Quantum Computing Stock Is Down 29% This Year. Why the Market Is Excited by $384,000 in Revenue.

Quantum Computing said it secured its first purchase order for cybersecurity solutions with a “top 5 U.S. bank” in the third quarter. (Globe News Wire)

Key Points

• Quantum Computing’s third-quarter revenue rises to $384,000 from $101,000 last year, driven by hardware contracts and cloud access.
• The company reports net income of $2.4 million, a significant improvement from a $5.7 million loss in the prior year.
• Operating expenses increase to $10.5 million from $5.4 million, reflecting investments in research, development, and manufacturing.

While third-quarter results from Quantum Computing might seem like a whole lot of nothing, investors saw them as a sign of progress, driving shares higher.

Shortly after the closing bell Friday, Quantum Computing posted $384,000 in revenue, up from $101,000 last year. The company cited an increase in the number of hardware contracts and the recognition of revenue for cloud-based computing access to its Dirac-3 quantum system. In the second quarter, revenue was just $61,000.

The company reported net income of $2.4 million, compared to a net loss of $5.7 million in the same period last year. The increase was primarily driven by a $9.2 million gain from the mark-to-market of a derivative liability, the company said.

Operating expenses swelled to $10.5 million from $5.4 million last quarter. The increase “reflects continued investment in research and development, engineering, and manufacturing as we position the company for long-term growth,” Quantum Computing said.

While higher operating expenses can reflect a commitment to improving technology, they aren’t an encouraging sign in the world of quantum, where investors are eagerly waiting for the biggest names to turn a profit.

To date, none of the publicly traded pure-plays are profitable, and most have limited financial history. Quantum Computing, for instance, has only been listed on the Nasdaq since 2021.

Still, the market seemed to shrug off these concerns as the stock gained nearly 13% to $11.93. The three major indexes were trading flat.

One catalyst could be the company’s progress with customers in the third quarter. The company notched its first purchase order with a “top 5 U.S. bank,” marking the first commercial sale of its quantum security solutions in the country.

Quantum Computing is one of the few pure-play publicly traded companies in the field, along with names like D-Wave Quantum , Rigetti Computing , and IonQ . Peers were trading mixed on Monday, with IonQ seeing the biggest gains, up 3.9%.

Out of the four companies Barron’s follows, Quantum Computing is the only pure play whose shares have fallen this year. The stock has slumped more than 29% in 2025, versus gains of 178%, 68%, and 20%, for D-Wave, Rigetti, and IonQ, respectively.

Investors have been waiting for financial results to justify the steep stock gains. D-Wave, up the most this year, fell 8.5% after posting earnings on Nov. 6. It seems Quantum Computing may be immune to that pressure, as its share price reflects its paltry revenue and the limited commercialization of its technology.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com