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D-Wave Quantum
(NASDAQ:QBTS)
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Rating:49Neutral
Price Target:
$13.50
â–¼(-30.23% Downside)
Action:Reiterated
Date:10/01/26
The score is held back primarily by weak financial performance—very large losses and ongoing cash burn—along with a bearish technical setup (price below key moving averages and negative MACD). Offsetting this are constructive earnings-call signals (strong bookings/RPO growth, clear roadmap, and expected Q4 revenue uplift) and generally positive corporate developments, but the negative P/E and lack of dividend highlight that the investment case remains driven by future execution rather than current profitability.
Positive Factors
QCaaS Growth and Production Adoption
Growing QCaaS revenue and a rising share of production applications indicate customers are moving beyond experimentation toward recurring operational use. This supports a more scalable software-and-services model, strengthens customer retention potential, and may reduce reliance on occasional system sales over time.
Negative Factors
Severe Operating Losses
Large and widening operating losses show that current revenue scale is insufficient to absorb personnel, development, and go-to-market spending. Unless commercialization produces substantial operating leverage, ongoing losses could constrain strategic flexibility and keep profitability dependent on successful future execution.
Read all positive and negative factors
Positive Factors
Negative Factors
QCaaS Growth and Production Adoption
Growing QCaaS revenue and a rising share of production applications indicate customers are moving beyond experimentation toward recurring operational use. This supports a more scalable software-and-services model, strengthens customer retention potential, and may reduce reliance on occasional system sales over time.
Read all positive factors
D-Wave Quantum (QBTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.22B
Dividend YieldN/A
Average Volume (3M)14.91M
Price to Earnings (P/E)―
Beta (1Y)2.72
Revenue Growth-44.22%
EPS Growth32.82%
CountryUS
Employees385
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)-0.71
Shares Outstanding376,450,530
10 Day Avg. Volume14,366,370
30 Day Avg. Volume14,910,599
Financial Highlights & Ratios
PEG Ratio-0.49
Price to Book (P/B)9.86
Price to Sales (P/S)341.62
P/FCF Ratio-110.75
Enterprise Value/Market Cap1.61
Enterprise Value/Revenue675.92
Enterprise Value/Gross Profit1.05K
Enterprise Value/Ebitda-31.99
Forecast
1Y Price Target
$35.79Price Target Upside84.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
EPS Forecast (FY)-0.3
Revenue Forecast (FY)$42.46M
D-Wave Quantum Business Overview & Revenue Model
Company Description
Operating globally, D-Wave Quantum Inc. specializes in developing and supplying quantum computing systems, software, and related services. Their offerings include Advantage, a pioneering fifth-generation quantum computer, and Launch, an onboarding...
How the Company Makes Money
D-Wave primarily generates revenue by selling access to its quantum computing capabilities and associated services. Key revenue streams include: (1) Cloud-based quantum computing access: customers pay to use D-Wave’s quantum processing units (QPUs...
D-Wave Quantum Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but constructive picture: strong technical validation (Nature paper), clear multi-year roadmaps for both gate-model and annealing platforms, growing enterprise traction with quantifiable production wins (AT&T, Optum, NTT DOCOMO), and materially expanded bookings and backlog. However, near-term financials show a substantial decline in first-half revenue versus last year (driven by timing of a prior large system sale), deteriorating gross margins versus a prior-period high-margin sale, rising adjusted EBITDA losses driven by personnel and development investments, and a notable cash reduction due to the Quantum Circuits acquisition. Strategic and technical progress is significant and supports medium- to long-term commercial opportunity, but the company is currently investing heavily and experiencing larger operational losses and near-term revenue volatility tied to system delivery timing.Positive Updates
Peer-Reviewed Technical Validation (Nature Publication)
Published peer-reviewed Nature paper demonstrating a fast two-qubit entangling gate on an 8-qubit dual-rail processor with ~99.9% fidelity and ~500 ns gate times. Company targets a Lambda of 10 (≈10x error reduction per error-correction increment) and provided a multi-year gate-model roadmap (17 physical qubits in 2026 targeting ~2x error reduction; 49 qubits in 2027 targeting ~20x; 181 qubits in 2028 targeting ~2,000x; 10 logical qubits by 2030; 100 logical qubits and >1M reliable operations by 2032).
Negative Updates
Widening Adjusted EBITDA Losses
Q2 adjusted EBITDA loss $37.1M, an increase of $17.1M or 85% YoY (driven by increased investments and personnel-related expenses). H1 adjusted EBITDA loss $69.9M, up $43.8M YoY.
Read all updates
Q2-2026 Updates
Positive
Negative
Peer-Reviewed Technical Validation (Nature Publication)
Published peer-reviewed Nature paper demonstrating a fast two-qubit entangling gate on an 8-qubit dual-rail processor with ~99.9% fidelity and ~500 ns gate times. Company targets a Lambda of 10 (≈10x error reduction per error-correction increment) and provided a multi-year gate-model roadmap (17 physical qubits in 2026 targeting ~2x error reduction; 49 qubits in 2027 targeting ~20x; 181 qubits in 2028 targeting ~2,000x; 10 logical qubits by 2030; 100 logical qubits and >1M reliable operations by 2032).
Read all positive updates
Company Guidance
Management guided that D‑Wave expects to ship two annealing systems in 2026 (likely both in Q4) and to book roughly 2–3 systems per year going forward (system pricing cited at $20M–$40M, with the FAU sale at $20M); they expect Q3 revenue modestly above Q2 ($3.1M) and Q4 revenue to increase significantly and comprise the majority of 2026 revenue (with some installation/calibration revenue carrying into 2027). Current bookings/backlog and liquidity metrics include H1 bookings of $35.5M (which included the $20M FAU system), Q2 bookings of $2.1M (+59% YoY), a sales pipeline up >120% since Dec 31, and remaining performance obligations (RPO) of $40.7M (up 668% YoY) with ~57% expected in 12 months and ~72% in two years; cash and marketable securities were $546.2M at June 30. On the technology road maps, management reconfirmed gate‑model milestones (17 physical qubits in 2026 targeting ~2× error reduction; 49 qubits in 2027 targeting ~20×; 181 qubits in 2028 targeting ~2,000×; 10 logical qubits by 2030; ~100 logical qubits and >1M reliable operations by 2032) and annealing targets (Advantage3 ~20,000 qubits in 2029 and ~100,000 qubits in 2031), while noting QCaaS momentum (Q2 QCaaS $1.9M, +50% YoY; H1 QCaaS $3.6M, +30% YoY, with >37% of H1 QCaaS revenue from production apps versus 9.8% in H1 2025).D-Wave Quantum Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
62
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.43M | 24.59M | 8.83M | 8.76M | 7.17M | 6.28M |
| Gross Profit | 7.97M | 20.31M | 5.56M | 4.62M | 4.25M | 4.53M |
| EBITDA | -262.56M | -348.74M | -138.05M | -80.83M | -49.03M | -34.36M |
| Net Income | -248.70M | -355.06M | -143.88M | -82.72M | -53.70M | -40.97M |
Balance Sheet | ||||||
| Total Assets | 1.16B | 915.81M | 199.85M | 59.36M | 26.95M | 29.47M |
| Cash, Cash Equivalents and Short-Term Investments | 546.22M | 884.48M | 177.98M | 41.31M | 7.07M | 9.48M |
| Total Debt | 13.08M | 43.46M | 38.38M | 72.65M | 42.28M | 39.42M |
| Total Liabilities | 75.32M | 63.58M | 137.21M | 83.84M | 56.41M | 47.82M |
| Stockholders Equity | 1.08B | 852.23M | 62.65M | -24.48M | -29.46M | -18.36M |
Cash Flow | ||||||
| Free Cash Flow | -119.08M | -75.84M | -44.75M | -61.28M | -45.72M | -36.80M |
| Operating Cash Flow | -110.88M | -71.98M | -42.64M | -60.65M | -45.23M | -34.80M |
| Investing Cash Flow | -511.36M | -251.13M | -3.14M | -630.00K | -498.00K | -2.00M |
| Financing Cash Flow | 99.36M | 779.15M | 182.45M | 95.64M | 43.27M | 24.91M |
D-Wave Quantum Technical Analysis
Negative
19.35
Price Trends
17.82
Negative
20.16
Negative
20.44
Negative
Market Momentum
-0.87
Positive
28.78
Positive
6.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QBTS, the sentiment is Negative. The current price of 19.35 is above the 20-day moving average (MA) of 16.31, above the 50-day MA of 17.82, and below the 200-day MA of 20.44, indicating a bearish trend. The MACD of -0.87 indicates Positive momentum. The RSI at 28.78 is Positive, neither overbought nor oversold. The STOCH value of 6.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QBTS.
D-Wave Quantum Risk Analysis
D-Wave Quantum disclosed 66 risk factors in its most recent earnings report. D-Wave Quantum reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
D-Wave Quantum Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $14.69B | -8.45 | -39.34% | ― | 370.64% | -112.64% | |
53 Neutral | $4.42B | -18.02 | -46.82% | ― | 68.49% | 0.83% | |
49 Neutral | $5.22B | -19.35 | -26.67% | ― | -44.22% | 32.82% | |
49 Neutral | $10.41B | -16.40 | -46.94% | ― | ― | ― |
* Technology Sector Average
QBTS
D-Wave Quantum
13.38
-29.68
-68.93%
IONQ
IonQ
34.73
-42.82
-55.22%
RGTI
Rigetti Computing
12.78
-43.34
-77.23%
IQMX
IQM Quantum Computers
9.88
-0.54
-5.18%
PSQL
Pasqal Holding SA
6.27
-3.68
-36.98%
QNT
Quantinuum
36.76
-23.62
-39.12%
D-Wave Quantum Corporate Events
Business Operations and StrategyProduct-Related Announcements
D-Wave Quantum Launches Beta Gate-Model Simulator Program
Positive
Oct 1, 2026
On October 1, 2026, D-Wave Quantum launched a beta program for its gate-model quantum computing simulator, giving select commercial and research partners including BBVA, FirstQFM, Florida Atlantic University and Jülich Supercomputing Centre e...
Business Operations and StrategyExecutive/Board Changes
D-Wave Quantum Adds Veteran Tech Leader to Board
Positive
Sep 21, 2026
On September 18, 2026, D-Wave Quantum appointed veteran financial technology executive Bernard Gavgani as an independent Class II director, with a term running until the 2027 annual shareholders’ meeting. He also joined the Board’s Cyb...
Business Operations and Strategy
D-Wave Quantum to Host Qubits Asia 2026 Conference
Positive
Sep 17, 2026
On September 16, 2026, D-Wave Quantum Inc. announced plans to host Qubits Asia 2026: Quantum Realized, a full-day quantum computing user conference to be held on October 28, 2026, in Seoul. The event is designed to highlight the growing impact of ...
Business Operations and Strategy
D-Wave to Showcase Dual-Platform Quantum Computing Leadership
Positive
Sep 15, 2026
On August 18, 2026, D-Wave announced it would serve as a platinum sponsor of Quantum World Congress 2026, held September 23-25 in College Park, Maryland, underscoring its role as the only dual-platform quantum computing vendor. During the event, t...
Business Operations and StrategyRegulatory Filings and Compliance
D-Wave Quantum Enables Government Resale of Equity Stake
Neutral
Sep 10, 2026
On September 10, 2026, D-Wave Quantum Inc. filed a prospectus supplement with the U.S. Securities and Exchange Commission to cover the resale by the United States Department of Commerce of 7,095,721 shares of the company’s common stock. The ...
Business Operations and StrategyPrivate Placements and Financing
D-Wave Quantum Secures Major CHIPS Act Funding Award
Positive
Sep 8, 2026
On September 4, 2026, D‑Wave Quantum entered a definitive Other Transaction Agreement with the U.S. Department of Commerce under the CHIPS and Science Act, giving the company access to up to $100 million in milestone‑based funding over...
Business Operations and StrategyExecutive/Board Changes
D-Wave Quantum Announces CFO Retirement and Interim Successor
Neutral
Aug 25, 2026
On August 19, 2026, D-Wave Quantum Inc. announced that Chief Financial Officer John Markovich plans to retire and will resign effective September 2, 2026, after playing a key role in the company’s 2022 public listing, capital raises exceedin...
Business Operations and StrategyProduct-Related Announcements
D-Wave and NTT DOCOMO expand quantum network optimization
Positive
Aug 18, 2026
On August 18, 2026, D-Wave Quantum and Japan’s largest mobile operator NTT DOCOMO announced the deployment of DOCOMO’s second production quantum application based on D-Wave technology, expanding their collaboration beyond the initial u...
Business Operations and StrategyExecutive/Board Changes
D-Wave Quantum Appoints Veteran Finance Executive to Board
Positive
Aug 17, 2026
On August 13, 2026, D-Wave Quantum Inc. appointed veteran technology finance executive Kevan P. Krysler as an independent Class I director to its Board and member of the Audit Committee, with his term running until the 2029 Annual Meeting of Stock...
Business Operations and StrategyProduct-Related Announcements
D-Wave Quantum Unveils Breakthrough Gate-Model Hardware Architecture
Positive
Aug 5, 2026
On August 5, 2026, D-Wave Quantum Inc. announced a major hardware breakthrough in gate-model quantum computing, reporting results in Nature that validate its superconducting dual-rail qubit architecture as a scalable basis for fault-tolerant syste...
Business Operations and Strategy
D-Wave Quantum, Nasdaq Verafin explore crime detection tech
Positive
Aug 3, 2026
On August 3, 2026, D-Wave Quantum Inc. and Nasdaq Verafin announced an agreement to evaluate quantum computing for financial crime detection through a proof-of-concept project, with potential expansion to pilot applications. The initiative centers...
Business Operations and StrategyProduct-Related Announcements
D-Wave Quantum, AT&T expand quantum network optimization
Positive
Jul 27, 2026
On July 27, 2026, D-Wave Quantum Inc. and ATT announced an agreement to expand ATT’s use of D-Wave’s quantum computing across the telecom group’s network operations, building on early work that cut a key optimization workload fro...
Business Operations and StrategyDelistings and Listing Changes
D-Wave Quantum Marks Nasdaq Listing Debut and Growth
Positive
Jul 24, 2026
On July 24, 2026, D-Wave Quantum Inc. announced that CEO Dr. Alan Baratz and the management team will ring the Nasdaq Opening Bell on July 27, 2026, to mark the company’s listing debut on the exchange after voluntarily transferring its commo...
Business Operations and StrategyDelistings and Listing Changes
D-Wave Quantum to Transfer Stock Listing to Nasdaq
Positive
Jul 15, 2026
On July 14, 2026, D-Wave Quantum Inc. announced that it would voluntarily transfer the listing of its common stock from the New York Stock Exchange to the Nasdaq Stock Market, ending NYSE trading after market close on July 24, 2026. The shares are...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.