Quantum Computing: Nothing To Be Excited About

Danil SeredaInvesting Group LeaderFollow5ShareSavePlay(9min)CommentsSummaryQUBT remains early-stage; despite a 52% drawdown, shares still imply an execution path far ahead of current revenues, so I remain cautious for now, unchanged. QUBT's Q3 revenue grew to $384,000, driven by cloud-based DIRAC-3 access and foundry progress, but lacks scalable, standardized offerings. Gross margin improved to 33%, yet operating expenses ballooned to $10.5 million, deepening losses and highlighting unsustainable business dynamics. Operating costs dwarf progress: Q3 OPEX was $10.5M against roughly $0.13M gross profit, while reported income reflected derivatives marks and interest, not scalable operating leverage. Consensus FY2027 sales and EPS estimates appear overly optimistic; negative earnings revisions are likely given lumpy contracts and limited earnings visibility. QUBT is a Hold at best. Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More » adventtr/E+ via Getty Images QUBT Remains A Pass For Me Quantum Computing Inc (QUBT) was in a very early stage of its R&D cycle when I first looked at it, and its tech/innovations stack hasn't yet hadThis article was written byDanil Sereda14.18K FollowersFollowDaniel Sereda is chief investment analyst at a family office whose investments span continents and diverse asset classes. This requires him to navigate through a plethora of information on a daily basis. His expertise is in filtering this wealth of data to extract the most critical ideas. He runs the investing group Beyond the Wall Investing in which he provides access to the same information that institutional market participants prioritize in their analysis. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.