Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares (NASDAQ:XNDU) Issues Earnings Results, Misses Estimates By $0.02 EPS

Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares (NASDAQ:XNDU) announced its quarterly earnings data on Wednesday. The quantum computing company reported ($0.11) EPS for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.02), Zacks reports. The company had revenue of $1.31 million for the quarter.

Here are the key takeaways from Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares’ conference call:

• Xanadu reported technical progress toward its fault-tolerant quantum-computing roadmap, including a 7-millidecibel optical switch the company says is a world record for its class, alongside lower losses in its homodyne detector and fiber delay line. It reiterated targets of up to 200 logical qubits in 2029 and 500 in 2030, while saying it will report its aggregate loss metric annually.
• The company announced partnerships with GlobalFoundries, ASML, and Bluefors to support chip manufacturing scale, lower waveguide loss, and more compact detector cooling. Its new 158,000-square-foot Inception facility is expected to begin operations early next year and expand packaging, testing, and integration capacity.
• Xanadu said it began generating revenue from commercial software offerings, though it described the customer base as small and growing. PennyLane has about 1.1 million monthly package installs, and Backline—launched with AMD—demonstrated error-correction processing round trips under three microseconds using commercial hardware.
• Revenue was $1.3 million, down from $1.5 million in Q2, while adjusted EBITDA loss widened to $26.3 million from $21.3 million as R&D investment increased. Management expects costs and capital expenditures to rise in Q4 with hiring, equipment purchases, and foundry work.
• Xanadu ended the quarter with $286.5 million in cash and said it did not use its synthetic ATM in Q3. It also announced approximately CAD 140 million in Canadian government funding, paid over time as qualifying R&D investments are made, and provisional approval for up to $10 million in additional DARPA funding.

Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares Stock Performance

XNDU stock traded up $0.02 during trading on Wednesday, reaching $2.80. 5,644,880 shares of the stock were exchanged, compared to its average volume of 4,413,206. The stock has a 50 day simple moving average of $4.89 and a 200-day simple moving average of $11.11. The company has a current ratio of 25.53, a quick ratio of 25.09 and a debt-to-equity ratio of 0.10. Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares has a twelve month low of $2.34 and a twelve month high of $42.44. The company has a market capitalization of $851.82 million, a P/E ratio of -6.67 and a beta of 15.30.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the company. Canadian Imperial Bank of Commerce began coverage on Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares in a research note on Tuesday, July 28th. They issued a “sector outperform” rating and a $22.00 price target for the company. Canaccord Genuity Group decreased their target price on shares of Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares from $45.00 to $34.00 and set a “buy” rating for the company in a research report on Thursday, August 6th. Royal Bank Of Canada began coverage on shares of Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares in a report on Monday, September 28th. They set an “outperform” rating and a $16.00 price target on the stock. Weiss Ratings raised shares of Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, October 21st. Finally, Morgan Stanley initiated coverage on shares of Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares in a research note on Thursday, October 15th. They issued an “equal weight” rating and a $3.75 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $23.75.

Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares Company Profile

Xanadu Quantum Technologies Limited is a Canadian quantum computing company that develops quantum computers based on photonics, using particles of light to process information. Its work includes building quantum hardware and developing software intended to help researchers and businesses create and run quantum applications. The company also develops PennyLane, an open-source software library for quantum computing and quantum machine learning. Xanadu has made quantum computing tools and hardware available through cloud-based services, supporting users beyond its home base in Toronto, Canada.