By Mackenzie Tatananni

While third-quarter results from Quantum Computing may seem like nothing to sneeze at, investors see them as a sign of progress.

Shortly after the closing bell Friday, Quantum Computing posted $384,000 in revenue, up from $101,000 last year. The company cited an increase in the number of hardware contracts and the recognition of revenue for cloud-based computing access to its Dirac-3 quantum system. In the second quarter, revenue was just $61,000.

The company reported net income of $2.4 million, compared to a net loss of $5.7 million in the same period last year. The increase was primarily driven by a $9.2 million gain from the mark-to-market of a derivative liability, the company said.

Operating expenses swelled to $10.5 million from $5.4 million last quarter. The increase "reflects continued investment in research and development, engineering, and manufacturing as we position the company for long-term growth," Quantum Computing said.

While higher operating expenses can reflect a commitment to improving technology, they aren't an encouraging sign in the world of quantum, where investors are eagerly waiting for the biggest names to turn a profit. To date, none of the publicly traded pure-plays are profitable, and most have limited financial history. Quantum Computing, for instance, has only been listed on the Nasdaq since 2021.

Still, the market seemed to shrug off these concerns as the stock gained 16% to $12.29 in premarket trading. Futures tracking the three major indices were flat.

One catalyst could be the company's progress with customers in the third quarter. The company notched its first purchase order with a "top 5 U.S. bank," marking the first commercial sale of its quantum security solutions in the country.

Quantum Computing is one of the few pure-play publicly traded companies in the field, along with names like Rigetti Computing, D-Wave Quantum, and IonQ. Peers were trading mixed in the premarket session.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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November 17, 2025 08:43 ET (13:43 GMT)

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