QCi Reports $9.5 Million in Quarterly Revenue as Acquisitions Expand Commercial Business

Insider Brief

• Quantum Computing Inc. reported third-quarter revenue of $9.5 million, exceeding its first-half total, and ended September with approximately $1.3 billion in cash and investments.
• Acquired businesses generated about 93% of quarterly revenue, while a comparison assuming ownership of those businesses in both periods showed combined revenue falling approximately 34% from a year earlier.
• QCi reported a $39.1 million contract backlog and its first pharmaceutical customer, while its quarterly operating loss widened to $28.6 million.

Quantum Computing Inc. reported third-quarter revenue of $9.5 million as acquisitions expanded its photonics and semiconductor manufacturing business, while new agreements extended the company’s quantum technology into pharmaceutical research and education.

Revenue exceeded the $9.2 million generated during the entire first half of 2026 and increased from $384,000 a year earlier, according to the company’s earnings release. QCi ended September with approximately $1.3 billion in cash, cash equivalents and investments, including accrued interest, and a contract backlog of $39.1 million.

The expansion was driven primarily by Luminar Semiconductor, NuCrypt and NHanced Semiconductors, three businesses acquired during the first half. Their products and services include photonic components, quantum communications equipment and advanced semiconductor packaging for aerospace, government and industrial customers.

Those acquisitions should be considered to understand the quarterly revenue results. They contributed approximately $8.8 million, or 93%, of third-quarter revenue, according to QCi‘s quarterly securities filing.

“For several years, we’ve been building the technology and capabilities to make quantum more practical and accessible,” said Dr. Yuping Huang, Chief Executive Officer of QCi, according to a company news release. “We’re starting to see those investments come together, and our focus is increasingly shifting from what we can build to what we can put to work for customers. We’re encouraged by our progress, but recognize there’s considerable work ahead. Our priorities are clear: growing our commercial business, scaling manufacturing and advancing our quantum roadmap. I’ve always believed that being early creates opportunity. Execution is what makes that opportunity last.”

Acquisitions Broaden Manufacturing and Customer Base

QCi is integrating the acquired businesses to serve existing customers while developing manufacturing capabilities for its proprietary quantum technologies, according to the company.

Luminar Semiconductor added technologies including semiconductor lasers, photodetectors and specialized chips. NuCrypt expanded QCi’s quantum communications offerings, while NHanced brought semiconductor fabrication and advanced packaging capabilities, which connect and assemble chips into working systems.

The company said these operations broaden its capabilities in photonic design, semiconductor fabrication and packaging. Photonics uses light to process or transmit information and is central to QCi’s computing, sensing and communications technologies.

Revenue excluding the recent acquisitions also increased, although it remained a small share of total sales. For the first nine months, management said revenue excluding those acquisitions rose by approximately $900,000 from the comparable 2025 period.

The broader historical comparison was weaker, according to the company’s quarterly report. QCi’s unaudited pro forma figures, which assume the acquisitions occurred on Jan. 1, 2025, showed combined nine-month revenue of $28.4 million in 2026, compared with $44.8 million a year earlier, a decline of approximately 37%. The corresponding third-quarter decline was approximately 34%.

Those figures show that the acquired operations substantially increased QCi’s reported sales while the combined businesses generated less revenue than in the comparable prior-year periods.

QCi’s management identified retaining customers, winning new business and increasing manufacturing utilization as factors affecting future performance.

Quantum Agreements Extend Into Biotechnology and Education

During the quarter, QCi signed a commercial agreement with INmune Bio to apply its Dirac quantum optimization technology alongside artificial intelligence and conventional analytics to clinical and biomedical data.

The work will explore potential applications involving INmune Bio’s investigational Alzheimer’s treatment, according to the earnings release. QCi described the engagement as its first commercial customer in the pharmaceutical and biotechnology market. It did not disclose the agreement’s financial value.

In September, the company also entered a framework agreement with Hamad Bin Khalifa University in Qatar covering quantum education, research and co-marketing initiatives.

The collaboration includes cloud access to QCi’s Dirac-3 quantum optimization system and is intended to support research into computing, sensing and communications applications.

QCi’s $39.1 million backlog represents contracted work expected to be performed, subject to the terms and conditions of the underlying agreements.

Manufacturing Costs Weigh on Margins

QCi generated third-quarter gross profit of $428,000, representing a gross margin of 4.5%. Gross margin measures the share of revenue remaining after the direct costs of providing products and services.

The company said production volumes and manufacturing utilization influence its margins as it integrates and scales operations. It also identified intangible-asset amortization, an accounting expense associated with assets such as acquired technology, as a factor depressing margins.

For the first nine months, QCi recorded a gross loss of approximately $1.5 million. Management said higher production volume, better use of manufacturing facilities and improved operating efficiency would be important to future margins.

Quarterly operating expenses increased to $29 million from $10.5 million a year earlier. The company attributed the increase primarily to personnel and other costs associated with expanded research and development, sales and marketing, along with approximately $1 million in acquisition-related expenses.

Operating loss widened to $28.6 million from $10.4 million. Interest and other income of $13 million, primarily earned on the company’s cash and investments, helped offset that loss. QCi reported a net loss of $15.1 million, or 7 cents per basic share.

Cash Resources Support Further Development

QCi held $174.3 million in cash and cash equivalents at the end of September, with most of its remaining financial resources in short- and long-term investments.

The company used $35 million in operating cash during the first nine months, compared with $19.3 million a year earlier. It also spent $13.9 million on property and equipment and made $168.8 million in acquisition cash payments during the period.

Management said existing cash and investments should cover anticipated working-capital and capital-spending needs for at least the next 12 months. It expects further losses and higher operating expenses as it invests in research, manufacturing and commercialization.

The company said future cash requirements will depend on the pace of commercialization, manufacturing utilization, operating expenses and its ability to generate cash from operations.