Quantum Computing Inc., an integrated photonics and quantum optics technology company, reported first quarter earnings that beat analyst expectations on the bottom line but fell short on revenue.

U.S.-listed shares of the company rose 36% in Friday trading.

The company posted adjusted earnings per share of $0.11, surpassing the analyst estimate of -$0.05 by $0.16. However, revenue for the quarter came in at $39,000, significantly below the consensus estimate of $300,000. Revenue increased 44% YoY from $27,000 in Q1 2024.

QCi reported net income attributable to common stockholders of $17.0 million, or $0.13 per basic share, compared to a net loss of $6.4 million or -$0.08 per share in the same period last year. The increase was primarily due to a $23.6 million non-cash gain on warrant liability valuation.

Dr. Yuping Huang, Interim CEO of QCi, stated, "QCi delivered solid operational and financial progress in the first quarter, strengthening our balance sheet and advancing key strategic initiatives."

The company’s stock showed no significant movement following the earnings release.

QCi completed construction of its Quantum Photonic Chip Foundry in Tempe, Arizona during the quarter. The company also raised $93.6 million through a private placement offering of common stock, boosting its cash position to $166.4 million as of March 31, 2025.

Operating expenses increased to $8.3 million from $6.3 million in Q1 2024, primarily due to higher employee-based expenses. Gross margin decreased to 33% from 41% YoY.

The company continues to expand its commercial and government engagement, securing new partnerships and customer orders for its quantum optimization and photonic chip solutions.