PART I—FINANCIAL INFORMATION [Unaudited Financial Statements](index=6&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) IonQ's unaudited financial statements reveal significant asset and equity growth driven by acquisitions and financing, alongside a substantial increase in net loss from operating expenses Condensed Consolidated Balance Sheet Highlights (as of June 30, 2025 vs. Dec 31, 2024) | Account | June 30, 2025 (in millions) | December 31, 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$1,346.6** | **$508.4** | **+165%** | | Cash and cash equivalents | $140.1 | $54.4 | +157% | | Goodwill | $370.7 | $9.9 | +3643% | | Intangible assets, net | $143.2 | $29.5 | +386% | | **Total Liabilities** | **$168.2** | **$124.5** | **+35%** | | **Total Stockholders' Equity** | **$1,178.4** | **$383.9** | **+207%** | Condensed Consolidated Statements of Operations Highlights | Metric (in millions, except EPS) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$20.7** | **$11.4** | **$28.3** | **$19.0** | | Loss from operations | $(160.6) | $(48.9) | $(236.3) | $(101.8) | | **Net loss attributable to IonQ, Inc.** | **$(176.8)** | **$(37.6)** | **$(209.1)** | **$(77.2)** | | Net loss per share (basic and diluted) | $(0.70) | $(0.18) | $(0.87) | $(0.37) | Condensed Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30) | Cash Flow Activity (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(85.6) | $(47.0) | | Net cash (used in) provided by investing activities | $(201.0) | $51.8 | | Net cash provided by financing activities | $372.9 | $1.3 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes to the financial statements highlight the significant impact of three 2025 acquisitions on goodwill and intangible assets, dramatic increases in stock-based compensation, and a subsequent $980 million equity offering and Capella Space acquisition - During 2025, the Company completed three acquisitions for a total consideration of approximately **$466.3 million**: ID Quantique SA (~**$118.9 million**), Lightsynq Technologies Inc. (~**$306.8 million**), and a market intelligence business (~**$40.6 million**). These acquisitions significantly increased goodwill and intangible assets[114](index=114&type=chunk)[116](index=116&type=chunk)[121](index=121&type=chunk) - As of June 30, 2025, the company has approximately **$122.3 million** in remaining performance obligations, with about **50%** expected to be recognized as revenue within the next twelve months[151](index=151&type=chunk) Stock-Based Compensation Expense (in millions) | Expense Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Research and development | $76.2 | $11.6 | $93.6 | $23.9 | | General and administrative | $15.5 | $5.9 | $26.0 | $11.8 | | **Total (net of capitalized)** | **$99.2** | **$21.0** | **$132.4** | **$43.0** | - In July 2025, the company completed an equity offering, raising aggregate proceeds of **$980.0 million**, net of issuance costs. On July 11, 2025, the company also completed the acquisition of Capella Space Corporation[177](index=177&type=chunk)[178](index=178&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights strong Q2 2025 revenue growth driven by hardware and acquisitions, significantly offset by escalating operating expenses, resulting in a wider net loss, despite robust liquidity bolstered by a recent equity offering [Business and Technical Highlights](index=35&type=section&id=Business%20and%20Technical%20Highlights) The company achieved significant progress through strategic collaborations, including partnerships with KISTI and AIST, a **$22 million** deal with EPB, and key acquisitions of Oxford Ionics and Capella, funded by a **$1.0 billion** equity offering - Secured a landmark **$22 million** deal with utility leader EPB to create America's first commercial quantum hub[189](index=189&type=chunk) - Announced an agreement to acquire Oxford Ionics, aiming for **10,000 physical qubits by 2027**, and completed the acquisition of Capella to facilitate a space-based QKD network[189](index=189&type=chunk) - Completed a **$1.0 billion** equity offering, strengthening the balance sheet to approximately **$1.6 billion** in pro-forma cash[189](index=189&type=chunk) [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Operations analysis reveals strong Q2 2025 revenue growth to **$20.7 million**, significantly offset by escalating R&D and G&A expenses, primarily due to stock-based compensation and acquisition costs, resulting in a widened net loss of **$176.8 million** Comparison of Three Months Ended June 30, 2025 and 2024 (in millions) | Item | Q2 2025 | Q2 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $20.7 | $11.4 | $9.3 | 82% | | Research and development | $103.4 | $31.2 | $72.2 | 231% | | General and administrative | $48.1 | $13.1 | $35.1 | 269% | - The increase in R&D expense for Q2 2025 was primarily driven by a **$70.7 million** increase in payroll-related expenses, which included a **$64.7 million** increase in stock-based compensation from new equity grants and acquisition-related awards[207](index=207&type=chunk) - The increase in G&A expense for Q2 2025 was primarily driven by a **$14.7 million** increase in payroll-related expenses (including **$9.7 million** in stock-based compensation) and a **$19.6 million** increase in professional service fees, including **$14.1 million** in transaction costs[210](index=210&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) IonQ maintained a strong liquidity position with **$656.8 million** in cash and investments as of June 30, 2025, further bolstered by a subsequent **$980 million** equity offering, expected to cover future capital needs despite ongoing net losses and cash usage in operations - As of June 30, 2025, the company had cash, cash equivalents and available-for-sale securities of **$656.8 million**[227](index=227&type=chunk) - In July 2025, the company completed an equity offering to raise additional capital, with net proceeds of approximately **$980.0 million**[177](index=177&type=chunk)[227](index=227&type=chunk) - For the six months ended June 30, 2025, net cash provided by financing activities was **$372.9 million**, primarily from the 2025 ATM Offering Program which raised **$358.3 million** net[148](index=148&type=chunk)[237](index=237&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposures have occurred since December 31, 2024, with primary risks remaining related to interest rate fluctuations and credit concentration - No material changes related to market risks have occurred since December 31, 2024. The company remains exposed to market risk from changes in interest rates and credit concentration[245](index=245&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective[247](index=247&type=chunk) - There were no changes during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[248](index=248&type=chunk) PART II—OTHER INFORMATION [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) A securities class action lawsuit (Leacock v. IonQ, Inc. et al.) was dismissed with prejudice by the District Court of Maryland, upheld on appeal, and is now closed after the Supreme Court appeal deadline passed - The securities class action lawsuit (Leacock v. IonQ, Inc. et al.) has been fully resolved in the company's favor. The Fourth Circuit upheld the trial court's dismissal with prejudice, and the deadline for further appeal has lapsed, closing the case[144](index=144&type=chunk)[251](index=251&type=chunk) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) This section outlines substantial investment risks for IonQ, including its early-stage status, history of losses, significant technological hurdles, intense competition, supply chain vulnerabilities, reliance on key personnel and IP, and financial risks like stock price volatility [Risks Related to Financial Condition and Status as an Early-Stage Company](index=48&type=section&id=Risks%20Related%20to%20Our%20Financial%20Condition%20and%20Status%20as%20an%20Early-Stage%20Company) This subsection details financial risks from IonQ's limited operating history, including ongoing significant operating losses of **$160.6 million** in Q2 2025, challenges in scaling and managing growth, and potential limitations on utilizing **$224.2 million** in net operating loss carryforwards - The company is an early-stage company with a limited operating history, making future results difficult to forecast. It has a history of operating losses, with a loss from operations of **$160.6 million** in Q2 2025, and expects to incur continuing losses[258](index=258&type=chunk)[260](index=260&type=chunk) - The company faces challenges in scaling its business and manufacturing processes for quantum computers, which have never been produced at a commercial scale[263](index=263&type=chunk)[264](index=264&type=chunk) - As of December 31, 2024, the company had U.S. federal net operating loss carryforwards of approximately **$224.2 million**, the use of which may be limited by ownership changes under Section 382 of the Code[282](index=282&type=chunk)[283](index=283&type=chunk) [Risks Related to Business and Industry](index=52&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) This subsection highlights IonQ's significant technical and market risks, including challenges in producing a scalable quantum computer, intense competition from major tech companies and state-sponsored programs, and dependence on the nascent quantum market and cloud provider relationships - The company has not yet produced a scalable quantum computer and faces significant R&D challenges, including improving gate fidelity, error correction, and developing photonic interconnects to scale beyond single-core operation[286](index=286&type=chunk)[289](index=289&type=chunk) - The quantum computing industry is highly competitive, with rivals including large tech companies (Amazon, Google, IBM), other public and private firms, and state-sponsored programs in China, Russia, and Europe[301](index=301&type=chunk)[302](index=302&type=chunk) - The business is dependent on its relationship with cloud providers (AWS, Microsoft, Google), who are also competitors and could use their market position to disadvantage IonQ[299](index=299&type=chunk) [Risks Related to Intellectual Property](index=71&type=section&id=Risks%20Related%20to%20our%20Intellectual%20Property) This subsection emphasizes IonQ's critical reliance on licensed intellectual property, particularly foundational patents from the University of Maryland and Duke University, alongside risks of patent infringement claims, and U.S. government rights over certain in-licensed IP - The company is heavily reliant on an exclusive license agreement with the University of Maryland and Duke University for foundational patents. Termination of this agreement would significantly harm the business[409](index=409&type=chunk)[410](index=410&type=chunk) - The company faces risks of patent infringement claims that could be costly, result in injunctions, and require redesigning products or obtaining expensive licenses[420](index=420&type=chunk) - Certain in-licensed intellectual property was developed with U.S. government funding, subjecting it to federal regulations, including potential "march-in" rights for the government and a requirement for products to be substantially manufactured in the U.S[424](index=424&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=80&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[456](index=456&type=chunk) [Defaults Upon Senior Securities](index=80&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[457](index=457&type=chunk) [Mine Safety Disclosures](index=80&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[458](index=458&type=chunk) [Other Information](index=80&type=section&id=Item%205.%20Other%20Information) This section discloses that Director Robert Cardillo amended a Rule 10b5-1 trading arrangement on June 13, 2025, for the potential sale of **20,211 shares** - On June 13, 2025, Director Robert Cardillo amended a Rule 10b5-1 trading plan for the potential sale of **20,211 shares**[459](index=459&type=chunk)

Exhibit 99.1 IonQ Announces Second Quarter Financial Results *Adjusted EBITDA is a non-GAAP financial measure defined under "Non-GAAP Financial Measures," below, and is reconciled to net loss, its closest comparable GAAP measure, at the end of this release. ● Beats Top End Revenue Guidance by 15% ● Announced $1.075 Billion Proposed Acquisition of Oxford Ionics, Enhancing Scalable Quantum Computing Breakthroughs ● Completed Acquisition of Lightsynq and Capella, Substantially Accelerating Both Quantum Computi ...

Core Insights - IonQ (IONQ) is poised to release its second-quarter 2025 results, with investor optimism driven by rapid strategic execution and an impressive 86% stock increase during the April-June quarter [1][9] Group 1: Growth Drivers - IonQ is expanding its global footprint through strategic partnerships, particularly in Europe and Asia, with the acquisition of a majority stake in ID Quantique (IDQ) enhancing access to European telecom and cybersecurity markets [4][5] - The partnership with Intellian in South Korea aims to co-develop infrastructure for space-to-ground quantum communications, further extending IonQ's reach into critical defense and telecom markets across Asia [5] Group 2: Financial Performance - In the first quarter of 2025, IonQ's revenues exceeded the midpoint of guidance, despite a net loss of $32.3 million and an adjusted EBITDA loss of $35.8 million, ending the quarter with $697.1 million in liquidity and zero debt [6][9] - The growing revenue base and strategic investments are expected to support an improving profit trajectory in the second quarter [7] Group 3: Competitive Positioning - Rigetti Computing (RGTI) is facing challenges with a 52% year-over-year revenue drop, despite a net profit in the first quarter due to a non-cash accounting gain [10] - D-Wave Quantum (QBTS) is gaining momentum, particularly in Europe, with strong revenues and reduced net loss driven by demand in various industries [11] Group 4: Valuation and Estimates - IonQ's stock is trading at a high forward 12-month price-to-sales (P/S) ratio of 91.63, significantly above the industry average of 3.7, indicating potential risk if second-quarter results disappoint [12] - The Zacks Consensus Estimate for second-quarter 2025 loss per share has narrowed to 13 cents, indicating a narrower loss compared to the previous year, with an estimated revenue growth of 49.6% year-over-year [13]

Core Insights - IonQ, Inc. is set to report its second-quarter 2025 results on August 6, with a focus on revenue, EPS metrics, and its expansion into quantum networking and a quantum-safe internet [1] Group 1: Strategic Moves and Acquisitions - IonQ's acquisitions of Lightsynq and Capella enhance its position in quantum communications, with Lightsynq providing critical quantum memory technology and Capella offering defense-grade satellite communication expertise [2] - These strategic moves strengthen IonQ's technical roadmap and commercial positioning in both terrestrial and space-based quantum ecosystems [2] Group 2: International Expansion and Collaborations - IonQ's first-quarter announcements include deployments in Asia, with MOUs signed with Toyota Tsusho and Intellian, highlighting its international ambitions [3] - The collaboration with EPB of Chattanooga marks the first commercial deployment of both a quantum computer and a quantum network, showcasing the practical utility of IonQ's platform [3] Group 3: Financial Expectations - The Zacks Consensus Estimate for IonQ's second-quarter revenues is $17.02 million, within the guided range of $16–18 million, with an expected loss of 13 cents per share [4] - Despite near-term losses, investors may focus on IonQ's traction with commercial and government partners, particularly in quantum networking and cloud access [4] Group 4: Financial Position - IonQ has over $697.1 million in cash and equivalents as of the end of the first quarter, providing a solid balance sheet to support its long-term ambitions [5] - The company's expanding ecosystem and differentiated architecture may reaffirm its leadership in quantum networking and readiness to monetize its investments over time [5] Group 5: Market Position - IonQ currently holds a Zacks Rank 3 (Hold), indicating a balanced risk-reward profile as it transitions from R&D milestones to broader commercial execution [6]

Group 1 - Quantum concept stocks experienced an upward trend on Tuesday, with Quantum Computing (QUBT.US) rising nearly 5% [1] - IonQ Inc (IONQ.US) and Arqit Quantum (ARQQ.US) both increased by over 3% [1] - Rigetti Computing (RGTI.US) saw a rise of more than 1.8% [1]

Quantum computing developments have huge implications for artificial intelligence (AI). Quantum computing is the next big technology that could change the world. It has massive implications for artificial intelligence (AI), as we're currently using traditional computing methods to train these models. While the results we've seen are impressive, they pale in comparison to what quantum computing can do. Finding solid quantum computing stocks can be difficult, as there are multiple approaches and the technolog ...

Group 1 - The article highlights a company that is considered an 'actionable' quantum winner, distinguishing itself from peers through a more effective approach, providing it with a practical edge [1] Group 2 - Undercovered Deep Insights is led by a seasoned market analyst, Moz Farooque, who combines investigative financial journalism with robust modeling to identify under-the-radar stock and crypto opportunities [2]

Core Viewpoint - IonQ, Inc. is poised for significant growth as it prepares to report its second-quarter 2025 earnings, following a series of strategic achievements and a strong first quarter performance [2][12]. Financial Performance - In Q1 2025, IonQ reported revenues of $7.57 million, a slight year-over-year decline of 0.2%, but above prior guidance, with a loss of 14 cents per share, an improvement from a 19-cent loss per share the previous year [2][5]. - The Zacks Consensus Estimate for Q2 2025 indicates an expected revenue of $17.02 million, reflecting a 49.6% year-over-year growth, with an EPS loss estimate of 13 cents, improving from an 18-cent loss a year ago [4][5]. - For the full year 2025, IonQ anticipates a 97.3% increase in revenues, with a projected loss narrowing to 60 cents per share from $1.56 the previous year [5][6]. Strategic Initiatives - IonQ's Q2 revenue expectations are set between $16 million and $18 million, driven by a $22 million sale of the Forte Enterprise system to EPB of Chattanooga, marking a significant commercial deployment [7][8]. - The acquisition of ID Quantique is expected to contribute to revenue starting in Q2, enhancing IonQ's capabilities in secure quantum communications and networking [8][9]. - The company is focused on delivering AQ 64 and advancing its Tempo system, which is crucial for transitioning to commercially viable quantum computing solutions [10]. Market Position and Competition - IonQ's stock has seen a 28.9% increase over the past three months, outperforming both the Zacks Computer-Integrated Systems industry and the broader technology sector [15]. - Despite its strong performance, IonQ faces challenges from major competitors like IBM and Microsoft, which have robust quantum computing roadmaps and extensive resources [21][22]. Valuation and Investor Sentiment - IonQ's forward 12-month price-to-sales ratio stands at 92.09, significantly higher than the industry average of 3.79, raising concerns about whether the stock has priced in too much of its long-term potential [18]. - The company is still in the early stages of commercial development, with high cash burn and execution risks that may test investor patience [20][22].

Core Insights - IonQ, Inc. is making significant strides in quantum computing, while NVIDIA Corporation is also heavily investing in this technology, leading to a comparison of their growth potential in the sector [1] Group 1: IonQ's Developments - IonQ is developing quantum computers using trapped linear chain ions, achieving over 100 qubits with fewer errors than competitors [2] - The company has acquired Lightsynq Technologies, ID Quantique, and Qubitekk to enhance its capabilities in quantum technology [3] - IonQ reported a net operating loss of $75.7 million in Q1, an increase from $52.9 million year-over-year, but holds $588.3 million in cash for further research [4] - IonQ plans to raise $1 billion through an equity offering to support its growth in quantum computing [4] - Despite ambitions and partnerships with major cloud providers, IonQ's revenue growth was flat in the most recent quarter, raising concerns about its profitability [8][9] Group 2: NVIDIA's Position - NVIDIA reported record revenues of $130.5 billion for the 2025 fiscal year, a 114% increase year-over-year, with Q1 revenues of $44.1 billion, up 69% from the previous year [5] - The company is integrating GPUs and QPUs into hybrid quantum systems to enhance quantum computing capabilities [6] - NVIDIA is establishing research centers to develop large-scale, practical quantum supercomputers [7] - With a strong cash position of $53.7 billion, NVIDIA is well-equipped to tackle challenges in quantum computing [10] Group 3: Comparative Analysis - IonQ has a forward price-to-sales (P/S) ratio of 124.75, significantly higher than NVIDIA's 21.58, indicating potential overvaluation of IonQ [9][11] - Both companies are ranked Zacks Rank 3 (Hold), but NVIDIA is viewed as having better growth prospects and being a safer investment [12]

IonQ could have a groundbreaking announcement at any time. IonQ (IONQ -4.23%) has been one of the top pure-play quantum computing stock picks recently. It is taking a unique approach to quantum computing, which could pay off massively in the end. Although the stock has had an impressive run over the past few months, a single announcement can send shares soaring. One of those could be coming on Aug. 6, when IonQ announces Q2 results. But is that a good enough reason to buy the stock now? IonQ must be success ...