Quantum computing firm IonQ has seen its market valuation surge to $25 billion, a figure that stands in sharp contrast to its revenue of less than $100 million. This has led analysts to compare its speculative value against companies with established business models and stronger financial metrics, such as remittance provider Remitly Global and restaurant chain Portillo's.
While IonQ represents a bet on future technology, Remitly and Portillo's are generating significant revenue and profits today. An examination of their underlying financials presents a different perspective on long-term value creation, questioning whether IonQ's current market capitalization is sustainable over the next five years.
Key Takeaways
- IonQ's valuation has reached $25 billion on less than $100 million in revenue, highlighting the speculative nature of current quantum computing investments.
- Remitly Global is demonstrating strong revenue and volume growth, achieving profitability despite market concerns over immigration policy.
- Portillo's, a profitable restaurant chain, is pursuing a national expansion strategy with a market cap significantly backed by current earnings.
- A comparison of financial fundamentals suggests that companies with proven business models may offer a more grounded investment case than highly valued, pre-commercial technology firms.
IonQ's Valuation Under Scrutiny
The market's enthusiasm for quantum computing has propelled stocks like IonQ to remarkable heights. The company's stock has increased by 78% year-to-date in 2025, culminating in a market capitalization of $25 billion. Investors are betting on the long-term potential of quantum technology to revolutionize various industries.
However, a closer look at IonQ's financial performance reveals a significant gap between its valuation and its current business operations. The company generates less than $100 million in annual revenue and reported an operating loss of $351 million over the last twelve months. It has not yet achieved profitability.
IonQ Financial Snapshot
- Market Capitalization: $25 billion
- Annual Revenue: $53 million (trailing 12 months)
- Operating Loss: $351 million (trailing 12 months)
- Business Model: Largely pre-commercial and speculative
This dynamic makes IonQ an investment based almost entirely on future potential rather than present performance. While the promise of quantum computing is substantial, the path to commercialization and profitability remains uncertain, introducing a high degree of risk for shareholders.
Remitly's Growth in Global Remittances
In contrast to IonQ's speculative trajectory, Remitly Global operates with a proven and disruptive business model in the international money transfer market. The company provides a mobile-first platform that challenges legacy players like Western Union by offering lower fees and a more convenient user experience.
Despite investor concerns related to a U.S. immigration crackdown and a new 1% tax on remittance payments, Remitly's business has continued to expand. In its most recent quarter, the company reported a 34% year-over-year increase in revenue and a 40% growth in send volume.
Understanding the Remittance Market
The global remittance industry involves workers sending money back to their home countries. It is a massive market traditionally dominated by established companies with physical locations. Digital-first companies like Remitly are capturing market share by leveraging mobile technology to reduce costs and improve accessibility for millions of users worldwide.
More importantly, Remitly is demonstrating a clear path to profitability. The company generated $27 million in earnings before interest and taxes (EBIT) on $1.46 billion in trailing revenue. This indicates growing operational efficiency and the ability to scale its business profitably. While its stock has declined 42% from its 2025 highs, its financial fundamentals present a solid case for long-term value.
Portillo's Steady National Expansion
Portillo's, a restaurant chain known for its Chicago-style street food, offers another example of a company focused on tangible growth. With a current market capitalization of just $464 million, Portillo's is executing a deliberate expansion plan to bring its brand to a national audience, with new locations in states like Texas and Florida.
While the company has faced headwinds from a broader slowdown in consumer spending, its financial position remains strong. Over the last 12 months, Portillo's generated $728 million in revenue and $65 million in EBIT. This profitability provides a stable foundation for funding its growth initiatives.
"With the company planning to have just around 100 restaurant locations at the end of this year, there is still a huge runway for the concept to expand to new metropolitan areas in the United States."
The company's revenue growth of 3.6% in the last quarter was modest, but this figure is expected to accelerate as new store openings are scheduled for the second half of 2025. Each new location adds a predictable stream of revenue and profit, making its growth path transparent and measurable.
A Tale of Two Investment Philosophies
The comparison between IonQ on one side and Remitly and Portillo's on the other highlights a fundamental divergence in investment strategy. IonQ represents a high-risk, high-reward bet on a transformative technology that has yet to prove its commercial viability.
Remitly and Portillo's represent an investment in businesses with established products, growing revenues, and clear paths to increasing profitability. Their valuations are directly tied to their financial performance and operational execution.
Financials at a Glance
- Portillo's (PTLO): $728M revenue, $65M EBIT, $464M market cap.
- Remitly (RELY): $1.46B revenue, $27M EBIT.
- IonQ (IONQ): $53M revenue, -$351M operating loss, $25B market cap.
While Portillo's is unlikely to reach a $25 billion valuation in five years, the analysis suggests its market value is more sustainable than IonQ's. The prediction is that as IonQ's valuation potentially corrects to align more closely with its financial reality, the steady growth of companies like Remitly and Portillo's could see their market capitalizations surpass it. This underscores the classic investment principle of prioritizing companies that create tangible value in the present.
