Quantum Computing Inc. Q3 FY2025 earnings call

• The company ended the quarter with a strengthened balance sheet, having raised $500 million in the third quarter and an additional $750 million after the quarter, totaling over $1.5 billion in capital.
• Mission is to make quantum technology practical, scalable, and accessible with an integrated photonic approach enabling room temperature operation, compact form factors, and energy-efficient performance.
• Commercial progress: Revenue from NASA LIDAR initiative using Direct3 quantum optimization machine; sale to automotive manufacturer and major US financial institute for quantum AI and security platforms; foundry operations in Tempe progressing; hiring efforts ramping up; active in industry events and conferences; joined Quantum Economic Development Consortium and Consumer Technology Association; webinar on photonic machine learning.

In the third quarter, revenue totaled approximately $384,000 compared to $101,000 in the same period last year. The increase was due to more research and development services contracts and custom hardware contracts. Gross margin for the third quarter increased to 33% compared to 9% in 2024. The company ended the third quarter with cash and cash equivalents of $352 million and investments of $460 million. Net income for the third quarter was $2.4 million compared to a net loss of $5.7 million in 2024.

• The company continues to build a healthy pipeline of sales and partnership opportunities to support future growth.
• Substantial resources from recent financings allow implementation of TFLN fabrication and quantum machine development initiatives.
• SG&A expense expected to grow in the near term as the company scales its organization to support expansion.

Forward-looking statements are subject to various important factors that could affect expectations, as mentioned in the opening remarks, and for more details, see filings with the Securities and Exchange Commission.

Q: About POET Technologies partnership.

A: Actively talking with multiple parties on using thin film lithium niobate technology for next-generation high-speed transceiver technology, collaboration with POET is one example.

Q: About large bank deal and other use cases.

A: Discussing putting technology on photonic integrated chips to shrink quantum systems, applying to aerospace platforms for quantum Internet challenges.

Q: About M&A.

A: Actively evaluating acquisition candidates, looking to acquire customers, revenue, product lines, and fill in key aspects of technology roadmap.

Q: About Fab 1 CapEx.

A: Approximately $2 million additional CapEx for high-speed measurement equipment in the foundry.

Q: About QPU and near-term opportunities.

A: Upgrading Dirac 3 system, making progress on next-gen optimization machine, sensor sales, foundry services.

Q: About international opportunities.

A: Active in Europe, South Korea, Singapore with sales and partnerships in those regions