As investors mull the growth outlook of quantum computing stocks, IonQ reported a smaller first quarter loss from a year earlier, in line with estimates, while revenue also met expectations. Further, IonQ announced two new acquisitions as it builds a quantum communications platform.
IonQ said it will acquire Lightsynq Technologies, a Boston-based startup founded by former Harvard University quantum memory experts. Also, IonQ said it has agreed to buy Capella Space. It called Capella a "a signals platform leader for top-secret government and commercial applications."
Meanwhile, IonQ this week completed the acquisition of a controlling stake in ID Quantique. Also, IonQ last year acquired a quantum networking company called Qubitekk.
Quantum Computing Stocks: IonQ Targets Networking
The company is expanding from quantum compute into building quantum key distribution (QKD) networks, eyeing U.S. government business. The quantum communications networks would include satellite to satellite links in space and satellite to ground station links.
"China has announced progress on QKD in space and is imperative for economic and national security that we lead in all dimensions, theaters and segments of quantum networking," said IonQ Chief Executive Niccolo de Masi on its earnings call with Wall Street analysts.
Cybersecurity is a growing concern. Quantum computers are expected to eventually overpower current data encryption technologies. And, hackers could make use of that capability. So quantum communications networks will be needed to support quantum computers located in data centers, analysts say.
"Quantum networking and internet continues to be one of the leading use-cases within quantum that IonQ is positioning themselves to lead in," said D.A. Davidson analyst Alexander Platt in a report.
"We continue to believe that IonQ is the best positioned quantum company throughout the quantum stack. IonQ is building what we believe is a leading platform throughout all foundational pillars of quantum: computing, networking, and sensing."
IonQ Earnings Meet Expectations
Meanwhile, IonQ reported Q1 financial results after the market close on Wednesday. For the March quarter, IonQ reported a 14-cent loss on an adjusted basis versus a 19-cent loss a year earlier. Revenue was basically flat at $7.56 million.
Analysts had forecast a 26-cent loss using generally accepted accounting principles, or GAAP, with revenue of $7.52 million.
For the June quarter, IonQ said it expects revenue of $17 million, in line with estimates of $16.9 million.
On the stock market today, IonQ stock climbed 7% to 31.17 in early trading. Heading into the earnings report, IonQ stock had retreated 31% in 2025.
Quantum computing works on a subatomic level and uses exotic technologies, like supercold superconductor chips. Further, Quantum computing's ultimate benefit is that it aims to solve problems too complex for today's classical computers.
Meanwhile, quantum computing stocks have been volatile in 2025 amid controversy involving Nvidia over how soon commercially viable quantum technology will be available.
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