D-Wave Quantum (US:QBTS) ZACKS·2025-11-12 21:01Core Insights - Investors should consider pure-play quantum computing stocks like D-Wave Quantum for long-term growth potential despite short-term volatility in the capital-intensive industry [1] Q3 Snapshot - D-Wave's revenues in Q3 2025 increased by 100% year over year and 8% sequentially, surpassing the Zacks Consensus Estimate by 19.8% [2] - GAAP gross profit rose by 156% year over year, with gross margin expanding by 1,560 basis points to 71.4% [2] - Adjusted net loss improved to $18.1 million from $23.2 million a year ago, with cash and equivalents at $836.2 million as of September 30, 2025 [3] Commercial Traction - The company reported bookings of $2.4 million in Q3, an 80% sequential increase, and secured a €10 million ($11 million) contract in Italy [5] - D-Wave is engaging with large enterprises and government entities, including a major U.S. airline and a leading semiconductor foundry [5] Technological Advancement - D-Wave's dual-track strategy includes both annealing and gate-model superconducting quantum systems, with the Advantage2 system operational for defense use [8] - Recent advancements in fluxonium qubit chips and superconducting control chips indicate progress toward a scalable gate-model architecture [8] Solid Financial Position - D-Wave's cash reserves increased significantly to $836.2 million compared to $29.3 million a year ago, providing flexibility for R&D and market scaling [9] - Management anticipates a 15% increase in operating expenses in the second half of 2025 due to ongoing investments [4] YTD Stock Comparison - D-Wave's shares have surged by 245.1% year to date, outperforming the broader industry and major indices [14] Valuation Remains Stretched - The stock is currently trading at a forward price/sales ratio of 250.58x, significantly higher than its one-year median of 151.70x and the sector average of 6.91x [16] - Despite the high valuation, it remains discounted compared to Rigetti's P/S of 480.97x [16]