D-Wave Quantum Inc

D-Wave Quantum Inc (NYSE: QBTS) is a quantum computing company focused on designing and delivering quantum computing systems, software, and related services. The company provides integrated hardware platforms, cloud-based access, application development tools, and professional services, enabling enterprises and developers to adopt and deploy quantum computing solutions across the full lifecycle.

Key Business Updates

D-Wave Showcases Hybrid Quantum–HPC Innovation at SC25: D-Wave Quantum Inc. announced it will present its latest advances in hybrid quantum technology at the SC25 conference, highlighting quantum–HPC integration, real-world customer use cases, and emerging quantum–AI applications. The showcase underscores D-Wave’s leadership in delivering energy-efficient quantum computing solutions capable of driving practical and measurable impact.

Key Growth Aspects

• Strong Revenue Momentum Reflecting Accelerating Adoption: D-Wave Quantum demonstrated exceptional top-line growth, with third-quarter revenue doubling year over year to USD 3.7 million and year-to-date revenue surging 235% to USD 21.8 million. This sharp acceleration highlights rising commercial and institutional adoption of quantum computing solutions, supported by expanding use cases across government, enterprise, and research customers. The sustained sequential growth further reinforces improving demand visibility.
• Material Improvement in Profitability and Margin Profile: The company delivered a significant expansion in gross profitability, with Q3 GAAP gross profit increasing 156% year over year and year-to-date gross profit rising 353%. GAAP gross margins improved meaningfully to 71.4% in Q3 and 84.8% year to date, reflecting higher-margin system sales and operational efficiencies. Non-GAAP margins nearing 78% in Q3 indicate a scalable and increasingly efficient revenue model.
• Robust Cash Position Enhancing Financial Flexibility: D-Wave ended the quarter with a record cash balance of USD 836.2 million, the highest in its history, providing substantial liquidity to fund long-term technology development and commercial expansion. The cash balance increased materially through warrant exercises, significantly strengthening the balance sheet and reducing near-term financing risk. This liquidity positions the company well to sustain elevated investment levels.
• Expanding Global Footprint and Technological Progress: Operationally, D-Wave continued to expand its global presence through strategic customer wins, government-backed initiatives, and high-profile collaborations. Key developments included a major European quantum computing agreement, deployment of Advantage2™ systems, and progress toward scalable gate-model quantum systems. Industry recognition and increasing engagement at global technology events further validate D-Wave’s leadership in near-term commercial quantum computing.

Growth Challenges

• Elevated Operating Cost Structure: Despite revenue growth, operating expenses increased sharply, with Q3 GAAP operating expenses rising 40% year over year and year-to-date expenses increasing 38%. Higher personnel costs, fabrication spending, and stock-based compensation reflect aggressive investment but also underscore a cost base that remains disproportionate to current revenue levels, pressuring operating leverage.
• Persistent Operating and EBITDA Losses: The company continues to report sizable operating losses, with adjusted EBITDA losses widening both quarterly and year to date. While higher gross profit partially offsets expenses, the expanding adjusted EBITDA loss highlights that D-Wave remains far from breakeven, and profitability is dependent on sustained revenue scale-up and improved cost discipline over time.
• Significant Volatility from Non-Operating Charges: Reported net losses were heavily distorted by large non-cash warrant remeasurement charges, resulting in headline net losses of USD 140.0 million for Q3 and USD 312.7 million year to date. Although these charges are non-operational, they materially impact reported earnings, contributing to volatility in financial results and complicating headline performance interpretation.
• Bookings Growth Lags Revenue Expansion: While Q3 bookings improved sequentially, year-to-date bookings declined 7% year over year, indicating some unevenness in order intake relative to revenue recognition. This divergence suggests that revenue growth has been supported by a limited number of high-value system sales, potentially increasing reliance on large, episodic contracts rather than a consistently expanding backlog.

Key Risks

• High-Cost Base and Execution Risk: Rapid growth in personnel, fabrication, and R&D spending may outpace revenue growth, limiting operating leverage.
• Earnings Volatility from Warrant Liabilities: Large non-cash warrant remeasurement charges can cause significant fluctuations in reported net income and investor sentiment.
• Bookings Concentration and Visibility: Dependence on large, episodic system sales may lead to uneven bookings trends and reduced revenue predictability.

Technical Observation (on the daily chart):

D-Wave Quantum’s stock is consolidating after a strong prior rally, trading in a broad USD 24–USD 30 range as it digests earlier gains. Price is hovering below the 50-day moving average and near the 20-day moving average, indicating a neutral short-term setup. Momentum is muted, with RSI around the mid-40s to 50 level, reflecting neither overbought nor oversold conditions, while lower volumes suggest reduced selling pressure but limited fresh buying. Overall, the chart points to consolidation within a broader uptrend, with a breakout above USD 30 signaling renewed upside and a break below the mid-USD 20s increasing downside risk.

D-Wave Quantum is gaining traction through application-driven partnerships with commercial, research, and public-sector customers, including a major U.S. airline, SkyWater, Japan Tobacco’s pharma unit, Yapi Kredi, and global universities. Ongoing collaborations on real-world hybrid quantum use cases—such as manufacturing optimization with BASF and incident response solutions with North Wales Police—highlight the company’s emphasis on near-term, practical quantum applications that support recurring usage and commercial adoption.

D-Wave Quantum delivered a mixed performance marked by exceptional revenue and gross profit growth, expanding margins, and a record cash balance that significantly strengthens its financial flexibility and supports long-term technology investment. However, these positives are offset by a still-elevated cost structure, widening adjusted EBITDA losses, and volatile reported net losses driven by large non-cash warrant remeasurement charges. While accelerating adoption, improving unit economics, and strong liquidity underscore the company’s strategic progress, uneven bookings trends and the continued absence of operating profitability temper near-term visibility, resulting in a balanced outlook that reflects both strong momentum and execution risk.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given D-Wave Quantum Inc (NYSE: QBTS) at the closing market price of USD 25.52 as of Dec 16,2025. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is December 16,2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.