across design, fabrication, packaging, and testing. U.S. headcount has increased more than fivefold since 2023, with further significant growth expected by year-end. The public listing has also improved recruiting visibility and compensation flexibility through liquid equity awards, broadening the pool of specialized engineering candidates. Together, the expanded U.S. footprint and deeper talent base should support higher tapeout and wafer activity, greater parallel component development, and a faster hardware iteration cadence. QROM improvements demonstrate how software innovation can reduce future hardware requirements and reinforce the value of the full-stack model. The company published a patent-filed quantum read-only memory, or QROM, technique that cuts required Toffoli-gate operations by roughly half by reducing unnecessary data-movement and unlocking steps. Because QROM is a common subroutine for loading classical data into quantum algorithms, lower gate requirements could ultimately reduce physical-qubit, error-correction, and runtime needs, easing the burden on the hardware roadmap; the implementation is already available through PennyLane. XNDU also trained a Fourier-based quantum-machine-learning model with more than one million parameters to learn the distribution of ribosomal RNA, demonstrating the software stack’s ability to support increasingly complex scientific workloads, although commercial applicability remains early. PennyLane continues to expand its developer reach and strengthen XNDU’s future customer funnel, while monetization remains early. The company released PennyLane 0.45 and Catalyst 0.15, improving end-to-end algorithm development and compilation, while the foundational PennyLane paper surpassed 2,000 citations. Active users, university relationships, and corporate engagement continue to grow, with the latest disclosed metrics at more than 35,000 active users, approximately 200,000 monthly downloads, and roughly 150 university partners. PennyLane remains more important today as a developer and customer-acquisition funnel than as a software revenue driver, with researchers and enterprises trained on the platform potentially becoming future users of enterprise software, application-development services, and quantum-compute access as fault-tolerant hardware becomes available toward 2029-2030. Partnership activity is increasingly supporting application development, workforce readiness, and future enterprise adoption. The company expanded its Lockheed Martin relationship through a joint quantum-machine-learning and workforce-training initiative that uses PennyLane, educational resources, and dedicated workshops to train AI developers and research engineers through the Quantum Talent Pipeline. The program addresses a shortage of internal quantum specialists while broadening PennyLane adoption across aerospace and defense. XNDU also brought PennyLane and its Lightning simulator to Oak Ridge National Laboratory’s Frontier supercomputer, enabling distributed quantum simulation across AMD-powered nodes; renewed its multi-year Rolls-Royce collaboration in computational fluid dynamics and aerodynamics; continued research with Fidelity FCAT; and disclosed advanced-stage engagements with several major banks focused on systematic-risk modeling and multi-input correlations. Engagement with Los Alamos and membership in the Unitary Foundation further extend the company’s research, talent-development, and open-source ecosystem. Project OPTIMISM is nearing a potential funding decision that could materially reduce the capital intensity of XNDU’s manufacturing roadmap. The program remains in final discussions, with a potential update expected over the next one to two months. It could provide up to C$390 million of support from the governments of Canada and Ontario for photonic packaging, wafer-level testing, heterogeneous integration, and quantum-module assembly. If finalized, the funding would strengthen XNDU’s manufacturing capacity while supporting Canada’s sovereign quantum supply chain. The program should not be viewed as unrestricted upfront liquidity, however, as funding is expected to be received over time against qualifying R&D and capital investments; final terms, eligible expenditures, cost-sharing requirements, and reimbursement timing will determine the ultimate balance-sheet and cash-flow benefit. DARPA Stage C could provide an important external validation point for the company’s fault-tolerance roadmap. DARPA remained the principal driver of 2Q26 revenue through Stage B of the Quantum Benchmarking Initiative, with XNDU indicating that required milestones are being met and expressing confidence around potential advancement to Stage C. Selection would matter beyond incremental funding by providing independent validation of the company’s loss-reduction and fault-tolerance progress, strengthening the credibility of its hardware roadmap, and increasing visibility with U.S. government and sovereign-compute customers. Continued progress through DARPA’s benchmarking process could also improve the longer-term pathway toward government procurement. The synthetic ATM expands funding flexibility for roadmap acceleration. XNDU established a synthetic ATM facility with Yorkville Advisors for up to $300 million over 36 months, allowing the company to issue up to 30 million Class B shares with no minimum usage requirement. During 2Q26, the company raised $67.2 million through the issuance of 5.5 million shares at an average net price of $12.28, with the company retaining flexibility to draw selectively based on market conditions and valuation. The facility reduces near-term financing risk and supports additional engineering, wafer, and manufacturing investment; however, future issuance will need to translate into measurable optical-loss reduction, qubit-factory progress, and faster roadmap execution. Revenue remains early-stage, concentrated, and largely program-driven. 2Q26 revenue increased 43% y/y to $1.5 million from $1.1 million but declined approximately 47% from $2.8 million in 1Q26, primarily reflecting the timing of DARPA Stage B revenue and milestone recognition. Two customers represented approximately 75% of 2Q26 revenue and 79% of 1H26 revenue, reinforcing the limited recurring nature of the current revenue base. Until revenue shifts toward scalable software subscriptions, cloud access, system sales, IP licensing, or repeatable application-development work, quarterly results should be viewed primarily as evidence of technical engagement and government validation rather than product-market maturity. Higher R&D and capex are beginning to translate the post-listing capital base into a faster engineering cadence. R&D expense increased to $19.7 million from $17.3 million in 1Q26, driven by engineering and manufacturing hiring, stock-based compensation, and broader development activity, while G&A rose to $11.1 million from $9.8 million on higher headcount, public-company costs, and capital-markets activity. Capital expenditures increased to $6.4 million from $0.3 million as the company invested in specialized equipment for chip testing, process refinement, and manufacturing scale-up. The step-up is consistent with the broader roadmap, as higher wafer throughput and tapeout activity require additional engineering capacity, testing infrastructure, and process-control capabilities, providing a clearer test of whether incremental capital is accelerating hardware development. Wider adjusted EBITDA losses reflect the deliberate step-up in R&D and public-company investment. Adjusted EBITDA loss widened to $21.3 million from $13.9 million in 1Q26 and $13.4 million in 2Q25, driven by higher R&D, G&A, and lower grant revenue, while GAAP net loss increased to $42.1 million. The GAAP result included $12.5 million of fair-value losses, $4.7 million of stock-based compensation, and $2.3 million of non-recurring transaction and financing expenses, which explain much of the gap between reported net loss and underlying operating investment. The core trend, however, remains one of higher spending and wider losses as XNDU accelerates engineering, manufacturing, and public-company buildout. Physical infrastructure commitments are increasing alongside XNDU’s manufacturing and engineering buildout. The company recognized a $19.1 million operating lease liability for a new Toronto facility under a 15-year term, driving much of the increase in long-term lease liabilities to $25.6 million from $7.2 million at year-end. The expanded footprint supports higher manufacturing, testing, and engineering activity as the roadmap scales, although it also increases the fixed-cost base ahead of scaled commercialization. The expanded balance sheet provides substantial capacity to accelerate technical execution. XNDU ended 2Q26 with $312.8 million of cash and approximately $32.5 million of debt, implying net cash of roughly $280 million. Operating cash use was $30.6 million in 1H26 versus $27.4 million a year earlier, while investing outflow totaled $7.2 million. Liquidity reflects the post-SPAC capital raise, supplemented by $67.2 million of 2Q26 synthetic ATM proceeds, providing flexibility to expand wafer activity, engineering headcount, and manufacturing infrastructure. Near-term financing risk remains limited, but with R&D and capex expected to increase through 2H26, the more relevant measure of capital efficiency will be whether higher spending translates into faster optical-loss reduction, qubit-factory progress, and broader roadmap execution. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. XNDU’s valuation has reset despite measurable technical and ecosystem progress and remains below listed quantum peers. At $10.4 per share, XNDU trades at a market capitalization of approximately $3.2 billion and enterprise value of roughly $2.9 billion, compared with approximately $4.1 billion and $4.3 billion, respectively, at the time of the May earnings update. This represents a roughly 22% decline in market capitalization and 33% reduction in EV despite progress in optical loss, materially higher wafer throughput, expanded manufacturing capacity, and broader software and partner engagement. XNDU’s current market capitalization is also roughly 47% below the peer average of about $6.0 billion, while its EV is approximately 44% below the roughly $5.2 billion peer average. The valuation gap is notable given XNDU’s scarce pure-play photonic exposure, differentiated architecture, and full-stack positioning, although relative valuation remains sensitive to differences in revenue scale, technical maturity, and commercialization timelines across quantum platforms. Architecture credibility, funding capacity and milestone execution remain the more relevant valuation framework. XNDU ended 2Q26 with $312.8 million of cash and has increased fabrication activity by approximately 75% for thin-film lithium niobate and 50% for silicon nitride, while the aggregate optical-loss gap has narrowed by as much as 200x over roughly four years, with a further 5-10x reduction estimated to remain. These metrics provide a more useful framework for assessing whether higher R&D, capex, and infrastructure investment are reducing technical risk and accelerating development. The upcoming detailed loss and hardware roadmap should therefore be particularly important for valuation, as it is expected to provide clearer benchmarks around current performance, required thresholds, timing, and the path toward the 2029-2030 roadmap. Rerating potential remains tied to measurable technical, funding, and commercial catalysts. Key drivers include further reduction in the remaining 5-10x optical-loss gap, continued increases in wafer and tapeout velocity, qubit-factory progress, DARPA Stage C advancement, finalization of Project OPTIMISM, updated PennyLane adoption metrics, and conversion of strategic partnerships into paid or procurement-linked demand. Successful execution across these milestones could support a narrowing of XNDU’s current valuation discount as technical risk declines and revenue visibility improves. Conversely, slower loss reduction, qubit-factory delays, rising R&D and capex without comparable technical progress, additional ATM dilution, or continued uncertainty around government funding could constrain rerating potential. Download the Complete Report Here Read Exec Edge’s Initiation on Xanadu Quantum Here Watch IPO Edge Fireside Chat with Xanadu Founder & CEO Christian Weedbrook Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post Xanadu Accelerates Chip Production as Investors Await Next Catalyst in Race to Scalable Quantum Computing – Quarterly Update Report appeared first on ExecEdge.

ACM Research, Inc. (ACMR) came out with quarterly earnings of $0.61 per share, beating the Zacks Consensus Estimate of $0.3 per share. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +103.33%. A quarter ago, it was expected that this company would post earnings of $0.16 per share when it actually produced earnings of $0.34, delivering a surprise of +112.5%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. ACM Research, which belongs to the Zacks Semiconductor Equipment - Material Services industry, posted revenues of $292.92 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 9.24%. This compares to year-ago revenues of $215.37 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. ACM Research shares have added about 100.2% since the beginning of the year versus the S&P 500's gain of 12.6%. While ACM Research has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for ACM Research was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.31 on $320.37 million in revenues for the coming quarter and $1.37 on $1.14 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Semiconductor Equipment - Material Services is currently in the top 45% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Computer and Technology sector, Quantum Computing Inc. (QUBT), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +16.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Quantum Computing Inc.'s revenues are expected to be $4.7 million, up 7733.3% from the year-ago quarter. 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 ACM Research, Inc. (ACMR) : Free Stock Analysis Report Quantum Computing Inc. (QUBT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Download the Complete Report Here Key Takeaways: 2Q execution moved HQ from internal platform development toward controlled external deployment, while keeping the company on track against its previously communicated technical roadmap. Beryllium entered early access, moving Triple Alpha’s highest currently available abstraction layer beyond internal development, while Ember-1, HQ’s company-operated superconducting quantum computer in Singapore, opened to its first external users. Together, these milestones advance the platform across both higher-level programming abstraction and direct, real-time execution at the hardware-control layer. The new applications team broadens HQ’s end-to-end strategy from software infrastructure toward commercially relevant problem development. Focused on high-value problems across three industries, the initiative links problem selection and algorithm design with Beryllium, reusable libraries, compilation, runtime orchestration, and execution on company-operated hardware. This gives HQ a more direct role in advancing commercially relevant workloads toward quantum advantage rather than relying on customers or hardware partners to identify them. Subsequent to quarter-end, the Quantum Machines collaboration added embedded calibration to Ember-1’s roadmap, extending Triple Alpha into the quantum control plane and targeting higher system availability. Warrant exercises materially strengthened liquidity and increased HQ’s capacity to fund its technical roadmap. HQ generated $27.5 million of gross proceeds from warrant exercises during the quarter, increasing cash and equivalents to $113.3 million at June 30, 2026, from $96.6 million at the end of 1Q26. Against a $5.5 million adjusted EBITDA loss and $5.1 million of operating cash use, the strengthened balance sheet provides additional flexibility to support R&D, hardware integrations, the applications organization, and HQ’s multimodal testbed infrastructure. We believe Beryllium’s release to early-access users marks an important step in making quantum software development more closely resemble modern classical programming. As Triple Alpha’s highest current abstraction layer, the object-oriented language introduces familiar constructs and reusable libraries that allow developers to build more modular programs while focusing less on the underlying mechanics of quantum execution. During 1H26, HQ also improved compiler performance and stability and began developing standard algorithmic libraries, including quantum Monte Carlo-related building blocks, to reduce coding complexity and broaden accessibility for domain experts. Opening Ember-1 to first users extends HQ’s differentiation from quantum language development into direct, real-time execution on company-controlled hardware. Operating in Singapore since December 2025, Ember-1 combines a Rigetti superconducting processor with Quantum Machines control electronics and Maybell cryogenic infrastructure, allowing Triple Alpha to execute complete Hydrogen programs directly through the control system rather than relying on cloud interfaces or post-selected execution. The platform supports real-time loops, measurement-based branching, recursive function calls, concurrent classical computation, and pulse- and gate-level access, capabilities that go beyond the fixed instruction sequences typical of circuit-oriented frameworks. This integration makes Ember-1 a development environment for the runtime, memory, input/output, and control services required by increasingly sophisticated quantum systems. The Quantum Machines collaboration could improve Ember-1 uptime while extending HQ deeper into the quantum control plane. Quantum processors require frequent recalibration as qubit frequencies, pulse parameters, and environmental conditions drift over time, reducing performance and forcing systems offline. HQ and Quantum Machines plan to develop lightweight calibration routines that run during normal operation, initially on Ember-1, with the goal of reducing downtime, increasing testbed availability, and accelerating the software-hardware feedback loop. The new applications team broadens HQ’s path toward quantum advantage by linking commercially relevant problems with its software and hardware infrastructure. Rather than relying entirely on customers, hardware manufacturers, or third-party developers to identify the first useful workloads, HQ is targeting a limited number of high-value computational problems across three industries. Working alongside the company’s agentic-AI capabilities, the team will pursue end-to-end development from problem selection and algorithm design through Beryllium, reusable libraries, custom compilers, runtime orchestration, and execution on Ember-1 and future testbed systems. HQ’s agentic AI capabilities are being integrated into the applications organization as an internal R&D accelerator rather than developed as a separate commercial offering. Since establishing a dedicated AI team in 2023, the company has built agentic systems designed to investigate open quantum-computing problems with progressively less human intervention; following access to newer frontier models, these systems generated hundreds of research notes within several weeks. Applying this capability to HQ’s selected high-value problems could accelerate hypothesis generation, algorithm discovery, and identification of required compiler or runtime improvements, increasing the effective capacity of its scientific organization. Hardware collaboration demand currently exceeds HQ’s technical capacity, reinforcing Triple Alpha’s relevance across multiple layers of the quantum stack. Management indicated that interest from hardware manufacturers is greater than the capacity of its science and engineering organization, suggesting engagement does not depend on completion of Carbon or broad Beryllium adoption. Partners can work with HQ across compiler development, runtime orchestration, control-system integration, calibration, pulse-level programming, and execution infrastructure, allowing Triple Alpha to create value before the highest abstraction layers are complete. Over time, broader integration with processor manufacturers, system builders, and control providers could position Triple Alpha as a common software layer across multiple hardware architectures. HQ’s differentiation rests on Triple Alpha’s breadth, reinforced by direct hardware access, multimodal partnerships, and an applications-led path to quantum advantage. Classical computing remains the industry’s primary benchmark because quantum systems must ultimately deliver superior outcomes on economically meaningful problems. While vendor-specific SDKs, circuit frameworks, libraries, and higher-level platforms address individual parts of the workflow, Triple Alpha is designed to span pulse-level control, dynamic execution, memory management, concurrent classical computation, and Beryllium’s object-oriented abstraction layer. Combined with company-operated testbeds, hardware and control-system integrations, and internally developed applications, this broader architecture could allow HQ to reduce the quantum expertise required from developers while supporting execution across multiple hardware modalities. Continued execution against the technical roadmap will now depend on broader platform access, deeper hardware integration, and delivery of the planned 2027-2028 milestones. Beryllium’s early-access release and real-time Hydrogen execution on Ember-1 represent progress against the communicated plan. The next milestones include further development of Beryllium libraries and fault-tolerant compiler capabilities during 2026-2027, broader Ember-1 access, runtime support on third-party hardware in 2027, installation of the IonQ trapped-ion system in Dublin, and an integrated compilation chain capable of automated algorithm construction by the end of 2028. Progress across library development, external platform use, hardware integrations, and compiler and runtime functionality will provide the clearest evidence that Triple Alpha is advancing toward a broadly deployable quantum software platform. Commercialization remains tied to industry-level quantum advantage rather than near-term services revenue. HQ reported no revenue in 2Q26 versus approximately $38,000 in 2Q25, reflecting its decision not to pursue nominal proof-of-concept work that could divert technical resources from Triple Alpha. The company expects early-access users to transition to paying customers through cost-per-use cloud or on-premise models once quantum systems can solve economically meaningful problems beyond classical computing. No customer count, pipeline value, platform-usage metrics, conversion data, or revenue guidance was disclosed, leaving external adoption and usage as the key evidence points ahead of monetization. Supporting this broader technical roadmap established a larger operating-expense base in 2Q26. Total operating expenses increased 158% y/y and approximately 10% sequentially to $7.2 million. R&D expense rose 117% y/y to $2.6 million, primarily reflecting additional science and engineering personnel and, to a lesser extent, testbed-related costs, while G&A increased 236% to $3.8 million due to higher headcount and expenses associated with operating as a public company. Sales and marketing expense increased 51% to approximately $0.4 million, driven by trade-show activity and industry engagement, consistent with an ecosystem-led approach focused on hardware partners and developers rather than scaled enterprise selling. Cash use increased as HQ funded its larger technical organization and multimodal testbed roadmap. Net cash used in operating activities rose to $5.1 million in 2Q26 from $4.2 million in 1Q26 and $2.0 million in 2Q25, bringing 1H26 operating cash use to $9.3 million versus $3.7 million in the prior-year period. Investing cash use increased to $5.5 million in 1H26 from $0.3 million in 1H25, reflecting continued investment in quantum systems and supporting infrastructure. Warrant exercises materially strengthened HQ’s liquidity and extended its financial runway. Approximately 2.4 million public warrants were exercised during 2Q26, generating $27.5 million in gross proceeds and lifting quarter-end cash and equivalents to $113.3 million from $96.6 million in 1Q26, a sequential increase of $16.7 million. As of August 3, approximately 2.5 million warrants, representing 79% of those outstanding at the closing of the business combination, had been exercised, generating cumulative gross proceeds of $28.7 million. The additional capital provides greater flexibility to fund software development, hardware integrations, the applications organization, testbed infrastructure, and the planned Dublin expansion, although the exercises also increased the share count and created dilution. Management is balancing continued technical investment with the need to preserve runway until quantum hardware becomes commercially capable. Stronger liquidity provides flexibility to fund selected initiatives, with execution of the technical roadmap remaining the primary spending priority. The spending framework is centered on aligning software maturity, hardware readiness, and financial capacity: investing too slowly could leave HQ unprepared as commercially capable systems emerge, while investing too aggressively could consume runway before the industry reaches quantum advantage. Accordingly, near-term assessment should remain focused on technical execution, ecosystem expansion, and disciplined cash deployment rather than financial targets. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets or investment recommendations. The valuation discussion below is illustrative only, based on company-disclosed outlook metrics and third-party data; it is not a recommendation, price target, rating or prediction of future pricing. HQ remains differentiated as one of the few publicly traded quantum companies focused primarily on software infrastructure and orchestration rather than proprietary hardware commercialization. Read Exec Edge’s Initiation on HQ Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post Horizon Quantum’s Commercial Push With Early Platform Launch, $113M Cash Position – Quarterly Update Report appeared first on ExecEdge.