IonQ, Inc. (NYSE:IONQ) shares dropped 9% on Wednesday after a short seller released a report that questioned the company's revenue base and strategic direction, at a time when the broader technology sector was experiencing weakness.
The report, published by Wolf Pack, asserts that IonQ lost a key stream of Pentagon funding that it says represented as much as 86% of the company's revenues over the 2022 to 2024 period. Wolf Pack characterizes the resulting gap in expected bookings for 2025 as a "$54.6 million black hole," and links that shortfall to management changes and large insider stock disposals.
Specifically, the short seller alleges the funding disruption was a factor in the resignation of IonQ's CEO and points to insider sales of company stock totaling $396.6 million. Those claims are presented in the report as part of a broader argument that IonQ has been forced to alter its business mix.
Wolf Pack also contends that IonQ has attempted to replace the lost Pentagon revenue by acquiring businesses outside of classical quantum computing. The report lists several acquisitions it views as non-quantum, including satellite imagery firm Capella, atomic clock maker Vector Atomics, and quantum key distribution company ID Quantique. The short seller further takes aim at IonQ's recently announced purchase of Skywater Technology (NASDAQ:SKYT), saying that deal "forever shatters the illusion that IONQ is a quantum 'pure play'" and signals a shift toward semiconductors and other nonquantum activities.
On the financials cited in the report, Wolf Pack alleges the company's operating cash flow has deteriorated markedly, from negative $33 million in the fourth quarter of 2024 to negative $123.1 million in the third quarter of 2025. The short seller argues that the acquisitions and the loss of Pentagon funding materially worsened cash generation.
The drop in IonQ shares occurred on a day when technology stocks broadly were under pressure, amplifying the market reaction as investors weighed the short seller's assertions.
Note: The claims summarized above are drawn from the short seller report described in this article.