IonQ, Inc.

Previous wording

We are still in the early stages of commercial growth. Since our inception we have incurred significant operating losses. Our ability to generate revenue sufficient to achieve profitability will depend heavily on the successful development and further commercialization of our quantum computing systems and networks. Our losses from operations were $271.5 million and $75.7 million for the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, we had an accumulated deficit of $388.7 million. We expect to continue to incur significant losses for the foreseeable future as we prioritize reaching the technical milestones necessary to achieve an increasingly higher number of stable qubits and higher levels of fidelity than presently exists—prerequisites for quantum computing to reach broad quantum advantage.

Current wording

We are still in the early stages of commercial growth. Since our inception we have incurred significant operating losses. Our ability to generate revenue sufficient to achieve profitability will depend heavily on the successful development and further commercialization of our quantum computing systems and networks. Our losses from operations were $608.8 million and $236.3 million for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, we had an accumulated deficit of $2,256.5 million. We expect to continue to incur significant losses for the foreseeable future as we prioritize reaching the technical milestones necessary to achieve an increasingly higher number of stable qubits and higher levels of fidelity than presently exists—prerequisites for quantum computing to reach broad quantum advantage.

Previous wording

On January 25, 2026, we entered into an Agreement and Plan of Merger with SkyWater Technology, Inc., Iris Merger Subsidiary 1 Inc. and Iris Merger Subsidiary 2 LLC, pursuant to which, following completion of the proposed mergers, SkyWater will become a wholly owned subsidiary of IonQ. We believe the proposed acquisition will advance our quantum computing technology roadmap by providing access to SkyWater’s U.S.-based semiconductor foundry capabilities, advanced packaging expertise and Technology as a Service platform. Completion of the proposed transaction remains subject to customary closing conditions, including approval by SkyWater stockholders, expiration or termination of the waiting period under the HSR Act, applicable regulatory approvals and the satisfaction or waiver of the other conditions set forth in the merger agreement. The Mergers are expected to be completed in the second or third quarter of 2026, subject to the expiration or termination of the waiting period under the HSR Act and the satisfaction (or waiver) of other customary closing conditions.

Current wording

On July 31, 2026, we completed our previously-announced acquisition of SkyWater Technology, Inc. (“SkyWater”), a U.S.-based semiconductor foundry. We believe the acquisition will advance our quantum computing technology roadmap by providing access to SkyWater’s U.S.-based semiconductor foundry capabilities, advanced packaging expertise and Technology as a Service platform.

Previous wording

Revenue increased by $57.1 million, or 755%, to $64.7 million for the three months ended March 31, 2026, from $7.6 million for the three months ended March 31, 2025. The increase was primarily driven by progress on our arrangements to build specialized quantum computing hardware, as well as increased revenue as a result of acquisitions.

Current wording

Revenue increased by $59.4 million, or 287%, to $80.1 million for the three months ended June 30, 2026, from $20.7 million for the three months ended June 30, 2025. The increase was primarily driven by progress on our arrangements to build specialized quantum computing hardware, as well as increased revenue as a result of acquisitions.

Previous wording

Cost of revenue increased by $44.9 million, or 1,041%, to $49.3 million for the three months ended March 31, 2026, from $4.3 million for the three months ended March 31, 2025. The increase was driven primarily by an increase in labor costs to service contracts for the three months ended March 31, 2026, as well as an increase in materials costs related to quantum products.

Current wording

Cost of revenue increased by $51.8 million, or 622%, to $60.1 million for the three months ended June 30, 2026, from $8.3 million for the three months ended June 30, 2025. The increase was driven primarily by an increase in labor costs to service contracts for the three months ended June 30, 2026, as well as an increase in materials costs related to quantum products.

Previous wording

Research and development expense increased by $85.8 million, or 215%, to $125.7 million for the three months ended March 31, 2026, from $40.0 million for the three months ended March 31, 2025. The increase was primarily driven by an increase of $53.1 million in payroll-related expenses, including an increase in stock-based compensation of $35.3 million, as a result of increased headcount and new equity grants, and $24.8 million increase in materials, supplies and equipment costs.

Current wording

Research and development expense increased by $57.3 million, or 55%, to $160.6 million for the three months ended June 30, 2026, from $103.4 million for the three months ended June 30, 2025. The increase was primarily driven by an increase of $62.9 million in payroll-related expenses, including an increase in stock-based compensation of $43.6 million, as a result of increased headcount and new equity grants, offset by a decrease of $54.6 million in one-time stock-based compensation costs incurred in the three months ended June 30, 2025. The remaining increase is primarily due to an increase of $40.3 million in materials, supplies and equipment costs and an increase in costs to support research and development initiatives, including an increase of $8.1 million in professional services and other allocated support costs.

Previous wording

Sales and marketing expense increased by $20.8 million, or 242%, to $29.4 million for the three months ended March 31, 2026, from $8.6 million for the three months ended March 31, 2025. The increase was primarily driven by an increase of $16.3 million of payroll-related expenses, including an increase in stock-based compensation of $10.3 million, as a result of increased headcount and new equity grants, as well as increased costs to promote our products and services and other marketing initiatives.

Current wording

Sales and marketing expense increased by $22.0 million, or 202%, to $32.9 million for the three months ended June 30, 2026, from $10.9 million for the three months ended June 30, 2025. The increase was primarily driven by an increase of $18.0 million of payroll-related expenses, including an increase in stock-based compensation of $10.6 million, as a result of increased headcount and new equity grants, as well as increased costs to promote our products and services and other marketing initiatives.

Previous wording

Depreciation and amortization expenses increased by $36.6 million, or 557%, to $43.1 million for the three months ended March 31, 2026, from $6.6 million for the three months ended March 31, 2025. The increase was primarily driven by an increase of $29.4 million in amortization expense associated with acquired intangible assets, and an increase of $5.9 million in depreciation expense associated with capitalized satellites and leasehold improvements.

Current wording

Depreciation and amortization expenses increased by $35.5 million, or 334%, to $46.1 million for the three months ended June 30, 2026, from $10.6 million for the three months ended June 30, 2025. The increase was primarily driven by an increase of $26.8 million in amortization expense associated with acquired intangible assets, and an increase of $6.1 million in depreciation expense associated with capitalized satellites.

Previous wording

The change in the fair value of the warrant liabilities was primarily due to the mark-to-market gain recognized on the Series A and Series B warrants, driven by changes in our stock price.

Current wording

The change in the fair value of the warrant liabilities was primarily due to the mark-to-market loss recognized on the Series A and Series B warrants, driven by changes in our stock price.

Previous wording

Interest income, net increased by $23.3 million, or 477%, to $28.2 million for the three months ended March 31, 2026, from $4.9 million for the three months ended March 31, 2025. The increase was primarily driven by an increase in the available-for-sale investments balance.

Current wording

Interest income, net increased by $24.8 million, or 348%, to $32.0 million for the three months ended June 30, 2026, from $7.1 million for the three months ended June 30, 2025. The increase was primarily driven by an increase in the available-for-sale investments balance.

Previous wording

Other income (expense), net increased by $16.2 million to $16.1 million for the three months ended March 31, 2026, from less than $0.1 million for the three months ended March 31, 2025. The increase was primarily driven by changes in fair value of strategic investments.

Current wording

Other income (expense), net increased by $79.5 million to $79.7 million for the three months ended June 30, 2026, from less than $0.2 million for the three months ended June 30, 2025. The increase was primarily driven by changes in fair value of strategic investments.

Previous wording

Income tax benefit (expense) increased by $6.4 million to a benefit of $6.4 million for the three months ended March 31, 2026, from an expense of less than $0.1 million for the three months ended March 31, 2025. The increase was primarily driven by a tax benefit recognized on foreign operating losses.

Current wording

Income tax benefit (expense) decreased by $9.2 million, or 60%, to a benefit of $6.1 million for the three months ended June 30, 2026, from a benefit of $15.3 million for the three months ended June 30, 2025. The decrease was primarily driven by a one-time partial release of U.S. federal and state valuation allowances in the three months ended June 30, 2025. The decrease was partially offset by a tax benefit recognized on foreign operating losses incurred in the three months ended June 30, 2026.

Previous wording

General and administrative expenses increased by $64.8 million, or 272%, to $88.6 million for the three months ended March 31, 2026, from $23.8 million for the three months ended March 31, 2025. The increase was primarily driven by an increase of $45.2 million of payroll-related expenses, including an increase in stock-based compensation of $33.9 million, as a result of increased headcount and new equity grants, an increase of $18.9 million in professional service fees and allocated overhead costs, including an increase of $11.9 million in acquisition transaction and integration costs.

Current wording

General and administrative expenses increased by $134.3 million, or 187%, to $206.2 million for the six months ended June 30, 2026, from $71.9 million for the six months ended June 30, 2025. The increase was primarily driven by an increase of $88.8 million of payroll-related expenses, including an increase in stock-based compensation of $66.2 million, as a result of increased headcount and new equity grants, an increase of $39.0 million in professional service fees and allocated overhead costs, including an increase of $11.0 million in acquisition transaction and integration costs.

Previous wording

As of March 31, 2026, we had cash, cash equivalents and available-for-sale securities of $3,091.9 million. Excluded from our available liquidity is $7.8 million of restricted cash, which is primarily recorded in other noncurrent assets in our condensed consolidated balance sheets. We believe that our cash, cash equivalents and investments as of March 31, 2026, will be sufficient to meet our working capital and capital expenditure needs for the next 12 months. We believe we will meet longer term expected future cash requirements and obligations through a combination of available funds from our cash, cash equivalents and investment balances and cash flows from operating activities. However, this determination is based upon internal projections and is subject to changes in market and business conditions. We have incurred significant losses since our inception and as of March 31, 2026, we had an accumulated deficit of $388.7 million. During the three months ended March 31, 2026, we incurred a loss from operations of 271.5. We expect to incur significant losses and higher operating expenses for the foreseeable future.

Current wording

As of June 30, 2026, we had cash, cash equivalents and available-for-sale securities of $2,959.3 million. Excluded from our available liquidity is $7.6 million of restricted cash, which is primarily recorded in other noncurrent assets in our condensed consolidated balance sheets. We believe that our cash, cash equivalents and investments as of June 30, 2026, will be sufficient to meet our working capital and capital expenditure needs for the next 12 months. We believe we will meet longer term expected future cash requirements and obligations through a combination of available funds from our cash, cash equivalents and investment balances and cash flows from operating activities. However, this determination is based upon internal projections and is subject to changes in market and business conditions. We have incurred significant losses since our inception and as of June 30, 2026, we had an accumulated deficit of $2,256.5 million. During the six months ended June 30, 2026, we incurred a loss from operations of $608.8 million. We expect to incur significant losses and higher operating expenses for the foreseeable future.

Previous wording

Our material contractual commitments as of March 31, 2026, primarily relate to operating lease commitments and certain supplier purchase commitments. As of March 31, 2026, we have total operating lease obligations of $35.8 million, with $10.0 million payable within 12 months, and a remaining short-term supplier purchase commitment related to quantum chip development of approximately $40.9 million. Other than these commitments, cash requirements for the next 12 months are expected to consist primarily of operating expenses and continued investment in our quantum products, as well as the acquisition of SkyWater. The SkyWater Acquisition is expected to require approximately $1.0 billion in cash, including approximately $0.8 billion related to purchase consideration and approximately $0.2 billion related to debt repayment and other transaction costs.

Current wording

Our material contractual commitments as of June 30, 2026, primarily relate to operating lease commitments and certain supplier purchase commitments. As of June 30, 2026, we have total operating lease obligations of $71.1 million, with $12.9 million payable within 12 months, and a remaining short-term supplier purchase commitment related to quantum chip development of approximately $40.9 million. Other than these commitments, cash requirements for the next 12 months are expected to consist primarily of operating expenses and continued investment in our quantum products, as well as the acquisition of SkyWater. The acquisition required approximately $1,056.4 million in cash, including $741.3 million related to purchased consideration and approximately $315.1 million related to debt repayment and other transaction costs.

Previous wording

Net cash used in operating activities during the three months ended March 31, 2026, was $151.0 million, resulting primarily from net income of $804.6 million, adjusted for non-cash activity, primarily related to the gain recorded as a result of mark-to-market activity for our warrants, stock-based compensation, depreciation and amortization, deferred income taxes, and other working capital activities. The increase in net cash used in operations from the prior year period was primarily related to increased compensation costs and costs for materials and supplies to support the production of quantum computing systems and satellites, customer contracts, and other research and development activities.

Current wording

Net cash used in operating activities during the six months ended June 30, 2026, was $254.8 million, resulting primarily from a net loss of $1,064.0 million, adjusted for non-cash activity, primarily related to the loss recorded as a result of mark-to-market activity for our warrants, stock-based compensation, depreciation and amortization, the gain recorded as a result of the change in fair value of our strategic investments, deferred income taxes, and other working capital activities. The increase in net cash used in operations from the prior year period was primarily related to increased compensation costs and costs for materials and supplies to support the production of quantum computing systems and satellites, customer contracts, and other research and development activities.

Previous wording

Net cash used in operating activities during the three months ended March 31, 2025, was $33.0 million, resulting primarily from a net loss of $32.3 million, adjusted for non-cash activity, primarily related to stock-based compensation, the gain recorded as a result of mark-to-market activity for our public warrants, depreciation and amortization, and other working capital activities.

Current wording

Net cash used in operating activities during the six months ended June 30, 2025, was $85.6 million, resulting primarily from a net loss of $209.8 million, adjusted for non-cash activity, primarily related to stock-based compensation, depreciation and amortization, deferred income taxes, the loss recorded as a result of mark-to-market activity for our public warrants, and other working capital activities.

Previous wording

Net cash used in investing activities during the three months ended March 31, 2026, was $391.9 million, primarily resulting from purchases of available-for-sale securities and strategic investments, cash paid for acquired businesses, net of cash acquired, and additions of property and equipment, offset by cash received from maturities of available-for-sale securities.

Current wording

Net cash provided by investing activities during the six months ended June 30, 2026, was $442.1 million, primarily resulting from maturities and sales of available-for-sale securities, offset by purchases of available-for-sale securities and strategic investments, and cash paid for acquired businesses, net of cash acquired.

Previous wording

Net cash used in investing activities during the three months ended March 31, 2025, was $230.2 million, primarily resulting from purchases of available-for-sale securities and additions of property and equipment primarily related to the development of our quantum computing systems and other supporting equipment, offset by cash received from maturities of available-for-sale securities.

Current wording

Net cash used in investing activities during the six months ended June 30, 2025, was $201.0 million, primarily resulting from purchases of available-for-sale securities, offset by cash received from maturities of available-for-sale securities and from businesses acquired.

Previous wording

Net cash provided by financing activities during the three months ended March 31, 2026, was $6.9 million, primarily resulting from proceeds from stock options exercised and warrants exercised.

Current wording

Net cash provided by financing activities during the six months ended June 30, 2026, was $18.9 million, primarily resulting from proceeds from stock options and warrants exercised and tax withholding receipts related to equity awards.

Previous wording

Net cash provided by financing activities during the three months ended March 31, 2025, was $368.7 million, primarily resulting from proceeds from the 2025 ATM Offering Program and warrants exercised.

Current wording

Net cash provided by financing activities during the six months ended June 30, 2025, was $372.9 million, primarily resulting from proceeds from the 2025 ATM Offering Program, stock options exercised, and warrants exercised.