IONQ

IonQ is an early-stage quantum-computing company that, by its own admission in the 10-K, "has not produced a scalable quantum computer" and faces "significant barriers" to doing so. Revenue grew 201.9% to $130M in FY2025, but that growth came alongside a widening net loss of -$510M (from -$332M in FY2024) and an operating loss of -$634M on an operating margin of -487.4%. The company has posted five straight years of accelerating losses (FY2021 -$106M to FY2025 -$510M) and now carries an accumulated deficit of -$1.19B in retained earnings. This is a business at pre-commercial scale, not one approaching profitability.

The valuation is the disqualifier. At $56.55 the market cap is $20.7B against $130M of revenue — a price-to-sales multiple of 159.5x — for a company whose own MD&A says it "expect[s] to continue to incur significant losses for the foreseeable future." Even crediting triple-digit revenue growth, the price already discounts a flawless multi-year execution path to a technology IonQ concedes does not yet exist at scale. Operating cash flow was -$283M, so the company is funding itself from cash and a vastly enlarged equity base (shares up 64.5% YoY to 367M), diluting holders.