QUBT Stock at Crossroads as Quantum Computing’s Volatile Journey Meets Q2
Quantum Computing Inc. (QUBT) heads into its Q2 earnings with a turbulent price history, key technical supports in play, and both...
Quick overview
- Quantum Computing Inc. (QUBT) has experienced significant stock volatility, with shares dropping from over $26 to below $5 before rebounding above $21.
- The company achieved a key milestone by completing its TFLN photonic chip foundry, which is now engaged in testing and early customer deliveries.
- QUBT has secured strategic partnerships, including a NASA subcontract and collaborations with research institutions, which may positively impact Q2 results.
- Despite these advancements, the company faces challenges with profitability and customer adoption, leading to potential limitations in revenue growth.
Quantum Computing Inc. (QUBT) heads into its Q2 earnings with a turbulent price history, key technical supports in play, and both operational breakthroughs and financial pressures shaping investor sentiment.
Stock Performance and Technical Levels
Since December 2024, QUBT shares have been on a dramatic ride — soaring over twentyfold to above $26 in late December, only to tumble below $5 in Q1 2025. The 50-week simple moving average (SMA) in yellow acted as a strong support level, sparking a rebound that lifted the stock above $21 by late July. A subsequent pullback followed, but this time the 50-week SMA in gray provided support.
QUBT Chart Weekly – The 20 SMA Is Holding for Now
As the week unfolds, investors are largely on the sidelines awaiting Q2 earnings, with the company carrying a $2.56 billion market cap and a price-to-earnings ratio of -33.35. Historically, QUBT’s post-earnings performance has been strong — out of 16 earnings reports since 2021, 12 saw positive one-day returns, a 75% success rate.
Foundry Breakthrough and Early Deliveries
In Q1, QUBT reached a pivotal milestone by completing its Tempe-based thin-film lithium niobate (TFLN) photonic chip foundry. The facility is now engaged in tool testing, certifications, and customer deliveries, initially through shared facilities. Early traction included five purchase orders, one of them from a top-five research institute in January, alongside work with pre-order clients. Management anticipates modest foundry revenue in 2025, but early contributions could emerge in Q2.
Strategic Wins in Industry and Research
Beyond manufacturing, QUBT has expanded its presence through notable collaborations and sales. The company landed a NASA subcontract to enhance space-based LiDAR data analysis, partnered with the Sanders Tri-Institutional Therapeutics Discovery Institute for biomolecular modeling using its Dirac-3 quantum computer, and sold an EmuCore reservoir computing system to a major automaker. Additionally, a quantum photonic vibrometer was sold to Delft University — all potential contributors to Q2 results.
Challenges and Margin Pressures
Despite these achievements, challenges remain. The foundry’s customer adoption phase is still in its infancy, meaning Q2 revenue gains could be limited. Profitability metrics have been under strain, with gross margin dropping from 41% in Q1 last year to 33% this year, driven by cost increases. Operating expenses have surged, primarily due to higher staffing levels, and macroeconomic pressures likely continued to weigh on the business into the second quarter.
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