Quantum Computing Stock Tumbles on Earnings. Rigetti, D-Wave, and IonQ Also Fall.

Quantum Computing reported a wider net loss and lower revenue in the second quarter. (Globe News Wire)

Quantum Computing posted second-quarter results after the closing bell Thursday, rounding out a busy week for some of the most-followed publicly traded players in the industry.

Revenue in the latest quarter came to $61,000, up from $39,000 in the previous quarter. However, the figure was down considerably from the $183,000 in revenue Quantum Computing reported in the same period last year, which was largely driven by “contractual sales,” management said at the time.

Second-quarter operating expenses climbed to $10.2 million, nearly twice as high as the $5.3 million expense reported last year. Operating expenses have continued to rise sequentially.

Quantum Computing also posted a net loss of $36.5 million, or 26 cents a share, significantly wider than the $5.2 million loss posted a year ago. Management cited a $28 million non-cash loss related to the company’s warrants.

Interim CEO Yuping Huang said the company made “meaningful commercial progress” in the quarter, with customer wins across the fields of quantum sensing, cybersecurity, and artificial intelligence. The company made its first shipments to research institutions and businesses in the U.S., Europe, and Asia, Huang added.

Quantum Computing announced in late June that it had completed a $200 million private placement of common stock, and vowed to use the proceeds to support working capital as well as “commercialization efforts.” Its cash position as of end of the quarter amounted to $348.8 million.

The market is growing increasingly crowded, dominated by a handful of publicly traded pure-play companies. However, Quantum Computing differs from its peers through its focus on processing components of photonic chips, which are commonly used in communication technology.

The company’s Tempe, Ariz.-based foundry has been a major point of distinction. The factory opened its doors in May and has begun fulfilling pre-orders. Huang described the launch as a “major strategic milestone” in the latest earnings release.

“With commercial activity accelerating and strong customer interest across verticals, we remain focused on delivering practical quantum and photonic solutions that address real-world challenges,” Huang continued.

Despite its lofty aspirations, Quantum Computing has yet to generate meaningful revenue. It isn’t unusual for quantum computing companies to see “lumpiness” in their quarterly results, where sales and bookings occur in large, irregular amounts, ahead of broader commercialization.

Shares declined 3.1% to $14.90 in after-hours trading Thursday. The stock has fallen 7.1% this year, while the benchmark S&P 500 has gained 10%.

Peers Rigetti Computing , D-Wave Quantum , and IonQ were down 1.8%, 1.7%, and 0.8%, respectively.

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