Infleqtion's second-quarter numbers tell a familiar tech growth story: near-term losses continued to widen even as demand for its array of quantum technologies push revenue higher.

Milestone-based payments from a NASA project drove most of the growth in the latest quarter -- which was "100% organic and entirely from quantum, " CEO Matt Kinsella said.

Still, the results were a mixed bag when weighed against Wall Street expectations. According to FactSet, the three analysts tracking the stock expected a loss of 5 cents a share on $10.6 million in revenue. Infleqtion ultimately reported a wider loss of 12 cents a share, though revenue beat projections at $12.6 million, a 116% jump from the prior year.

Widening losses are par for the course among early-stage quantum computing companies. Louisville, Colo.-based Infleqtion's operating losses tripled year over year to $30.6 million, reflecting continued investments in its technology alongside higher stock-based compensation.

Infleqtion forecast roughly $43 million in revenue this year, up from a prior outlook of at least $40 million. Wall Street was looking for $41.8 million.

The numbers won over Wall Street. Shares jumped 6.1% to $13.12 on Thursday, abruptly reversing course after falling in premarket trading.

Peer stocks, meanwhile, traded mixed. Quantinuum -- which reported earnings earlier this week -- fell 4.9%, while IonQ, D-Wave Quantum, and Rigetti Computing each gained more than 2%.

With few analysts following the stock for now, Infleqtion's narrative takes center stage. This includes the company's reassurance Wednesday that it remains on track to deliver a 30-logical-qubit, "utility-scale" system later this year. Qubits, a portmanteau for quantum bits, are the basic units of information in a quantum system.

But there's more to Infleqtion than its unique approach to building quantum systems. While overall federal support for the sector has expanded rapidly in recent months, the company has emerged as a go-to name for government contracts.

That edge stems from what Infleqtion actually builds. While it is often categorized strictly as a quantum computing company, its other innovations have taken center stage, namely quantum sensors and atomic clocks with critical national security applications. Sector peers like IonQ have resorted to strategic acquisitions to build out their capabilities in these areas.

"The biggest surprise since I first invested in the company has been the progress that neutral atoms have made on quantum computing," Kinsella said in a recent interview with Barron's. "It was always pretty clear they could build a decent business in sensing."

Nowhere is that real-world potential clearer than in orbit. Shares got a boost earlier this year after the company delivered an upgraded quantum physics package to NASA's Cold Atom Laboratory aboard the International Space Station.

Heading into the earnings release, momentum was once again on Infleqtion's side. Shares jumped in late July when Infleqtion snagged three awards under the Department of Energy's Genesis Mission. This federal endorsement complemented Infleqtion's ongoing work with the Defense Advanced Research Projects Agency on quantum software and algorithms.

The deals kept coming. Just on Monday, power management company Eaton tapped Infleqtion for an Air Force Research Laboratory subcontract to examine how quantum computing can protect the U.S. electrical grid.

All these agreements build on one of Infleqtion's most consequential deals to date: a letter of intent with the Commerce Department providing $100 million in funding in exchange for an equity stake. Peers including D-Wave, Rigetti Computing, and Quantinuum are finalizing similar arrangements.

Beyond the capital, the funding package offered a stamp of approval for a technology that remains early-stage in spite of recent progress. It also aligned with a heightened national security push, underscored by two executive orders in June. One of those carved out provisions for quantum sensing -- a direct tailwind for Infleqtion.

"China was definitely ahead of the U.S. in officially deeming this of utmost importance," Kinsella explained. "Now we've seen the U.S. label quantum technologies as one of the top three national security priorities."

As its competitors scramble to land enterprise clients, government partnerships remain the core driver for Infleqtion. That focus carves out a niche beyond pure computing, positioning the company to win future contracts and sustain public sector support.

"If you look at the progress that's been made in quantum computing broadly in the last two years, a lot of it was in neutral atoms," Kinsella said. "I do think we're going to see a world where neutral atoms win."