Core Insights - The Trump administration prioritizes quantum computing development, with companies like Rigetti Computing Inc and D-Wave Quantum Inc leading the charge despite limited real-world applications and significant cash burn [1][7] - Quantum computing stocks have surged over 1,900% in the past year, outperforming traditional AI stocks, and now boast market capitalizations exceeding $10 billion, despite generating less than 1% of the revenue of established companies [2][3] Company Performance - Rigetti and D-Wave are currently not expected to generate significant revenue for years, yet they remain highly attractive to investors [1][2] - The companies are considered among the best performers in the stock market, significantly outpacing returns from popular AI companies like Palantir Technologies Inc [2] Market Sentiment - The quantum computing sector is characterized by speculative investments, with strong opinions on both sides regarding its future potential [3][4] - Optimists believe breakthroughs in quantum computing could lead to transformative applications, while skeptics warn of a potential bubble driven by unrealistic expectations [4][6] Investment Comparisons - The investment landscape for quantum computing is likened to biotechnology, where investors are willing to endure long wait times for potential breakthroughs, although quantum technology remains largely theoretical [6] - Nvidia's CEO has suggested that significant advancements in quantum computing may be decades away, highlighting the uncertainty in the timeline for practical applications [7] Funding and Valuation - Recent funding rounds, such as Fidelity International's investment in Quantinuum, have valued the startup at $10 billion, indicating strong investor interest in the quantum computing space [7]

Core Insights - Quantum computing is becoming a new focus for investors, but the commercialization process faces significant challenges. Despite recent technological breakthroughs, the risks for investors currently outweigh potential returns [1][3][6] - Google's recent announcement of its quantum chip being 13,000 times faster than traditional computers highlights the potential of quantum computing. However, the industry remains in its early stages, with the most advanced quantum computers still unable to surpass traditional ones in most applications [1][4] Industry Challenges - The primary bottleneck in quantum computing is the insufficient number of qubits and high error rates. Current quantum computers require cooling to near absolute zero, making them large and complex [4][5] - Analysts emphasize that scalability will be a key issue in the next five to ten years, with IBM's roadmap aiming for 2,000 qubits by 2033 and Google's target of 1,000 qubits, though timelines remain unclear [3][4] Competitive Landscape - The competition for quantum computing expansion is still unclear, with major players like IBM, Google, Amazon, and Microsoft investing heavily. Smaller companies and startups like PsiQuantum are also entering the market [5] - The lack of clarity on which technological path will prove most scalable adds to the uncertainty for investors, as any current technology could fail [5] Commercialization Timeline - The timeline for industry consolidation is uncertain, with estimates suggesting it may take three to four years to address engineering challenges [6] - By 2030, quantum computing revenue could reach $4.25 billion, which, while modest, is comparable to Nvidia's revenue a decade ago. If challenges are overcome, quantum computing could see rapid growth and significant returns for investors [6][7]

Revenue Performance - Revenue for the three months ended September 30, 2025, increased by $1.9 million, or 100%, to $3.7 million compared to $1.9 million for the same period in 2024[150] - Revenue increased by $15.3 million, or 235%, to $21.8 million for the nine months ended September 30, 2025, compared to $6.5 million for the same period in 2024[161] - Professional services revenue has grown more rapidly than QCaaS revenue, reflecting the company's strategic focus on supporting customers in developing quantum applications[139] Net Loss - Net loss for the three months ended September 30, 2025, was $140.0 million, compared to a net loss of $22.7 million for the same period in 2024, representing an increase in loss of $117.3 million, or 516%[149] - Net loss for the nine months ended September 30, 2025, was $312.7 million, a 441% increase from a net loss of $57.8 million in 2024[160] Expenses - Research and development expenses increased by $5.4 million, or 62%, to $14.1 million for the three months ended September 30, 2025, compared to $8.7 million for the same period in 2024[152] - Sales and marketing expenses rose by $3.2 million, or 85%, to $6.9 million for the three months ended September 30, 2025, compared to $3.8 million for the same period in 2024[154] - Research and development expenses rose by $11.5 million, or 45%, to $37.1 million for the nine months ended September 30, 2025, compared to $25.5 million in 2024[163] Financial Position - The accumulated deficit as of September 30, 2025, was $939.7 million[134] - The company expects to continue incurring significant losses as it invests in research and development and go-to-market initiatives[134] Interest and Financing - Interest expense decreased by $1.0 million, or 83%, to $0.2 million for the three months ended September 30, 2025, due to the repayment of the Term Loan[155] - Interest expense decreased by $2.8 million, or 82%, to $0.6 million for the nine months ended September 30, 2025, compared to $3.5 million in 2024[166] - The Company prepaid the entire Term Loan of $30.0 million on October 22, 2024, including $4.3 million in accrued PIK interest[179] Cash Flow - Net cash provided by financing activities was $712.0 million for the nine months ended September 30, 2025, an increase of $677.2 million from $34.9 million in the same period of 2024[189] - Net cash used in operating activities was $53.6 million for the nine months ended September 30, 2025, an increase of $9.0 million from $44.7 million in the same period of 2024[187] - Cash flows used in investing activities decreased to $1.6 million for the nine months ended September 30, 2025, from $2.2 million in the same period of 2024[188] Other Financial Metrics - Total gross profit for the nine months ended September 30, 2025, was $18.5 million, representing a 353% increase from $4.1 million in 2024[160] - Change in fair value of warrant liabilities increased by $260.0 million for the nine months ended September 30, 2025, compared to a decrease of $19.0 thousand in 2024[169] - Other income (expense), net increased by $10.8 million, or 601%, to a net other income of $12.5 million for the nine months ended September 30, 2025, compared to $1.8 million in 2024[170] - The Company recognized a significant increase in noncash items added back to net loss, totaling $269.9 million, primarily due to a $260.0 million change in the fair value of warrant liabilities[187] Share Issuance - The Company entered into a $400 million at-the-market sales agreement, completing 100% of the issuances by September 30, 2025, raising $390.6 million through the issuance of 26,344,831 common shares[175] - During the nine months ended September 30, 2025, 12,146,144 warrants were exercised, resulting in the issuance of 17,661,925 common shares and cash proceeds of $139.2 million[178] - The company issued 3,873,113 Common Shares to Lincoln Park under the Purchase Agreement, resulting in $37.8 million of net proceeds during the nine months ended September 30, 2025[171] Equipment Financing - The Company drew down $0.5 million under the Equipment Financing Agreement as of September 30, 2025, with a total commitment of $13.8 million available until February 1, 2027[180] - As of September 30, 2025, the carrying amount of outstanding equipment financing was $0.5 million, measured at amortized cost[184] - The Company paid a 1% commitment fee and issued a ten-year warrant to the lender for the Equipment Financing Agreement, allowing the purchase of 21,563 common shares at $16.05 per share[181]

Core Insights - D-Wave Quantum reported a significant increase in revenue, doubling year over year, and cash reserves surged over 2,700% to $836 million, primarily due to warrant exercises [2][7] - Despite the positive revenue and cash figures, the company posted a net loss of $140.8 million for Q3, which is more than six times the loss from the previous year, largely attributed to non-cash charges related to warrant liability [5][7] - The CEO's claim of having the only quantum computer capable of solving significant problems raises concerns about the distinction between marketing and actual scientific achievement, suggesting that investor sentiment may be driving stock performance more than the underlying technology [3][4] Financial Performance - Revenue for D-Wave Quantum reached $3.7 million, reflecting a doubling compared to the previous year [7] - The net loss of $140.8 million was primarily due to $121.9 million in non-cash charges related to the remeasurement of the company's warrant liability [5][6] - Cash reserves increased to $836 million, driven by warrant exercises rather than customer purchases of quantum services, indicating that the cash influx was more about financing than business growth [8] Strategic Outlook - Management indicated plans for only modest investments in research and development, despite the substantial cash reserves, signaling a cautious approach to operational acceleration [7] - The narrative surrounding D-Wave's technological superiority may be more focused on marketing than on proven scientific advancements, which could impact investor perceptions and stock performance [4]

Core Insights - D-Wave Quantum Inc. reported a net loss of 41 cents per share for Q3 2025, which was worse than the Zacks Consensus Estimate of a loss of 7 cents and compared unfavorably to a loss of 11 cents in the same period last year [1][9] - The company achieved revenues of $3.74 million in Q3 2025, representing a 100% year-over-year increase and exceeding the Zacks Consensus Estimate by 19.84% [2][9] - D-Wave's gross profit for the quarter was $2.7 million, a 156% increase from the previous year, with a gross margin expansion of 1560 basis points to 71.4% [4][9] Revenue and Bookings - Revenues for Q3 2025 were $3.74 million, up 100% year over year, and bookings reached $2.4 million, a 3% increase from the previous year [2] - The company has over 100 revenue-generating customers, including nearly two dozen from the Forbes Global 2000 list [2] Margin Performance - GAAP gross profit was $2.7 million, with a gross margin of 71.4%, reflecting a significant year-over-year improvement [4] - On an adjusted basis, gross profit was $2.9 million, with an adjusted gross margin of 77.7%, marking a 1050-basis point increase from the prior year [5] Financial Position - D-Wave ended Q3 2025 with cash and cash equivalents of $836.2 million, up from $819.3 million at the end of Q2 2025 [6] - The company raised $39.9 million in cash proceeds from the exercise of warrants during the quarter [6] Business Developments - D-Wave signed several new and renewing customer engagements, including partnerships with major companies like BASF to optimize manufacturing workflows [8] - The company is experiencing strong momentum across all business categories, indicating success in accelerating global quantum computing adoption [7]

Core Insights - D-Wave Quantum (NASDAQ: QBTS) reported a revenue beat, leading to a share price increase of up to 9.4% in early trading [1] - However, the stock experienced a pullback, resulting in a loss of 3.45% by mid-morning [1] Company Performance - The revenue performance exceeded market expectations, indicating strong operational results for D-Wave Quantum [1] - The initial positive market reaction reflects investor confidence in the company's growth potential [1] Market Reaction - The stock's volatility highlights the sensitivity of investor sentiment to earnings reports and market conditions [1] - The significant early gain followed by a pullback suggests a cautious approach among investors despite the revenue beat [1]

Core Insights - D-Wave Quantum Inc. reported a quarterly loss of $0.41 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.07, marking an earnings surprise of -485.71% [1] - The company achieved revenues of $3.74 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 19.84%, and showing a substantial increase from $1.87 million in the same quarter last year [2] - D-Wave Quantum shares have increased by approximately 269.3% year-to-date, outperforming the S&P 500's gain of 15.6% [3] Financial Performance - Over the last four quarters, D-Wave Quantum has surpassed consensus revenue estimates four times, but has only exceeded consensus EPS estimates once [2] - The current consensus EPS estimate for the upcoming quarter is -$0.07 on revenues of $3.63 million, while for the current fiscal year, it is -$0.24 on revenues of $24.85 million [7] Market Outlook - The company's earnings outlook will be crucial for future stock performance, with management's commentary on the earnings call expected to influence investor sentiment [3][4] - The Zacks Rank for D-Wave Quantum is currently 4 (Sell), indicating expectations of underperformance in the near future due to unfavorable estimate revisions [6] - The Internet - Software industry, to which D-Wave Quantum belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable industry backdrop [8]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 totaled $3.7 million, a 100% increase from $1.9 million in Q3 2024 [25] - GAAP gross profit for Q3 2025 was $2.7 million, up 156% from $1 million in Q3 2024 [28] - Net loss for Q3 2025 was $140.8 million, compared to a net loss of $22.7 million in Q3 2024, primarily due to $121.9 million in non-cash non-operating charges [29] - Adjusted Net Loss for Q3 2025 was $18.1 million, a decrease of $5.1 million from $23.2 million in Q3 2024 [30] - Cash balance as of September 30, 2025, was $836.2 million, a 2,700% increase from $29.3 million a year earlier [40] Business Line Data and Key Metrics Changes - Q3 2025 revenue included $1.8 million from systems revenue, $1.4 million from Quantum Computing as a Service (QCAS), and $500,000 from professional services [26] - Bookings for Q3 2025 totaled $2.4 million, a 3% increase from $2.3 million in Q3 2024 [26] - Year-to-date revenue for the first nine months of 2025 was $21.8 million, a 235% increase from $6.5 million in the same period of 2024 [31] Market Data and Key Metrics Changes - D-Wave has over 100 revenue-generating customers, including approximately two dozen Forbes Global 2000 companies [28] - The company signed a EUR 10 million agreement for a D-Wave Advantage2 system in Europe, which will be recognized over five years [27] Company Strategy and Development Direction - D-Wave is focused on commercializing its quantum computing technology, emphasizing customer success and sales as key to growth [6][7] - The company aims to be the first independent, publicly held quantum computing company to achieve sustained profitability [41] - D-Wave is developing both annealing and gate model quantum computers, with a focus on superconducting technology [14][16] Management's Comments on Operating Environment and Future Outlook - Management highlighted the increasing interest from the U.S. government in D-Wave's technology for national security applications [46][47] - The company is optimistic about its growth trajectory, with a strong pipeline for system sales and QCAS deals [21] - Management noted that the quantum computing market is evolving, with a focus on real-world applications rather than experimental systems [39] Other Important Information - D-Wave's Advantage2 system has been recognized for demonstrating quantum supremacy on useful real-world problems [19][20] - The company is exploring innovative procurement models, such as the Q-Alliance deal, which could serve as a blueprint for future agreements [62] Q&A Session Summary Question: Significance of U.S. government attention - Management emphasized that D-Wave's approach differs from other quantum companies, focusing on delivering value rather than seeking R&D funding [46][47] Question: Details on gate model product and timeline - Management confirmed the use of superconducting technology for the gate model and provided a timeline of several years for a scaled error-corrected system [50][52] Question: Davidson relationship and national security initiatives - Management stated that the next step with Davidson is to secure the system for classified applications, marking a significant milestone [56] Question: Q-Alliance transaction details - Management clarified that the EUR 10 million contract does not imply a straightforward doubling for the full system purchase, as there are additional benefits for customers [59][60] Question: Investment in R&D and operational capabilities - Management confirmed a planned 15% increase in operating expenses, primarily in R&D, to accelerate technology development [66][68] Question: Focus on ancillary quantum opportunities - Management stated that D-Wave remains focused on quantum computing and does not view other modalities as central to its strategy [74]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 totaled $3.7 million, a 100% increase from $1.9 million in Q3 2024 [25] - GAAP gross profit for Q3 2025 was $2.7 million, up 156% from $1 million in Q3 2024 [28] - Net loss for Q3 2025 was $140.8 million, compared to a net loss of $22.7 million in Q3 2024, primarily due to $121.9 million in non-cash non-operating charges [29] - Adjusted net loss for Q3 2025 was $18.1 million, a decrease from $23.2 million in Q3 2024 [30] - Cash balance as of September 30, 2025, was $836.2 million, a 2,700% increase from $29.3 million a year earlier [40] Business Line Data and Key Metrics Changes - Q3 2025 revenue included $1.8 million from systems revenue, $1.4 million from QCAS revenue, and $500,000 from professional services [26] - Bookings for Q3 2025 totaled $2.4 million, a 3% increase from $2.3 million in Q3 2024 [26] - Year-to-date revenue for the nine months ended September 30, 2025, was $21.8 million, a 235% increase from $6.5 million in the same period in 2024 [31] Market Data and Key Metrics Changes - D-Wave has over 100 revenue-generating customers, including approximately two dozen Forbes Global 2000 companies [28] - The company signed a EUR 10 million agreement for a D-Wave Advantage II system in Europe, which will be reflected in Q4 bookings [27] Company Strategy and Development Direction - D-Wave is focused on commercializing quantum computing solutions, emphasizing customer success and sales as key to growth [6][7] - The company aims to be the first independent, publicly held quantum computing company to achieve sustained profitability [41] - D-Wave is developing both annealing and gate model quantum computers, leveraging superconducting technology for scalability and performance [14][16] Management's Comments on Operating Environment and Future Outlook - Management highlighted the increasing interest from the U.S. government in D-Wave's technology for solving real-world problems [46][47] - The company is optimistic about future booking activity and the potential for larger enterprise deals [28] - Management noted that the first nine months of 2025 have been remarkable, with significant advancements in technology and customer engagement [21] Other Important Information - D-Wave's Advantage II system has been recognized for demonstrating quantum supremacy on a useful real-world problem [19][20] - The company is exploring innovative deployment models, such as the Q Alliance deal, which could serve as a blueprint for future agreements [62] Q&A Session Summary Question: Significance of U.S. government attention - Management emphasized that D-Wave's approach differs from other quantum companies, focusing on delivering value rather than seeking R&D funding [46][47] Question: Details on Gate model product and superconducting computer - Management confirmed the use of fluxonium qubits for the Gate model, with a timeline for demonstration expected within the next year [50][52] Question: Davidson relationship and national security initiatives - Management stated that the next step is to secure the system for classified applications, potentially making it the first quantum computer certified for such use [56] Question: Q Alliance transaction details - Management clarified that the EUR 10 million contract does not imply a straightforward doubling for the full system purchase, as there are additional benefits for customers [59][60] Question: Investment in R&D and operational capabilities - Management indicated a planned 15% increase in operating expenses, primarily in R&D, to accelerate technology development and go-to-market capabilities [66][68]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 totaled $3.7 million, an increase of approximately $1.8 million or 100% from Q3 2024 revenue of $1.9 million [26] - GAAP gross profit for Q3 2025 was $2.7 million, an increase of $1.7 million or 156% from Q3 2024 gross profit of $1 million [30] - Net loss for Q3 2025 was $140.8 million, or $0.41 per share, compared with a net loss of $22.7 million or $0.11 per share in Q3 2024 [31] - Adjusted net loss for Q3 2025 was $18.1 million or $0.05 per share, a decrease of $5.1 million or $0.07 per share compared to Q3 2024 [32] - Cash balance as of September 30, 2025, was $836.2 million, representing a 2,700% increase from $29.3 million a year earlier [41] Business Line Data and Key Metrics Changes - Q3 2025 revenue comprised $1.8 million in systems revenue, $1.4 million in QCAS revenue, and $500,000 in professional services revenue [27] - Bookings for Q3 2025 totaled $2.4 million, an increase of approximately $100,000 or 3% compared to Q3 2024 bookings of $2.3 million [27] - Year-to-date revenue for the nine months ended September 30, 2025, was $21.8 million, an increase of $15.3 million or 235% from $6.5 million for the same period in 2024 [33] Market Data and Key Metrics Changes - The company signed a EUR 10 million agreement to place a D-Wave Advantage II system in Europe, which will be reflected in Q4 bookings [27] - Over the most recent four quarters, D-Wave had over 100 revenue-generating customers, including approximately two dozen Forbes Global 2000 companies [29] Company Strategy and Development Direction - D-Wave is focused on commercializing its quantum computing technology, emphasizing customer success and sales as key to business growth [5][6] - The company aims to be the first independent, publicly held quantum computing company to achieve sustained profitability [42] - D-Wave is pursuing superconducting technology for both annealing and gate model quantum computers, believing it will provide a competitive advantage [15][17] Management's Comments on Operating Environment and Future Outlook - Management noted that the U.S. government is beginning to recognize the value of D-Wave's systems for solving real-world problems, marking a shift in attention [48] - The company is optimistic about its ability to secure more government contracts and expand its market presence [48] - Management highlighted the importance of transitioning applications into production to drive future revenue growth [72] Other Important Information - D-Wave's Advantage II system has been recognized for demonstrating quantum supremacy on a useful real-world problem [19][20] - The company is exploring innovative deployment models, such as the Q Alliance deal, which could serve as a blueprint for future agreements [66] Q&A Session Summary Question: Significance of U.S. government attention - Management emphasized that D-Wave's approach differs from other quantum companies, focusing on delivering value rather than seeking R&D funding [48] Question: Details on Gate model product and timeline - The company is using superconducting technology for its Gate model quantum computer, with a timeline for demonstration expected within the next year [54] Question: Davidson relationship and national security initiatives - Management stated that they are working on securing the system for classified applications, potentially making it the first quantum computer certified for such use [58] Question: Q Alliance transaction details - Management did not disclose specific purchase details but indicated that the €10 million contract does not imply a simple doubling for the full system purchase [62] Question: Investment in R&D and operational expectations - Management confirmed an expected 15% increase in operating expenses, primarily in R&D, with a focus on accelerating the Gate model program [71]