Quantum Computing: Nothing To Be Excited About (NASDAQ:QUBT) - Seeking Alpha

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.Show moreShow moreAnalyst’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.Quick InsightsWhat are the main risks to QUBT's current valuation?QUBT's valuation assumes execution far ahead of fundamentals, with high implied P/S ratios and a lack of scalable, standardized products, making negative earnings revisions likely.How does QUBT's revenue growth compare to its operating expenses?While Q3 revenue rose to $384,000 and gross margin hit 33%, operating expenses surged to $10.5 million, resulting in deepening losses and no operating leverage.What could change the investment thesis for QUBT going forward?A significant ramp in standardized product sales or major client wins from Fab-1 could improve outlook, but current execution does not support such optimism.Recommended For YouAbout QUBT StockSymbolLast Price% ChgQUBTQuantum Computing Inc.12.141.51%Pre12.00-1.15%1D5D1M6M1Y5Y10YChartCombination chart with 2 data series.View as data table, ChartThe chart has 1 X axis displaying Time. Data ranges from 2026-01-02 09:30:00 to 2026-01-06 19:53:24.The chart has 1 Y axis displaying values. Data ranges from 10.304 to 12.405.Created with Highcharts 12.4.0Jan 2Jan 5Jan 6101214End of interactive chart.Market Cap$2.72BPE-Yield -Rev Growth (YoY)41.45%Short Interest20.23%Prev. Close$11.96qubt SummaryCompare to PeersMore on QUBTQuantum Computing names Dr. Huang as permanent CEOWedbush initiates coverage on quantum computing stocksQuantum Computing buys Luminar Semiconductor for $110M in all-cash dealQuantum Computing: A $3 Billion Company With Almost No RevenueRelated StocksSymbolLast Price% ChgQUBTQUBT12.141.51%Pre:12.00-1.15%1D5D1M6M1Y5Y10YChartChart with 120 data points.View as data table, ChartThe chart has 1 X axis displaying Time. Data ranges from 2026-01-02 09:30:00 to 2026-01-06 16:00:00.The chart has 1 Y axis displaying values. Data ranges from 10.304 to 12.405.Created with Highcharts 12.4.0Jan 2Jan 5Jan 6101214End of interactive chart.