Quantum Computing, Inc. has recently released its 10-Q report, providing a detailed look into the company's financial performance and operations. Quantum Computing is an integrated photonics company that specializes in providing quantum machines to commercial and government markets in the United States. The company's focus lies in developing thin film lithium niobate chips for optical devices, including electro-optical modulators and periodically poled devices for frequency conversion. Additionally, Quantum Computing is working on the development of an entropy quantum computer, a full-stack system that enables users to create and execute quantum-ready applications using application programming interfaces.
In the 10-Q report, Quantum Computing, Inc. highlighted its financial condition and results of operations. The company reported total revenue of $61 thousand for the three months ended June 30, 2025, compared to $183 thousand for the same period in 2024, marking a 67% decrease. For the six months ended June 30, 2025, total revenue amounted to $100 thousand, down 52% from the $210 thousand reported for the comparable prior year period. The decrease in revenue was primarily attributed to changes in the number of, size of, and level of effort performed on active customer proof-of-concept and research and development services and custom hardware contracts.
Cost of revenue for Quantum Computing decreased by 72% for the three months ended June 30, 2025, amounting to $35 thousand, compared to $125 thousand for the same period in 2024. For the six months ended June 30, 2025, cost of revenue was $61 thousand, down 57% from the $141 thousand reported for the comparable prior year period. The company's gross profit margin for the three months ended June 30, 2025, was 43% of revenue, compared to 32% for the same period in 2024. For the six months ended June 30, 2025, the gross profit margin was 39% of revenue, up from 33% for the comparable prior year period.
Operating expenses for Quantum Computing increased significantly, with research and development expenses totaling $5,975 thousand for the three months ended June 30, 2025, compared to $2,094 thousand for the same period in 2024. Similarly, for the six months ended June 30, 2025, research and development expenses amounted to $8,960 thousand, up from $4,315 thousand for the comparable prior year period. The company also reported increases in sales and marketing expenses and general and administrative expenses.
In terms of non-operating income (expense), Quantum Computing reported interest and other income of $1,843 thousand for the three months ended June 30, 2025, compared to $73 thousand for the same period in 2024. The company recognized a loss of $28,096 thousand related to the change in fair value of the QPhoton Warrant liability during the three months ended June 30, 2025, and a loss of $4,466 thousand during the six months ended June 30, 2025, related to the same matter.
The market has reacted to these announcements by moving the company's shares -3.94% to a price of $15.38. For the full picture, make sure to review Quantum Computing's 10-Q report.
