B. Riley Securities has opened coverage on Infleqtion (INFQ) with a “Buy” rating and a $23 price target, which is a Street-high call that draws attention to the quantum technology company’s commercial progress. The stock sits at $14, about 35% under its April high of $21.28, though recent gains indicate investors are taking notice once more.
Analysts Craig Ellis and Rebecca Zamsky at B. Riley see increasing commercial chances and possible triggers as quantum computing gets nearer to practical use. Infleqtion’s approach, which joins neutral-atom quantum hardware with several product lines and its own software, exposes the firm to quantum computing, sensing, timing, and beyond.
The B. Riley Price Target
The technology focus and growing business strength at B. Riley’s $23 price target is the highest on the Street for INFQ. The analysts initiated coverage with a “Buy” rating, reflecting confidence in the company’ form the core of what the company offers today.
Infleqtion’s announcement arrives at a moment when the company can point to revenue being produced by its technology. It is no longer a matter of wagering on the promise of quantum computing; the firm is already earning money from both commercial and government uses of its systems.
The stock closed up 8% for the session and 17% since the beginning of the month, showing some momentum after an unsettled opening stretch on the market.
Infleqtion’s Business and Background
Infleqtion is a quantum technology firm founded in 2007. The company is centered on neutral-atom technology and takes a full-stack approach by pairing quantum hardware with its own Superstaq software platform.
The firm’s product line covers neutral-atom quantum computers, optical atomic clocks, quantum RF sensors, inertial navigation systems, and quantum networking solutions. Its clients come from both government and commercial fields, such as space, defense, energy, finance, and telecommunications.
The company’s technology has already been adopted by U.S. government agencies, NASA, and the U.K. government. Its partnership with Nvidia (NVDA) has grown its quantum computing capabilities. With facilities across the U.S., Europe, and Asia, Infleqtion carries a market value of approximately $2.9 billion.
INFQ started trading on Feb. 17, following a SPAC merger that took Infleqtion public. The stock began at $14.25, fell to $8.52 in March, and then rose to an April high of $21.28. After that peak, the momentum slowed, though the latest increase signals fresh investor attention.
Record Q2 Revenue
On Aug. 12, Infleqtion released its Q2 results, which showed record revenue of $12.6 million, marking a 116% increase from the previous year. The gains came solely from within the company’s existing operations.
The company’s losses shrank significantly. It posted a per-share loss of -$0.12, down from a -$0.57 loss in the prior-year quarter. Gross profit hit $1.4 million, and cash produced by operations totaled $13.2 million.
The speed of quantum commercialization is picking up, according to CEO Matt Kinsella. He points to governments actually putting funding and timelines behind the technology, while customers are already building applications for the next generation of quantum systems.
The forward movement has pushed Infleqtion to increase its view of what lies ahead. Managers now expect a minimum of $43 million in revenue for 2026, while staying on course to hit 30 logical qubits this year.
The NASA Contract and Other Wins
The company posted record revenue for Q2, with a raised 2026 revenue forecast and the announcement of a $20 million NASA contract among the key factors driving its performance. The NASA Quantum Gravity Gradiometer program was a major contributor to the quarter’s revenue growth.
The company is under contract to deploy a neutral-atom quantum computer at the Illinois Quantum & Microelectronics Park in 2027. The modular architecture is designed to scale beyond 50 logical qubits on the way toward a 100-logical-qubit target.
Practical use of Infleqtion’s technology has found a home with Eaton (ETN), which is tapping into private-cloud access to the company’s Sqale platform to look into quantum solutions for difficult energy issues. At the same time, Infleqtion was picked for three Department of Energy Genesis Mission projects involving nuclear applications, quantum sensing, and fusion research.
A global co-selling partnership with Safran (SAFRY) backs the ongoing sale of the company’s third-generation Tiqker optical atomic clocks.
Financial Position and Valuation
In its financial report, Infleqtion closed out Q2 with $582 million in cash, cash equivalents, restricted cash, and available-for-sale securities, and it carried no debt.
That balance sheet offers real breathing room for a company that has yet to turn a profit as it races to turn quantum potential into commercial reality. Trading at around 64.2 times forward sales, INFQ commands a premium valuation, well above what the broader sector averages.
Infleqtion’s Q3 revenue is expected to reach about $11.1 million, with a loss per share estimated at -$0.05. The company is projected to see its losses deepen annually to -$0.24 per share in fiscal 2026, before they contract by 20.8% YoY to -$0.19 per share in fiscal 2027.
What Analysts Expect
Craig Ellis and Rebecca Zamsky, B. Riley analysts, are expressing strong faith in INFQ. Their “Buy” rating and $23 price target show they believe in the company’s technology, its expanding business chances, and the possible turning points as quantum computing gets nearer to practical use.
What sets Infleqtion apart is its full-stack method, according to the analysts. Rather than simply creating quantum hardware, the company has brought together its Superstaq software platform with several product lines, which gives it a presence across quantum computing, sensing, timing, and other fields.
| Metric | Q2 (Reported) | Year-Ago Quarter |
|---|---|---|
| Revenue | $12.6 million | Not disclosed |
| Revenue Growth | +116% YoY | — |
| Loss Per Share | -$0.12 | -$0.57 |
| Gross Profit | $1.4 million | — |
| Cash From Operations | $13.2 million | — |
Infleqtion’s revenue growth came from sales alone, with no acquisitions driving the numbers. That approach matters for an early-stage company, since the growth was entirely organic, a detail that sets it apart from firms that buy their way forward.
Risks and the Road Ahead
Shares of INFQ remain far below their April peak, and the stock’s young, unstable nature means investors are still dealing with significant risk. That risk comes from owning an unprofitable early-stage quantum company stock.
A high price tag is one worry. The stock trades for roughly 64.2 times sales projected for the coming year, which puts it far above what other companies in its field typically cost.
There are still some encouraging signals. The share rose 8% today and has climbed 17% over the past month. Now investors have fresh reasons to take notice.
The path forward includes several concrete milestones:
- Deploy a neutral-atom quantum computer at the Illinois Quantum & Microelectronics Park in 2027.
- Scale the modular architecture beyond 50 logical qubits.
- Reach a 100-logical-qubit target.
- Achieve at least $43 million in revenue for 2026.
- Reach 30 logical qubits this year.
Infleqtion holds $582 million in cash on its balance sheet with no debt, which means it has the funds to keep operating as it pursues profitability. That cash position gives an unprofitable company room to maneuver without borrowing.
Infleqtion’s full-stack strategy, growing list of applications, and stronger business performance make it a stock to keep an eye on as quantum technology shifts from academic theory into practical use.
Source: finance.yahoo.com
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