How QUBT (Quantum Computing) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a quantum computing technology company like QUBT Income Statement Overview makes money is essential for investors and anyone interested in the business of advanced computing solutions. In this post, we break down QUBT's quarterly income statement (Q2 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick QUBT Overview

QUBT Income Statement Overview operates as a quantum computing technology provider, developing software and algorithms for quantum computers. Revenue comes primarily from software licensing, consulting services, and collaborative research agreements. The company’s business model is focused on enabling enterprise and government clients to leverage quantum computing for complex problem-solving, with a growing emphasis on proprietary software solutions.

Revenue Breakdown

• Total Revenue (Q2 2025): $61.0K (−66.7% YoY)
  • Revenue: $61.0K (100% of total)
  • Growth is powered by expansion of quantum software offerings and strategic partnerships, though the YoY decline reflects the lumpy nature of contract-based revenue in emerging tech.

Gross Profit and Margins

• Gross Profit: $26.0K (42.6% gross margin)
  • Cost of Revenue: $35.0K (+72.0% YoY)
  • QUBT maintains moderate margins due to the high cost of delivering advanced quantum solutions and ongoing investments in technical infrastructure.
• Most costs come from technology development, personnel, and infrastructure required to support quantum computing projects.

Operating Income and Expenses

• Operating Income: Not reported for Q2 2025 (likely negative given expense structure)
• Operating Expenses: $10.2K (+91.5% YoY)
  • R&D: $5,975.0K (+185.3% YoY, 9,795.1% of revenue) — Heavy investment in quantum algorithm development, software engineering, and research collaborations
  • SG&A: $4,222.0K (+30.7% YoY, 6,921.3% of revenue) — Covers sales, marketing, administrative, and support functions
  • QUBT continues to prioritize innovation and invest in growth while expanding its technical capabilities.

Net Income

• Pre-Tax Income: Not reported for Q2 2025
• Income Tax: Not reported for Q2 2025
• Net Income: $36.5K (+602.4% YoY, 59,806.6% net margin)
• QUBT converts a significant portion of sales into profit this quarter, primarily due to the recognition of “Other” income $36.5K, which offsets operating losses from core activities.

What Drives QUBT's Money Machine?

• Quantum software and services: 100% of reported revenue, reflecting the company’s focus on enterprise quantum solutions.
• R&D intensity: R&D spending at $5,975.0K dwarfs revenue, highlighting QUBT’s commitment to building future-ready quantum technologies.
• Strategic investments: Heavy allocation to research partnerships and proprietary software development.
• Future growth areas: Commercialization of quantum algorithms and expansion into new industry verticals, though these segments are not yet profitable.

Visualizing QUBT's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially R&D) taking the largest chunk.
• Even after large investments in research and development, net income is positive this quarter due to “Other” income, with a net margin of 59,806.6%.

Key Takeaways

• QUBT’s money comes overwhelmingly from quantum software and services contracts
• High net margin this quarter is driven by non-operating income, not core business profitability
• Heavy investment in R&D, balanced by lean SG&A, underscores a focus on innovation
• Ongoing growth is driven by expansion of quantum solutions and strategic partnerships

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FAQ About QUBT's Income Statement

1. What is the main source of QUBT's revenue in 2025?

QUBT generates over 100% of its revenue from quantum software and services contracts. There are no significant additional revenue sources reported for Q2 2025.

2. How profitable is QUBT in Q2 2025?

QUBT reported net income of $36.5K in Q2 2025, with a net margin of approximately 59,806.6%, reflecting unusually strong profitability driven by “Other” income rather than core operations.

3. What are the largest expense categories for QUBT?

The biggest expenses on QUBT’s income statement are operating expenses, particularly Research & Development (R&D) at $5,975.0K in Q2 2025, as QUBT prioritizes quantum algorithm development and software engineering. SG&A is also significant at $4,222.0K.

4. Why does the core quantum solutions segment operate at a loss?

The core segment, despite generating $61.0K in revenue, posted an operating loss in Q2 2025 because QUBT aggressively invests in R&D and technical infrastructure, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does QUBT's effective tax rate compare to previous years?

QUBT’s effective tax rate in Q2 2025 was not reported. Historically, the company’s tax rate has been influenced by operating losses, R&D tax credits, and international structuring.