Quantum Computing (NASDAQ:QUBT) reported second-quarter 2026 revenue of $5.6 million, up from $61,000 a year earlier and $3.7 million in the first quarter, as photonics product sales contributed across its government, educational and commercial customer base.
Chief Financial Officer Chris Roberts said the quarter’s revenue primarily came from photonics products used in the company’s quantum roadmap as well as existing industrial applications. He said government business, largely performed as a subcontractor to prime contractors in civil, aerospace and defense programs, currently represents about 70% to 80% of the company’s business. Commercial markets rank second, while educational customers represent a smaller portion, he said.
Financial Results and Backlog
Operating expenses rose 114% to $21.8 million from $10.2 million a year earlier. The increase reflected higher personnel and payroll costs for research and development, sales and marketing, as well as approximately $7.3 million in acquisition-related transaction costs.
Interest and other income totaled $13 million, up from $1.8 million in the prior-year period, driven by interest generated from a larger cash position. At June 30, the company held approximately $1.3 billion in cash, cash equivalents and investments, down from about $1.5 billion at the end of 2025. Roberts said the decrease included roughly $180 million of cash used for the acquisitions of Luminar Semiconductor, NuCrypt and NHanced Semiconductors, including transaction expenses.
Total assets were approximately $1.6 billion, while total liabilities were $47.2 million. Contract backlog stood at approximately $42.5 million at June 30.
Roberts said backlog had not changed substantially in the roughly 40 days after quarter-end, though contract activity can occur unevenly. He said the contracts in backlog generally extend over 12 to 18 months and would support operations into the third quarter of 2027 or longer if no additional business were received.
Acquisitions Expand Manufacturing Capabilities
Chief Executive Officer and Chairman Yuping Huang said the company completed three acquisitions during the first half of 2026 to expand its commercialization efforts, technical capabilities, manufacturing capacity and engineering staff.
In the second quarter, Quantum Computing completed its acquisition of NHanced Semiconductors, an independent U.S.-based advanced packaging foundry. Huang said the deal enabled the company to launch its Fab 2 initiative ahead of schedule and added capabilities in hybrid bonding, chiplet architectures, silicon interposers, photonic device integration and advanced semiconductor packaging.
Roberts said NHanced can currently process roughly 60,000 wafers annually, representing a substantial capacity increase over the company’s Fab 1 facility in Tempe, Arizona. The company is evaluating upgrades at the NHanced facility that could require capital expenditures in a range of $50 million to $100 million, with Roberts identifying approximately $75 million as a current planning estimate. He said the company does not expect to spend close to that amount this year.
Regarding revenue contribution, Roberts said Quantum Computing continues to support models projecting $20 million to $25 million of 2026 revenue for the company prior to the NHanced acquisition. He said NHanced’s contribution could fall between $7 million and $16 million, depending on the timing of project delivery and customer acceptance. He noted that NHanced generated about $16 million in the first half of 2025, but its more recent figures have been affected by business mix changes and the postponement of funding on a large U.S. Navy contract.
Commercial Developments
Huang said the company reached commercial readiness in April for NeuraWave, its photonic reservoir computing platform designed for artificial intelligence inference and signal processing at the edge. The platform combines photonic and digital computing and targets applications in defense, telecommunications, autonomous vehicles, robotics, healthcare and industrial monitoring.
During June, the company delivered and installed a Dirac-3 quantum optimization machine at a global consulting firm. Huang said the system will support the customer’s enterprise engagements involving complex optimization challenges, including portfolio optimization.
The company also reached a framework agreement with Planck Dynamics that included an initial order for five NeuraWave systems. Huang said the agreement could provide a path to deployment of multiple dozens of systems as customer milestones are met, with a potential aggregate program value exceeding $10 million.
Quantum Computing additionally received an order from a university for its quantum secure communications system, which the institution plans to evaluate as part of research and development related to quantum-secure networking.
Technology Roadmap and Sales Expansion
Management said it remains focused on two growth areas: advancing room-temperature photonic quantum systems and expanding commercial offerings in photonic components, lasers, detectors, photonic integrated circuits, thin-film lithium niobate technologies, optical packaging, advanced packaging and semiconductor foundry services.
Huang said the company has made progress in expanding the number of variables supported by its Dirac-3 optimization system, though he did not provide specific technical details. He said the company expects to share further news in coming months.
Huang also said the company is developing technology for a gate-based quantum machine using single photons, while emphasizing that it does not yet have a gate-based product. He described photon-photon interaction, component integration and the need to combine lasers, single-photon detectors and control electronics into a self-contained chip-scale system as key engineering considerations.
Roberts said Quantum Computing recently hired Susan Hunt as chief revenue officer and plans to add sales personnel in commercial and government markets. Huang said the company believes its technology and manufacturing capabilities have reached an inflection point that supports broader commercial expansion.
About Quantum Computing (NASDAQ:QUBT)
Quantum Computing Inc (NASDAQ: QUBT) is a provider of quantum computing and quantum-inspired algorithm solutions, headquartered in the United States with research and development operations in Europe. Originally incorporated as Unigrid Software in 2019, the company rebranded in 2021 to reflect its strategic focus on commercializing emerging quantum technologies for enterprise and government customers.
The company’s flagship product, Qatalyst, is a quantum-inspired optimization platform that applies advanced heuristic solvers to address complex combinatorial problems in logistics, supply chain management, finance and other data-intensive fields.
