Quantum Computing Retail Investors Excited On Q1 Beat, Positive Management Commentary

Quantum Computing, Inc.'s (QUBT) quarterly results reported after the market closed on Thursday sent the company's stock up in extended trading.

The Hoboken, New Jersey-based company reported earnings per share (EPS) of $0.11 for the first quarter of the fiscal year 2025, reversing a loss of $0.08 per share a year ago.

The company said the most-recent quarter's net income received a boost from a $23.6 million non-cash gain on the mark-to-market valuation of the warrant liability as a result of its merger with QPhoton in June 2022.

According to Finchat, the company would have reported a loss of $0.05 per share for the first quarter, narrower than the consensus loss estimate of $0.07 per share.

Revenue increased year-over-year (YoY) to $8.3 million from $27,000.

The company ended the quarter with cash and cash equivalents of $166.4 million, thanks to net proceeds of $93.6 million through a private placement of shares in the fourth quarter.

Interim CEO Yuping Huang said on the earnings call that the company has completed the construction of the quantum photonic chip foundry in Tempe, Arizona, and moved into the next phase of testing tools, finalizing certifications.

"We are beginning to ramp up customer deliveries," he added.

The company expects to see modest initial revenue from the fab this year. 

Huang also touted the company's two customer wins for its quantum machines business during the quarter — the Sanders Tri-Institutional Therapeutics Discovery Institute and Delft University of Technology in the Netherlands.

On Stocktwits, retail sentiment toward the Quantum Computing stick was 'extremely bullish' (96/100), and message volume perked up to 'extremely high' levels.

Quantum Computing stock was among the top five trending tickers on the platform early Friday.

A bullish watcher said the after-hours gain took the stock to almost $10 and opined that shorts will lose.

Another user noted that the stock is sitting above strong support levels on several timeframes and was looking primed for a higher bounce. "Rare beauty…Very impressed," they said, adding that a squeeze is likely on Friday.

The short interest in the stock is at an elevated 15.7%, according to Koyfin data.

Quantum Computing stock ended Thursday's session up 3.47% at $9.24 and gained 3.24% in after-hours trading.

The stock, however, is down about 45% this year amid the broader market volatility and the moderation in optimism toward quantum computing stocks following late last year's exuberance.

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