Quantum Stocks Tumble Ahead of Q3 Earnings Is This a Buying Opportunity?

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•  03 Nov 2025
 

•   QBTS  
   
  +3.15%
•   QUBT  
   
  -0.52%
•   RGTI  
   
  +0.15%

The quantum computing sector is having a rough Monday. QBTS RGTI and IONQ are all taking significant hits as investors brace for what could be make-or-break earnings reports this week. QBTS D-Wave Quantum is down 12%, RGTI Rigetti Computing has fallen 10%, and IONQ is off 8%. If you've been riding the quantum wave this year, today pullback might feel unsettling, but it's worth understanding what's actually happening here.

This isn't panic selling in a vacuum. These stocks have had extraordinary runs in 2025. QBTS is still up 341% year-to-date despite today drop, RGTI has climbed 190%, and even IONQ, the relative underperformer, is up 49%. When you've seen gains like that, the market tends to get nervous before earnings. Everyone asking the same question: can these companies justify their valuations with actual results?

The earnings calendar kicks off Wednesday after the close when IONQ reports. Wall Street analysts are expecting a loss of 44 cents per share, nearly double last year's 26-cent loss, largely due to the aggressive expansion and acquisition strategy. But here's the interesting part: revenues are projected to surge 118% to $27 million. That's the kind of growth that makes investors willing to tolerate losses, at least for now. The question is whether IONQ can show a path toward eventually turning all that revenue growth into profitability.

$QBTS follows on November 6th with an expected loss of just 6 cents per share. The company has actually achieved partial profitability on an adjusted basis at certain points this year, which is a rare feat in quantum computing. Revenue growth is expected at a more modest 62%, reaching only $3 million. That number really puts things in perspective. We're talking about a company valued in the hundreds of millions trading on just $3 million in quarterly revenue. It's a reminder that quantum computing is still in its infancy as a commercial industry.

$RGTI reports November 10th and presents an interesting mixed picture. The expected loss of 5 cents per share is a dramatic improvement from the 18-cent loss a year ago, suggesting the company is getting better at managing its burn rate. But revenues are actually expected to decline 9% to $2.2 million. That's the kind of number that makes you wonder whether the company is struggling to find commercial traction or simply being more selective about the business it pursues.

$QUBT (Quantum Computing Inc) rounds out the earnings season on November 14th with projections for a 6-cent loss and revenues growing 16% to $100 million. That revenue figure stands out as significantly larger than the others, though it's worth digging into the quality and sustainability of that revenue when the report drops.

The volatility we're seeing today reflects the fundamental tension in quantum investing right now. These companies are chasing a technology that could revolutionize computing, cryptography, drug discovery, and artificial intelligence. The potential is massive. But they're also years away from profitability and competing against tech giants like GOOGL Google, AMZN Amazon, CSCO Cisco and NVDA Nvidia who have far deeper pockets and existing customer relationships.

Adding to the intrigue, Canadian quantum computing company Xanadu just announced a SPAC merger valued at $3.6 billion, bringing another player into the public markets. Xanadu's approach is different from the others. They use photons instead of superconducting circuits or trapped ions, and their systems operate at room temperature without expensive cooling requirements. That's a potential game-changer if the technology scales. The company is bringing in $500 million to build more hardware and establish a quantum data center, with over 90% coming from institutional investors and tech companies including AMD. That level of institutional backing suggests serious players believe quantum computing is worth the long-term bet.

QBTS recently announced that one of its quantum computers was installed at Davidson Technologies in Alabama for radar detection experiments and military systems optimization. Xanadu is already serving clients in pharmaceuticals, materials development, and artificial intelligence. These early commercial applications are promising, but the path from experimental use cases to widespread commercial adoption remains long and uncertain.

For traders, the next few days will be critical. If these companies can show strong revenue growth and a credible path toward reducing losses, the year's gains could extend further. But if the numbers disappoint or guidance comes in weak, we could see significant profit-taking after such a strong run. The high volatility in quantum stocks reflects exactly that uncertainty: enormous potential balanced against substantial risk.

The companies reporting this week are essentially asking investors to keep the faith while they figure out how to build a sustainable business around cutting-edge technology. Whether you see today's dip as a warning sign or a buying opportunity probably depends on your time horizon and risk tolerance. Just remember, quantum computing stocks aren't for the faint of heart, and earnings season has a way of separating the true believers from the momentum chasers.

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