QCi Raises Cash, But Revenues Remain Marginal

Insider Brief

• QCi reported a widened fourth-quarter net loss of $51.2 million on falling revenue and missed earnings, while increasing its cash reserves through stock offerings.
• Revenue for the quarter came in at $62,000, below the prior year and short of the $400,000 consensus forecast, with an EPS miss of $0.39 per share.
• The company reported that it improved its gross margin — 55% compared to 13% a year earlier.

Quantum Computing Inc. (QCi) posted a fourth-quarter net loss of $51.2 million, significantly widening from $6.8 million a year earlier, as non-cash accounting charges weighed on results, according to a company statement. However, the company added new capital to its balance sheet.

Quantum Computing’s actual EPS of -$0.47 fell short of the forecasted -$0.08, a miss of $0.39 per share.

Revenue for the three months ending Dec. 31, 2024, was $62,000, down from $75,000 in the same period last year. Revenue also missed the forecasted target of the consensus mark of $400,000.

The company reported that it improved its gross margin — 55% compared to 13% a year earlier, attributing this to lower costs of goods sold. Operating expenses climbed to $8.9 million, up from $6.6 million in the prior year’s fourth quarter, largely due to non-cash stock-based compensation and increased depreciation on equipment at its foundry in Tempe, Ariz.

Despite the higher losses, QCi closed the quarter with $78.9 million in cash and cash equivalents, up from $2 million a year ago. The company raised a total of $92.1 million in the fourth quarter through stock offerings and later announced an additional $100 million equity raise in early 2025. Assets surged to $153.6 million from $74.4 million at year-end 2023, while total liabilities jumped to $46.3 million from $5.3 million, primarily due to accounting for warrants related to QCi’s 2022 merger with QPhoton.

“QCi made meaningful progress in the fourth quarter strengthening our financial position to support the continued advancement of our quantum solutions and foundry services,” CEO Dr. William McGann said. “With a significantly bolstered balance sheet, we are well-positioned to scale operations and accelerate commercialization efforts.”

The company announced five purchase orders for its thin-film lithium niobate (TFLN)-based photonic integrated circuits. QCi also reported it is continuing work with NASA.