Quantum Computing Inc.

What they do

QCi develops products based on integrated photonics and non-linear quantum optics, including the Entropy Quantum Computer (EQC) for optimization and quantum sensing applications in LiDAR, reservoir computing, and secure communications. Its products are designed to operate at room temperature and low power, in contrast to superconducting, trapped-ion, or annealing quantum architectures. The company also sells photonics products through its acquisitions, including laser diodes, semiconductor optical amplifiers, and avalanche photodiodes. It is developing thin film lithium niobate (TFLN) optical integrated circuits and operates manufacturing via its AZ Chips Facility in Tempe, Arizona and a higher-volume facility called Fab 2.

Revenue drivers

• Photonics products — Q2 2026 revenue of $5.6 million was primarily driven by sales of photonics products supporting the quantum technology roadmap and existing aerospace, government, and industrial applications, according to the earnings release.
• Quantum optimization systems (Dirac-3) — The company delivered and installed a Dirac-3 quantum optimization machine at a global consulting firm for enterprise optimization applications, including portfolio optimization, per the Q2 2026 release.
• Quantum secure communications — QCi received a purchase order from a world-leading university for its quantum secure communications system, as stated in the Q2 2026 earnings release.
• NeuraWave reservoir computing — NeuraWave, a photonic reservoir computing platform, reached commercial readiness and a framework agreement was signed with Planck Dynamics for deployment in next-generation AI applications.

Recent performance

Second quarter 2026 revenue was $5.6 million, up from $61 thousand in Q2 2025 and $3.7 million in Q1 2026. Operating expenses were $21.8 million, up 114% year over year, largely from higher headcount, payroll, and $7.3 million in acquisition-related transaction expenses. The company reported a net loss of $11.8 million, or $0.05 per basic share, compared with a $36.5 million net loss in the prior-year period. Interest and other income was $13 million, versus $1.8 million in Q2 2025, driven by interest on larger cash and investment balances. Q2 2026 ended with $1.3 billion in cash, cash equivalents, and investments.

Strategy

QCi is pursuing a vertically integrated strategy combining quantum and photonics technologies with semiconductor manufacturing, supported by several acquisitions in 2026. It acquired Luminar Semiconductor, Inc. in February 2026 for $110 million in cash, NuCrypt, and NHanced Semiconductors, Inc., the last of which launched Fab 2 to expand advanced packaging and manufacturing capacity. The company's longer-term plan is to migrate product designs from discrete components to optical integrated circuits built on thin film lithium niobate wafers. Management emphasizes scalability, accessibility, and affordability, with a professional services offering for optimization, sensing, imaging, and cybersecurity applications. It also aims to serve commercial, government, and educational customers across its portfolio.

Risks

• Early-stage with limited operating history — QCi was formed in 2018, has limited revenue, and states that its historical results should not be considered indicative of future performance.
• Persistent net losses and cash use — The company reported a net loss of $11.8 million in Q2 2026 and operating cash flow of negative $30.3 million in 2025.
• Technology and commercialization uncertainty — The 10-K risk factors state that success ultimately relies on fundamental research and development breakthroughs, and the technical roadmap may not be realized as quickly as hoped or at all.
• Tariffs and supply chain exposure — New U.S. tariffs announced beginning in Q2 2025 on imports from China, India, Japan, South Korea, Taiwan, Vietnam, and the EU could materially impact the company's supply chain, component costs, pricing, and gross margin.

Outlook

Management says it remains focused on executing its roadmap, integrating recent acquisitions, and expanding its commercial and government customer base in the second half of 2026. It cites a strong balance sheet, with $1.3 billion in cash, cash equivalents, and investments at June 30, 2026, as support for continued investment in technology and manufacturing. The company aims to advance scalable, cost-effective production of miniaturized nanophotonic quantum technologies. No specific revenue or earnings guidance is provided in the excerpts.