IonQ(IONQ) - 2025 Q4 - Annual Report

Revenue Growth - Revenue increased by $86.9 million, or 202%, to $130.0 million for the year ended December 31, 2025, from $43.1 million for the year ended December 31, 2024[400]. - Revenue is derived from the design, development, construction, and sale of quantum ecosystem hardware, QCaaS services, consulting services, and satellite imagery[429]. Net Losses and Deficits - Net losses attributable to IonQ, Inc. were $510.4 million, $331.6 million, and $157.8 million for the years ended December 31, 2025, 2024, and 2023, respectively[379]. - As of December 31, 2025, IonQ had an accumulated deficit of $1,194.1 million[379]. - The company incurred net losses of $510.4 million for the year ended December 31, 2025, with an accumulated deficit of $1,194.1 million[414]. Operating Expenses - Research and development expenses for the year ended December 31, 2025, were $305.7 million, compared to $136.8 million for 2024[399]. - General and administrative expenses increased to $245.1 million for the year ended December 31, 2025, from $71.1 million in 2024[399]. - Operating costs and expenses totaled $763.7 million for the year ended December 31, 2025, compared to $275.5 million for 2024[399]. - Cost of revenue increased by $56.9 million, or 276%, to $77.5 million for the year ended December 31, 2025, driven by higher labor and materials costs[403]. - Research and development expenses rose by $168.9 million, or 123%, to $305.7 million for the year ended December 31, 2025, primarily due to increased payroll-related expenses and materials costs[404]. - Sales and marketing expenses increased by $25.1 million, or 88%, to $53.4 million for the year ended December 31, 2025, mainly from higher payroll-related expenses and marketing initiatives[405]. - General and administrative expenses surged by $174.0 million, or 245%, to $245.1 million for the year ended December 31, 2025, largely due to increased payroll and professional service fees[406]. - Depreciation and amortization expenses rose by $63.4 million, or 340%, to $82.0 million for the year ended December 31, 2025, driven by amortization of acquired intangible assets[408]. Cash and Investments - As of December 31, 2025, the company had cash, cash equivalents, and investments totaling $3,336.8 million, sufficient to meet working capital needs for the next 12 months[414]. - The company reported cash, cash equivalents, and short-term and long-term investments totaling $3,336.8 million as of December 31, 2025[436]. - The primary objective of the company's investment activities is to preserve principal while maximizing yields without significantly increased risk[436]. - The company deposits cash and investments with large, reputable financial institutions, which may exceed federally insured limits[439]. Future Expectations and Strategies - The company expects to continue incurring significant losses as it prioritizes reaching technical milestones necessary for quantum computing advancements[379]. - The company is in the early stages of commercial growth and has incurred significant operating losses since inception[379]. - IonQ intends to continue considering acquisitions and investments in complementary businesses to enhance its operations[381]. - The company entered into an agreement to acquire SkyWater for approximately $1.8 billion, expected to close within the next twelve months[415]. Revenue Recognition and Accounting - Revenue recognition may vary based on the allocation of arrangement consideration to performance obligations with different revenue recognition patterns[431]. - Business combinations are accounted for using the acquisition method, requiring all acquired assets and assumed liabilities to be recorded at fair values as of the acquisition date[433]. - Determining the fair value of developed technology in business combinations requires significant judgment and estimates, impacting future amortization expense[434]. - Changes in estimates related to fair values of identifiable intangible assets can result in material changes to reported intangible assets and goodwill[435]. - The company evaluates contracts with customers at execution, which may vary in terms and affect revenue recognition[431]. Interest Income - Interest income, net increased by $37.7 million, or 207%, to $56.0 million for the year ended December 31, 2025, primarily due to a higher balance of available-for-sale investments[410]. - The company does not have any material exposure to changes in fair value due to changes in interest rates, although declines in interest rates would reduce future interest income[438].