Quantum Computing Inc. Common
QUBT
$8.22
+2.62%
Quantum Computing Inc. (QUBT) is a technology company specializing in integrated photonics and non-linear quantum optics, developing and delivering machines for quantum computing, reservoir computing, remote sensing, imaging, and cybersecurity applications. The company aims to differentiate itself by offering room-temperature, low-power, and affordable quantum solutions, positioning itself as a niche player in the quantum computing hardware and software space. Currently, the investor narrative is dominated by the sector's explosive growth potential, driven by government investments and technological breakthroughs, but also by significant skepticism regarding the company's ability to monetize its technology and achieve profitability, especially as it faces a cash runway test and a major institutional investor's exit.…
QUBT
Quantum Computing Inc. Common
$8.22
Related headlines
Investment Opinion: Should I buy QUBT Today?
Rating: Hold. QUBT is a high-risk, speculative stock with a consensus 'Buy' rating and an average target price of $18.67, implying 129.1% upside. However, the extreme valuation (PS ratio 2474.6) and lack of profitability make it unsuitable for most investors. The thesis is that the quantum computing sector's growth potential could justify the current price if the company executes on its technology roadmap, but the risks are substantial.
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QUBT 12-Month Price Forecast
The AI assessment is neutral with medium confidence. While the revenue growth and analyst optimism are positive, the extreme valuation and lack of profitability create significant downside risk. The stock is a high-risk speculative play that could either soar or collapse depending on execution and market sentiment. I would upgrade to bullish if the company demonstrates a clear path to profitability, such as positive gross margins and revenue exceeding $1M per quarter. I would downgrade to bearish if the company announces a dilutive offering or if the stock breaks below its 52-week low.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Quantum Computing Inc. Common's 12-month outlook, with a consensus price target around $18.67 and implied upside of +127.1% versus the current price.
Average Target
$18.67
0 analysts
Implied Upside
+127.1%
vs. current price
Analyst Count
—
covering this stock
Price Range
$10 - $32
Analyst target range
QUBT has coverage from 6 analysts, with a consensus recommendation of 'Buy' and a mean recommendation score of 1.67 (where 1 is Strong Buy and 5 is Sell). The average target price is $18.67, implying an upside of 129.1% from the current price of $8.15. The target price range is $10.00 to $32.00, with the low target suggesting a 22.7% upside and the high target implying a 292.6% upside. The wide spread between the low and high targets indicates high uncertainty about the company's future. Recent ratings have been mostly 'Buy' from firms like Rosenblatt and Lake Street, but Cantor Fitzgerald maintains a 'Neutral' stance, and a major institutional investor, Anson Funds, has exited, signaling skepticism. The consensus leans bullish, but the wide range and recent exits suggest caution.
Bulls vs Bears: QUBT Investment Factors
QUBT presents a classic high-risk, high-reward speculative investment. The bull case hinges on the explosive growth potential of the quantum computing sector, supported by government funding and technological breakthroughs, and the company's improving loss trajectory. However, the bear case is equally compelling: the astronomical valuation (PS ratio 2474.6) with negligible revenue, negative gross margins, and significant cash burn create a precarious financial position. The most important tension is whether QUBT can convert its technological promise into meaningful, scalable revenue before its cash runway runs out or investor patience wanes. Currently, the bearish evidence is stronger given the extreme valuation and lack of profitability, but the analyst consensus and sector momentum provide a counterbalance. The stock is a high-risk bet that could either soar or collapse depending on execution and market sentiment.
Bullish
- Explosive Revenue Growth: Q4 2025 revenue surged 219.35% YoY to $198K from $62K, indicating early commercial traction. While the base is tiny, the growth rate signals that the company's products are beginning to find a market.
- Analyst Consensus Buy with 129% Upside: With 6 analysts, the consensus is 'Buy' (mean score 1.67) and the average target price is $18.67, implying a 129.1% upside from the current $8.15. Even the low target of $10 suggests a 22.7% upside, reflecting optimism about the company's quantum technology potential.
- Strong Liquidity and Minimal Debt: The current ratio is 102.38 and debt-to-equity is 0.0011, indicating the company has ample cash to fund operations and negligible debt. This financial flexibility reduces near-term solvency risk despite ongoing losses.
- Government and Sector Tailwinds: The US government's $2 billion investment in quantum computing firms and Nvidia's AI model for quantum error correction have ignited sector-wide rallies. QUBT, as a pure-play quantum company, stands to benefit from increased funding and technological breakthroughs.
Bearish
- Astronomical Valuation with Minimal Revenue: The trailing PS ratio is 2474.6, and EV/Sales is 104.55, reflecting a market cap of $1.69B against just $198K in quarterly revenue. This implies the market is pricing in massive future growth that may never materialize, leaving extreme downside risk if expectations disappoint.
- Negative Gross Margin: Gross margin was -49.49% in Q4 2025, meaning the cost of revenue exceeds revenue. While improved from -1970.97% a year ago, the company still loses money on every sale, indicating a lack of pricing power or scale.
- Significant Cash Burn: Trailing twelve-month free cash flow is -$36.98M, and the company relies on stock issuance to fund operations, having raised $718.6M in Q4 2025. This dilution is a major concern for existing shareholders, as it erodes per-share value.
- Institutional Skepticism: Anson Funds, a major institutional investor, completely exited its position, signaling deep skepticism about QUBT's near-term monetization prospects. This negative signal is compounded by Cantor Fitzgerald's 'Neutral' rating, contrasting with the bullish consensus.
QUBT Technical Analysis
QUBT is in a pronounced downtrend over the past year, with a 1-year price change of -49.38% and a 6-month change of -3.09%. The current price of $8.15 sits at 10.2% of its 52-week range (low $6.18, high $25.84), indicating the stock is trading near its lows, which could suggest a potential value opportunity or a falling knife. The stock has underperformed the S&P 500 significantly, with relative strength of -67.94% over the past year, reflecting a persistent bearish sentiment.
Beta
3.77
3.77x market volatility
Max Drawdown
-74.4%
Largest decline past year
52-Week Range
$6-$26
Price range past year
Annual Return
-46.1%
Cumulative gain past year
| Period | QUBT Return | S&P 500 |
|---|---|---|
| 1m | -10.5% | -0.9% |
| 3m | -13.7% | +5.6% |
| 6m | +10.6% | +15.0% |
| 1y | -46.1% | +18.1% |
| ytd | -25.3% | +12.3% |
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QUBT Fundamental Analysis
Revenue has been extremely volatile and minimal, with the most recent quarter (Q4 2025) showing revenue of $198,000, a 219.35% YoY increase from $62,000 in Q4 2024, but still negligible in absolute terms. The company is unprofitable, with a net loss of $1.556 million in Q4 2025, though this is a dramatic improvement from the $51.237 million loss in Q4 2024. Gross margin was negative at -49.49% in Q4 2025, indicating that the cost of revenue exceeds revenue, though this is an improvement from -1970.97% in Q4 2024. The company's balance sheet is strong in terms of liquidity, with a current ratio of 102.38 and a debt-to-equity ratio of 0.0011, but it is burning cash, with a trailing twelve-month free cash flow of -$36.984 million. The company has raised significant capital through stock issuance, with $718.6 million in Q4 2025, but this dilution risk is a concern for shareholders.
Quarterly Revenue
$198000.0B
2025-12
Revenue YoY Growth
+219.3%
YoY Comparison
Gross Margin
-49.5%
Latest Quarter
Free Cash Flow
$-36984000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
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Valuation Analysis: Is QUBT Overvalued?
Given the negative net income, the primary valuation metric is the price-to-sales (PS) ratio. The trailing PS ratio is 2474.62, which is astronomically high, reflecting the company's negligible revenue. The forward PS ratio is not directly provided, but the EV/Sales ratio is 104.55, indicating that the market is pricing in massive future growth. Compared to the industry average, QUBT's PS ratio is likely a significant premium, though specific industry averages are not provided. Historically, the PS ratio has ranged from 0 (when revenue was zero) to over 8000, and the current ratio is near the higher end, suggesting the market is pricing in optimistic expectations. The PEG ratio of 1.10 is not meaningful given the negative earnings.
PE
-93.3x
Latest Quarter
vs. Historical
N/A
5-Year PE Range 17x~59x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
-69.6x
Enterprise Value Multiple
Investment Risk Disclosure
Financial and operational risks are severe. QUBT's revenue is negligible ($198K in Q4 2025) and gross margin is negative (-49.49%), meaning the company loses money on every sale. The company burned $36.98M in free cash flow over the trailing twelve months, and with a current ratio of 102.38, it has liquidity but relies heavily on stock issuance to fund operations—$718.6M raised in Q4 2025 alone. This dilution dilutes existing shareholders and signals that the company cannot self-fund. The net loss improved to -$1.56M in Q4 2025, but this was partly due to a one-time gain of $20.66M in other income, masking underlying operating losses of -$22.2M. The company's dependence on external capital and lack of profitability make it vulnerable to funding gaps if market conditions deteriorate.
FAQ
The key risks of holding QUBT include: 1) Financial risk: The company has negative gross margins (-49.49%) and burns $36.98M in free cash flow annually, relying on stock issuance to fund operations, which dilutes shareholders. 2) Valuation risk: The PS ratio of 2474.6 is unsustainable if growth disappoints, leading to potential severe downside. 3) Competitive risk: The quantum computing sector is highly competitive, with larger players like Quantinuum potentially dominating. 4) Market risk: The stock has a beta of 3.79, making it highly volatile and sensitive to market sentiment. The exit of Anson Funds and the 'Neutral' rating from Cantor Fitzgerald highlight the skepticism. These risks are ranked by severity, with valuation and financial risks being the most critical.
The 12-month forecast for QUBT is highly uncertain, with three scenarios: Bull case (25% probability) targets $18.67-$32.00, driven by major contracts and sector momentum; Base case (45% probability) targets $10.00-$18.67, assuming modest progress and continued capital raises; Bear case (30% probability) targets $6.18-$10.00, if the company fails to secure revenue and faces a cash crunch. The most likely scenario is the base case, with the stock trading in a range around the analyst average target of $18.67. However, the wide range of analyst targets ($10-$32) reflects the high uncertainty. Investors should monitor revenue growth and cash runway closely to gauge which scenario is unfolding.
QUBT is significantly overvalued based on traditional valuation metrics. The trailing PS ratio is 2474.6, which is astronomically high, and the EV/Sales ratio is 104.55. This implies the market is pricing in massive future growth that may never materialize. Compared to the industry average, which is not provided but likely much lower, QUBT trades at a substantial premium. The PEG ratio of 1.10 is not meaningful given negative earnings. The market is pricing in expectations of explosive growth in the quantum computing sector, but the company's current revenue of $198K per quarter does not justify the $1.69B market cap. Therefore, the stock is overvalued relative to its fundamentals, and any disappointment could lead to severe multiple compression.
QUBT is a high-risk, high-reward speculative stock. The analyst consensus is 'Buy' with an average target price of $18.67, implying 129.1% upside from the current price of $8.15. However, the stock is extremely overvalued with a PS ratio of 2474.6, and the company has negative gross margins and significant cash burn. It could be a good buy for investors with a high risk tolerance and a long-term horizon who believe in the quantum computing sector's potential. However, for most investors, the risks are too high, and it is not suitable as a core holding. A more prudent approach would be to wait for signs of revenue acceleration and margin improvement before investing.
QUBT is more suitable for long-term investment, given its early-stage nature and the long development cycles in quantum computing. The company has a beta of 3.79, indicating high volatility, which makes it risky for short-term trading. The stock has no dividend, and earnings visibility is low, with revenue of only $198K in Q4 2025. For long-term investors, the potential for quantum computing to revolutionize industries could provide significant returns over 5-10 years, but the risk of failure is high. A suggested minimum holding period is 3-5 years to allow the technology to mature and revenue to scale. Short-term traders may find opportunities in the volatility, but the risk of significant losses is elevated.