IonQ reported better-than-expected financial results—a welcome development asprofit-reporting season gears upfor quantum-computing companies, though questions remain about the long-term prospects of the technology.

D-Wave Quantum is scheduled to report its results on Thursday, and Rigetti Computing will disclose its numbers next week. IonQ posted first-quarter revenue of $7.6 million, flat from the previous year and above the $7.5 million analysts had anticipated, according to FactSet. Revenue was down 35% from the prior quarter.

The company logged a net loss of $32.3 million, compared with the loss of $39.6 million recorded in the same period a year ago. Shares climbed 2.1% to $29.75 in after-hours trading after ending the session down 1%.

CEO Niccolo de Masi, who assumed the role in February, lauded IonQ’s “strong start to the year.” He noted that revenue came in above the midpoint of the range management had told investors to expect for the first quarter.

“We delivered important commercialization and expansion milestones for both our quantum computing and quantum networking businesses,” de Masi said in a statement. “We’re delivering real-world value for our customers today.”

The company specializes in trapped-ion technology, where charged atomic particles are held in place and manipulated by electromagnetic fields. These particles act as qubits, or the basic units of information, analogous to bits in classical computers but capable of holding both positive and negative values at the same time.

IonQ generates revenue through the direct sale of quantum hardware as well as subscription-based access to its quantum cloud, which offers remote access to quantum computing power.

The company told investors to expect full-year revenue between $75 million and $95 million and second-quarter revenue in the range of $16 million to $18 million.

In the days leading up to the earnings report, IonQ announced a string of partnerships and deals. That includes the acquisition of a controlling stake in ID Quantique, a Swiss quantum cryptography company, and a $22 million partnership with EPB, a telecommunications company owned by the city of Chattanooga, Tenn.

The company’s latest financial results draw a contrast to those of one of its pure-play peers, Quantum Computing, which reported fourth-quarter earnings after the bell on March 20. Revenue fell 17% while the company’s quarterly loss widened.

The encouraging first-quarter print came after months of uncertainty and questions about IonQ’s health.

IonQ began 2025 with a leadership transition as Peter Chapman quietly departed his post as CEO and assumed the role of executive chair. He appeared on a panel at Nvidia’s annual developer conferencein March to discuss the current and future applications of quantum computing.

The same month, IonQ was the subject of a short seller’s report that caused shares to tumble. Through Wednesday’s close, IonQ remains down 30% this year and down sharply from its record closing high of $51.07 in January.

Missing from the earnings release were any mentions of profitability. Management has remained tight-lipped since January, when Chapman said he expected the company to turn a profit by 2030, with sales approaching $1 billion.

IonQ and other pure plays continue to pour more money into research, development, and acquisitions than they earn, making it difficult for investors to gauge their progress.

As a result, quantum stocks trade largely on headlines and sentiment. The shares have been temperamental in the absence of major market-moving news since March.

Peers D-Wave Quantum and Rigetti Computing ended Wednesday’s session down 4.7% and 5.5%, respectively, while Quantum Computing closed flat.