Quantum Computing Inc. dropped its third-quarter earnings report late Friday, and the company shocked analysts by delivering revenue that beat expectations while still reporting results that keep the business in the red.

The company said it earned an adjusted profit of 1 cent for the September quarter, which flips the 6-cent loss recorded a year earlier.

Revenue hit $384,000, which is a massive jump from last year and far above the $100,000 analysts expected going into the announcement.

Traders didn’t wait, because Quantum Computing stock surged more than 7% almost immediately in extended trading to 11.38, after already rallying by more than 5% during the regular session, though the same stock is also still down 42% YTD.

The company said the revenue spike came from larger development service work, more custom hardware contracts, and the first dollars coming in from cloud access to its Dirac-3 optimization system.

Analysts also expect about $200,000 in revenue for Quantum Computing in Q4, based on the guidance discussed during the call.

The business keeps building out its tech stack. The team operates a foundry in Tempe, Arizona, where it makes photonics-based quantum machines, which are the systems behind all of this.

Quantum Computing said the quantum sector is still volatile this year because of debates involving Nvidia about how soon commercial-level quantum products will land in the real world.

But for now, Quantum Computing carries a Composite Rating of 45 out of 99 from IBD’s Stock Checkup and an Accumulation/Distribution Rating of B-minus, which reflects how the stock behaved across the last 13 weeks.

Quantum Computing boosts liquidity and outlines its outlook

Interim Chief Executive Yuping Huang said during the briefing that the firm finished the quarter with $352 million in cash and $461 million in investments.

Yuping said the business also raised $750 million after the quarter ended, which brings the total liquid position to more than $1.5 billion.

Yuping said this pile of money is what the team plans to use to push the long-term strategy the company has talked about for the last year.

The company also answered questions about how the machines work.Quantum systems run on subatomic behavior and need exotic hardware such as supercold chips.These systems are built to solve problems regular computing can’t touch.

That’s why 2025 has been a chaotic year across the entire sector. Investors are still trying to figure out which teams will build products that can actually work at large scale.

Quantum Computing execs discuss partnerships, fabs, banks, and security pressure

Analysts asked Yuping for more details on the work with Poet Technologies. Yuping said the partnership uses Poet’s tech for next-gen high-speed transceivers that the telecom world sees as a route to faster internet.

Yuping also said the team is studying new partnerships with other groups building for telecom and datacom use cases.

Another question was about quantum security tools already sold to a top-five U.S. bank. Yuping said the company is in talks with other large firms and is looking at how its tools can be built into photonic integrated chips.

Yuping said these chips could serve wireless and aerospace companies working to solve long-term quantum-internet problems.

Chief Financial Officer Christopher Roberts was asked about spending. Christopher said Fab 1 is fully active and will add high-speed testing tools that cost around $2 million. Christopher said Fab 2 is being planned to expand machine production and meet rising demand for thin-film chips at large volume.

Christopher also answered a question about mergers. Christopher said the company is reviewing deals that could bring new customers, revenue, and product lines.

Christopher said these deals would help speed up commercialization and help the company close important technology gaps.

The final question was about rising fears that quantum machines could break RSA-2048 encryption. Yuping said more firms are looking at quantum-secured internet because of that threat.

Yuping said the company’s system works with today’s fiber-based telecom lines, which makes it possible to build secure networks with tech companies already use.

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