Company Performance - IonQ reported a quarterly loss of $3.58 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.44, and compared to a loss of $0.24 per share a year ago, indicating a substantial earnings surprise of -713.64% [1] - The company posted revenues of $39.87 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 47.57%, and showing a significant increase from year-ago revenues of $12.4 million [2] - IonQ has surpassed consensus revenue estimates four times over the last four quarters, demonstrating a strong performance in revenue generation [2] Stock Outlook - IonQ shares have increased approximately 27.8% since the beginning of the year, outperforming the S&P 500's gain of 15.1% [3] - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at -$0.28 for the coming quarter and -$1.58 for the current fiscal year [4][7] - The estimate revisions trend for IonQ was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expectations of outperformance in the near future [6] Industry Context - The Computer - Integrated Systems industry, to which IonQ belongs, is currently ranked in the top 6% of over 250 Zacks industries, suggesting a favorable environment for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, highlighting the importance of monitoring these revisions for investment decisions [5]

Financial Data and Key Metrics Changes - The company achieved record revenues of $39.9 million in Q3 2025, representing year-on-year growth of 222% and exceeding the high end of its guidance by 37% [24][31] - Adjusted EBITDA loss for the quarter was $48.9 million, with GAAP operating expenses totaling $208.7 million [26][27] - GAAP EPS for the quarter was a loss of $3.58, primarily impacted by mark-to-market adjustments related to outstanding warrants [27][28] - Cash, cash equivalents, and investments as of September 30, 2025, were $1.5 billion, with an additional $2 billion raised in October, bringing the pro forma cash balance to $3.5 billion [28][29] Business Line Data and Key Metrics Changes - The company reported significant growth in its quantum computing, networking, sensing, and cybersecurity segments, with a focus on integrated solutions [24][34] - The acquisition of Oxford Ionics and Vector Atomic has expanded the company's capabilities in quantum computing and sensing, respectively [6][9] - The company is on track to deliver its 256-qubit quantum chip in 2026, which is expected to leverage existing semiconductor supply chains for rapid scaling [19][30] Market Data and Key Metrics Changes - Approximately 70% of the company's business is now U.S.-based, with 30% coming from international markets, a shift from nearly all U.S.-based a year ago [25] - The company is pursuing opportunities in various countries, including Australia, Italy, South Korea, and Japan, indicating a growing international footprint [25] Company Strategy and Development Direction - The company aims to lead in quantum computing, networking, sensing, and cybersecurity by expanding its technical lead and creating integrated solutions [10][16] - IonQ is focused on building a quantum ecosystem that combines hardware, software, and applications to create a competitive advantage [58] - The company is committed to operational excellence and is investing in its infrastructure to support growth [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position as a leader in quantum technology and its ability to capitalize on emerging opportunities [17][31] - The company anticipates stronger Q4 revenues than Q3, breaking previous seasonal trends [31] - Management highlighted the importance of quantum cybersecurity and sensing solutions in addressing current market needs [34][42] Other Important Information - The company has over 1,100 patents pending and granted, reflecting its commitment to innovation and intellectual property development [11] - IonQ's acquisition strategy has been pivotal in enhancing its capabilities and market position [6][9] Q&A Session Summary Question: How much of the revenue upside came from core quantum computing versus security, sensing, and networking? - Management indicated that the ability to sell integrated solutions has been crucial, with significant contributions from quantum security and networking [32][34] Question: What applications are currently most popular among government and commercial customers? - Management noted strong interest in quantum cybersecurity and solutions for logistics and maintenance in the defense sector [38][39] Question: How has the government shutdown impacted upcoming deals? - Management reported no material impact from the government shutdown, maintaining confidence in ongoing projects [51][52] Question: Will the Oxford chip be in the sixth-generation computer launching in 2026? - Yes, the 256-qubit device based on electronic qubit control will be part of the 2026 roadmap [46] Question: What are the trends in operating expenses and share count? - Management plans to continue increasing R&D and innovation spending, with an expected share count of around 350 million by year-end [47][50]

Q3 2025 Business & Financial Highlights November 5, 2025 2 IonQ Q3 2025 Update Copyright © 2025 IonQ, Inc. All Rights Reserved. Unprecedented Momentum and Scale The Quantum Leader in Every Metric That Matters Oak Ridge National Laboratory Copyright © 2025 IonQ, Inc. All Rights Reserved. Important Information Forward-Looking Statements and Other Information This presentation contains forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including ...

Financial Performance - Net losses attributable to IonQ, Inc. were $1,264.0 million and $129.6 million for the nine months ended September 30, 2025 and 2024, respectively, with an accumulated deficit of $1,947.8 million as of September 30, 2025 [186]. - Net loss attributable to IonQ, Inc. was $1,054.96 million for the three months ended September 30, 2025, compared to a net loss of $52.5 million for the same period in 2024 [204]. - The company expects to incur significant losses and higher operating expenses for the foreseeable future, with an accumulated deficit of $1,947.8 million as of September 30, 2025 [229]. Revenue and Growth - Revenue is derived from contracts related to specialized quantum computing hardware, quantum networking products, QCaaS, consulting services, and satellite imagery [189]. - Revenue increased by $27.5 million, or 222%, to $39.9 million for the three months ended September 30, 2025, from $12.4 million for the same period in 2024 [205]. - Revenue for the nine months ended September 30, 2025, increased by $36.8 million, or 117%, to $68.1 million from $31.4 million for the same period in 2024 [217]. Expenses - Research and development expenses increased by $33.1 million, or 100%, to $66.3 million for the three months ended September 30, 2025, from $33.2 million for the same period in 2024 [207]. - General and administrative expenses surged by $68.2 million, or 476%, to $82.5 million for the three months ended September 30, 2025, from $14.3 million for the same period in 2024 [209]. - The increase in general and administrative expenses was primarily driven by a $39.2 million increase in payroll-related expenses, including stock-based compensation [209]. - The increase in research and development expenses was primarily due to a $27.0 million increase in payroll-related expenses, including stock-based compensation [207]. - Research and development expenses increased by $112.9 million, or 117%, to $209.6 million for the nine months ended September 30, 2025, from $96.8 million for the same period in 2024 [219]. - General and administrative expenses surged by $113.0 million, or 273%, to $154.4 million for the nine months ended September 30, 2025, from $41.4 million in 2024 [221]. - Cost of revenue (excluding depreciation and amortization) rose by $14.7 million, or 226%, to $21.3 million for the three months ended September 30, 2025, from $6.5 million for the same period in 2024 [206]. - Cost of revenue (excluding depreciation and amortization) for the nine months ended September 30, 2025, increased by $18.3 million, or 118%, to $33.9 million from $15.6 million for the same period in 2024 [218]. - Depreciation and amortization expenses increased by $28.2 million, or 215%, to $41.4 million for the nine months ended September 30, 2025, from $13.2 million in 2024 [222]. Cash Flow and Financing - Net cash used in operating activities was $208.7 million for the nine months ended September 30, 2025, compared to $66.3 million in 2024 [236]. - Net cash used in investing activities was $873.6 million for the nine months ended September 30, 2025, primarily due to purchases of available-for-sale securities [238]. - Net cash provided by financing activities was $1,377.4 million for the nine months ended September 30, 2025, primarily from proceeds from the issuance of common stock and warrants [240]. - As of September 30, 2025, the company had cash, cash equivalents, and available-for-sale securities totaling $1,485.0 million [229]. Strategic Outlook - The company is developing quantum computers and networks aimed at solving complex problems and transforming business and society [182]. - The company expects to continue incurring significant losses as it prioritizes reaching technical milestones for stable qubits and higher fidelity [186]. - The company intends to continue considering acquisitions and investments in complementary businesses to enhance its operations [187]. - The impact of macroeconomic factors such as inflation and interest rates may adversely affect operating results and financing options [188]. Market Risks and Accounting - The company acknowledges that estimates related to forward-looking views can significantly impact the fair values of identifiable intangible assets, potentially leading to material changes in reported intangible assets and goodwill [245]. - Recent accounting standards have been adopted, as discussed in the Summary of Significant Accounting Policies in the Quarterly Report [246]. - The company is exposed to market risks related to interest rate changes and credit concentration, with no material changes reported since December 31, 2024 [247].

Quantum Computing’s $10B Moment: When the U.S. Government Becomes Your Shareholder — and Retail Investors Lose Their MindsJosh Luberisse2 min read·Just nowJust now--How Google’s Willow breakthrough, Trump administration equity stakes, and a Deputy Defense Secretary’s $100M position converged to create quantum computing’s first retail maniaPress enter or click to view image in full sizePhoto by Brandon Style on UnsplashThis post was originally published in our Substack and the ful article is available at htt ...

Core Insights - Quantum stocks are experiencing a recovery after significant losses, driven by technical breakthroughs and a $625 million funding commitment from the U.S. Department of Energy for quantum research centers [1][2] Funding and Government Support - The U.S. Department of Energy announced a $625 million investment aimed at advancing quantum technology R&D over the next five years at five national research centers, enhancing the U.S. position as a leader in quantum research [2] - The funding is part of the National Quantum Initiative Act of 2018, focusing on breakthroughs in computing, quantum sensing, and secure communications [2] Market Developments - The Commerce Department is reportedly considering equity stakes in quantum companies for federal funding, although it later denied that active negotiations were taking place [3] - Technical advancements are contributing to the sector's recovery, with notable projects and achievements being reported [3] Company-Specific Updates - D-Wave completed a joint proof-of-concept project with BASF, utilizing a hybrid-quantum application to optimize manufacturing workflows [4] - Google’s Willow chip has demonstrated a verifiable quantum advantage over classical supercomputers, significantly enhancing the credibility of the quantum sector [4] Earnings Reports - Investor attention is shifting towards upcoming earnings reports, with IonQ expected to report a loss of 44 cents per share and revenue of $26.98 million [5] - D-Wave is set to report its results before the market opens on Thursday, while Rigetti will release its Q3 results the following Monday [5]

Core Insights - Investors in pure-play quantum computing stocks are facing challenges in valuing these companies, leading to high price volatility in this emerging sector on Wall Street [1] Group 1 - The quantum computing industry is currently experiencing significant interest, but the valuation of companies within this space remains uncertain [1] - The volatility in stock prices reflects the speculative nature of investments in quantum computing, which is considered a futuristic technology [1]

Core Insights - The rapid rise of quantum computing stocks is expected to be followed by a significant decline, indicating a potential bubble in the market [1][10][11] Market Performance - Quantum computing stocks have shown trailing-12-month returns of up to 3,170% as of October 31, with companies like IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. leading the surge [2] - Current market capitalizations for these companies range from $3.7 billion for Quantum Computing Inc. to $21.7 billion for IonQ, despite a lack of supporting data for such high valuations [3] Technology and Use Cases - Quantum computing utilizes specialized computers based on quantum mechanics to solve complex problems beyond the capabilities of traditional computers [5] - Potential applications include enhancing AI algorithms, improving drug trial success rates, strengthening cybersecurity, refining weather forecasting, and optimizing investment portfolios [5] Investment Dynamics - The surge in quantum computing stocks has been fueled by potential partnerships and financing opportunities, including discussions of equity stakes by the Trump administration [7] - Major cloud computing services like Amazon's Braket and Microsoft's Azure Quantum are providing access to quantum computing resources, further legitimizing the technology [8] Market Sentiment - The phenomenon of "FOMO" (fear of missing out) is driving investor behavior, contributing to the rapid price increases of quantum computing stocks [9] - Historical trends suggest that every major technological advancement has experienced a bubble-bursting event, indicating that quantum computing may follow suit [12][15] Valuation Concerns - Current valuations of quantum computing stocks are unsustainable, with price-to-sales (P/S) ratios reminiscent of the dot-com bubble, where leading companies peaked at P/S ratios of 30 to 40 [16] - The S&P 500's Shiller P/E Ratio is currently at 41.20, suggesting that a market correction could disproportionately affect high-valuation stocks like those in quantum computing [19][20] Future Projections - Consensus sales projections for 2027 indicate that even with significant sales growth, existing valuations for quantum computing stocks cannot be justified [18]

Core Insights - IonQ is valued at over $20 billion and specializes in quantum computing and networking, providing access to its systems via major cloud platforms like AWS, Azure, and Google Cloud [1] - The company also offers quantum-safe networking solutions, quantum key distribution systems, random number generators, and consulting services for quantum applications [2] Financial Performance - IonQ's stock has nearly tripled in value over the past year, with Q3 results expected to be a significant driver for shares [3] - Revenue for Q2 reached $20.7 million, exceeding guidance by 15%, attributed to accelerated project implementations [4] - Full-year 2025 revenue guidance has been raised to between $82 million and $100 million, with Q3 2025 sales forecasted to grow to $27 million from $12.4 million year-over-year [3][5] Strategic Developments - IonQ completed a $1 billion capital raise, marking the largest single institutional investment in quantum computing history [4] - The acquisition of Oxford Ionics aims to achieve a target of 800 logical qubits by 2027 and 80,000 by 2030, positioning the company with a significant technical lead over competitors [5] - Recent acquisitions of Lightsynq and Capella Space enhance IonQ's quantum networking capabilities, including the only commercially certified quantum key distribution products globally [6]

Core Insights - IonQ is a prominent player in the quantum computing sector, currently facing challenges in achieving consistent profitability despite a strong revenue growth of 67.8% over the last 12 months [5][6] - The stock has experienced a significant decline of 20.3% over 21 trading days, raising concerns about its downturn resilience and potential for recovery [2][6] - IonQ's stock performance has lagged behind the S&P 500 during economic downturns, indicating a need for cautious investment strategies [2][6] Company Overview - IonQ is valued at $15 billion with a current trading price of $58.40 and reported revenue of $52 million [5] - The company provides general-purpose quantum computing systems accessible through major cloud platforms such as AWS, Microsoft Azure, and Google Cloud Marketplace [4] Financial Metrics - IonQ's operating margin stands at -700.6%, and it has a P/E multiple of -31.6, indicating challenges in profitability [5] - The company maintains a Debt to Equity ratio of 0.0 and a Cash to Assets ratio of 0.4, reflecting a strong liquidity position [5] Historical Performance - IonQ's stock saw a dramatic decline of 90.0% from a high of $31.00 in November 2021 to $3.10 in December 2022, compared to a 25.4% decline for the S&P 500 during the same period [6] - The stock fully recovered its pre-Crisis peak by November 2024 and reached a high of $82.09 in October 2025, currently trading at $58.40 [6] Investment Strategy - The Trefis High Quality Portfolio, which includes 30 stocks, has historically outperformed major indices, suggesting a diversified investment approach may yield better results than investing in individual stocks like IonQ [3][7]