Quantum Computing Inc. (QCi), a company specializing in quantum computing solutions, has released its Form 10-Q report for the third quarter. The report provides a detailed overview of the company’s financial performance and operational highlights, reflecting its ongoing efforts in research and development, product innovation, and market expansion.

Financial Highlights

  • Total Revenue: $61 thousand, a decrease of 67% compared to the same period last year due to changes in the number and size of active customer contracts.
  • Gross Profit: $26 thousand, representing a gross profit margin of 43%, an improvement from 32% in the prior year period.
  • Loss from Operations: $(10,171) thousand, an increase of 93% compared to the prior year period, primarily due to higher research and development expenses.
  • Net Loss: $(36,482) thousand, an increase of 602% compared to the prior year period, significantly impacted by a loss from the change in fair value of derivative liability.
  • Basic Net Loss Per Common Share: $(0.26), compared to $(0.06) in the prior year period, reflecting the increased net loss.

Business Highlights

  • Research and Development Focus: QCi is heavily investing in research and development, with a significant increase in expenses attributed to higher headcount, recurring lab equipment costs, and depreciation for laboratory equipment. The focus is on developing existing products and new offerings for emerging market opportunities.
  • Core Photonics Technology: QCi’s proprietary technology involves conditioning, manipulating, and measuring single photons, which is central to their Entropy Quantum Computer (EQC). This technology is designed to solve complex optimization problems and operates at room temperature, consuming less power than competing quantum methods.
  • Product Development Plan: The company plans to migrate product designs, including the EQC, to optical integrated circuits built on Thin Film Lithium Niobate (TFLN) wafers. This material is chosen for its optical properties and compatibility with semiconductor fabrication methods.
  • AZ Chips Facility: QCi has completed the buildout of a state-of-the-art TFLN chip manufacturing facility in Tempe, Arizona, which is expected to support the company’s future product development and manufacturing capabilities.
  • Quantum Sensing Applications: The company is leveraging its core photonics technology to develop quantum sensing applications in LIDAR, reservoir computing, and quantum cyber authentication, with several technologies in early commercialization stages.
  • Sales and Marketing Expansion: There is an increase in sales and marketing expenses due to higher tradeshow and travel-related costs, as well as increased marketing program costs, indicating a strategic push to expand market presence.
  • Future Outlook: QCi anticipates developing multiple generations of quantum machines with increasing computational power, scalability, and speed. The company is also focused on expanding its Foundry Services offering and investing in research and development for its quantum optical products.

SEC Filing: Quantum Computing Inc. [ QUBT ] – 10-Q – Aug. 14, 2025