Quantum Computing Inc.’s Revenue Rises, Operating Costs Climb

Insider Brief

• Quantum Computing Inc. reported higher fourth-quarter revenue and a sharply reduced net loss for 2025, largely driven by financial gains following a $750 million private stock placement.
• Fourth-quarter revenue rose to approximately $198,000 while operating expenses increased to $22.1 million, reflecting expanded hiring and acquisition-related costs.
• The company’s balance sheet expanded to $1.6 billion in total assets after the capital raise, as it advanced plans for a second fabrication facility and completed the $110 million acquisition of Luminar Semiconductor.

Quantum Computing Inc. reported a sharp increase in quarterly revenue and a significantly narrower net loss for the end of 2025, driven largely by new manufacturing activity and financial gains tied to a $750 million capital raise.

The Hoboken, N.J.-based company, which trades on the Nasdaq under the ticker QUBT, said in a news release that fourth-quarter revenue totaled about $198,000, up from $62,000 a year earlier. The company attributed the 219% year-over-year increase primarily to hardware sales and services associated with its Fab 1 facility, a photonic chip fabrication site that began generating revenue during the year.

Dr. Yuping Huang, Chief Executive Officer of QCi, said in the release: “In 2025 we continued to advance our strategy to build a vertically integrated photonics and quantum optics platform capable of supporting scalable, commercial applications across AI, high-performance computing, cybersecurity, and remote sensing. We completed and opened “Fab 1″, our TFLN chip manufacturing facility in Tempe, Arizona, expanded our foundry services business, strengthened our leadership team and board, and raised over $1.5 billion to support our long-term growth strategy and technology roadmap. We are now seeing early customer engagement and revenue contribution from our foundry services and product portfolio as we continue progressing toward broad scale commercialization.”

Huang continued: “Subsequent to the close of the fourth quarter, we completed our acquisition of Luminar Semiconductor, Inc., which brings established capabilities in lasers, detectors, advanced packaging, and manufacturing. The acquisition adds an established customer base and accelerates our path to scalable manufacturing. As we move through 2026, we remain focused on advancing strategic partnerships, scaling our technology and manufacturing capabilities, and investing in talent across engineering, research and production to support continued growth and execution.”

Despite the revenue growth, operating expenses rose far more steeply. Fourth-quarter operating costs reached $22.1 million, compared with $8.9 million in the same period in 2024, an increase of 148%. The company said the higher expenses reflected expanded hiring in research and development, engineering, manufacturing and sales, as well as merger-and-acquisition costs.

The company reported a net loss of $1.6 million, or $0.01 per basic share, for the fourth quarter, compared with a net loss of $51.2 million, or $0.47 per share, in the prior-year quarter. According to the news release, the improvement was largely due to a $7 million non-cash gain from marking a derivative liability to market, along with $13.6 million in interest income. Both items are subject to change in future periods and do not reflect core operating performance.

Capital Raise Reshapes Balance Sheet

Quantum Computing Inc.’s balance sheet expanded dramatically during the year, largely because of a sizable private placement completed in the fourth quarter.

The company said it raised $750 million in gross proceeds through the sale of more than 37 million shares of common stock to institutional investors. As a result, total assets rose to $1.6 billion as of Dec. 31, 2025, up from $153.6 million a year earlier. Cash and cash equivalents increased to $737.9 million, and investments totaled $783 million at year-end.

Total liabilities stood at $20.7 million, down from the prior year, leaving stockholders’ equity at $1.6 billion.

The capital raise dwarfs the company’s current revenue base. For the fourth quarter, revenue remained under $200,000, an indication of the early commercial stage of its operations.

Manufacturing and Acquisition Plans

Operationally, the company said its Fab 1 facility, which serves as a research, development and small-batch manufacturing site for thin-film lithium niobate photonic chips, has begun contributing revenue. Photonic chips use light rather than electrical signals to process or transmit information and are viewed by some researchers as a potential path toward faster or more energy-efficient computing systems.

The company said it is planning a second, larger manufacturing facility, referred to as Fab 2, aimed at supporting higher production volumes. No timeline or cost estimate for Fab 2 was disclosed in the release.

During the quarter, Quantum Computing Inc. also agreed to acquire Luminar Semiconductor Inc. in an all-cash transaction valued at $110 million. The deal, completed Feb. 2, 2026, adds capabilities in lasers, detectors and advanced packaging, according to the company’s announcement. The acquisition is intended to complement QCi’s integrated photonics efforts, though integration risks and additional costs were not detailed in the release.

The company said Huang was confirmed as chief executive officer effective Jan. 1, 2026, after serving as interim CEO since April 2025. The leadership change comes as the company seeks to scale its photonics systems for what it describes as industrial and commercial applications.

Quantum Computing Inc. also introduced a photonics-based reservoir computing system called Neurawave at a recent industry conference. Reservoir computing is a form of machine learning that uses complex physical systems — in this case, optical components — to process time-dependent data. The company said the system is designed to integrate with existing computing infrastructure, though it did not provide performance benchmarks or customer deployments.

The company also announced a strategic collaboration with POET Technologies to develop high-speed optical engines based on thin-film lithium niobate modulators. The effort targets data transmission rates of 3.2 terabits per second, aimed at artificial intelligence networking applications.