IonQ (NYSE: IONQ) announced Monday it will acquire cybersecurity company Elisity in an all-stock transaction valued at up to $1.3 billion, including up to $150 million in performance-based earnouts.
The deal is designed to defend against attackers targeting AI models and AI agents, while also guarding against future threats posed by quantum computing.
Elisity will retain its current leadership team under the deal, including CEO James Winebrenner, with the transaction expected to close in the fourth quarter pending regulatory approval.
IonQ CEO Niccolo de Masi told CNBC the acquisition will strengthen the company’s quantum security strategy, pointing specifically to the risk of “Q-Day,” when quantum computers could break today’s standard encryption methods.
“Frankly, people are not ready,” de Masi said, underscoring the urgency behind IonQ’s push into the cybersecurity space.
The market reacted cautiously, with IonQ stock falling more than 9% in afternoon trading following the announcement, while peers Rigetti and D-Wave also traded lower on the day.
Investors appear wary of another large acquisition paid for in stock, as share issuance dilutes existing holders, and IonQ’s stock had already surged significantly in the months leading up to the announcement.
The Elisity deal is the latest in a rapid series of acquisitions, following IonQ’s $1.8 billion purchase of SkyWater Technology in July and its separate acquisition of Oxford Ionics, and comes shortly after two executive orders signed in June covering quantum computing and cyber protection.
Despite investor caution, IonQ’s underlying business has been expanding at a significant pace, with second-quarter revenue hitting $80.1 million, a 287% increase from the same period a year earlier, while organic revenue grew 132%.
The company raised its full-year 2026 revenue guidance to between $280 million and $290 million, a figure that covers IonQ alone and does not yet incorporate SkyWater into the combined outlook.
Remaining performance obligations, a key indicator of future revenue, reached $485 million, a sharp rise from $122 million recorded in the same period one year ago.
Management noted on its August earnings call that security has become part of most customer conversations, with approximately 25% of revenue now coming from customers purchasing more than one product.
The financial picture is not without concern, however, as adjusted EBITDA came in at negative $120.3 million last quarter, with GAAP operating expenses totaling $417.3 million.
Management also acknowledged it needs additional time before it can provide combined financial guidance that incorporates the SkyWater business alongside its core quantum operations.
IonQ stock is likely to remain volatile in the near term as investors weigh strong revenue momentum against mounting costs and a relentless acquisition pace that has yet to fully reveal how all the pieces fit together.
