Quantum Computing (NASDAQ:QUBT) reported record third-quarter 2026 revenue of $9.5 million, driven primarily by its expanded photonics business, while its net loss widened as the company increased spending on personnel, research and commercialization.
Revenue rose from $384,000 a year earlier and exceeded the $9.2 million the company generated in the first half of 2026. Chief Financial Officer Christopher Roberts said sales were primarily from photonic products used in aerospace, government and industrial applications.
Chairman and CEO Yuping Huang said acquisitions completed earlier in the year added products, customer relationships and manufacturing capabilities that support both current sales and the company’s longer-term quantum technology plans. Over the next 12 to 24 months, he said, the company’s priorities are commercial growth, manufacturing scale and advances in its quantum portfolio.
Higher spending leads to quarterly loss
Quantum Computing reported a net loss of $15.1 million, or $0.07 per basic share, compared with net income of $2.4 million, or $0.01 per basic share, a year earlier. Roberts attributed the change largely to higher operating expenses and smaller mark-to-market gains on a warrant derivative, partly offset by higher revenue and interest income.
Operating expenses rose to $29 million from $10.5 million, reflecting higher personnel and related costs for research and development, sales and marketing. The total also included approximately $1 million in acquisition-related expenses.
Gross profit was $428,000, representing a 4.5% gross margin. Roberts said the company sees opportunities to improve margins over time through greater manufacturing utilization and operating efficiency.
Roberts said the third-quarter expense level was a reasonable indication of the next quarter, although continued hiring could lead to a gradual increase. The company had more than 330 employees at the time of the call, he said.
Quantum Computing ended September with approximately $174.3 million in cash and cash equivalents, $1.1 billion in investments and $916.9 million in working capital. Roberts said the company believes its liquidity is sufficient to fund operations for at least the next 12 months.
Dirac-3S shipment expected in fourth quarter
Huang said Quantum Computing expects to ship its first Dirac-3S optimization machine to a customer in the fourth quarter. The system is designed to handle optimization problems with up to 9,980 variables.
The company published benchmark results comparing the system with classical optimization solvers. Asked about the comparison, Huang identified Hexaly and said the company also compared results with algorithms found in research literature.
Huang said the Dirac-3S performed better overall in the company’s published tests, with advantages in solution time and quality on most problems, while being comparable or less optimal on some. He cautioned that the company is still evaluating performance across applications and declined to claim “quantum supremacy.”
The company is exploring upgrades for existing Dirac-3 users and continuing to provide cloud access, Huang said. He said it was too early to determine the size of the new system’s pipeline, though he expects its increased capacity to attract existing and new customers.
During the third quarter, Quantum Computing provided cloud access to its Dirac-3 system to Hamad Bin Khalifa University in Qatar. Huang also described an early-stage collaboration with INmune Bio exploring whether Dirac optimization, artificial intelligence and conventional analytics could yield insights from clinical research data.
Backlog and manufacturing plans
Contract backlog stood at approximately $39.1 million at quarter-end. Roberts said most of it is likely to convert to revenue over the next 12 months, although some contracts could take longer. He estimated that roughly 70% of backlog was tied to aerospace and government work, mostly through subcontracts.
Roberts said revenue and contract awards can be uneven, and the company is not providing guidance because the timing of orders and deliveries is difficult to predict. He said growth in backlog and orders from a broader range of customers would be signs of commercial progress.
The company is integrating operations across 11 facilities in eight states, but Roberts and Huang said there are no plans to consolidate sites. Roberts said the work includes connecting accounting and manufacturing systems and coordinating teams across locations.
Huang said the acquisition of NHanced Semiconductors accelerated the company’s Fab 2 plans, which had previously contemplated a new-build facility completed around the end of 2028. Roberts said planned investment in the NHanced Fab 2 is 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. Roberts said Quantum Computing will continue evaluating acquisitions and capital equipment needs while seeking to preserve working capital.
About Quantum Computing (NASDAQ:QUBT)
Quantum Computing Inc (QCi) develops quantum computing hardware and software, with a focus on photonics and systems designed to operate at room temperature. The company aims to make quantum technology more accessible for commercial and research applications.
Its offerings include the Dirac quantum computing systems and software for optimization problems. QCi also develops photonic technologies for applications such as quantum sensing and cybersecurity.
The company serves customers and organizations pursuing quantum computing and related technologies.
