Zapata Quantum, Inc.

What they do

Zapata develops quantum and hybrid quantum-classical computing software, offering products Orquestra, Bench-Q, Quantum Graph, and Quantum Pilot. These tools address the 'software bottleneck' in quantum adoption, supporting use cases in cryptography, pharmaceuticals, manufacturing, materials discovery, and defense. The company has over 60 patents and participated in DARPA's Quantum Benchmarking program.

Revenue drivers

• Subscription-based software — The company offers subscription-based solutions, but recent quarterly revenue was $0.00 for periods ending December 2024, June 2025, and June 2026, indicating no current sales.
• Professional services and licensing — Historically supported by professional services, partnerships, and licensing programs, but current revenue from these is negligible per recent filings.
• No significant revenue segments — Annual revenue fell from $5.7M in 2023 to $3.9M in 2024, and recent quarters show zero revenue, so no segment is contributing materially.

Recent performance

Annual net income swung from a loss of $38.1M in 2024 to a gain of $9.3M in 2025, with diluted EPS of $0.04. However, revenue declined to $3.9M in 2024 and has been $0.00 in the latest quarters. Operating cash flow improved to -$1.7M in 2025 from -$18.1M in 2024, but the balance sheet shows minimal equity at $3.1M as of June 30, 2026.

Strategy

Management is focused on refocusing on quantum software after a period of AI exploration, aiming to rebuild operations and raise capital. They are restructuring debt, issuing equity to creditors, and seeking new funding. They plan to rehire personnel and resume product development, but execution depends on future capital raises.

Risks

• Liquidity and funding risk — The company has limited cash ($12.8M as of June 2026) and must raise additional capital to fund operations, repay vendors, and rehire staff.
• No revenue generation — Recent quarters report zero revenue, and the company has not demonstrated ability to generate sales after restarting operations.
• Debt obligations — The company has $1.2M in long-term debt (as of September 2025) and has had to restructure obligations, including settling the Forward Purchase Agreement with Sandia via share issuance.
• Operational suspension — Operations were suspended in late 2024 due to liquidity issues, and reinstatement is still incomplete, with reliance on temporary advisory agreements.

Outlook

Management says the company's ability to continue depends on raising capital and executing its business plan. They are continuing negotiations to restructure outstanding obligations and raise capital. No specific revenue or product milestones are disclosed for the near term.