Investment Thesis
IonQ exhibits severely negative fundamental metrics with operating losses of $633.7M on $130M revenue, reflecting an immature business model with minimal gross profitability. Despite strong revenue growth of 132.2% YoY, the company is burning cash at an unsustainable rate (-$299.6M FCF) while having not demonstrated a clear path to profitability. The massive operating margin of -487.4% and negative ROE/ROA indicate fundamental operational challenges that revenue growth alone cannot address.
Strengths
- Strong revenue growth of 132.2% YoY demonstrates market demand for quantum computing solutions
- Excellent liquidity position with current ratio of 15.50x and $1.0B cash provides runway for operations
- Solid asset base of $6.6B with low leverage (0.00x debt/equity) provides financial flexibility
Risks
- Extreme cash burn of $299.6M FCF with only $1.0B cash means approximately 3.3 years runway at current burn rates
- Operating losses of $633.7M vastly exceed revenue, indicating uncontrolled cost structure with no clear path to profitability
- Negative net income of $510.4M and operating margin of -487.4% demonstrate the business model is deeply unprofitable at current scale
Key Metrics to Watch
- Operating cash flow trend and path to positive FCF
- Operating margin improvement and progress toward breakeven
- Capital expenditure levels relative to revenue growth sustainability
- Gross margin analysis once disclosed - critical to understanding pricing power
Financial Metrics
Revenue
130.0M
Net Income
-510.4M
EPS (Diluted)
$-1.82
Free Cash Flow
-299.6M
Total Assets
6.6B
Cash
1.0B
Profitability Ratios
Gross Margin
N/A
Operating Margin
-487.4%
Net Margin
-392.6%
ROE
-13.4%
ROA
-7.8%
FCF Margin
-230.4%
Balance Sheet & Liquidity
Current Ratio
15.50x
Quick Ratio
15.44x
Debt/Equity
0.00x
Debt/Assets
42.0%
Interest Coverage
N/A
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-29T11:50:11.009777 |
Data as of: 2025-12-31 |
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