IonQ’s share price is rocketing higher, but the company’s long-term success is anything but guaranteed.
Quantum computing holds a lot of promise to impact fields such as climate science, pharmaceuticals, artificial intelligence (AI) modeling, and much more. Many investors are keen on getting in on the ground floor of new tech trends because, as artificial intelligence stocks have proven, buying early can pay off in spades.
That optimism may be fueling the staggering gains of more than 600% that IonQ (IONQ 5.14%) has returned over the past year. Some investors, no doubt, are wondering if they’re missing out by not owning IonQ. But there are a few reasons why investors may want to pause before buying IonQ stock. Here are a few.
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Expenses are rising, and losses are widening
IonQ is in growth mode right now, which means that the company is investing heavily into building its technology so that it can, ideally, outpace its competitors and generate significant revenue and earnings down the road.
There’s nothing wrong with that, and many growth companies, especially in the tech sector, do this. But it’s important to highlight how much money IonQ is losing in relation to its revenue. The company’s research and development spending spiked more than 230% in Q2 as the company invested in new tech and acquisitions. For reference, IonQ spent more on R&D in Q2 of 2025 than it did in the first nine months of last year.
That spending contributed to significant losses for the company of $177.5 million, up from a loss of just $37.5 million in the year-ago quarter. If we look at IonQ’s loss on an earnings before interest, taxes, depreciation, and amortization basis (EBITDA), things look a little better, but not great. The company’s EBITDA loss was $36.5 million in the quarter, an increase from $23.7 million in the year-ago quarter.
Revenue is growing quickly, with sales jumping 81% in the quarter, but it’s still a modest amount of about $21 million. With losses expanding and IonQ likely to continue spending on R&D and potential acquisitions, revenue will have to accelerate dramatically for the company to eventually offset its losses.
The stock is pricey, and quantum computing is speculative
Even if you’re comfortable with the company’s losses, I think IonQ’s valuation and the speculative nature of the quantum computing market are two more reasons to hold off on buying IonQ. The company’s shares have a price-to-sales ratio of 303, which is very expensive even by tech stock standards — with software application and infrastructure stocks having an average P/S ratio of just 4.
That means IonQ’s sales have to grow at a tremendous rate in order to justify its stock’s current premium price tag, making its most recent revenue increase of 83% in Q2 appear relatively modest.
What’s more, quantum computing is still in its early stages, and even some technology heavy hitters, including Alphabet and Microsoft, believe its practical use cases are still years away. This means IonQ could continue investing in quantum computing technologies, widening its losses, with revenue increases that don’t keep pace with spending, all while betting that quantum computing demand will be there years from now.
IonQ is not a buy
When you add up all of the above, I think IonQ is too risky to buy right now. Its share price has surged at a time when it seems like nothing could dent the stock market’s returns, and I think a little too much optimism has crept into the market, pushing valuations very high.
I think investors would be better off monitoring how well the company’s revenue grows over the coming quarters, see if it can narrow its losses, and find out whether the quantum computing market delivers on its high hopes. But for now, IonQ looks too speculative for my liking.
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
