What caused QSI's Q3 2024 EPS to drop sharply?

The Quantum-Si Incorporated (QSI) experienced a significant drop in its Q3 2024 EPS, dropping to -$0.18 per share, compared to the previous year's -$0.18 per share. This decline can be attributed to several factors:

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|QSI|QSI.O|Quantum-Si|2024 Q1|17.64705882352941|-0.14|185|
|QSI|QSI.O|Quantum-Si|2024 Q2|11.111111111111107|-0.16|185|
|QSI|QSI.O|Quantum-Si|2024 Q3|-5.8823529411764595|-0.18|185|

1. **Revenue Decline**: Although Quantum-Si reported a total revenue of $787,000 for Q3 2024, this figure was likely insufficient to cover the company's expenses, leading to a net loss of $25.31 million. The revenue lag and inability to generate sufficient income to support operational costs are a critical factor in the negative EPS.

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|QSI|QSI.O|Quantum-Si|2023 Q4||400000|185|
|QSI|QSI.O|Quantum-Si|2024 Q1|79.92125984251969|457000|185|
|QSI|QSI.O|Quantum-Si|2024 Q2|203.41463414634146|622000|185|
|QSI|QSI.O|Quantum-Si|2024 Q3|252.91479820627805|787000|185|

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|QSI|QSI.O|Quantum-Si|2023 Q4|33.47012673506337|-2.2048E7|185|
|QSI|QSI.O|Quantum-Si|2024 Q1|17.521494218796324|-1.9474E7|185|
|QSI|QSI.O|Quantum-Si|2024 Q2|9.674265827239667|-2.3099E7|185|
|QSI|QSI.O|Quantum-Si|2024 Q3|-2.3657392429634423|-2.5313E7|185|

2. **Operational Challenges**: The company's struggle to meet revenue estimates and the net loss indicate underlying operational challenges. These could include issues with product development, market competition, or regulatory hurdles, which collectively impact the company's profitability and, consequently, its EPS.
3. **Financial Adjustments**: Quantum-Si's financial results were marked by significant adjustments to reconcile to EBITDA, which include dividend and interest income. These adjustments, although necessary, reflect underlying financial struggles and can indirectly affect EPS through changes in interest and dividend expenses.

In summary, Quantum-Si's Q3 2024 EPS drop is primarily due to a combination of revenue decline and operational challenges, with financial adjustments reflecting the company's broader financial struggles.