Quantum Computing Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue totaled $9.5 million for the third quarter of 2026, compared to $384 thousand in the third quarter of 2025, exceeding the $9.2 million generated during the entire first half of 2026.
• Gross profit was approximately $428 thousand, resulting in a gross margin of 4.5%, compared to $126 thousand in the prior-year period.
• Total operating expenses were $29.0 million, an increase from $10.5 million in the third quarter of 2025, driven by higher personnel expenses, expanded R&D and sales/marketing activities, and approximately $1.0 million in acquisition-related expenses.
• Interest and other income totaled $13.0 million, up from $3.5 million in the third quarter of 2025, primarily reflecting interest earned on larger cash and investment balances.
• The Company reported a net loss of $15.1 million, or $0.07 per basic share, compared to a net income of $2.382 million, or $0.01 per share, in the prior-year period.
• The balance sheet ended the quarter with approximately $1.3 billion in cash, cash equivalents, and investments, including $174.3 million in cash and cash equivalents and $1.1 billion in short- and long-term investments.
• Contract backlog totaled approximately $39.1 million as of September 30, 2026.
• Deferred revenue was $4.162 million as of September 30, 2026, compared to $395 thousand as of December 31, 2025.

Business Segments and Product Lines:

• Revenue growth was primarily driven by the Luminar Semiconductors, Inc. (LSI), NuCrypt, LLC (NuCrypt), and NHanced Semiconductors, Inc. (NHanced) businesses acquired during the first half of 2026.
• These acquired businesses contribute photonic components, quantum communications products, and advanced packaging services sold to the aerospace, government, and industrial markets.
• The Company is integrating these businesses to expand capabilities in photonic design, semiconductor fabrication, and advanced packaging while serving established markets.
• In September, QCi entered into a framework agreement with Hamad Bin Khalifa University in Qatar to support quantum education, research, and co-marketing initiatives, including cloud access to the Dirac-3 quantum optimization system.
• During the quarter, QCi entered into a commercial agreement with INmune Bio to apply Dirac quantum optimization technology alongside AI and conventional analytics to clinical and biomedical data, marking the Company's first commercial customer in the pharmaceutical and biotechnology market.

Management Commentary and Tone:

• CEO Dr. Yuping Huang stated that investments in making quantum practical and accessible are beginning to come together, with a focus shifting from building technology to deploying it for customers.
• Management identified priorities as growing the commercial business, scaling manufacturing, and advancing the quantum roadmap.
• Dr. Huang emphasized that while progress is encouraging, considerable work remains, and execution is critical to sustaining the opportunities created by being early in the market.

Other Key Points:

• The Company acquired LSI, NuCrypt, and NHanced during the first half of 2026, which contributed to the significant revenue increase and expanded commercial capabilities.
• The Company operates as a vertically integrated quantum company pioneering photonics and semiconductor manufacturing, with technologies designed to operate at room temperature and low power.
• The Company hosts a conference call on November 9, 2026, to discuss these results.