QUBT Bets on Scale as Rising Costs Weigh on Profitability

Quantum Computing Inc. QUBT or QCi faces a key risk as its strong revenue growth has not yet translated into positive profitability. Second-quarter 2026 revenues rose to $5.6 million from just $61,000 a year ago, but the company still reported a gross loss of about $1.2 million. 

This indicates that current production volumes are not yet high enough to absorb manufacturing-related fixed costs efficiently. The company is working toward scalable commercial manufacturing and higher production volumes, which could help improve gross margins over time. 

Second-quarter operating expenses also surged 114% year over year to $21.8 million, mainly due to higher personnel and payroll costs for research and development, increased sales and marketing spending, and about $7.3 million in acquisition-related transaction expenses. 

QCi used approximately $180 million in cash, including transaction expenses, to acquire Luminar Semiconductor, NuCrypt and NHanced Semiconductors during the first half of 2026. These deals not only expanded QCi’s technology and manufacturing capabilities but also introduced integration and execution risks. Increasing production volumes, converting backlog into revenues and controlling expenses will therefore be critical to the company’s path toward profitability.

Peer Update

D-Wave Quantum QBTS revenues remain uneven because large system contracts still shape reported results, even as recurring commercial usage is improving underneath. Second-quarter 2026 revenues remained essentially flat year over year, while first-half revenues declined to $5.93 million from $18.10 million in the prior-year period, primarily because the year-ago period benefited from a major system sale.

Expense intensity also remains high as D-Wave funds both near-term commercialization and a multi-year technology roadmap. Second-quarter 2026 operating expenses rose 93% year over year, while first-half operating cash outflow increased to $73.5 million from $34.6 million, reflecting a 112% jump. 

Rigetti’s RGTI revenue profile remains tied to the timing of system deliveries and milestone-based development work rather than recurring commercial usage. Revenues reached $5.1 million in the second quarter of 2026, up from $1.8 million a year earlier, driven mainly by sales of 9-qubit Novera systems and related products. 

However, concentration remains high, with one customer accounting for 64% of second-quarter 2026 revenues and another for 16%. Rigetti continues to fund a large research and infrastructure program against a small revenue base. Operating expenses rose 48% year over year to $30.3 million, including a 53% increase in R&D to $20.7 million. 

QUBT’s Share Price Performance

Over the past year, QCi’s shares have plunged 47.9% compared with the industry’s 11.7% decline. 

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QUBT’s Expensive Valuation

QUBT currently trades at a forward 12-month price-to-sales (P/S) of 34.61X compared with the industry’s median of 4.09X.

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QUBT Stock Estimate Trend

Over the past 30 days, QCi’s loss per share estimate for 2026 has moved south.

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QUBT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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