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

Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares (NASDAQ:XNDU) issued its quarterly earnings results on Wednesday. The quantum computing company reported ($0.11) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.09) by ($0.02), Zacks reports. The firm 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 Trading Down 10.0%

Shares of XNDU opened at $2.52 on Friday. Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares has a 1 year low of $2.34 and a 1 year high of $42.44. The company has a current ratio of 25.53, a quick ratio of 25.09 and a debt-to-equity ratio of 0.10. The stock has a 50-day simple moving average of $4.74 and a 200-day simple moving average of $11.05.

Wall Street Analysts Forecast Growth

XNDU has been the topic of several recent research reports. Canaccord Genuity Group cut 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 on the stock in a research note on Thursday, August 6th. Royal Bank Of Canada decreased their price target on shares of Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares to $13.00 and set an “outperform” rating for the company in a research report on Thursday. 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 report on Wednesday, October 21st. Canadian Imperial Bank of Commerce began coverage on shares of 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. Finally, Morgan Stanley started coverage on Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares in a research report on Thursday, October 15th. They set an “equal weight” rating and a $3.75 price objective on the stock. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $23.15.

About Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares

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.