Quantum computing has grabbed the attention of many investors over the past few years as they seek new tech trends beyond artificial intelligence (AI). The possibility of a quantum computing market that could be worth as much as $170 billion by 2040, as consulting firm BCG projects, certainly sounds promising.
That type of optimism has helped lift IonQ (IONQ +3.36%) stock 503% higher over the past three years. But lately, things haven't been as rosy for IonQ shareholders, as the stock has fallen about 9% over the past 12 months.
So, where is IonQ headed over the next year? If you're a shareholder, I don't think things look too good.
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Higher expenses and widening losses
In the first nine months of 2025, IonQ's losses increased tenfold year over year, from just $129 million to nearly $1.3 billion. The biggest culprits were its general and administration costs, which tripled, and its research and development expenses, which more than doubled.
Building a quantum computing company at this early stage of the industry is expensive. But such a rapid increase in costs and significantly widening losses are still problematic because IonQ is also having a difficult time generating organic revenue.
Yes, the company's sales rose by 117% in the first nine months of 2025 to $68.1 million. But the majority of those added revenues derived from the five companies it acquired last year, rather than from organic growth in its quantum computing revenue. And those acquisitions were paid for, in part, by IonQ issuing new shares, which resulted in significant shareholder dilution.
With the company's losses expanding, its sales growing mainly via acquisitions, and the company funding its purchases by issuing new shares, IonQ doesn't exactly have a recipe for financial success in place.
NYSE: IONQ
Key Data Points
More share price declines could be on the way
Making matters worse for IonQ shareholders is the fact that many investors are beginning to rotate out of riskier assets in search of safer investments.
Software stocks, cryptocurrencies, and quantum computing stocks are just some of the areas that are feeling this pinch right now -- and it's likely to continue. Artificial intelligence has the potential to disrupt so many companies and industries that some investors are second-guessing the thesis for tech investments.
That's not IonQ's fault, of course, but it is a problem for the company nonetheless. And it comes at a time when its stock trades at an expensive premium. IonQ has a price-to-sales (P/S) ratio of 106, compared to the tech sector's average of just 8.
When you add all this up, there's little to get excited about regarding IonQ over the next year.
