Quantum Computing Posts $9.5 Million Quarter, Widens Loss to $15.1 Million

Quantum Computing Inc. (NASDAQ:QUBT) reported record third-quarter 2026 revenue of $9.5 million, up from $384,000 a year earlier — and posted a net loss of $15.1 million, or $0.07 per basic share, against net income of $2.4 million a year before. The two figures tell one story: the company spent heavily to buy and build, and the market has not yet priced whether the spending converts.

Revenue for the quarter exceeded the $9.2 million QUBT generated in the entire first half of 2026. Chief Financial Officer Christopher Roberts said sales came primarily from photonic products used in aerospace, government and industrial applications. Chairman and CEO Yuping Huang credited acquisitions completed earlier in the year, which he said added products, customer relationships and manufacturing capabilities supporting current sales and longer-term quantum plans. Over the next 12 to 24 months, he named three priorities: commercial growth, manufacturing scale, and advances in the quantum portfolio.

What drove the loss?

Operating expenses rose to $29 million from $10.5 million a year earlier, reflecting higher personnel and related costs across research and development, sales and marketing. The total included roughly $1 million in acquisition-related expenses. Roberts attributed the swing to loss to higher operating expenses and smaller mark-to-market gains on a warrant derivative, partly offset by higher revenue and interest income.

Gross profit was $428,000 — a 4.5% gross margin on $9.5 million of sales. Roberts said the company sees opportunities to improve margins over time through greater manufacturing utilization and operating efficiency. A promise of margin improvement, it should be noted, arrived without a timetable. He also said the third-quarter expense level was a reasonable indication of the next quarter, though continued hiring — the company counted more than 330 employees at the call — could push costs gradually higher.

The balance sheet remains the cushion. QUBT ended September with approximately $174.3 million in cash and equivalents, $1.1 billion in investments and $916.9 million in working capital. Roberts said liquidity is sufficient to fund operations for at least the next 12 months.

When does the Dirac-3S ship?

Huang said QUBT expects to ship its first Dirac-3S optimization machine to a customer in the fourth quarter. The system handles optimization problems with up to 9,980 variables. The company published benchmark results against classical solvers; Huang identified Hexaly as a comparator and said QUBT also tested against algorithms from research literature. He said the Dirac-3S performed better overall in the company's own tests — faster and higher quality on most problems, comparable or less optimal on some — and explicitly declined to claim "quantum supremacy," saying performance across applications is still being evaluated.

The pipeline for the new system remains unquantified. Huang said it was too early to determine its size, though he expects the increased capacity to attract existing and new customers. The company is exploring upgrades for existing Dirac-3 users and continues to offer cloud access; during the quarter it provided such access to Hamad Bin Khalifa University in Qatar. Huang also described an early-stage collaboration with INmune Bio, testing whether Dirac optimization, artificial intelligence and conventional analytics can extract insights from clinical research data.

What about backlog and the fab?

Contract backlog stood at approximately $39.1 million at quarter-end. Roberts said most of it should convert to revenue within 12 months, though some contracts could take longer, and estimated roughly 70% of backlog is tied to aerospace and government work, mostly through subcontracts. He offered no guidance, saying revenue and contract awards arrive unevenly and order timing is difficult to predict — and said growth in backlog and orders from a broader range of customers would be the real signs of commercial progress.

QUBT is integrating operations across 11 facilities in eight states, with no plans to consolidate sites; the work includes connecting accounting and manufacturing systems. Huang said the NHanced Semiconductors acquisition accelerated the company's Fab 2 plans, which had previously contemplated a new-build facility completed around the end of 2028. Roberts put planned Fab 2 investment at approximately $70 million to $80 million, with much of that spending expected by March 31, 2027. Huang said the company hopes to demonstrate heterogeneously integrated circuits within 12 to 18 months, potentially sooner, while Roberts said QUBT will keep evaluating acquisitions and capital equipment needs while preserving working capital.

Cash is ample, orders are thin relative to spend, and the fourth quarter will test both.