D-Wave Quantum (US:QBTS) ZACKS·2025-12-05 16:30Core Insights - D-Wave Quantum's third-quarter 2025 results indicate significant operational improvements, with gross profit reaching $2.7 million, a 156% increase year over year, and GAAP gross margin expanding by 1560 basis points to 71.4% [1] - The company reported adjusted gross profit of $2.9 million, up 131% year over year, with an adjusted gross margin of 77.7%, reflecting a 1050-bps expansion from the previous year [1] - For the first nine months of 2025, revenues surged to $21.8 million, a 235% increase year over year, and GAAP gross margin rose to 84.8% [1] Business Performance - D-Wave's margin growth is attributed to increased sales of high-margin systems and capacity agreements, particularly in Europe and Japan, along with improved efficiency in system deployment [2] - The company is experiencing faster growth in recurring platform revenues compared to traditional service revenues, contributing to overall margin enhancement [2] Financial Position - D-Wave ended the third quarter with a robust cash position of $836.2 million, providing ample resources for continued investment in R&D, regional expansion, infrastructure development, or potential acquisitions [3] - This strong financial standing offers D-Wave a competitive advantage in a market where many rivals depend on raising new capital [3] Competitive Landscape - IonQ reported a 222% year-over-year revenue increase in its third quarter, achieving a world-record 99.99% two-qubit gate fidelity, supported by a pro-forma cash position of $3.5 billion [4] - Rigetti Computing, on the other hand, reported only $1.9 million in revenues for the third quarter of 2025, but maintains a liquidity cushion of approximately $600 million [5] Stock Performance - D-Wave's shares have gained 1.2% over the past 30 days [6] - Analysts suggest an average price target for D-Wave Quantum that indicates a potential increase of 48.3% from the last closing price of $25.08 [9]