Quantum Computing Inc. Reports First Quarter 2025 Financial Results
HOBOKEN, N.J., May 15, 2025 /PRNewswire/ -- Quantum Computing Inc. ("QCi" or the "Company") (Nasdaq: QUBT), an innovative, integrated photonics and quantum optics technology company, today released financial results for the three-month period ended March 31, 2025.
Dr. Yuping Huang, Interim Chief Executive Officer of QCi, commented, "QCi delivered solid operational and financial progress in the first quarter, strengthening our balance sheet and advancing key strategic initiatives. We completed construction during the quarter of our Quantum Photonic Chip Foundry in Tempe, Arizona, a major milestone that positions us to meet growing demand for thin film lithium niobate (TFLN) photonic chips, underscored by the announcement of a fifth purchase during the period. We're encouraged by our early traction, which is the first step in what we believe is a significant, multi-year opportunity to serve the expanding markets in datacom, telecom, and quantum-enabled applications. In parallel, we continued to deepen engagement with both government and commercial partners, reinforcing the growing interest in our quantum and photonic machines and positioning QCi to capitalize on emerging opportunities ahead."
First Quarter 2025 Financial Highlights
-- First quarter 2025 revenues totaled approximately $39,000 (33% gross
margin) compared to $27,000 (41% gross margin) generated in the first
quarter of 2024. Gross margin can vary at our current revenue levels. As
such, the year-over-year decrease is not unexpected.
-- First quarter 2025 operating expenses totaled $8.3 million compared to
the previous year's first quarter operating expenses of $6.3 million.
The year-over-year increase was primarily driven by higher
employee-based expenses.
-- The Company reported net income attributable to common stockholders of
$17.0 million, or $0.13 per basic share for the first quarter of 2025,
compared to a net loss attributable to common stockholders of $6.4
million or $(0.08) per basic share for the same period of the previous
year. The increase in net income this quarter was primarily due to a
$23.6 million non-cash gain on the mark-to-market valuation of the
Company's warrant liability as a result of our merger with QPhoton in
June 2022.
-- Total assets at March 31, 2025 were $242.5 million, increasing from
$153.6 million at December 31, 2024. Cash and cash equivalents at March
31, 2025 increased by $87.5 million to $166.4 million from year-end
2024. During the first quarter, the Company raised total net proceeds of
$93.6 million through a private placement offering of common stock.
-- Total liabilities at March 31, 2025 were $21.7 million, a decrease of
$24.6 million compared to year-end 2024, driven primarily by the
previously-mentioned non-cash changes in the fair value of the Company's
warrant liability.
-- As of March 31, 2025, the Company had shareholders' equity totaling
$220.8 million.
First Quarter 2025 Operational Highlights
-- Quantum Photonic Chip Foundry Update: During the quarter, QCi completed
construction of its Quantum Photonic Chip Foundry in Tempe, Arizona,
achieving a key milestone in scaling its U.S.-based TFLN manufacturing
services. The Company is now establishing its process design kit (PDK)
and filling customer orders. To date, the Company has received five
initial orders for its foundry services.
-- Advancing Quantum Machine Adoption: On January 15, 2025, QCi announced a
collaboration with Sanders Tri-Institutional Therapeutics Discovery
Institute (Sanders TDI), a non-profit drug discovery institute
comprising Memorial Sloan Kettering Cancer Center, The Rockefeller
University, and Weill Cornell Medicine. Through this partnership,
Sanders TDI will leverage cloud-based access to QCi's Dirac-3 quantum
optimization machine to support computational chemistry and biomolecular
modeling research. This collaboration highlights growing adoption of
QCi's quantum systems in real-world biomedical applications.
-- Board Appointment Strengthens Strategic Leadership: On March 26, 2025,
QCi appointed Eric Schwartz to its Board of Directors. Mr. Schwartz
brings over 20 years of experience in corporate finance, mergers and
acquisitions, and corporate strategy, with a strong track record guiding
companies through commercialization and manufacturing scale-up. His
expertise will support QCi's growth initiatives as the Company advances
its TFLN chip foundry and drives market adoption of its quantum
machines.
-- Strengthening Sales & Market Presence: The Company continued to expand
its commercial and government engagement, participating in numerous
trade shows and conferences during the quarter to showcase its quantum
optimization and photonic chip solutions to prospective customers and
partners.
-- Advancing Strategic Partnerships with NASA: Subsequent to the quarter on
April 30, 2025, QCi was awarded a subcontract valued at approximately
$406,000 through Analytical Mechanics Associates (AMA) to support NASA's
Langley Research Center. Under the project, QCi will use its Dirac-3
quantum computer to develop a quantum-based technique for removing
sunlight noise from space-based LIDAR data, an obstacle that has
historically limited NASA's ability to conduct reliable daytime Earth
observation. This project builds on QCi's prior work with NASA.
-- Expanding Commercial Adoption of Quantum Solutions: Subsequent to the
quarter, QCi secured two additional customer orders, reflecting growing
global demand for its quantum machines. On April 1, 2025, the Company
announced the sale of a Quantum Photonic Vibrometer to the Department of
Aerospace Structures and Materials at Delft University of Technology in
the Netherlands, supporting advanced research in non-destructive testing
and structural health monitoring. Later in the month, on April 22, 2025,
QCi announced the sale of an EmuCore reservoir computing device to a
major automotive manufacturer for research and development use. These
orders underscore QCi's strategy to broaden awareness and adoption of
its quantum solutions across both academic and industrial markets
globally.
Earnings Conference Call
The Company will host its first quarter conference call on Thursday, May 15, 2025, at 4:30 p.m. 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.webcaster4.com/Webcast/Page/3051/52325
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: 832763.
A replay of the teleconference will be available until May 22, 2025, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 52325.
About Quantum Computing Inc.
Quantum Computing Inc. (Nasdaq: QUBT) is an innovative, integrated photonics and quantum optics technology company that provides accessible and affordable quantum machines to the world today. QCi's products are designed to operate at room temperature and low power at an affordable cost. The Company's portfolio of core technologies and products offer unique capabilities in the areas of high-performance computing, artificial intelligence, and cybersecurity, as well as remote sensing applications.
Company Contact:
Rosalyn Christian/John Nesbett
IMS Investor Relations
investors@quantumcomputinginc.com
Forward-Looking Statements
This press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, generally identified by terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "intends," "goal," "objective," "seek," "attempt," "aim to," or variations of these or similar words, involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Those statements include statements regarding the intent, belief or current expectations of QCi and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including the timing of orders and revenue, and the outcome of ongoing collaborations and demonstration projects with certain U.S. government agencies, academic institutions and commercial customers, and that actual results may differ materially from those contemplated by such forward-looking statements. Except as required by federal securities law, QCi undertakes no obligation to update or revise forward-looking statements to reflect changed conditions.
IMPORTANT NOTICE TO USERS (summary only, click here for full text of notice): All information is unaudited unless otherwise noted or accompanied by an audit opinion and is subject to the more comprehensive information contained in our SEC reports and filings. We do not endorse third-party information. All information speaks as of the last fiscal quarter or year for which we have filed a Form 10-K or 10-Q, or for historical information the date or period expressly indicated in or with such information. We undertake no duty to update the information. Forward-looking statements are subject to risks and uncertainties described in our Forms 10-Q and 10-K.
QUANTUM COMPUTING INC.
Consolidated Balance Sheets
(in thousands, except par value data)
March 31, December 31,
2025 2024
Assets
Current assets:
Cash and cash equivalents $
166,429 $
78,945
Accounts receivable, net 20 27
Inventory 131 18
Prepaid expenses and other current assets 660 161
Total current assets 167,240 79,151
Property and equipment, net 9,976 8,212
Operating lease right-of-use assets 1,419 1,522
Intangible assets, net 8,196 8,972
Goodwill 55,573 55,573
Other non-current assets 129 129
Total assets $
242,533 $
153,559
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $
2,022 $
1,372
Accrued expenses 647 2,134
Deferred revenue 83 79
Other current liabilities 990 974
Total current liabilities 3,742 4,559
Derivative liability 16,902 40,532
Operating lease liabilities 1,062 1,181
Total liabilities 21,706 46,272
Stockholders' equity:
Common stock, $0.0001 par value, 250,000 thousand shares authorized;
137,322 thousand and 129,012 thousand shares issued and outstanding
as of March 31, 2025 and December 31, 2024, respectively 14 13
Additional paid-in capital 404,313 307,756
Accumulated deficit (183,500) (200,482)
Total stockholders' equity 220,827 107,287
Total liabilities and stockholders' equity $
242,533 $
153,559
QUANTUM COMPUTING INC.
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended
March 31,
2025 2024
Total revenue $
39 $
27
Cost of revenue 26 16
Gross profit 13 11
Operating expenses
Research and development 2,985 2,220
Sales and marketing 672 451
General and administrative 4,642 3,659
Total operating expenses 8,299 6,330
Loss from operations (8,286) (6,319)
Non-operating income (expense)
Interest and other income 1,696 38
Interest expense, net (58) (155)
Change in fair value of warrant liabilities 23,630
Income (loss) before income tax provision 16,982 (6,436)
Income tax provision
Net income (loss) 16,982 (6,436)
Net income (loss) attributable to common stockholders $
16,982 $
(6,436)
Earnings (loss) per share:
Basic $
0.13 $
(0.08)
Diluted $
0.11 $
(0.08)
Weighted average shares used in computing net earnings (loss) per common share:
Basic 135,217 81,934
Diluted 153,006 81,934
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SOURCE Quantum Computing Inc.
