TenQ

The Quantum Computing Inc. story

Quantum Computing Inc. makes photonics products and quantum systems, with its transition to commercial manufacturing depending on whether acquired factories and room-temperature computing products can generate profitable customer demand.

Quantum Computing Inc. stock reportTenQ Score 10/36 · every chart and check from its filings
  • $6.36share price, last close
  • $1.4Bmarket value
  • 10/36TenQ Score checks passed

The story in brief

  • Photonics drives revenue. Revenue reached $5.6 million in the quarter to June 2026, compared with $61 thousand a year earlier, primarily from photonics products serving aerospace, government and industrial applications.
  • Manufacturing expands through acquisitions. The NHanced Semiconductors acquisition launched Fab 2 ahead of schedule, adding advanced packaging and semiconductor manufacturing capabilities for commercial products and QCi’s quantum roadmap.
  • Cash cushions operating losses. QCi ended June 2026 with approximately $1.3 billion in cash, cash equivalents and investments, while free cash flow over the last twelve months was -$51 million.

What drives the business

  • QCi is building an integrated photonics business spanning chip design, manufacturing and complete systems, with a plan to move its room-temperature Entropy Quantum Computer from discrete components to thin film lithium niobate optical circuits.
  • The February 2026 acquisition of Luminar Semiconductor for $110 million added lasers, detectors, packaging and manufacturing, alongside an established business serving aerospace and defense, sensing and optical communications.
  • In June 2026, QCi acquired NHanced Semiconductors for $73.1 million in cash and stock, with up to $72.0 million in additional earnouts, expanding its ability to manufacture and package smaller photonic systems.
  • The March 2026 acquisition of NuCrypt, valued at $5 million, added quantum communications products whose technologies have been used by NASA and the U.S. Army Research Laboratory.
  • QCi brought its NeuraWave photonic reservoir computing platform to commercial readiness and entered a framework agreement with Planck Dynamics with potential program value exceeding $10 million, subject to customer milestones and other conditions.

What the price assumes

The reverse DCF cannot measure the growth assumed by the $7.62 share price because free cash flow and operating earnings are both negative, leaving the valuation dependent on future profits.

Revenue grew 3635.4% over the last twelve months to $10 million, but the price to sales ratio of 175.6x remains above the TenQ check’s bar of under 2.5x.

QCi passes 1 of 6 Value checks, reflecting a lower sales valuation than its own history rather than support from positive operating earnings or free cash flow.

What could change the story

  • A gross margin of -18.9% and operating margin of -775.5% over the last twelve months show that revenue growth has not established profitable production or covered operating costs, and QCi passes 0 of 6 Quality checks.
  • The lower net loss in the quarter to June 2026 partly reflected a smaller warrant valuation loss and higher interest income, while operating expenses rose 114% to $21.8 million.
  • The share count increased 348.5% over three years, making dilution an important counterweight to the large cash balance.
  • Integrating the acquired businesses and scaling production require technological and manufacturing progress, while QCi’s limited operating history makes revenue and profitability difficult to forecast.
  • Reliance on suppliers in China and East Asia for thin film lithium niobate optical chips exposes production to trade restrictions and geopolitical disruptions, while larger technology companies and sovereign-funded researchers add competitive pressure.

What to watch next

  • For the second half of 2026, management emphasized acquisition integration, customer expansion and investment in technology and manufacturing rather than numerical revenue or profit guidance.
  • Subsequent releases can show how much of the approximately $42.5 million contract backlog reported at June 30, 2026 becomes revenue, and whether Planck Dynamics achieves the milestones needed for NeuraWave deployments.
  • Gross margins, operating expenses and free cash flow will help distinguish commercial progress from expansion that adds costs, while cash and investment balances will show the combined demands of operations and acquisitions.

Sources

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