The latest earnings report from Quantum Computing raised more questions than it answered. The stock fell 2.7% in extended trading.
Quantum Computing posted $198,000 in revenue for the fourth quarter, down from $384,000 last quarter but sharply higher than the $62,000 recorded in the same period a year ago.
Operating expenses swelled to $22.1 million from $10.5 million last quarter. The firm attributed the increase to "substantial growth in personnel" to support the company's long-term growth initiatives, as well as expenses tied to mergers and acquisitions.
The company reported a $1.6 million net loss, an improvement from the $51.2 million loss reported last year. That stemmed from a $7 million gain from the mark-to-market of a noncash, derivative liability, plus interest income of $13.6 million.
Shares rose 2% in after-hours trading. Industry peers IonQ and D-Wave Quantum, both of which reported earnings last week, fell slightly.
Just last month, the company announced that it had completed the acquisition of Luminar Semiconductor, a maker of photonic integrated circuits, in an all-cash transaction valued at $110 million.
Quantum Computing sees its thin-film lithium niobate chip foundry, which produces materials used in telecom hardware and photonic chips that power certain types of quantum systems, as a way to stand out from peers.
The foundry, which opened its doors last year, "is currently used as a research and development and prototyping space," the company said on Monday, adding that it had "begun to contribute revenue" without providing further details. The company said that it was planning to build a second manufacturing facility "to support higher-volume production."
Shares in Quantum Computing have surged 58% over the past 12 months. While that may sound impressive, the stock lags behind the triple-digit gains in shares of peers Rigetti Computing and D-Wave.
Quantum computing was thrust into the spotlight last year as investors started to see evidence that the technology was moving from speculation to reality. Sporadic system sales and government contracts lent the pure-plays credibility, and many began to bring in more revenue. As a result, more Wall Street analysts have initiated coverage on quantum stocks.
However, quantum technology hasn't escaped the research and development phase. Scientists are looking to cut back on error frequency and scale up to larger systems before quantum computers break out of the laboratory environment.
Quantum Computing itself has faced scrutiny, too. Multiple short sellers accused the company of misrepresenting its products and issuing false press releases. Iceberg Research twice sounded the alarm, writing most recently in November 2024 that Quantum Computing "has gone from one hype to another, only to time and again fail to deliver on its promises." Quantum Computing hasn't responded to a request for comment on the report.
The company has an unusual history. It was founded in 2001 as Ticketcart, which sold inkjet cartridges. It became a beverage distributor and renamed itself Innovative Beverage Group in 2007.
In 2017, that business lost a lawsuit against a shareholder and went into receivership. It then sold stock to Convergent Risk Group, an entity headed by former CEO Robert Liscouski. The company changed its name to Quantum Computing and domiciled to Delaware in 2018.
Quantum Computing has experienced its share of leadership shake-ups. Former CEO William McGann retired in May 2025 after holding the title for just over a year. Chairman Yuping Huang filled the role in an interim capacity for months before officially becoming CEO this year.
The company said in a press release that Huang's appointment marked a pivotal moment for Quantum Computing as it "moves from prototype development and small-batch manufacturing toward industrial-scale manufacturing production."