Xanadu Quantum Technologies Limited Class B Subordinate Voting Shares (XNDU)

FairStock Score: 20/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Xanadu as a value investor, and the first question is not whether quantum computing is exciting but whether the business earns durable profits. Xanadu sells photonic quantum computing technology, cloud access and the PennyLane software library. The latest reported quarter—fiscal Q1 2026—showed revenue of $2.8 million and a net loss of $20.6 million, a margin of -727.54%. Trailing free cash flow was -$66.2 million, so the company consumes cash. The data provided include revenue growth of 305.15% and profit growth of -68.82%, though no period is specified; losses are moving the wrong way. The balance sheet has low leverage, with D/E of 0.19, but negative ROE of -56.37% and ROCE of -24.37% show capital is not yet producing returns. At the 2026-10-13 close of $3.38, market cap is $9.5 billion. FairStock's negative P/E of -11.66, P/B of 3.28, and FCF yield of -0.7% confirm there is no earnings-based valuation support. The stock trades near the low of its $3.36-$42.44 52-week range, which may reflect evaporating optimism as much as value. A FairStock score of 20/100 and Piotroski F-Score of 5/9 suggest a fragile financial profile, while the Lynch category is none because only 0 years of filed results exist versus the 3 needed. I see no margin of safety in the classic Graham sense. The technology could matter one day, but today the price already assumes enormous future success, and I prefer businesses whose current earnings and cash flow I can appraise.

In plain English: Xanadu Quantum Technologies develops photonic quantum computers and software, including cloud access and the PennyLane programming library. The business is not yet profitable: in the latest reported quarter, fiscal Q1 2026, revenue was $2.8 million while net income was -$20.6 million, and trailing free cash flow was -$66.2 million. At $3.38 per share on 2026-10-13, the stock has a $9.5 billion market value, which looks expensive relative to current sales and losses, though the shares are near the bottom of their 52-week range.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer