D-Wave Quantum (QBTS) — Company Research

Last Updated: 10 October 2026

D-Wave Quantum sells access to its annealing quantum computers through the Leap cloud, sells complete on-premise systems, and since buying Quantum Circuits in January 2026 is also building gate-model machines. FY2025 revenue almost tripled to $24.6m on a single large system sale, but quarterly revenue has since run at about $3m while bookings reached a record $33.4m in Q1 2026. The shares moved from the NYSE to Nasdaq on 27 Jul 2026, and the US Commerce Department is taking a minority stake under a CHIPS Act R&D award. This refresh rebuilds every figure from the FY2025 10-K, the Q2 2026 10-Q and earnings release, and SEC XBRL data. Follow the live price on our Live Charts page and the macro backdrop on the Economic Calendar.

1. Company Snapshot

Field	Value
Ticker	NASDAQ: QBTS (transferred from the NYSE; Nasdaq trading began 27 Jul 2026)
Sector	Technology — quantum computing (annealing and gate-model)
Headquarters	Palo Alto, California; moving to Boca Raton, Florida by end-2026. Manufacturing and development in Burnaby, Canada
CEO / Leadership	Dr Alan Baratz (President & CEO since 2020); Sharon Holt (Chair since 4 Jun 2026); Greg Golkov (acting CFO since 2 Sep 2026)
Employees	~388, of which 382 full-time (5 Feb 2026, FY2025 10-K, including Quantum Circuits)
Revenue (FY2025)	$24.6m (+178.5% YoY)
Net loss (FY2025)	$(355.1)m including a $270.5m non-cash warrant charge; GAAP diluted EPS $(1.11)
Revenue (Q2 2026)	$3.1m (flat YoY); GAAP net loss $(48.0)m
Market cap	~$5.4bn (9 Oct 2026 close of $14.57 × ~372.4m shares including exchangeable shares)
Cash and investments	$546.2m at 30 Jun 2026; loans payable $35.0m
Dividend	None

2. Bull Case vs Bear Case

Bull Case

• Record bookings and a Q4 delivery ramp: H1 2026 bookings were $35.5m, including a $20m Advantage2 sale to Florida Atlantic University, and management expects two system deliveries to make Q4 2026 the largest quarter of the year.
• Gate-model progress: The Quantum Circuits deal added dual-rail qubits, and a Nature paper on 5 Aug 2026 reported a two-qubit gate with about 99.9% fidelity, giving D-Wave a second platform alongside annealing.
• US government backing: The CHIPS Act agreement signed on 8 Sep 2026 provides up to $100m of R&D funding, with the Commerce Department receiving 7.1m shares as a minority stake.
• Funded runway: Cash and marketable securities of $546.2m against $35.0m of loans cover several years at the H1 2026 operating cash burn of $73.5m.

Bear Case

• Small and lumpy revenue: TTM revenue is only $12.4m, and one customer provided 67% of FY2025 revenue through a single system sale.
• Widening losses: Adjusted EBITDA was $(37.1)m in Q2 2026 against $(20.0)m a year earlier as the Quantum Circuits team and gate-model spending were added.
• Leadership change and insider selling: The CFO retired on 2 Sep 2026, the chair changed in June, and the CEO sold about $18.0m of stock in June 2026.
• Extreme sales multiple: The market cap of about $5.4bn is more than 400 times TTM revenue.

3. Business Segments

D-Wave reports one operating segment and discloses revenue by type. The table shows the FY2025 split of $24.6m from the 10-K revenue note. In Q2 2026, with no large system sale, QCaaS was 60.5% of revenue and professional services 30.2%.

Segment / category	% of revenue	What it is
System sales	65.8% ($16.2m)	On-premise Advantage and Advantage2 systems, including the purchase and upgrade of the Jülich system in Germany
QCaaS	22.4% ($5.5m)	Subscription access to annealing systems and hybrid solvers through the Leap cloud
Professional services	11.1% ($2.7m)	Application development, proofs of concept and production deployment support
Other	0.7% ($0.2m)	Other revenue

By geography, Germany provided 68.2% of FY2025 revenue and the US 10.8%. In Q2 2026 US customers were 70.7% of revenue.

4. Business Model & Moat

How it makes money. D-Wave sells cloud subscriptions to its annealing computers, complete on-premise systems to research centres and governments, and professional services that help companies build optimisation applications. System sales are large but irregular, while QCaaS provides recurring income.

Dual platform. The roughly 4,500-qubit Advantage2 annealer, released in May 2025, targets optimisation problems such as scheduling and logistics. The gate-model programme, built on Quantum Circuits' dual-rail qubits, plans a 17-qubit system in 2026, 49 qubits in 2027 and 10 logical qubits by 2030.

Customers and partners. Systems are installed or contracted at Jülich (Germany), Davidson Technologies (Alabama), Florida Atlantic University and, through Swiss Quantum Technology, in Italy. CGI signed a partnership on 23 Sep 2026 to bring Advantage2 to enterprise clients, and NEC resells Leap in Japan and Australia.

Moat assessment. D-Wave has more than two decades of annealing experience, over 550 granted and pending patents plus more than 250 from Quantum Circuits. Whether annealing delivers lasting advantage over classical solvers is still debated, and its gate-model effort is early.

5. Financial Health

Annual figures come from D-Wave's 10-K filings and Q4 earnings releases, cross-checked against SEC XBRL company facts. FY2020 revenue of $5.2m is the base for the FY2021 YoY figure.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021	$6.3m	+21.7%	$(0.33)	$(0.33)†	$0.00	$30.3m
FY2022	$7.2m	+14.2%	$(0.45)	$(0.45)†	$0.00	$31.2m
FY2023	$8.8m	+22.1%	$(0.60)	$(0.60)†	$0.00	$63.9m
FY2024	$8.8m	+0.8%	$(0.75)	$(0.39)	$0.00	$30.1m
FY2025	$24.6m	+178.5%	$(1.11)	$(0.26)	$0.00	$35.8m

† D-Wave did not publish an adjusted EPS figure for FY2021–FY2023, so GAAP diluted EPS is repeated. FY2024 and FY2025 adjusted EPS is D-Wave's adjusted net loss per share, which mainly excludes warrant fair-value changes. FY2021 and FY2022 EPS and debt are as restated in the FY2022 10-K/A. Long-term debt is non-current loans payable: mainly the Canadian Strategic Innovation Fund loan, plus in FY2023 the PSPIB term loan, which was repaid in October 2024.

Quarter / Half	Revenue	Adjusted EPS	GAAP EPS
Q2 2026	$3.1m	$(0.13)‡	$(0.13)
Q1 2026	$2.9m	$(0.05)‡	$(0.05)
Q4 2025	$2.8m	$(0.09)	$(0.12)
Q3 2025	$3.7m	$(0.05)	$(0.41)
Q2 2025	$3.1m	$(0.08)	$(0.55)
Q1 2025	$15.0m	Not disclosed	$(0.02)
FY2025 total	$24.6m	$(0.26)	$(1.11)

‡ No warrants remained after November 2025, so D-Wave presented no adjusted net loss in 2026 and GAAP EPS is repeated. Q1 2026 GAAP net loss of $(18.4)m was reduced by a $28.5m tax benefit linked to the Quantum Circuits acquisition. Q1 2025 revenue included a $12.6m system sale. FY2025 operating cash flow was $(72.0)m, capital expenditure was $3.9m and D&A was $1.6m. At 30 Jun 2026 D-Wave held $296.6m of cash and $249.6m of marketable securities; remaining performance obligations were $40.7m.

6. Valuation

Raw metrics, October 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Market cap	~$5.43bn (9 Oct 2026 close of $14.57 × ~372.4m shares)
Trailing P/E (GAAP)	n/m — TTM GAAP diluted EPS is about $(0.71) (Q3 2025 $(0.41) + Q4 2025 $(0.12) + Q1 2026 $(0.05) + Q2 2026 $(0.13)). On adjusted EPS the TTM figure is also negative.
P/E (forward)	n/m — losses expected; D-Wave gives no EPS guidance
P/S (TTM)	~437x (market cap ~$5.43bn / TTM revenue $12.4m; TTM = Q3 2025 $3.7m + Q4 2025 $2.8m + Q1 2026 $2.9m + Q2 2026 $3.1m)
P/FCF	n/m — FCF is negative: FY2025 FCF ~$(75.8)m = operating CF $(72.0)m − capex $3.9m per FY2025 cash flow statement; TTM FCF to Q2 2026 ~$(119.1)m
Enterprise value	~$4.92bn (market cap ~$5.43bn + total debt ~$35.0m − cash and marketable securities ~$546.2m per 30 Jun 2026 balance sheet)
EV/EBITDA (TTM)	n/m — EBITDA is negative: TTM operating loss $(170.6)m + TTM D&A $9.4m (cash flow statement) = ~$(161.2)m
52-week high	$46.75 (15 Oct 2025)
52-week low	$12.75
Short interest (% of float)	18.62% (67.98m shares, settlement date 15 Sep 2026, MarketBeat)
Days to cover	~4.7 (on 26.63m average daily volume)

7. What Are They Building

• Bigger annealers: A multi-chip system of 20,000 qubits is planned for 2029 and 100,000 qubits by 2031. A new input/output prototype is designed to reach 100,000 qubits with no more than 20% more control lines than Advantage2.
• Gate-model roadmap: Dual-rail superconducting qubits from Quantum Circuits, targeting a 17-qubit system in 2026, 49 qubits in 2027, about 181 qubits in 2028, 10 logical qubits in 2030 and 100 logical qubits in 2032.
• Software: A gate-model simulator entered beta on 1 Oct 2026 with BBVA, FirstQFM, FAU and Jülich as early users. Recent annealing features include multicolor annealing, fast-reverse anneal and the Stride hybrid solver.
• Cryogenic control: D-Wave has shown on-chip control of gate-model qubits that drives tens of thousands of qubits and couplers with about 200 wires.
• Facilities: A new headquarters and R&D centre in Boca Raton, Florida, with CHIPS-funded R&D split across Boca Raton, New Haven and Burnaby.
• Government business: A dedicated US government unit and work with Davidson Technologies and Anduril on defence planning problems.

8. Peer Comparison

Peer	Market cap (Oct 2026)	Key 2025 metric
IonQ (IONQ)	~$16.2bn (9 Oct 2026 close of $39.89)	Revenue $130.0m (+201.9%), per IonQ FY2025 release
Quantinuum (QNT)	~$10.9bn (8–9 Oct 2026)	Revenue $30.9m, net loss $192.6m (S-1 filed May 2026); IPO on Nasdaq 4 Jun 2026
Rigetti Computing (RGTI)	~$4.7bn (9 Oct 2026 close of $14.03)	Revenue $7.1m, down from $10.8m, per Rigetti FY2025 results
Quantum Computing Inc (QUBT)	~$1.7bn (9 Oct 2026)	Revenue about $0.68m, per FY2025 results
IBM (IBM)	~$214bn (9 Oct 2026)	Total revenue $67.5bn; advanced to DARPA QBI Stage C on 7 Oct 2026
D-Wave Quantum (QBTS)	~$5.4bn (9 Oct 2026)	Revenue $24.6m (+178.5%); bookings $18.7m

9. Insider Activity

Every 2026 Form 4 transaction found was a sale; there were no open-market purchases. CEO Alan Baratz exercised 687,627 options and sold the shares on 8 Jun 2026 for financial and tax planning purposes, and still holds about 3.3m shares including unvested RSUs. Former CFO John Markovich sold heavily in May and June before retiring. Recent Form 4 filings:

Name	Date	Type	Shares	Price	Value	Plan Type
John D. DiLullo (Director)	08 Sep 2026	Sale	1,100	~$18.00	~$19.8k	10b5-1
Sophie Ames (EVP & Chief HR Officer)	20 Jul 2026	Sale	3,070	$16.95	~$52.0k	10b5-1
Rohit Ghai (Director)	15 Jun 2026	Sale	13,518	$26.41	~$357k	Not stated
John Markovich (then CFO)	12–15 Jun 2026	Sale	246,043	$24.01–$25.75	~$6.25m	No 10b5-1 footnote
Alan Baratz (CEO)	08 Jun 2026	Option exercise and sale	687,627	$26.13	~$17.97m	No 10b5-1 footnote
John Markovich (then CFO)	22 May 2026	Option exercise and sale	328,752	$27.70	~$9.11m	Not stated
Diane Nguyen (EVP & General Counsel)	21 May 2026	Sale	40,000	$25.01	~$1.00m	Not stated
Alan Baratz (CEO)	13 Jan 2026	Sale	35,013	$28.06	~$982k	Not stated

10. Key Risks

• Customer concentration and lumpy sales: One customer provided 67% of FY2025 revenue, and FY2026 depends on two system deliveries in Q4.
• Cash burn and future funding: Operating cash outflow was $(73.5)m in H1 2026 and the $256m Quantum Circuits cash payment cut liquidity by a third; past growth was funded by ATM programmes and warrant exercises.
• Technology execution: The gate-model roadmap is early and must hit qubit and error-rate targets, while annealing has to keep showing value against classical solvers.
• Leadership transition: D-Wave has an acting CFO after John Markovich retired on 2 Sep 2026, and the board chair changed in June 2026.
• Conditional government funding: Only about $53.6m of the $100m CHIPS award is in the initial tranche; the rest depends on milestones and appropriations.
• Shareholder investigations: Several law firms announced investigations in early October 2026 citing the Q2 revenue miss and the CFO's departure; no lawsuit had been filed as of this update.
• Competition: Larger, better-funded rivals such as IBM, Google, IonQ and Quantinuum, plus classical optimisation software, compete for the same budgets.

11. Recent Developments

• 07 Oct 2026 — Sector sell-off on yields. QBTS fell 3.6% as Treasury yields rose; the same day DARPA advanced IonQ and IBM to Stage C of its Quantum Benchmarking Initiative, and D-Wave was not named.
• 06 Oct 2026 — FAU workforce grant. Florida Atlantic University, which is buying an Advantage2 system, received a NIST quantum cybersecurity workforce grant.
• 04 Oct 2026 — Law-firm investigation notices. Several firms announced shareholder investigations citing the Q2 2026 revenue miss and the CFO's exit.
• 01 Oct 2026 — Gate-model simulator. D-Wave launched a gate-model simulator in beta with BBVA, FirstQFM, FAU and Jülich as early users.
• 23 Sep 2026 — CGI partnership. CGI agreed to integrate Advantage2 and D-Wave's hybrid solvers into its services for logistics, transportation and retail clients.
• 21 Sep 2026 — Board appointment. Bernard Gavgani joined the board and its cybersecurity committee.
• 08 Sep 2026 — CHIPS Act agreement. D-Wave signed a definitive agreement for up to $100m of R&D funding and will issue 7,095,721 shares to the Commerce Department at $14.093.
• 25 Aug 2026 — CFO retirement. CFO John Markovich retired effective 2 Sep 2026, and Greg Golkov became acting CFO. The shares fell about 8%.
• 06 Aug 2026 — Q2 2026 results. Revenue was flat at $3.1m, the GAAP net loss was $(48.0)m and bookings were $2.1m; management said most FY2026 revenue would come in Q4.
• 05 Aug 2026 — Nature paper. D-Wave reported a dual-rail two-qubit gate with about 99.9% fidelity.

12. Key Dates

• 28 Oct 2026 — Qubits Asia 2026 user conference in Seoul
• Expected 5 Nov 2026 — Q3 2026 results (date not yet confirmed by D-Wave; Q3 2025 was reported on 6 Nov 2025)
• Expected Dec 2026 — By year end: two system deliveries, start of the FAU installation and completion of the headquarters move to Boca Raton
• Expected 2027 — 49-qubit gate-model system on the published roadmap
• 04 Sep 2031 — End of the CHIPS Act performance period (up to five years from 4 Sep 2026)

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