D-Wave Quantum (US:QBTS)2025-11-06 21:24Revenue 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]