$Quantum Computing Inc.(QUBT)$ is scheduled to release its fiscal Q1 2025 earnings on Thursday, 15 May 2025, after market close, with a conference call and webcast to follow at 4:30 p.m. Eastern Time.
EPS Forecast: Analysts are currently forecasting an Earnings Per Share (EPS) of -$0.07 for Q1 2025.
Revenue Forecast: The consensus revenue forecast for Q1 2025 is $300,000.
Quantum Computing (QUBT) Last Neutral Earnings Call Saw Share Price Rise Significantly 23.14%
Quantum Computing had a neutral earnings call on 20 March 2025 which saw its share price rise significantly by 23.14% since.
The earnings call highlighted significant partnerships and financial strengthening, particularly with NASA and the photonic chip foundry. However, challenges were noted in terms of decreased revenue, increased operating expenses, and a higher net loss. The positive advancements and strong financial position suggest potential for growth, but the financial metrics indicate existing hurdles.
Quantum Computing (QUBT) Guidance
In the fourth quarter of 2024, Quantum Computing Inc. (QCi) made significant operational and financial strides, positioning itself for strong growth in 2025. The company's focus on quantum solutions and foundry services led to a transformed balance sheet, with total assets increasing to $153.6 million, up from $74.4 million in 2023. QCi's cash and cash equivalents rose to $78.9 million, thanks to $92.1 million raised in common stock offerings. Revenue for the quarter was approximately $62,000, with a notable improvement in gross margin to 55% from 13% in the previous year. Operating expenses increased to $8.9 million, driven by higher employee-related costs and depreciation.
The company reported a net loss of $51.2 million, largely due to non-cash charges related to a warrant liability from a previous merger. QCi's international presence is expanding, with offshore orders for its photonic chips, while domestic focus remains strong for its quantum machines. The company is on track to begin production at its Quantum Photonic Chip Foundry in early Q2 2025, aiming to fulfill customer preorders and drive revenue growth.
Factors We Need To Consider When Looking At Quantum Computing Earnings
Quantum computing is a high-growth potential sector, but many companies in this space are still in the early stages of commercialization and may not yet be profitable.
Significant Financial Strengthening : Cash and cash equivalents increased by $76.9 million to $78.9 million at year-end. Total assets rose to $153.6 million, and stockholders' equity increased to $107.3 million. Strengthened balance sheet with additional private placement for $100 million.
Improved Gross Margin : Gross margin improved significantly to 55%, up from 13% in the fourth quarter of 2023, driven by focus on reducing direct cost of goods sold.
Decrease in Revenue : Fourth quarter 2024 revenues totaled approximately $62,000 compared to $75,000 in the prior-year quarter.
Increased Operating Expenses : Operating expenses for the fourth quarter totaled $8.9 million compared to $6.6 million in the same quarter last year, primarily due to higher employee-based expenses and increased depreciation.
Higher Net Loss : Reported a net loss attributable to common stockholders of $51.2 million compared to a net loss of $6.8 million in the prior-year quarter, primarily due to non-cash charges related to warrant liability.
Investors often focus on technological advancements, partnerships, and potential future revenue streams rather than current earnings in this sector.
Expansion of NASA Partnership : Secured fifth task order with NASA for developing quantum modeling and removal of solar noise using the Dirac-3 machine. Additional contract for phase unwrapping using Dirac-3, enhancing data accuracy and efficiency in large-scale imaging applications.
The launch and progress of QUBT's Quantum Photonic Chip Foundry will likely be a key focus for investors.
Progress in Photonic Chip Foundry : Quantum Photonic Chip Foundry in Tempe, Arizona is in the final stage of commissioning and on schedule to begin production in early Q2. Secured multiple preorders and five purchase orders for TFLN photonic chips.
Quantum Computing (QUBT) Price Target
Based on 1 analyst from Tiger Brokers offering 12 month price targets for QUBT in the last 3 months. The average price target is $14.00 with a high forecast of $14.00 and a low forecast of $14.00. The average price target represents a 60% change from the last price of $9.10
The AI score for QUBT is 4/10, indicating a "hold" with a slight negative probability of beating the market in the next 3 months. Analysts' price targets vary, with some suggesting significant upside potential.
Technical Analysis - Exponential Moving Average (EMA)
Quantum Computing Inc.'s stock (QUBT) has shown significant volatility. From 07 May, the share price is trading around $6.84, and as of 12 May 2025, the stock closed at $9.10, with a notable increase over the past week and month.
Technical analysis suggests a "buy" signal based on moving averages, but also notes a divergence between volume and price, which could be a warning sign.
The RSI is signaling that there is a weakening of the momentum, which we might see profit taking since the share price now have risen due to the boost from the pause of US China tariffs.
We can see that short interest is increasing which could mean investors are planning to sell ahead of the earnings as expectations of QUBT making profit is still low, and there would be profit taking by earlier investors when QUBT is trading below $7.
These two factors might cause a volatile price movement in QUBT ahead of its earnings.
Summary
The market will be closely watching if QUBT meets revenue expectations, provides updates on the progress of its foundry, and offers insights into future growth strategies. The previous quarter showed a significant improvement in gross margin but a wider net loss due to non-cash charges. The company's strong cash position provides a foundation for future development and commercialization efforts.
Appreciate if you could share your thoughts in the comment section whether you think QUBT would be able to show continual gross margin improvement.
@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
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