Is Quantum Computing Stock a Buy, Sell, or Hold After Q2 Earnings?

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2 days ago

Quantum Computing (QUBT) stock is trading down today after its Q2 2025 results, which showed revenue declining 67% year-over-year to $61,000 and losses expanding to $0.26 per share. Operating expenses for the quantum computing startup more than doubled to $10.2 million compared to the previous year, highlighting the company's aggressive investment in growth initiatives despite minimal current revenue generation.
The bottom-line results were worse than expected, with the Wall Street consensus calling for a loss of just $0.06 per share. As a result, QUBT is off about 1.9% in the early going, extending a recent slump beneath its bearishly crossed 20-day and 50-day moving averages.
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While QUBT has soared a staggering 2,300% over the past 52 weeks, the quantum computing stock's momentum has slowed considerably in 2025. The stock is underperforming the broader equities market so far this year, down roughly 10% for the period.
Highlights from QUBT's Q2 Earnings
During the quarter, Quantum Computing strengthened its financial position through a $188 million private placement, resulting in a robust cash balance of $348.8 million. This should provide some crucial runway for their development plans.
Notable operational achievements include the completion of their quantum photonic chip foundry in Arizona and securing strategic orders from prestigious institutions like Delft University of Technology and a major automotive manufacturer, demonstrating growing market acceptance of their technology.
QUBT's commercial momentum is evidenced by recent contract wins, including a NIST award and an order from a Fortune 500 defense contractor for their TFLN photonic technology. The company has also expanded its reach through strategic partnerships, including a NASA subcontract worth up to $406,478 for quantum-based atmospheric sensing applications, while key leadership changes, such as the appointment of Dr. Yuping Huang as interim CEO, aim to further strengthen commercialization efforts.
Should You Buy the Dip in QUBT Stock?
From a trading perspective, QUBT's recent inclusion in the Russell 3000 and Russell 2000 indexes has increased its visibility among institutional investors, and effectively broadened their shareholder base.
Fundamentally, QUBT's differentiated strategy of operating at room temperature using entropy quantum computing sets them apart in the competitive landscape. That said, the stock's extremely high price-to-sales ratio raises serious valuation concerns.
While QUBT shows promising signs of commercial traction, particularly in quantum sensing, cybersecurity, and artificial intelligence (AI) applications, the significant gap between revenue and expenses presents a substantial challenge. The company's future success hinges on their ability to accelerate revenue growth significantly, as QUBT's current financial metrics indicate an increasingly urgent need to convert technological achievements into sustainable commercial results.
With only 3 analysts in coverage, QUBT has a consensus rating of 'Hold' - down from 'Moderate Buy' two months ago - and an average price target of $18.50, about 20% north of Thursday's close.
This article was created with the support of automated content tools from our partners at Sigma.AI. Together, our financial data and AI solutions help us to deliver more informed market headline analysis to readers faster than ever.
On the date of publication, Elizabeth H. Volk did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com