HOBOKEN, N.J., Aug. 14, 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 and six-month periods ended June 30, 2025.

Dr. Yuping Huang, Interim Chief Executive Officer of QCi, commented, "We delivered meaningful commercial progress in the second quarter with new customer wins across quantum sensing, cybersecurity, and AI. Our first shipments to leading research institutions and commercial enterprises in Europe, Asia, and the U.S., together with our deepening engagement with NASA, underscore the growing demand for QCi's photonic technologies and mark an important step in our commercial journey.

"The launch of our operational chip foundry in Arizona represents a major strategic milestone, enabling us to fulfill pre-orders and support scalable production across multiple end markets, including datacom, telecom, and advanced sensing. In parallel, we've strengthened our leadership team to support this next phase of growth and execution. 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."

Second Quarter 2025 Financial Highlights

Second quarter 2025 revenues totaled approximately $61,000 (43% gross margin) compared to $183,000 (32% gross margin) recorded in the second quarter of 2024. Gross margin can vary at our current revenue levels. Accordingly, the year-over-year variation is not significant.
Second quarter 2025 operating expenses totaled $10.2 million compared to the previous year's second quarter operating expenses of $5.3 million. The year-over-year increase was primarily driven by higher employee-based expenses.
The Company reported a net loss attributable to common stockholders of $36.5 million, or $0.26 per basic share for the second quarter of 2025, compared to a net loss attributable to common stockholders of $5.2 million or $0.06 per basic share for the same period of the previous year. The increase in net loss this quarter was primarily due to a $28 million non-cash loss on the mark-to-market valuation of the Company's warrant derivative liability, which relates to our merger with QPhoton in June 2022.
Total assets at June 30, 2025 were $426.1 million, increasing from $153.6 million at December 31, 2024. Cash and cash equivalents at June 30, 2025 increased by $269.8 million to $348.8 million from year-end 2024. During the second quarter, the Company raised total net proceeds of $188 million through a private placement of common stock.
Total liabilities at June 30, 2025 were $30.1 million, a decrease of $16.2 million compared to year-end 2024, driven primarily by the previously-mentioned non-cash changes in the fair value of the Company's warrant derivative liability.
As of June 30, 2025, the Company had shareholders' equity totaling $396.0 million.

Second Quarter 2025 Operational Highlights

Growing Commercial Adoption by Research Institutions: During the quarter, QCi secured an order for its Quantum Photonic Vibrometer (QPV), placed by the Department of Aerospace Structures and Materials at Delft University of Technology, a globally recognized engineering and research institution. The QPV will support advanced research in non-destructive testing and structural health monitoring, highlighting growing commercial engagement with leading academic centers and validation of QCi's quantum photonic sensing technologies. Additionally, QCi successfully shipped its first commercial entangled photon source to a leading research institution in South Korea, marking a key milestone in the commercialization of its proprietary quantum communication technologies. Designed for compatibility with existing fiber optics infrastructure, the device enables secure quantum communication research and supports QCi's broader cybersecurity roadmap. This shipment demonstrates early global demand for QCi's quantum networking solutions and validates progress in transitioning lab-developed innovations to market-ready products.
Expanding Commercial Traction for Quantum AI and Cybersecurity Solutions: During the quarter, QCi secured the sale of its EmuCore reservoir computing device to a major global automotive manufacturer. The system will be used for research and development to explore edge-based machine learning applications, including time-series prediction and image recognition. This marks a key step in validating QCi's reservoir computing platform in real-world environments and builds momentum for future adoption of the Company's PCIe-based photonic reservoir computing units. Subsequent to the quarter, on July 15, 2025, the Company announced a purchase order from a top 5 U.S. bank for its quantum security solutions. This was the Company's first U.S. commercial sale of its quantum cybersecurity solutions.
Advancing Strategic Partnerships with NASA: During the quarter, QCi was awarded a subcontract valued at up to $406,478 to support NASA's Langley Research Center. Under the project, QCi will apply its Dirac-3 quantum computer to develop quantum-based techniques for removing solar noise from space-based LIDAR data, an obstacle that has historically limited NASA's ability to conduct reliable daytime atmospheric sensing. Building upon QCi's prior work with NASA, the initiative aims to reduce the mission size, weight, and power requirements, reinforcing QCi's role as a trusted partner delivering quantum-powered solutions for real-world scientific challenges.
Quantum Photonic Chip Foundry Update: QCi completed construction of its quantum photonic chip foundry in Tempe, Arizona in March 2025, achieving a key milestone in its multi-phase growth strategy. In May 2025, the Company hosted a ribbon-cutting ceremony attended by Tempe Mayor Corey Woods to mark the official grand opening. The state-of-the-art facility is now operational, fulfilling customer pre-orders and positioned to scale production of thin-film lithium niobate (TFLN) photonic chips for the datacom, telecom, advanced sensing, and quantum computing markets.
Key Leadership Appointments to Support Growth and Execution: During the second quarter, QCi made several strategic leadership changes to support its next phase of commercialization. Dr. Yuping Huang was appointed Interim Chief Executive Officer, and Chris Roberts was appointed Chief Financial Officer. Additionally, Dr. Milan Begliarbekov was promoted to Chief Operating Officer and Dr. Pouya Dianat to Chief Revenue Officer. These appointments enhance QCi's operational and commercial leadership as the Company scales manufacturing and expands market adoption of its quantum and photonic solutions.
Inclusion in Russell 3000® and Russell 2000® Indexes: QCi was selected for inclusion in the Russell 3000® and Russell 2000® Indexes as part of the 2025 annual reconstitution, effective June 30. This milestone enhances the Company's visibility among institutional investors and index funds. The inclusion underscores increasing recognition of QCi's role in advancing real-world applications for quantum and photonic technologies.

Earnings Conference Call

The Company will host its second quarter conference call today, Thursday, August 14, 2025, at 4:30 p.m. ET. 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/3051/52835

To participate in the call by phone, dial (877) 545-0320 approximately five minutes prior to the scheduled start time. International callers please dial (973) 528-0002. Callers should use access code: 999992.

A replay of the teleconference will be available until August 28, 2025, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 52835.

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 and TFLN foundry services 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.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
Total revenue	$	61	$	183	$	100	$	210
Cost of revenue		35		125		61		141
Gross profit		26		58		39		69
Operating expenses
Research and development		5,975		2,094		8,960		4,315
Sales and marketing		680		429		1,352		880
General and administrative		3,542		2,802		8,184		6,459
Total operating expenses		10,197		5,325		18,496		11,654
Loss from operations		(10,171)		(5,267)		(18,457)		(11,585)
Non-operating income (expense)
Interest and other income		1,843		73		3,539		110
Interest expense		(58)		-		(116)		(155)
Change in fair value of derivative liability		(28,096)		-		(4,466)		-
Loss before income tax provision		(36,482)		(5,194)		(19,500)		(11,630)
Income tax provision		-		-		-		-
Net loss attributable to common stockholders	$	(36,482)	$	(5,194)	$	(19,500)	$	(11,630)

Loss per share:
Basic	$	(0.26)	$	(0.06)	$	(0.14)	$	(0.13)
Diluted	$	(0.26)	$	(0.06)	$	(0.14)	$	(0.13)

Weighted average shares used in computing net (loss)
income per common share:
Basic		141,401		93,550		138,326		87,185
Diluted		141,401		93,550		138,326		87,185

QUANTUM COMPUTING INC.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except par value data)

	June 30,		December 31,
	2025		2024
Assets
Current assets:
Cash and cash equivalents	$	348,758	$	78,945
Accounts receivable, net		96		27
Inventory		366		18
Prepaid expenses and other current assets		1,005		161
Total current assets		350,225		79,151
Property and equipment, net		10,569		8,212
Operating lease right-of-use assets		2,076		1,522
Intangible assets, net		7,510		8,972
Goodwill		55,573		55,573
Other non-current assets		131		129
Total assets	$	426,084	$	153,559

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	1,372	$	1,372
Accrued expenses		1,251		2,134
Deferred revenue		181		79
Other current liabilities		1,168		974
Total current liabilities		3,972		4,559
Derivative liability		24,594		40,532
Operating lease liabilities		1,536		1,181
Total liabilities		30,102		46,272
Commitments and Contingencies (see Note 8)
Stockholders' equity:
Preferred stock, $0.0001 par value, 1,550 shares Series A Preferred authorized; no
shares issued and outstanding as June 30, 2025 and December 31, 2024,
respectively; 3,080 shares of Series B Preferred Stock authorized; no shares issued
and outstanding as of June 30, 2025 and December 31, 2024, respectively		-		-
Common stock, $0.0001 par value, 250,000 shares authorized; 157,911 and 129,012
shares issued and outstanding as of June 30, 2025 and December 31, 2024,
respectively		16		13
Additional paid-in capital		615,948		307,756
Accumulated deficit		(219,982)		(200,482)
Total shareholders' equity		395,982		107,287
Total liabilities and shareholders' equity	$	426,084	$	153,559

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SOURCE Quantum Computing Inc.