Quantum Computing Inc. interest income exceeds Q3 revenue

By Rebecca Stone

Quantum Computing Inc. generated $13.0 million in interest and other income in the third quarter of 2026, exceeding the $9.5 million it booked from products and services, while the photonics-based quantum company reported a $15.1 million net loss, or $0.07 per share.

Interest outran sales. That contrast left QCi with a substantial cash cushion but little operating leverage from its acquired photonics businesses.

How did QCi’s revenue change?

QCi said revenue climbed to $9.5 million from $384,000 in Q3 2025 and $5.6 million in Q2 2026. Most of the revenue came from the acquired LSI, NuCrypt and NHanced businesses.

The company also identified Luminar Semiconductors, NuCrypt and NHanced Semiconductors as the main drivers of the year-on-year increase following acquisitions completed during the first half of 2026. Gross profit reached $0.4 million, leaving gross margin at 4.5%.

QCi’s comparative figures show the wider progression:

• Revenue: $9.5 million in Q3 2026, $5.6 million in Q2 2026 and $384,000 in Q3 2025.
• Gross profit or loss: $0.4 million, a $1.2 million loss and $0.1 million, respectively.
• Operating loss: $28.6 million, $23.0 million and $10.4 million, respectively.
• Net income or loss: a $15.1 million loss, an $11.8 million loss and $2.4 million of income, respectively.
• Earnings per share: a loss of $0.07, a loss of $0.05 and income of $0.01, respectively.

Why did operating costs rise?

Operating expenses nearly tripled to $29.0 million, which QCi attributed to higher headcount, increased research and marketing spending, and about $1.0 million of acquisition costs. Those expenses pushed the operating loss to $28.6 million.

A year earlier, QCi reported net income of $2.4 million, helped by a $9.2 million gain on a derivative liability. Without that gain, the comparison underscores how far the acquired businesses remained from covering QCi’s research, staffing and commercial spending.

The cash produced a different result. QCi ended September with about $1.3 billion in cash, cash equivalents, investments and accrued interest, including $174.3 million in cash.

How much cash did acquisitions consume?

That total was down from about $1.53 billion at the end of 2025, according to MLQ’s calculation from the balance sheets. During the first nine months, QCi paid $168.8 million in cash for three acquisitions, used $35.0 million in operations and spent $13.9 million on equipment.

The spending figures explain most of the decline in the reported balance, even as interest and investment income remained large enough to exceed quarterly sales.

QCi also reported contract backlog of about $39.1 million at Sept. 30. The company did not provide revenue guidance, leaving the timing of backlog conversion unstated.

Which customers did QCi add?

During the quarter, QCi signed its first pharmaceutical customer, INmune Bio. INmune Bio plans to apply QCi’s Dirac optimization machines to clinical data for an Alzheimer’s drug candidate.

QCi also entered a framework agreement with Qatar’s Hamad Bin Khalifa University. Together, the INmune Bio engagement and the university agreement add named applications for the company’s optimization systems, but neither carried a disclosed contract value in the results.

“We’re encouraged by our progress, but recognize there’s considerable work ahead,” Chief Executive Yuping Huang said.

The coming test is whether QCi can convert its $39.1 million backlog and two newly disclosed relationships into product revenue, reducing its dependence on interest income; without guidance, the timing and pricing of that conversion remain unspecified.