Quantum Computing Inc.: Q2 FY2026 earnings call
What management said about Q2 FY2026, from the documents filed with the SEC on 10 August 2026: press release. Guidance figures: 2 new. The quarter’s numbers.
Key takeaways
- Revenue rose on photonics sales: Revenue was $5.6 million, against $61 thousand a year earlier and $3.7 million in the first quarter. Management said photonics products primarily drove it. Source
- Net loss narrowed on derivative swing: Net loss was $11.8 million, or $0.05 per basic share, against $36.5 million or $0.26 a year earlier. Management attributed the decrease to the derivative liability change and higher revenue and interest income. Source
- Operating expenses rose 114%: Operating expenses were $21.8 million against $10.2 million a year earlier. Management attributed the rise to headcount and payroll, and to $7.3 million of acquisition-related transaction expenses. Source
- Dirac-3 sold and installed in June: In June the company sold, delivered and installed a Dirac-3 quantum optimization machine at a global consulting firm, for enterprise use including portfolio optimization. Source
- Backlog rose to $42.5 million: Contract backlog was about $42.5 million at June 30, 2026, against about $16 million at March 31, 2026. Source
- NHanced adds Fab 2 capacity: The NHanced acquisition launched Fab 2 ahead of schedule, expanding advanced packaging, semiconductor manufacturing and photonic integration capabilities, according to management. Source
- Cash and investments fell to $1.3B: Cash, cash equivalents and investments were about $1.3 billion at June 30, 2026, down from about $1.5 billion at year-end 2025, reflecting the acquisitions. Source
“Our room-temperature photonic architecture continues to differentiate QCi by providing a pathway to practical quantum systems with significantly lower complexity, cost and power requirements than competing approaches.”
Dr. Yuping Huang, Chief Executive Officer of QCi
Guidance
| Area | Period | Figure | Against last quarter |
|---|---|---|---|
| Planck Dynamics program value Source | not stated | in excess of $10 million | New |
| NHanced additional consideration Source | not stated; contingent on performance targets | up to an additional $72.0 million | New |
What changed from last quarter
- New: The May release described Fab 2 as planned; in the second quarter it launched with the NHanced acquisition. Source
- New: NHanced Semiconductors, a U.S.-based advanced packaging foundry, was acquired in the second quarter, following Luminar Semiconductor and NuCrypt in the first quarter. Source
- New: NeuraWave reached deployment readiness in the second quarter; the May release did not describe this platform. Source
- New: Listed operating locations now include Indiana and North Carolina, which the May release did not list. Source
Results and growth drivers
- Revenue rose on photonics sales: Revenue was $5.6 million, against $61 thousand a year earlier and $3.7 million in the first quarter. Management said photonics products primarily drove it. Source
- Net loss narrowed on derivative swing: Net loss was $11.8 million, or $0.05 per basic share, against $36.5 million or $0.26 a year earlier. Management attributed the decrease to the derivative liability change and higher revenue and interest income. Source
- Derivative loss far smaller: The mark-to-market loss on the warrant derivative liability was $1.7 million this quarter, compared with $28.1 million in the second quarter of 2025. Source
- Interest income rose with cash base: Interest and other income was $13.0 million against $1.8 million a year earlier. Management attributed the increase to interest income on larger cash and investment positions. Source
Operating costs and margins
- Operating expenses rose 114%: Operating expenses were $21.8 million against $10.2 million a year earlier. Management attributed the rise to headcount and payroll, and to $7.3 million of acquisition-related transaction expenses. Source
- Gross result was a loss: Cost of revenue of $6.7 million exceeded revenue of $5.6 million, giving a gross loss of $1.2 million, against a gross profit of $26 thousand a year earlier. Source
- Operating loss widened to $23.0 million: Loss from operations was $23.0 million for the quarter, against $10.2 million a year earlier. Source
“As we look to the second half of 2026, we stay focused on executing our roadmap and delivering on our mission of putting quantum into the hands of everybody.”
Dr. Yuping Huang, Chief Executive Officer of QCi
Products and customers
- Dirac-3 sold and installed in June: In June the company sold, delivered and installed a Dirac-3 quantum optimization machine at a global consulting firm, for enterprise use including portfolio optimization. Source
- University order for secure communications: A leading university ordered the quantum secure communications system to support its work on secure networks of the future. Source
- Revenue spans three customer types: Revenue came from an integrated portfolio of quantum and photonics technologies, products and services sold to government, educational and commercial customers. Source
Demand and contract backlog
- Backlog rose to $42.5 million: Contract backlog was about $42.5 million at June 30, 2026, against about $16 million at March 31, 2026. Source
- Planck framework tied to milestones: The company entered a framework agreement with Planck Dynamics for NeuraWave deployments that proceed as customer milestones are achieved. Source
- Photonics serves existing markets: Management said photonics products also address a broad range of existing aerospace, government and industrial applications. Source
- Optimization demand cited by management: Management said the Dirac-3 installation shows growing market demand for practical quantum optimization solutions. Source
Acquisitions and integration
- NHanced adds Fab 2 capacity: The NHanced acquisition launched Fab 2 ahead of schedule, expanding advanced packaging, semiconductor manufacturing and photonic integration capabilities, according to management. Source
- Third acquisition this year: Management described NHanced as the third acquisition this year, following Luminar Semiconductor and NuCrypt, which closed in the first quarter. Source
- Acquisition cash outlay about $180 million: Cash used for the Luminar Semiconductor, NuCrypt and NHanced acquisitions, including transaction expenses, was about $180 million. Source
Capital, cash and balance sheet
- Cash and investments fell to $1.3B: Cash, cash equivalents and investments were about $1.3 billion at June 30, 2026, down from about $1.5 billion at year-end 2025, reflecting the acquisitions. Source
- Liabilities rose to $47.2 million: Total liabilities were $47.2 million, up $26.5 million from year-end 2025. Source
- Equity held at $1.6 billion: Stockholders’ equity was $1.6 billion at June 30, 2026. Shares outstanding were 226,319 thousand, against 224,165 thousand at year-end 2025. Source
Strategy and investment
- Products to be smaller and more accessible: Management said the company continued to execute its strategy of making quantum products smaller, more practical and more accessible. Source
- Prototyping and volume production expanded: Management said it is expanding fast prototyping and volume production capabilities, which it linked to both the quantum roadmap and current commercial markets. Source
- Room-temperature photonics as differentiator: Management described the room-temperature photonic architecture as a route to practical quantum systems with lower complexity, cost and power needs than competing approaches. Source
Coming up, as management said on 10 August 2026
- Integration of recent acquisitions continues: Management said it remains positioned to keep integrating its recent acquisitions and to widen its commercial and government customer base. Source
Risks management discussed
- Demand: The Planck Dynamics agreement value is subject to specified customer milestones and other conditions. Source
- Financial: The warrant derivative liability is marked to market each period, so its fair value change moves reported net loss; this quarter's loss was $1.7 million. Source
Earlier plans management reported on
- Ahead: Management said Fab 2 launched ahead of schedule with the NHanced acquisition; the May release had described Fab 2 as planned. Source
Other quarters
Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.