Financial Data and Key Metrics Changes - Revenue for the second quarter of fiscal year 2025 totaled $3.1 million, an increase of approximately $900,000 or 42% from the 2024 revenue of $2.2 million [18] - Net loss for the second quarter was $167.3 million or $0.55 per share, an increase of $149.5 million or $0.45 per share from the 2024 net loss of $17.8 million or $0.10 per share [21] - Adjusted EBITDA loss for the second quarter was $20 million, an increase of $6.1 million or 44% from the 2024 adjusted EBITDA loss of $13.9 million [22] Business Line Data and Key Metrics Changes - Bookings for the second quarter totaled $1.3 million, an increase of approximately $600,000 or 92% from the 2024 bookings of $700,000 [19] - GAAP gross profit for the second quarter was $2 million, an increase of approximately $600,000 or 42% from the 2024 GAAP gross profit of approximately $1.4 million [21] - Non-GAAP gross profit for the second quarter was $2.2 million, an increase of approximately $600,000 or 39% from the 2024 non-GAAP gross profit of approximately $1.6 million [21] Market Data and Key Metrics Changes - The company has over 100 revenue-generating customers, including customers in the commercial, government, and research sectors, and nearly 2,000 Forbes Global 2000 companies [20] - The LaunchPad program has received more than 1,300 applications spanning business, government, and academic institutions since its introduction in January 2025 [16] Company Strategy and Development Direction - The company announced a new strategic development initiative focused on advanced cryogenic packaging to support both gate model and annealing quantum processor development [7] - The company aims to help organizations accelerate the use of annealing quantum computers in AI applications and has introduced a collection of developer tools for quantum AI and machine learning innovation [9] - The company is exploring M&A opportunities to accelerate R&D and product development activities [32][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the accelerating momentum across the business and highlighted the importance of the Advantage 2 quantum computer in achieving quantum supremacy [4][45] - The management noted that while there is a strong cash position, the timing of M&A activities is uncertain and will depend on market conditions [35] - Management emphasized the need for both annealing and gate model systems to address a full range of customer problems [13] Other Important Information - The company raised over $500 million in equity during the fiscal year, significantly improving its cash position to $819.3 million [24][25] - The company is investing in superconducting bump bond processes and upgrading its manufacturing operations to support future growth [26][27] Q&A Session Summary Question: What types of M&A does the company believe would make sense? - Management indicated that M&A is a strategic priority and will focus on accelerating R&D and product development activities [32][34] Question: Can you elaborate on the cryogenic news and its impact on the roadmap? - Management highlighted the importance of cryogenic control for scaling both annealing and gate model systems, noting faster-than-expected progress in this area [40][42] Question: What is the status of Advantage 2 and its deployment? - Management confirmed that Advantage 2 is crucial for demonstrating quantum supremacy and is driving increased customer interest [45][46] Question: Can you discuss the developer tools released? - Management explained that the new AI toolkit allows integration with PyTorch and enables the use of discrete data for machine learning, which is beneficial for quantum processes [54][56] Question: What is the retention rate for customers? - Management reported a retention rate exceeding 90% over a four-quarter period, with a focus on helping customers transition from experimentation to production applications [86]

Financial Data and Key Metrics Changes - Revenue for the second quarter of fiscal year 2025 totaled $3.1 million, an increase of approximately $900,000 or 42% from the 2024 revenue of $2.2 million [18] - GAAP gross profit for the second quarter was $2 million, an increase of approximately $600,000 or 42% from the 2024 GAAP gross profit of approximately $1.4 million [20] - Net loss for the second quarter was $167.3 million or $0.55 per share, an increase of $149.5 million or $0.45 per share from the 2024 net loss of $17.8 million or $0.10 per share [20] - Adjusted EBITDA loss for the second quarter was $20 million, an increase of $6.1 million or 44% from the 2024 adjusted EBITDA loss of $13.9 million [22] - The consolidated cash position as of June 30 was $819.3 million, representing over a 1900% increase from the fiscal 2024 second quarter consolidated cash balance of $40.9 million [24] Business Line Data and Key Metrics Changes - Bookings for the second quarter totaled $1.3 million, an increase of approximately $600,000 or 92% from the 2024 bookings of $700,000 [19] - The company signed new and renewing customer engagements with various organizations, including EON, GE Vernova, and the University of Oxford [13] Market Data and Key Metrics Changes - The company is experiencing high demand for purchasing systems, with numerous organizations globally interested in acquiring a D Wave quantum computer [9] - The LaunchPad program has received over 1,300 applications from business, government, and academic institutions since its introduction [15] Company Strategy and Development Direction - The company announced a strategic development initiative focused on advanced cryogenic packaging to support both gate model and annealing quantum processor development [5] - The company aims to accelerate its development efforts in support of its aggressive product roadmap towards 100,000 qubits [5] - The company is exploring M&A opportunities to enhance its R&D and product development activities [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's strong cash position and its ability to explore M&A activities to propel business growth [17] - The management highlighted the importance of both annealing and gate model quantum computers in addressing a broad range of problems [12] - Management noted that while progress is being made, the government’s focus on gate model quantum computing may overlook the capabilities of annealing quantum computing [66] Other Important Information - The company is investing in superconducting bump bond processes and upgrading its manufacturing operations to support future growth [26] - The company is also expanding its professional services organization to meet growing demand for quantum optimization customer engagements [26] Q&A Session Summary Question: What types of M&A does the company believe would make sense? - Management indicated that M&A is now a strategic priority, focusing on accelerating R&D and product development activities [31] Question: Can you elaborate on the cryogenic news and its impact on the roadmap? - Management emphasized the importance of cryogenic control for scaling both annealing and gate model systems, noting faster-than-expected progress [39] Question: What is the status of Advantage Two and its deployment? - Management confirmed that Advantage Two is crucial for demonstrating quantum supremacy and is driving increased customer interest [42] Question: Can you elaborate on the developer tools released? - Management explained the introduction of a quantum AI toolkit that integrates with PyTorch, allowing for better machine learning model training [51] Question: What are the next milestones for Quantum AI? - Management stated that while no new announcements have been made, they are working on various approaches to AI and machine learning model training [56] Question: How has the tenor in the US government shifted regarding quantum annealing? - Management noted slow but steady progress in government interest, emphasizing the need for a broader focus on quantum computing approaches [66] Question: What is the customer retention rate? - Management reported a retention rate exceeding 90%, with efforts to help customers transition from experimentation to production applications [76]

Product & Technology - D-Wave announced the general availability of its Advantage2 quantum computer, featuring a more advanced quantum processor with increased connectivity, reduced noise, and greater coherence[6] - D-Wave is developing advanced cryogenic packaging, leveraging expertise from NASA JPL, aiming for a 100,000 qubit Advantage3 system[8] - D-Wave released new quantum AI/ML developer tools, including an open-source toolkit, to integrate quantum computers into modern ML architectures[11] Customer & Partnerships - D-Wave has a strong customer base and is a market leader in quantum annealing[5] - D-Wave is engaged in exciting customer engagements for both commercial and research applications, including EON, GE Vernova, Nikon Corporation, NTT Data Corp, NTT DOCOMO, Sharp Corporation, and The University of Oxford[16, 17] - D-Wave established a strategic relationship with Yonsei University and Incheon Metropolitan City to promote quantum computing in South Korea, including a potential Advantage2 system acquisition[13, 14] Financials - D-Wave completed a $400 million At-the-Market equity offering[19] - D-Wave's cash balance as of June 30, 2025, was approximately $8193 million[20] - D-Wave's Q2 2025 revenue was $22 million, with a gross profit of $20 million[23] - D-Wave's 1H 2025 revenue was $181 million, with a gross profit of $159 million and a gross margin of 876%[24, 26]

Core Viewpoint - Defiance ETFs has launched the Defiance 2X Daily Long Pure Quantum ETF (Ticker: QPUX), which aims to provide investors with 2X daily leveraged exposure to a selected group of quantum computing companies, highlighting the potential of this transformative technology sector [1][4]. Company Overview - Defiance ETFs, founded in 2018, specializes in thematic, income, and leveraged ETFs, positioning itself as a leader in ETF innovation [5]. ETF Structure and Strategy - QPUX seeks to deliver daily investment results of 200% of the daily performance of its equal-weighted Target Portfolio, which includes IONQ, Inc. (IONQ), Rigetti Computing, Inc. (RGTI), D-Wave Quantum Inc. (QBTS), and Quantum Computing Inc. (QUBT) [2][16]. - The portfolio is rebalanced daily to maintain equal weighting among the four companies [2][16]. - The ETF utilizes derivatives, including swaps and listed options, to achieve its leveraged exposure [3][17]. Industry Context - Quantum computing leverages advanced phenomena like superposition and entanglement, enabling faster and more efficient information processing compared to classical computing [4]. - The companies within QPUX's portfolio are focused on developing quantum hardware, software, and related technologies, positioning them to benefit from advancements in the industry [4].

Core Viewpoint - D-Wave Quantum's stock experienced a significant increase due to new AI developments, but its high valuation compared to limited revenue raises concerns about the sustainability of this optimism [1][5][6] Group 1: Company Developments - D-Wave announced the launch of a suite of new AI-focused development tools aimed at enhancing quantum artificial intelligence and machine learning innovation [2][3] - The new offerings include an open-source toolkit and a demo that facilitate the integration of quantum computers into modern machine learning architectures [3] Group 2: Financial Metrics - D-Wave's current market capitalization exceeds $5.7 billion, while its projected revenue for 2024 is less than $9 million, indicating a significant disparity between valuation and actual earnings [5] Group 3: Industry Perspective - Despite the excitement surrounding quantum computing, there are doubts about the technology's maturity and its potential to generate substantial revenue in the near future [6] - D-Wave's services combine quantum and classical computing, but the company provides limited details on the reliance on each type [6] Group 4: Investment Considerations - Investors with high risk tolerance may consider investing in D-Wave, but it is advised to wait for more reasonable valuations and to diversify investments across multiple quantum stocks due to uncertainty in long-term success [7]

Core Insights - Quantum computing is poised to transform the tech industry, with Rigetti Computing, Inc. (RGTI) and D-Wave Quantum Inc. (QBTS) as key players experiencing increasing share values, prompting investor interest in their respective stocks [1] Group 1: Rigetti Computing, Inc. (RGTI) - Rigetti received financial support from the Air Force Office of Scientific Research to enhance quantum computing chip production, enabling the development of error-resistant machines and operational expansion [1] - The introduction of the Ankaa-3 system, featuring 84 qubits, is expected to reverse Rigetti's declining revenue trend and support long-term business sustainability [2] - Rigetti's revenues were $1.5 million in Q1, a 52% decline year-over-year, primarily due to the expiration of government contracts, with total revenues of $10.8 million in 2024 reflecting a 10% decline from the previous year [3] - The company has minimal debt and $575 million in cash as of June, with recent equity offerings generating $350 million to cover operational expenses [4] Group 2: D-Wave Quantum Inc. (QBTS) - D-Wave Quantum reported Q1 revenues of $15 million, a 509% increase year-over-year, driven by the delivery of its first "Advantage" quantum computer system [5] - The company’s cloud-based quantum computing services (QCaaS) have attracted 133 customers, up from 128 last year, including notable clients like Lockheed Martin and Mastercard [6] - D-Wave's cash balance of $815 million in July significantly exceeds its total liabilities of $118.2 million, and the company raised $400 million through an equity offering in June, positioning it well for potential acquisitions [7] Group 3: Investment Considerations - Given Rigetti's declining revenues, D-Wave Quantum appears to be a more favorable investment choice, although Rigetti's Ankaa-3 system may help increase revenues in the near future [8] - Both companies have strong cash positions but are facing operating losses and tough competition, which may lead to investor caution [9] - D-Wave's rising revenues and strong cash reserves, along with its pioneering role in quantum annealing, suggest potential for substantial future revenue generation [10]

Core Viewpoint - D-Wave (QBTS) has experienced a significant increase of 120% in stock price in 2025, attributed to the momentum surrounding its Advantage2 system and a substantial capital raise [1] Group 1: Company Performance - The stock price surge is linked to the performance of the Advantage2 system, indicating strong market interest and potential growth in the quantum computing sector [1] - Despite the impressive stock performance, the company is facing challenges such as negative cash flow and concerns regarding dilution, raising questions about its sustainability as a high-growth tech stock [1] Group 2: Investment Considerations - Investors are advised to weigh the potential of D-Wave as a breakout tech stock against the risks associated with its financial health and market volatility [1] - The article suggests that investors should make informed decisions before the broader market recognizes the stock's potential, highlighting the importance of due diligence in investment strategies [1]

Core Viewpoint - D-Wave Quantum Inc. has received new Buy ratings from analysts, indicating growing confidence in the company's future despite upcoming earnings that will clarify its revenue and profitability outlook [1][2]. Group 1: Analyst Ratings and Market Response - D-Wave Quantum received two new Buy ratings from Canaccord Genuity and Rosenblatt Securities, along with a price target increase from B. Riley [1]. - The company's stock price has shown volatility, with a 15% decline in the days surrounding the announcement of its new strategic initiative [7]. Group 2: Technological Developments - D-Wave announced a strategic initiative focused on cryogenic packaging, which is crucial for maintaining the quantum states of qubits [3][4]. - Cryogenic packaging could potentially enhance D-Wave's gate-model technology, addressing criticisms regarding its previous focus on annealing technology [6][9]. Group 3: Market Position and Future Outlook - Analysts suggest that gate-model quantum computing may have broader market appeal compared to D-Wave's current annealing approach, as seen with major tech firms like IBM and Alphabet focusing on gate-model [5]. - The upcoming Q2 earnings report on August 7, 2025, will be critical in assessing D-Wave's innovation and financial performance [2][10].

Group 1 - The quantum computing sector experienced a significant increase in stock prices on Monday, with Rigetti Computing (RGTI.US) rising over 11% [1] - D-Wave Quantum (QBTS.US) saw an increase of more than 5% [1] - Arqit Quantum (ARQQ.US) rose by over 6.6% [1] - Quantum Computing (QUBT.US) experienced a rise of more than 4% [1]

Group 1 - The quantum computing sector experienced significant gains, with Rigetti Computing (RGTI.US) rising over 9.8%, D-Wave Quantum (QBTS.US) increasing over 7%, Arqit Quantum (ARQQ.US) up over 6%, and Quantum Computing (QUBT.US) climbing over 5% [1] - Microsoft's CEO highlighted that quantum computing will be a crucial accelerator for cloud computing [1]