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    Is Quantum-Si (NASDAQ:QSI) In A Good Position To Invest In Growth?

    Simply Wall St·12/13/2025 12:55:22
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    Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the right price. For example, although Amazon.com made losses for many years after listing, if you had bought and held the shares since 1999, you would have made a fortune. But the harsh reality is that very many loss making companies burn through all their cash and go bankrupt.

    Given this risk, we thought we'd take a look at whether Quantum-Si (NASDAQ:QSI) shareholders should be worried about its cash burn. In this report, we will consider the company's annual negative free cash flow, henceforth referring to it as the 'cash burn'. First, we'll determine its cash runway by comparing its cash burn with its cash reserves.

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    How Long Is Quantum-Si's Cash Runway?

    You can calculate a company's cash runway by dividing the amount of cash it has by the rate at which it is spending that cash. In September 2025, Quantum-Si had US$226m in cash, and was debt-free. In the last year, its cash burn was US$105m. Therefore, from September 2025 it had 2.1 years of cash runway. That's decent, giving the company a couple years to develop its business. Depicted below, you can see how its cash holdings have changed over time.

    debt-equity-history-analysis
    NasdaqGM:QSI Debt to Equity History December 13th 2025

    Check out our latest analysis for Quantum-Si

    How Well Is Quantum-Si Growing?

    At first glance it's a bit worrying to see that Quantum-Si actually boosted its cash burn by 19%, year on year. The silver lining is that revenue was up 40%, showing the business is growing at the top line. On balance, we'd say the company is improving over time. Clearly, however, the crucial factor is whether the company will grow its business going forward. For that reason, it makes a lot of sense to take a look at our analyst forecasts for the company.

    Can Quantum-Si Raise More Cash Easily?

    Quantum-Si seems to be in a fairly good position, in terms of cash burn, but we still think it's worthwhile considering how easily it could raise more money if it wanted to. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash and fund growth. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate).

    Quantum-Si's cash burn of US$105m is about 35% of its US$302m market capitalisation. That's not insignificant, and if the company had to sell enough shares to fund another year's growth at the current share price, you'd likely witness fairly costly dilution.

    So, Should We Worry About Quantum-Si's Cash Burn?

    Even though its cash burn relative to its market cap makes us a little nervous, we are compelled to mention that we thought Quantum-Si's revenue growth was relatively promising. Cash burning companies are always on the riskier side of things, but after considering all of the factors discussed in this short piece, we're not too worried about its rate of cash burn. On another note, Quantum-Si has 5 warning signs (and 1 which is significant) we think you should know about.

    Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies with significant insider holdings, and this list of stocks growth stocks (according to analyst forecasts)