Quantum Computing Inc.

Based on the comprehensive analysis of Quantum Computing Inc. (QUBT), this stock carries exceptionally high risk and is not recommended for purchase at this time.

Technical Outlook: The stock is in a severe downtrend, having lost over 30% in recent months, and its extreme volatility (beta of 3.5) indicates it is prone to dramatic swings. While it is technically oversold, it has consistently failed to find solid buyer support, with previous oversold conditions leading to new lows.

Fundamental & Valuation Concerns: The core business is not yet viable, with minimal revenue and significant operating losses. The company is burning cash from operations, and its operational efficiency metrics are weak. Its valuation is exceptionally high and appears disconnected from its current financial reality, with a forward P/E of over 300.

Conclusion: QUBT is a highly speculative, pre-revenue company whose stock price reflects immense future growth expectations rather than current performance. Given the severe price decline, cash-burning operations, and extreme valuation, the risk of further capital loss far outweighs the potential for near-term reward. Investors should wait for concrete evidence of sustainable revenue growth and a clear path to profitability before considering a position.

*This is not investment advice, for reference only.*

RockFlow Model Forecast: Three Scenarios for 2026

Based on the analysis provided, the 12-month outlook for QUBT is highly speculative and challenging.

The key catalysts for any potential upside would be a major, unexpected technological breakthrough or a significant commercial partnership that demonstrates a viable path to generating revenue, as the stock's primary appeal rests on its long-term speculative potential. The primary risks are dominant and substantial, including the continued cash burn without a clear timeline to profitability, the extreme volatility that could lead to further sharp declines, and the persistent risk of dilution from future capital raises to fund operations. Given the absence of analyst targets and the company's pre-revenue status, establishing a reliable target price range is not feasible; the stock is likely to remain highly volatile and driven by sentiment rather than fundamentals, with the risk of capital loss remaining elevated.

Wall Street Consensus

Most Wall Street analysts are optimistic about Quantum Computing Inc.'s 12-month outlook, with consensus target around $8.22, indicating expected upside potential.

Overall, QUBT has investment potential but also faces challenges. Here are key factors to weigh before investing.

Of utmost concern, QUBT's stock has experienced a precipitous decline, plummeting over 30% in both the one-month and three-month periods, which indicates severe and persistent selling pressure.

In the short term, the stock's performance has been deeply negative, with a 33.91% drop over one month and a 32.58% decline over three months. While its relative strength figure suggests it has marginally outperformed the broader market during this dismal period, this is a distinction without a meaningful difference given the magnitude of the losses. The stock's exceptionally high beta of 3.485 confirms it is an extremely volatile instrument that has dramatically amplified market moves to the downside.

Currently trading at $8.05, QUBT sits much closer to its 52-week low of $4.37 than its high of $25.84, placing it in the lower 16% of its annual range and squarely in oversold territory. However, this status is heavily tempered by the stock's catastrophic maximum drawdown of -68.28% over the past year, signaling that previous oversold conditions have led to even lower lows, and a fundamental lack of buyer support.

Revenue & Profitability: QUBT shows minimal revenue generation with just $384,000 in Q3 2025, though this represents significant sequential growth from Q2's $61,000. While the company achieved positive net income in Q3 due to substantial interest income, operating losses remain deep at -27% margin, indicating the core business is not yet self-sustaining despite the gross profit margin improving to 33%.

Financial Health: The company maintains exceptional liquidity with current and quick ratios above 150, supported by a cash ratio of 97%. Debt levels are negligible with a debt ratio of just 0.3%, though cash flow metrics are deeply negative with an operating cash flow to sales ratio of -22.8, indicating the company is burning cash from operations despite high interest income.

Operational Efficiency: Operational metrics reveal significant challenges with extremely low asset turnover (0.0004) and negative return on capital employed (-0.012), reflecting poor utilization of the company's asset base. The 115 days sales outstanding suggests slow collections, while inventory turnover of just 0.27 indicates minimal sales activity relative to inventory levels, pointing to fundamental operational inefficiencies.

Valuation Level QUBT demonstrates significant valuation challenges, with a negative trailing PE ratio indicating the company is currently unprofitable. The forward PE ratio of 309.9 reflects exceptionally high earnings growth expectations priced into the stock, while the negative PEG ratio confirms these expectations are not supported by realistic growth projections. The extraordinarily high EV/EBITDA multiple of 785.5 further underscores severe overvaluation relative to the company's current operating cash flow generation.

Peer Comparison A comparative analysis against industry peers cannot be conducted due to the unavailability of relevant industry average data. However, QUBT's negative profitability metrics and extreme valuation multiples would likely place it at a significant premium to typical industry norms. The absence of benchmark data necessitates reliance on absolute valuation measures, which collectively point to substantial overvaluation.

Volatility risk is exceptionally high, as evidenced by an extreme beta of 3.485, indicating the stock is approximately 3.5 times more volatile than the broader market. This is further confirmed by a severe one-year maximum drawdown of -68.28%, highlighting the potential for substantial capital loss during market downturns. Investors should be prepared for significant price swings over short periods.

The notable absence of reported short interest suggests a minimal immediate threat from bearish, speculative pressure. However, this could also be indicative of a low trading volume or analyst coverage, which may present liquidity challenges. In such a thinly traded environment, large orders could disproportionately impact the share price, adding an execution risk layer.