Honeywell-backed Quantinuum IPO tests quantum stock rally

Honeywell-backed Quantinuum IPO tests quantum stock rally
Honeywell-backed Quantinuum IPO tests quantum stock rally

A company backed by Honeywell (HON) aims to conduct one of the largest public market tests yet for commercial quantum computing.

Quantinuum is seeking to raise up to $1.05 billion in its initial public offering, offering 21 million shares at $45 to $50 each. At the top of the range, Quantinuum would be valued at about $12.7 billion and is expected to list on the Nasdaq Composite (^IXIC) under the symbol QNT, according to IPO terms filed Tuesday.

This is a big ask for a company that is still in the early stages of commercializing quantum computing. Quantinuum was formed in 2021 by combining Honeywell Quantum Solutions and Cambridge Quantum, giving it quantum hardware and software capabilities. The company said it is working toward a fault-tolerant, commercial-scale quantum computer before the end of the decade, with potential applications in chemistry, machine learning, cybersecurity, finance and drug discovery.

Quantinuum reported $5.2 million in revenue in the March quarter, up from $19.1 million a year earlier. Its net loss widened to $136.6 million from $30.5 million during the same period.

A look inside an ion trap inside Quantinuum’s quantum computer, which processes data using trapped ion technology, in this image from 2019. (Quantinuum/Handout via Reuters) · Reuters / REUTERS

The changes show how early and focused the business remains. The filing says Japan’s RIKEN accounted for 90% of revenue in the March quarter of last year, but only 7% in the latest period, while other government-linked clients accounted for much of this year’s revenue.

Instead, the company pointed investors to early demand and its long-term technology roadmap. Quantinuum reported $79.3 million in bookings in 2025, although bookings slowed to $1.3 million in the March quarter from $1.9 million a year earlier.

Their pitch is based more on precision than raw size. Quantinuum said its Helios system has 98 physical qubits, 48 ​​logical qubits and a two-qubit gate fidelity of 99.921%, a measure of the precision with which quantum operations are performed. The company is targeting its next system, Sol, in 2027, followed by Apollo in 2029.

Quantinuum's filing shows a step-by-step plan from its current Helios system to Sol in 2027 and Apollo in 2029. That roadmap is critical to the IPO case because current revenue remains small.
Quantinuum’s filing shows a step-by-step plan from its current Helios system to Sol in 2027 and Apollo in 2029. That roadmap is critical to the IPO case because current revenue remains small. · Quantum filing with the SEC

The IPO lands in a more favorable context for quantum stocks.

Public quant names have rebounded strongly since the overall market low on March 30, even after significant declines from their highs.

IonQ (IONQ) is up about 132% since the end of March, while D-Wave Quantum (QBTS) is up about 110%. Rigetti Computing (RGTI) and Quantum Computing (QUBT) rose more than 85%. Earnings so far this year are substantially lower.

But the rebound has not erased the previous damage. Rigetti remains more than 50% below its all-time closing high, while D-Wave is still almost 40% below its high. IonQ is still about 25% off its high even after its recent rally.

The sector also received a new political boost this month after the Trump administration announced funding for quantum computing tied to state stakes in several companies, including D-Wave and Rigetti.

Quantinuum has its own tentative government agreement.

The company has a non-binding letter of intent with the Commerce Department for up to $100 million under the CHIPS Act, although the funding would come in tranches tied to milestones and Quantinuum would issue equity securities to the government in exchange.

Honeywell International (HON) is using that context to generate value while staying tied to the business. Honeywell will retain approximately 49% of the votes after the offering and plans to remain a customer and development partner.

That gives the deal a different feel than already public quant names, many of which came to market via SPACs. Quantinuum tries to become the serious benchmark for IPOs in the sector.

The question for investors is whether that cleaner quantum story deserves a premium price, or whether the sector’s rally has already dragged too much of the future into the current valuation.

Jared Blikre is Yahoo Finance’s global markets and data editor. Follow him on X at @SPYJared or email him at jaredblikre@yahooinc.com.

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