Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 10 Oct, 25 | QUBT | Buy | USD 21.32 | USD 22.38 | USD 23.5 | 4 days | Closed |
4.97%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Quantum Computing Inc., an integrated photonics company, offers accessible and affordable quantum machines. The company offers Dirac systems are portable, low power, and room temperature qubit and qudit entropy quantum computers (EQC); reservoir computing; remote sensing; and single photon imaging. It also provides Quantum random number generator (uQRNG), a portable device that provides genuine random numbers directly from quantum processes; and quantum authentication which eliminates vulnerabilities inherent in classical cryptographic schemes by offering a comprehensive entanglement-based quantum cyber solution that seamlessly integrates into existing telecom fiber and communication infrastructure. The company was formerly known as Innovative Beverage Group Holdings, Inc. Quantum Computing, Inc. was incorporated in 2018 and is based in Hoboken, New Jersey.
Interest and Other Income – Jumped from USD 73,000 in Q2 FY2024 to USD 1.84 million in Q2 FY2025, reflecting improved treasury returns on the expanded cash base
Cash and Cash Equivalents – Increased from USD 78.9 million in Q2 FY2024 to USD 348.8 million in Q2 FY2025, marking a 342% year-over-year rise, significantly enhancing liquidity for ongoing R&D and foundry operations.
Net Loss – Widened from USD 5.19 million in Q2 FY2024 to USD 36.48 million in Q2 FY2025, largely driven by a USD 28.1 million derivative liability adjustment and higher R&D expenditure
Total Revenue – Declined from USD 183,000 in Q2 FY2024 to USD 61,000 in Q2 FY2025, representing a 67% year-over-year decrease, indicating slower near-term commercialization progress
QUBT’s continued dependence on early-stage quantum product commercialization and limited recurring revenue visibility poses a risk of prolonged financial losses and delayed scalability despite its strong technological position
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 21.32 | 19.5 | 22.38 | 23.5 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Financial Overview: In Q2 FY2025, Quantum Computing Inc. reported total revenue of USD 61,000, compared to USD 183,000 in Q2 FY2024, representing a 67% year-over-year decline. The gross profit also fell to USD 26,000, down from USD 58,000 in the prior-year period. Despite subdued revenues, interest and other income rose significantly, driven by a stronger liquidity position. However, the company’s net loss widened to USD 36.48 million in Q2 FY2025, compared with USD 5.19 million in Q2 FY2024, primarily due to a non-cash derivative liability adjustment and higher research expenses.
Operational Performance: Operationally, Q2 FY2025 was marked by the expansion of QUBT’s thin-film lithium niobate (TFLN) foundry, which became fully operational in Q1 FY2025. The facility now supports in-house chip design and fabrication, reinforcing QUBT’s vertical integration and establishing it as the only U.S.-based quantum-capable TFLN fabrication facility. This milestone provides a critical competitive advantage, positioning the company to capture growing demand across datacom, telecom, AI, and sensing markets.
Product Development and Technological Innovation: During Q2 FY2025, QUBT continued to advance its diversified product portfolio across quantum optimization, edge computing, sensing, and cybersecurity. Key launches included the DIRAC-3 quantum optimization system and the QUBT Reservoir Computer, both designed to deliver high performance at low energy consumption. The company’s proprietary photonic architectures and quantum random number generation hardware further strengthen its foothold in emerging commercial and defense applications.
Strategic Partnerships and Government Engagement: In Q2 FY2025, QUBT maintained robust collaboration with NASA, being awarded seven new grants to enhance LiDAR-based remote sensing and atmospheric data precision. These grants validate QUBT’s technology in real-world, mission-critical environments. The company’s ongoing partnerships with government agencies underscore the growing recognition of its quantum photonics expertise.
Balance Sheet Strength and Liquidity: As of June 30, 2025 (Q2 FY2025), QUBT held USD 348.8 million in cash and cash equivalents, up substantially from USD 78.9 million as of June 30, 2024 (Q2 FY2024). This represents a 342% increase year-over-year, significantly improving liquidity and funding flexibility. Total assets expanded to USD 426.1 million from USD 153.6 million in the prior period, while stockholders’ equity rose to USD 396 million. The company’s strengthened balance sheet underpins its capacity for sustained R&D and operational expansion.
R&D and Market Expansion Initiatives: QUBT’s research and development expenses surged to USD 5.98 million in Q2 FY2025, compared with USD 2.09 million in Q2 FY2024, highlighting intensified investment in proprietary technologies and next-generation photonic hardware. The company also scaled its go-to-market strategy, focusing on early adopters in government, energy, and AI sectors. These efforts aim to convert a strong pipeline into recurring, high-margin revenue streams in upcoming quarters.
Strategic Vision and Long-Term Outlook: Looking ahead, QUBT envisions leveraging its first-mover advantage in nonlinear quantum optics and photonics to achieve scalable growth across quantum computing and sensing markets. The roadmap emphasizes miniaturization, PCIe-scale integration, and high-volume chip production, aligning with global demand for faster, more efficient quantum hardware. The company remains well-capitalized to execute on this strategy through FY2026 and beyond.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Quantum Computing Inc. (NASDAQ: QUBT) at the closing market price of USD 21.32, as on Oct 09, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Computer Hardware
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| QUBT Quantum Computing Inc |
-0.92 8.16% | 10.35 | - | - | 195.83 | 0.95 | 197.49 | -2.832 |
| DELL Dell Technologies Inc |
-4.76 3.56% | 128.99 | 17.90 | 12.25 | 0.83 | 4.39 | 1.05 | 10.50 |
| ANET Arista Networks |
-3.5101 2.78% | 122.62 | 39.49 | 31.45 | 13.08 | 11.15 | 12.18 | 31.54 |
| SMCI Super Micro Computer Inc |
-1.49 4.71% | 30.17 | 49.25 | 28.90 | 5.69 | 17.11 | 5.65 | 57.68 |
| CAJFF Canon Inc |
- -% | 30.71 | 15.35 | 12.14 | 0.0071 | 1.35 | 1.14 | 7.50 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is October 09,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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