Q3 FY2026
Filed Nov 9, 2026Q3 2026 revenue rose to $9.5 million on acquired businesses, while operating expenses of $29.0 million produced a net loss of $15.1 million
Revenue of $9,500 thousand compared with $384 thousand a year earlier, and the company says the increase was driven by the LSI, NuCrypt and NHanced acquisitions. Gross profit was $428 thousand (4.5% gross margin), total operating expenses were $29,013 thousand, and the net loss was $(15,145) thousand. Interest and other income of $13,047 thousand offset most of the operating loss at the net line.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, Q3 2026GAAP | $9.5M | – | – |
| Cost of revenue, Q3 2026GAAP | $9.07M | – | – |
| Gross profit, Q3 2026GAAP | approximately $428 thousand | – | – |
| Gross margin, Q3 2026GAAP | 4.5% | – | – |
| Research and development, Q3 2026GAAP | $8.34M | – | – |
| Sales and marketing, Q3 2026GAAP | $5.26M | – | – |
| General and administrative, Q3 2026GAAP | $15.41M | – | – |
| Total operating expenses, Q3 2026GAAP | $29.0 million (table: $29,013 thousand) | – | – |
| Loss from operations, Q3 2026GAAP | −$28.59M | – | – |
| Interest and other income, Q3 2026GAAP | $13.0 million (table: $13,047 thousand) | – | – |
| Interest expense, Q3 2026GAAP | −$65K | – | – |
| Change in fair value of derivative liability, Q3 2026GAAP | $458K | – | – |
| Income tax provision, Q3 2026GAAP | $0 thousand (printed as "-") | – | – |
| Net loss attributable to common stockholders, Q3 2026GAAP | $(15,145) thousand (text: net loss of $15.1 million) | – | – |
| Net loss per share, basic and diluted, Q3 2026GAAP | $(0.07) | – | – |
| Other comprehensive loss, Q3 2026GAAP | −$4.81M | – | – |
| Total comprehensive loss, Q3 2026GAAP | −$19.95M | – | – |
| Revenue, nine months ended September 30, 2026GAAP | $18.74M | – | – |
| Cost of revenue, nine months ended September 30, 2026GAAP | $20.20M | – | – |
| Gross profit (loss), nine months ended September 30, 2026GAAP | −$1.46M | – | – |
| Research and development, nine months ended September 30, 2026GAAP | $23.73M | – | – |
| Sales and marketing, nine months ended September 30, 2026GAAP | $8.79M | – | – |
| General and administrative, nine months ended September 30, 2026GAAP | $38.16M | – | – |
| Total operating expenses, nine months ended September 30, 2026GAAP | $70.69M | – | – |
| Loss from operations, nine months ended September 30, 2026GAAP | −$72.15M | – | – |
| Interest and other income, nine months ended September 30, 2026GAAP | $39.50M | – | – |
| Net loss attributable to common stockholders, nine months ended September 30, 2026GAAP | −$30.95M | – | – |
| Net loss per share, basic and diluted, nine months ended September 30, 2026GAAP | $(0.14) | – | – |
| Contract backlog, as of September 30, 2026other | approximately $39.1 million | – | – |
| Cash, cash equivalents and investments, including accrued interest, as of September 30, 2026other | approximately $1.3 billion | – | – |
Capital returns
- The filing reports no share repurchases or dividends for the quarter or the nine months.
What drove it
- The company states that revenue growth was primarily driven by the LSI, NuCrypt and NHanced businesses acquired during the first half of 2026, including acquired photonic components, quantum communications products and advanced packaging services.
- The company states that the increase in total operating expenses is primarily due to higher personnel expenses and other costs associated with expanded research and development and sales and marketing activities, as well as approximately $1.0 million in acquisition-related expenses.
- The company states that interest and other income primarily reflects interest earned on its larger cash and investment balances.
- Goodwill and intangible assets increased sharply from December 31, 2025 to September 30, 2026, as shown on the balance sheet. The filing does not attribute these changes to specific acquisitions beyond the businesses named above.
- The company states that it is focused on increasing manufacturing utilization and improving operating efficiency as it scales its commercial operations.
Concerns
- Gross profit was $428 thousand on revenue of $9,500 thousand, a gross margin of 4.5%. For the nine months, gross profit was $(1,459) thousand, a loss.
- Total operating expenses of $29,013 thousand in the quarter exceeded revenue of $9,500 thousand, leaving a loss from operations of $(28,585) thousand.
- The company reported a net loss of $(15,145) thousand, or $(0.07) per basic share, in Q3 2026, against net income of $2,382 thousand in the prior-year quarter.
- Cash and cash equivalents fell from $737,880 thousand at December 31, 2025 to $174,280 thousand at September 30, 2026, although short- and long-term investments were also reported in the balance sheet.
- The company's statement that net income is supported by interest income is printed in the filing, and interest and other income of $13,047 thousand was larger than the net loss in the quarter. Net results therefore depend on the level of interest income on the company's cash and investments.
What to watch
- Whether gross margin improves from 4.5% as the company states it is focused on manufacturing utilization and operating efficiency.
- The trajectory of total operating expenses, which rose from $10,530 thousand to $29,013 thousand year over year, against revenue growth.
- Conversion of the approximately $39.1 million contract backlog into revenue.
- Integration of the LSI, NuCrypt and NHanced businesses, which the company states is ongoing.
- Progress of the INmune Bio pharmaceutical engagement, which the company describes as its first commercial customer in that market.
- The change in cash and investment balances, given the decline in cash and cash equivalents over the nine months.
Balance sheet and cash flow
- Cash and cash equivalents: $174,280 thousand at September 30, 2026, against $737,880 thousand at December 31, 2025.
- Short-term investments: $727,334 thousand at September 30, 2026, against $379,421 thousand at December 31, 2025.
- Long-term investments: $396,200 thousand at September 30, 2026, against $403,121 thousand at December 31, 2025.
- Press release text: approximately $1.3 billion in cash, cash equivalents and investments and accrued interest, including $174.3 million in cash and cash equivalents and $1.1 billion in short- and long-term investments.
- Total assets: $1,627,519 thousand at September 30, 2026, against $1,618,920 thousand at December 31, 2025.
- Total liabilities: $47,706 thousand at September 30, 2026, against $20,655 thousand at December 31, 2025.
- Total stockholders' equity: $1,579,813 thousand at September 30, 2026, against $1,598,265 thousand at December 31, 2025.
- Goodwill: $160,330 thousand at September 30, 2026, against $55,573 thousand at December 31, 2025.
- Intangible assets, net: $62,094 thousand at September 30, 2026, against $6,500 thousand at December 31, 2025.
- Accounts receivable, net: $8,316 thousand at September 30, 2026, against $519 thousand at December 31, 2025.
- Inventory: $10,634 thousand at September 30, 2026, against $352 thousand at December 31, 2025.
- Deferred revenue: $4,162 thousand at September 30, 2026, against $395 thousand at December 31, 2025.
- Derivative liability: $528 thousand at September 30, 2026, against $7,773 thousand at December 31, 2025.
- The filing does not include a cash flow statement, so operating cash flow, investing cash flow, financing cash flow and free cash flow are not reported.
Analysis
Quantum Computing Inc. reported third-quarter 2026 revenue of $9,500 thousand, against $384 thousand in the third quarter of 2025, and the release states that this quarter's revenue exceeded the $9.2 million reported for the entire first half of 2026. The company attributes growth primarily to the LSI, NuCrypt and NHanced businesses acquired during the first half of 2026. Nine-month revenue was $18,742 thousand against $484 thousand a year earlier. The filing does not break revenue out by business, so the contribution of each acquired business cannot be read from the document.
Profitability remained weak at the gross line. Cost of revenue was $9,072 thousand, leaving gross profit of approximately $428 thousand and a gross margin of 4.5%. For the nine months, gross profit was $(1,459) thousand. The filing does not print a prior-year gross margin, so the change in margin cannot be measured from the document. Management states it is focused on increasing manufacturing utilization and improving operating efficiency.
Operating expenses rose sharply. Research and development was $8,336 thousand, sales and marketing $5,263 thousand and general and administrative $15,414 thousand, for total operating expenses of $29,013 thousand, compared with $10,530 thousand in the prior-year quarter. The company attributes the increase mainly to personnel and other costs of expanded research, development, sales and marketing activities, and about $1.0 million of acquisition-related expenses. The loss from operations was $(28,585) thousand.
Interest and other income of $13,047 thousand, which the company links to its larger cash and investment balances, brought the pre-tax result to $(15,145) thousand, and the net loss was the same because no income tax provision was recorded. The net loss per basic share was $(0.07), against $0.01 of net income per share in the prior-year quarter. Total comprehensive loss was $(19,952) thousand after other comprehensive loss of $(4,807) thousand.
On the balance sheet, cash and cash equivalents were $174,280 thousand at September 30, 2026, against $737,880 thousand at December 31, 2025, while short-term investments rose to $727,334 thousand. Goodwill rose to $160,330 thousand from $55,573 thousand, and intangible assets to $62,094 thousand from $6,500 thousand. Contract backlog was approximately $39.1 million. The filing contains no guidance, no segment revenue, no cash flow statement and no capital return activity, so the outlook and cash generation cannot be assessed from it.
Management, verbatim
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.
Dr. Yuping Huang, Chief Executive Officer of QCi
We're encouraged by our progress, but recognize there's considerable work ahead.
Dr. Yuping Huang, Chief Executive Officer of QCi
Not in the filing
stated, not guessed- Forward guidance for revenue, gross margin, operating expenses or tax rate: the filing contains no outlook section and no prior outlook was provided.
- Prior-year and prior-quarter comparisons for the quarter's gross margin percentage (4.5%): not printed.
- Year-over-year and quarter-over-quarter percentage changes for all metrics: not printed in the filing.
- Prior-quarter (Q2 2026) figures for the income statement: not printed.
- Segment or business-level revenue for LSI, NuCrypt and NHanced: not printed as separate figures.
- Cash flow statement, operating cash flow, investing cash flow, financing cash flow and free cash flow: not included in the filing.
- Share repurchases and dividends: not reported in the filing.
- Non-GAAP measures such as adjusted EBITDA or non-GAAP operating income: not reported.
- Revenue split by product or service line beyond the qualitative description: not printed.
- Acquisition purchase price and acquired revenue or earnings contributions for LSI, NuCrypt and NHanced: not printed.
- Share price reaction, consensus estimates and analyst expectations: not in the documents.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.