Quantum Computing Inc. (NASDAQ: QUBT) announced the launch of a new business unit dedicated to U.S. government applications on December 2, 2025. The unit will focus on securing federal contracts that leverage the company’s photonic quantum technologies, including its room‑temperature quantum platforms and thin‑film lithium niobate (TFLN) foundry services.
The announcement follows a series of government engagements, most notably a subcontract with NASA to develop quantum‑enhanced LIDAR data processing and a contract with the National Institute of Standards and Technology (NIST) to design and fabricate TFLN photonic integrated circuits. These existing relationships demonstrate QUBT’s technical credibility and provide a foundation for pursuing larger, multi‑year federal projects.
Financially, QUBT reported third‑quarter 2025 revenue of $384,000, a gross margin of 33%, and operating expenses of $10.5 million. While the company remains in the early stages of commercializing its technology, the revenue figure reflects incremental growth from its Dirac‑3 quantum optimization platform and a first commercial quantum cybersecurity sale to a top‑five bank. The modest margin underscores the high cost of research and development that the company must absorb as it scales its manufacturing and service capabilities.
Strategically, the new government unit diversifies QUBT’s customer base beyond commercial enterprises and taps into the sizable federal spending on advanced computing and cybersecurity. By positioning itself as a U.S.‑based supplier of photonic quantum solutions, QUBT aims to secure stable, long‑term revenue streams and accelerate adoption of its technology in high‑security environments. The move also aligns QUBT with competitors such as D‑Wave Quantum and IonQ, who are similarly expanding their federal footprints, thereby strengthening its competitive stance in the emerging quantum‑technology market.
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