IonQ Inc‘s (NYSE:IONQ) second-quarter report presented a microcosm of the larger quantum computing ETF narrative of lofty expectations, ambitious projections, and the harsh reminder of hard economics. Although revenue grew 82% year over year, the company’s mounting losses reminded investors that commercialization is far from a straight line. The stock is up in early trading on Thursday.
- IONQ is showing strength near its 52-week high. Check the latest price here.
IonQ posted Q2 revenue of $20.7 million, comfortably beating expectations and topping its guidance. That represents a significant 82% year-over-year increase, solidifying its status as a top contender in the commercialization of quantum computing.
But that’s where the positives stopped.
The firm reported a net loss of $0.70 a share, much worse than the projected $0.27–$0.30 loss. That’s compared with a loss of only $0.18 in the prior-year same quarter—a steep increase in red ink. Analysts were quick to note that IonQ’s scalability costs, acquisitions, and aggressive R&D initiatives are eroding margins while top-line growth is accelerating.
Most importantly, IonQ increased its full-year 2025 revenue guidance to $82 million–$100 million from an earlier forecast of $75M–$95M.
Quantum-themed ETFs like Defiance Quantum ETF (NASDAQ:QTUM) now have a new dilemma whether to pursue the growth or hedge the volatility?
Elsewhere, Quantum Computing Inc. (NASDAQ:QUBT) has been leading the rally ahead of its own earnings, while D-Wave Quantum Inc (NYSE:QBTS) and Rigetti Computing Inc (NASDAQ:RGTI) continue to narrow losses while trying to grow revenues. Altogether, these firms represent the rollercoaster core of quantum exposure for ETFs that are chasing the group.
For Quantum ETFs, It’s A Volatility Test
The numbers come down at a moment when quantum wave thematic ETFs already had their share of attention, courtesy of Amazon.com Inc’s (NASDAQ:AMZN) $36.7 million equity investment in IonQ.
But the crosscurrents earnings print makes exposure through an ETF a subtle trade. With the ecosystem being in its infancy, investing in quantum via ETFs provides investors with a means to hedge their exposure, offsetting moonshot-style high-upside bets with more conservative tech giants staking out quantum R&D investments.
Also Read: What’s Going On With IonQ Shares Today?
Here’s a review of the leading ETFs providing exposure to the quantum boom:
Defiance Quantum ETF (NASDAQ:QTUM)
- Theme: Pure-play exposure to quantum computing and machine learning companies.
- Top Holdings: IonQ, Rigetti, D-Wave, IBM (NYSE:IBM), Alphabet Inc. (NASDAQ:GOOGL).
- Performance: +12% year-to-date.
- Expense Ratio: 0.40%.
QTUM is the original OG of the quantum ETF universe. Highly exposed to small-cap quantum leaders and related AI companies, it’s the choice for thrill-seeking investors looking for more excitement than slumber. But that excitement is accompanied by volatility.
ARK Autonomous Technology & Robotics ETF (BATS:ARKQ)
- Theme: Wider disruptive tech, includes quantum computing companies such as IonQ and Microsoft Corp (NASDAQ:MSFT).
- Expense Ratio: 0.75%.
ARKQ is not a quantum-only play, but it does provide exposure to the theme with its holdings of frontier tech companies. Under the management of Cathie Wood‘s team, it’s a higher-cost, higher-risk strategy for those who feel like catching the bigger innovation tide.
iShares Exponential Technologies ETF (NASDAQ:XT):
- Thematic focus: Tracks exponential innovation.
XT is an excellent choice for investors seeking a diversified play in cutting-edge technology, including quantum, without incurring extreme risk. It’s less exciting, but much less bumpy in tech bear markets.
What’s the Quantum ETF Play Here?
The industry is at an inflection point. Although names like IonQ demonstrate revenue growth and mainstream tech validation, the majority of quantum firms remain pre-profit, burning through cash, and hoping for the inflection point.
Meanwhile, Microsoft CEO Satya Nadella described quantum computing as “the next big accelerator”.
Bottom Line
IonQ’s robust revenue growth and increased guidance provide cause for hope. But the earnings miss and increasing costs demonstrate that constructing a quantum empire requires capital, patience, and an ability to withstand volatility.
For ETF investors, that is to say, expecting volatility but not necessarily leaving the theme behind.
Quantum computing may be years away from revolutionizing the world (20 years away, as Nvidia Corp (NASDAQ: NVDA) CEO Jensen Huang warned earlier this year), but ETF investors don't have to wait to position themselves. Whether you want to go full sci-fi with QTUM or play it safe with a tech stalwart like ARKQ, the tools are already on the market.
As Haim Israel, managing director and global strategist at Bank of America, says in an interview with CTech, “whoever controls the technology (quantum), controls the world.”
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