IonQ Q3 Earnings Miss Estimates, Revenues Surge Y/Y, Stock Up

Core Insights - IonQ reported a net loss of $3.58 per share in Q3 2025, significantly wider than the Zacks Consensus Estimate of a loss of 44 cents and above the previous year's loss of 24 cents [1] - Revenues for Q3 reached $39.87 million, representing a 222% year-over-year growth and exceeding the high end of the company's prior guidance by 37%, beating the Zacks Consensus Estimate by 47.57% [1] Financial Performance - The cost of revenues (excluding depreciation and amortization) in Q3 totaled $21.3 million, up 226.2% year-over-year, primarily due to increased labor and materials costs [3] - Sales and marketing costs rose 117.8% to $14.4 million, driven by higher payroll-related expenses and promotional costs [3] - Research and development costs increased by 99.8% year-over-year to $66.3 million, while general and administrative costs surged 476.1% to $82.5 million [4] - IonQ posted an adjusted EBITDA loss of $48.9 million in Q3 [4] Cash Position and Outlook - As of September 30, IonQ had cash, cash equivalents, and investments totaling $1.5 billion, with a pro-forma amount of $3.5 billion following a $2 billion equity offering that closed on October 14, 2025 [5] - Cumulative net cash used in operating activities reached $208.7 million compared to $66.3 million in the same period last year [5] - For the full year 2025, IonQ expects revenues between $106 million and $110 million, up from a previous estimate of $82-$100 million, while reaffirming its adjusted EBITDA loss guidance between ($206) million and ($216) million [6] Strategic Developments - IonQ achieved a milestone algorithmic qubit score of AQ 64 on an IonQ Tempo system, three months ahead of schedule, meeting its technical goal for the year [7] - The company announced a breakthrough in synthetic diamond materials, enhancing quantum networking scale and production [7] - IonQ completed the acquisition of Oxford Ionics, which strengthens its quantum hardware capabilities [9]