Why D-Wave Quantum Computing Stock Crashed Today

Core Insights - D-Wave Quantum Inc. reported a significant annual revenue growth of 179% year over year and a gross profit increase of 265% year over year, ending fiscal 2025 with a liquidity position of over $884 million [1][2] - Despite the impressive percentage growth, the actual revenue of $24.6 million for 2025 is considered small relative to the company's market valuation of nearly $6.7 billion, resulting in a price-to-sales ratio exceeding 260x [2] - D-Wave's bookings for the year decreased by 22% year over year to $18.7 million, and the company reported a loss of $1.11 per share, which is a 48% increase in losses compared to the previous year [2][3] Financial Performance - D-Wave experienced a negative free cash flow of $75.8 million in 2025, which is a 69% increase in cash burn compared to 2024 [3] - The company ended 2025 with $635.3 million in cash and equivalents, along with $249.1 million in marketable securities, totaling over $884 million, which could sustain operations for the next dozen years if necessary [4] Analyst Sentiment - Following the earnings report, analysts from Evercore ISI and Mizuho reduced their price targets for D-Wave Quantum stock, contributing to a 10.3% decline in stock price [1] - Despite current challenges, some analysts believe D-Wave Quantum could start generating positive free cash flow by 2028 [4]