IonQ(IONQ) - 2025 Q1 - Quarterly Results

IonQ First Quarter 2025 Financial Results Executive Summary & Highlights IonQ reported strong Q1 2025 financial results, exceeding revenue guidance and maintaining a robust cash position, while advancing its quantum roadmap through strategic acquisitions and key commercial partnerships - CEO Niccolo de Masi highlighted a strong start to the year with revenue above guidance and a cash balance of almost $700 million[3] - Announced the intended acquisition of Lightsynq to accelerate both quantum networking and computing roadmaps, leveraging its quantum memory and photonic interconnect technology[3][5][8] - Announced a $22 million deal with EPB, including the sale of a Forte Enterprise system, to create the first commercial quantum computing and networking hub focused on energy grid optimization[3][6][10] - Strengthened its global quantum networking position by closing the acquisition of a controlling stake in ID Quantique and agreeing to acquire Capella[3][6][10] Financial Highlights IonQ reported Q1 2025 revenue of $7.6 million, a net loss of $32.3 million, and an Adjusted EBITDA loss of $35.8 million, with $697.1 million in cash and investments Q1 2025 Key Financial Metrics (in millions) | Metric | Value | Note | | :--- | :--- | :--- | | Revenue | $7.6 | Above the midpoint of the previously provided range | | Cash, Cash Equivalents, and Investments | $697.1 | As of March 31, 2025. Balance increased due to a $372.6M ATM facility | | Net Loss | $32.3 | - | | Adjusted EBITDA Loss* | $35.8 | Excludes a non-cash gain of $38.5 million from warrant liabilities | Commercial & Strategic Highlights IonQ expanded its strategic footprint via pending Lightsynq and Capella acquisitions, a $22 million EPB deal, and new international partnerships in Japan - Pending acquisition of Lightsynq Technologies to gain expertise in quantum repeaters, quantum memory, and photonic interconnects[6][5][8] - Announced a $22 million deal with EPB, including a Forte Enterprise system sale, to establish a commercial quantum computing and networking hub[6][10] - Expanded its quantum networking initiative by closing the acquisition of ID Quantique and agreeing to acquire Capella[6][10] - Entered the Japanese market through a distributor partnership with Toyota Tsusho Corporation and an MOU with G-QuAT (AIST)[10] Technical & Research Highlights IonQ achieved technical milestones including DARPA QBI selection, a 12% speed improvement with Ansys, and advancements in ion trap prototypes, QEC, and quantum logic gates - Selected for the first stage of DARPA's Quantum Benchmarking Initiative (QBI) to validate the feasibility of industrially useful quantum computers[6][10] - Demonstrated a 12% speed improvement over classical computing in a blood pump simulation with partner Ansys, showcasing real-world application[3][10] - Completed a next-generation ion trap vacuum package prototype for smaller, room-temperature quantum systems[10] - Published new research on Quantum Error Correction (QEC) codes optimized for its architecture and on high-speed, mixed-species quantum logic gates[17] - Expanded its IP portfolio to over 950 owned and controlled patents and patents pending, including contributions from ID Quantique and the pending Lightsynq acquisition[11] 2025 Financial Outlook IonQ projects full-year 2025 revenue of $75-95 million and Q2 revenue of $16-18 million 2025 Revenue Guidance | Period | Revenue Outlook | | :--- | :--- | | Full Year 2025 | $75 million to $95 million | | Q2 2025 | $16 million to $18 million | Consolidated Financial Statements Q1 2025 unaudited financials reveal stable revenue, increased operating losses from higher investments, and a strengthened balance sheet driven by an ATM offering Condensed Consolidated Statements of Operations Q1 2025 revenue was $7.6 million, with operating expenses rising to $83.2 million, resulting in a $75.7 million operating loss and a $32.3 million net loss after a $38.5 million warrant gain Q1 2025 Statement of Operations (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $7,566 | $7,582 | | Total operating costs and expenses | $83,245 | $60,458 | | Loss from operations | $(75,679) | $(52,876) | | Gain on change in fair value of warrant liabilities | $38,494 | $8,627 | | Net loss | $(32,252) | $(39,592) | | Net loss per share | $(0.14) | $(0.19) | Condensed Consolidated Balance Sheets As of March 31, 2025, total assets grew to $850.1 million due to cash, liabilities decreased to $85.0 million, and stockholders' equity increased to $765.0 million Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $159,681 | $54,393 | | Total current assets | $636,984 | $378,802 | | Total Assets | $850,074 | $508,388 | | Total liabilities | $85,026 | $124,526 | | Total stockholders' equity | $765,048 | $383,862 | Condensed Consolidated Statements of Cash Flows Q1 2025 net cash used in operations was $33.0 million and in investing was $230.2 million, offset by $368.7 million from financing, resulting in a $105.5 million net cash increase Q1 2025 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(33,025) | $(20,465) | | Net cash (used in) provided by investing activities | $(230,176) | $43,529 | | Net cash provided by financing activities | $368,734 | $1,359 | | Net change in cash, cash equivalents and restricted cash | $105,520 | $24,427 | Non-GAAP Financial Measures IonQ utilizes Adjusted EBITDA as a non-GAAP measure to assess core operating performance, reconciling it to net loss by excluding non-cash and non-recurring items - Adjusted EBITDA is defined as net loss before interest, taxes, depreciation, amortization, stock-based compensation, change in fair value of warrant liabilities, and other non-recurring items[14] Reconciliation of Net Loss to Adjusted EBITDA Q1 2025 Adjusted EBITDA loss was $35.8 million, reconciled from a $32.3 million net loss by adjusting for $33.3 million in stock-based compensation and a $38.5 million gain on warrant liabilities Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(32,252) | $(39,592) | | Stock-based compensation | $33,253 | $22,061 | | (Gain) loss on change in fair value of warrant liabilities | $(38,494) | $(8,627) | | Depreciation and amortization | $6,561 | $3,955 | | Adjusted EBITDA | $(35,814) | $(26,994) | Company Information & Disclosures This section details IonQ's quantum computing business, earnings call information, and standard forward-looking statements and risk disclosures - IonQ positions itself as a leader in quantum computing and networking, with its IonQ Forte systems boasting 36 algorithmic qubits[15] - The press release contains forward-looking statements subject to risks and uncertainties, and readers are cautioned not to place undue reliance on them[16][18] - A conference call to discuss the financial results was scheduled for 4:30 p.m. Eastern time on the day of the release, with webcast and replay information provided[13]