The company aims to be an early mover in a potentially transformational opportunity.2025 is finally over, and it's an exciting time for technology investors as they ride the wave of new megatrends like generative artificial intelligence (AI) and quantum computing. With shares up by almost 200% over the last 12 months, D-Wave Quantum (QBTS +1.80%) has established itself as an early leader. But can the boom continue in 2026? Let's dig deeper to see if the company's fundamentals live up to the hype. Why did D- ...

Group 1: Market Performance - Throughout 2025, quantum computing stocks, particularly D-Wave Quantum, IonQ, and Rigetti Computing, have significantly outperformed the S&P 500, with D-Wave Quantum achieving a remarkable 256% gain, making it the top-performing quantum computing stock [1] - D-Wave Quantum's market capitalization currently stands at $10.5 billion, with a notably high price-to-sales (P/S) ratio of 363, raising questions about its valuation [6] Group 2: Technology Overview - Quantum computers utilize qubits, which can represent values as probability amplitudes, unlike classical computers that use binary bits [2] - D-Wave Quantum employs a technology called quantum annealing, which analyzes potential arrangements of qubits to find optimal configurations for specific problems, making it particularly suited for optimization tasks in logistics, manufacturing, route planning, and inventory management [4][5] Group 3: Competitive Landscape - Various companies are exploring different methods for creating and manipulating qubits, with IonQ focusing on trapped ion systems and Rigetti utilizing superconducting qubits [3] - Despite D-Wave's strong performance, historical trends suggest that a sharp correction could occur in its stock price in 2026, indicating potential volatility in the quantum computing sector [7]

With this in mind, which companies have demonstrated steady quantum computing progress? 1. Honeywell International Inc. Although not typically perceived as a quantum computing company, Honeywell has two major advantages. First, as long as the dollar maintains its global reserve currency status, Honeywell will continue to serve the military industrial complex with its aerospace systems, alongside land, naval, satellite and autonomous systems. Honeywell's Aerospace Technologies (AT) division represented aroun ...

Financial Data and Key Metrics Changes - Revenue for Q3 2025 totaled $3.7 million, an increase of approximately $1.8 million or 100% from Q3 2024 revenue of $1.9 million [26] - GAAP gross profit for Q3 2025 was $2.7 million, an increase of $1.7 million or 156% from Q3 2024 gross profit of $1 million [30] - Net loss for Q3 2025 was $140.8 million, or $0.41 per share, compared with a net loss of $22.7 million or $0.11 per share in Q3 2024 [31] - Adjusted net loss for Q3 2025 was $18.1 million or $0.05 per share, a decrease of $5.1 million or $0.07 per share compared to Q3 2024 [32] - Cash balance as of September 30, 2025, was $836.2 million, representing a 2,700% increase from $29.3 million a year earlier [41] Business Line Data and Key Metrics Changes - Q3 2025 revenue comprised $1.8 million in systems revenue, $1.4 million in QCAS revenue, and $500,000 in professional services revenue [27] - Bookings for Q3 2025 totaled $2.4 million, an increase of approximately $100,000 or 3% compared to Q3 2024 bookings of $2.3 million [27] - Year-to-date revenue for the nine months ended September 30, 2025, was $21.8 million, an increase of $15.3 million or 235% from $6.5 million for the same period in 2024 [33] Market Data and Key Metrics Changes - The company signed a EUR 10 million agreement to place a D-Wave Advantage II system in Europe, which will be reflected in Q4 bookings [27] - Over the most recent four quarters, D-Wave had over 100 revenue-generating customers, including approximately two dozen Forbes Global 2000 companies [29] Company Strategy and Development Direction - D-Wave is focused on commercializing its quantum computing technology, emphasizing customer success and sales as key to business growth [5][6] - The company aims to be the first independent, publicly held quantum computing company to achieve sustained profitability [42] - D-Wave is pursuing superconducting technology for both annealing and gate model quantum computers, believing it will provide a competitive advantage [15][17] Management's Comments on Operating Environment and Future Outlook - Management noted that the U.S. government is beginning to recognize the value of D-Wave's systems for solving real-world problems, marking a shift in attention [48] - The company is optimistic about its ability to secure more government contracts and expand its market presence [48] - Management highlighted the importance of transitioning applications into production to drive future revenue growth [72] Other Important Information - D-Wave's Advantage II system has been recognized for demonstrating quantum supremacy on a useful real-world problem [19][20] - The company is exploring innovative deployment models, such as the Q Alliance deal, which could serve as a blueprint for future agreements [66] Q&A Session Summary Question: Significance of U.S. government attention - Management emphasized that D-Wave's approach differs from other quantum companies, focusing on delivering value rather than seeking R&D funding [48] Question: Details on Gate model product and timeline - The company is using superconducting technology for its Gate model quantum computer, with a timeline for demonstration expected within the next year [54] Question: Davidson relationship and national security initiatives - Management stated that they are working on securing the system for classified applications, potentially making it the first quantum computer certified for such use [58] Question: Q Alliance transaction details - Management did not disclose specific purchase details but indicated that the €10 million contract does not imply a simple doubling for the full system purchase [62] Question: Investment in R&D and operational expectations - Management confirmed an expected 15% increase in operating expenses, primarily in R&D, with a focus on accelerating the Gate model program [71]

Core Viewpoint - D-Wave Quantum Inc. has experienced significant stock price increases, with shares rising over 243% year-to-date and nearly doubling in the last month, although concerns about its commercial viability persist [1][4][11]. Financial Performance - D-Wave reported a year-over-year revenue increase of approximately 42% for the last quarter, amounting to just over $3 million, despite wider-than-expected losses per share and a 44% increase in adjusted EBITDA losses [9][10]. - The company has a notably high price/sales ratio of 1,279.8, indicating it may be overvalued compared to its earnings and sales history [2][11]. Technological Developments - D-Wave is focusing on developing gate model technology in addition to its quantum annealing technology, aiming for a more diversified technological approach [6]. - Successful partnerships with companies such as Verge Ag, Japan Tobacco, and North Wales Police demonstrate the practical applications of D-Wave's quantum annealing technology [8]. Market Position and Competition - The commercialization potential of D-Wave remains uncertain, with analysts predicting a potential share price correction of nearly 40% due to overvaluation concerns [4][11]. - Competitors like Rigetti Computing have also seen substantial stock price increases, with Rigetti's shares rising over 5,100% in the past year, intensifying competition in the quantum computing space [12]. Analyst Sentiment - D-Wave currently holds a Moderate Buy rating among analysts, but it is not included in the list of top stocks recommended by leading analysts, suggesting a cautious outlook [14].

Core Insights - Quantum computing is a rapidly evolving technology with the potential to transform various industries, presenting unique investment opportunities in companies like Rigetti Computing (RGTI) and D-Wave Quantum (QBTS) aiming to establish a trillion-dollar market [1] Company Strategies - Rigetti is focused on superconducting qubits and a modular chiplet architecture, striving for universal, gate-based quantum machines, while D-Wave specializes in quantum annealing, targeting optimization problems for enterprise clients [2][7] - Rigetti's recent advancements include the Cepheus-1-36Q system, which has improved two-qubit error rates and achieved a median gate fidelity of approximately 99.5% [5][6] - D-Wave's Advantage2 system emphasizes higher qubit counts and improved performance, with a focus on immediate enterprise adoption and practical applications [8][12] Financial Performance - RGTI shares have increased by 110.3% year-to-date, while QBTS shares have surged by 213.5% [3] - The Zacks Consensus Estimate for RGTI's 2025 sales indicates a year-over-year decline of 19.65%, with a projected loss per share of 9 cents [14] - Conversely, QBTS is expected to see a year-over-year sales growth of 181.5% for 2025, with a projected loss per share of 24 cents [17] Market Positioning - Rigetti relies heavily on government contracts for revenue, recently securing a $5.8 million contract with the U.S. Air Force Research Laboratory [9] - D-Wave focuses on enterprise adoption, implementing pilot programs across various industries, which provides more immediate revenue visibility [10] - Rigetti's roadmap includes plans for a 100+ qubit system by the end of 2025 and a $250 million partnership with Quanta Computer to scale production [11] Investment Considerations - Rigetti holds a stronger growth and momentum profile, with a Growth Score of 'C' and a Momentum Score of 'A', while D-Wave has a Growth Score of 'F' and a Momentum Score of 'D' [21] - Both companies currently carry a Zacks Rank 3 (Hold), indicating that investors may want to wait for clearer catalysts before making investment decisions [21][22]

Core Viewpoint - D-Wave Quantum's stock has experienced a significant decline of 19% from August 13 to August 21, amidst a broader pullback in tech stocks, despite a remarkable increase of nearly 1,500% over the past year as interest in quantum computing grows [1][2]. Company Overview - D-Wave Quantum positions itself as the world's first commercial supplier of quantum computers and has recently launched its next-generation quantum processor [2]. - The company reported a revenue of $3.1 million for Q2, marking a 42% increase year-over-year, with bookings rising 92% to $1.3 million [9]. Quantum Computing Potential - Quantum computers can perform complex calculations exponentially faster than traditional computers, with benchmarks showing tasks that would take supercomputers 10 septillion years can be completed in under five minutes by quantum chips [4]. - The global quantum computing market is projected to grow from $4 billion in 2024 to $72 billion by 2035, driven by advancements in various fields such as semiconductor development and drug discovery [5]. Product Development - D-Wave's sixth-generation quantum computer, Advantage2, is designed for real-world applications like process optimization and artificial intelligence [7]. - The Advantage2 has been tested by notable institutions, including the Jülich Supercomputer Center and Los Alamos National Laboratory [8]. Financial Performance - D-Wave reported a net loss of $167.3 million in Q2, compared to a loss of $17.8 million in the same period last year, with operating expenses increasing by 41% [11]. - The company ended Q2 with $819 million in cash and $149.3 million in liabilities, having raised $400 million through share sales and other financial instruments [12]. Growth Strategy - Management plans to utilize the cash reserves to accelerate growth, potentially through mergers or acquisitions, and intends to increase investment in R&D and marketing, which will raise operating expenditures by approximately 15% [13]. - D-Wave aims to be the first independent publicly held quantum computing company to achieve consistent profitability, although this goal may take time [13]. Market Valuation - D-Wave's stock trades at a price-to-sales ratio of 173, which is high compared to traditional tech companies but aligns with other pure-play quantum computing firms [14]. - Analysts estimate D-Wave's revenue for 2025 to be $24.6 million, nearly 180% higher than projected for 2024, indicating potential for significant growth [16].

Core Viewpoint - D-Wave Quantum has experienced a significant stock surge of 1,711% over the past year, driven by enthusiasm for quantum computing despite being a development-stage company with minimal revenue [1]. Company Overview - D-Wave Quantum is distinguished in the quantum computing sector due to its focus on quantum annealing, claiming to be the first to deliver commercial-grade annealing quantum computing solutions [6]. - The company has secured a diverse customer base, including Mastercard, Deloitte, and ArcelorMittal, and has demonstrated advancements in technology, achieving quantum supremacy on a real-world problem in March 2025 [7]. Financial Performance - In Q2, D-Wave Quantum reported a revenue growth of 42% to $3.1 million, with bookings increasing by 93% to $1.3 million, and over 100 revenue-generating customers in the last four quarters [8]. - The company continues to incur losses, with an adjusted net loss of $25.3 million in the quarter, but maintains a strong cash position of $819 million after raising $400 million [9]. - The market capitalization of D-Wave Quantum is currently $5.8 billion, resulting in a price-to-sales ratio of approximately 200, indicating a high valuation relative to its revenue [10]. Market Sentiment and Future Outlook - The stock is viewed as a speculative investment in quantum computing, with uncertainty regarding when technological advancements will lead to significant revenue growth [11]. - The overall market sentiment appears bullish, with stocks at all-time highs, benefiting D-Wave Quantum and its peers [12]. - Given the inflated valuations for development-stage companies and the unclear growth trajectory, it may be prudent for investors to wait for a more favorable entry point or clearer visibility into the company's future [13].

Core Insights - D-Wave Quantum's stock has increased by 8.6% since the release of its Q2 earnings on August 7, 2025, despite missing earnings expectations, as investors are optimistic about business momentum and customer growth [1][2] - The company reported a 42% year-over-year revenue increase, primarily driven by the sales of the Advantage2 quantum processing unit and growing adoption by major clients such as GE Vernova, Nikon, and NTT DOCOMO [1][7] Growth Factors - **Advantage2 Deployment in Europe**: D-Wave's revenues surged due to the deployment of the Advantage2 quantum processing unit at Germany's Julich Supercomputing Center, which serves as a significant reference point for the company's annealing architecture in Europe [3] - **High-Profile Contracts and Partnerships**: The company has secured contracts with notable clients across various sectors, enhancing its credibility and expanding its market reach, particularly in Asia and Europe [4] Financial Performance - **Revenue and Earnings Estimates**: The Zacks Consensus Estimate indicates a projected 73.3% increase in earnings and a 181.5% rise in revenues for FY25 compared to FY24 [10] - **Current Valuation**: D-Wave's stock is trading at a forward price-to-sales ratio of 159.38X, significantly higher than its historical median and the sector average, indicating a stretched valuation [13][15] Challenges - **Profitability Concerns**: Despite strong revenue growth, D-Wave remains unprofitable, facing significant operating losses due to high capital requirements for hardware and cloud services [8] - **Market Competition**: The company's exclusive focus on quantum annealing may pose risks as competitors like IonQ, Rigetti, and IBM are advancing gate-model quantum systems, which could shift market preferences [9][16]

Core Insights - D-Wave Quantum Inc. has seen its stock price nearly double year-to-date, reaching new all-time highs, with investors anticipating insights from its upcoming earnings report in early August [1] - A significant portion of business leaders surveyed expect substantial returns on investment from quantum technology, indicating a strong market interest [2] Company Developments - D-Wave has made major sales of entire quantum computing systems, including its Advantage system, and has formed a partnership with SuperQ Quantum Computing Inc. and Verge Ag to expand its product lineup [3][4] - The collaboration aims to utilize quantum annealing technology to optimize agricultural operations, demonstrating the practical applications of D-Wave's technology [5][6] Market Position and Challenges - Despite the positive developments, D-Wave faces skepticism regarding the viability of quantum annealing compared to other quantum computing approaches, as highlighted by critics [7] - The recent collaboration has generated its first revenue contract, which may bolster D-Wave's position in the market [8] Revenue Growth Potential - The partnership with SuperQ and Verge serves as a model for future revenue generation, as D-Wave has relied heavily on a few high-profile sales to grow its revenue [9] - There is potential for D-Wave to collaborate with various partners across different sectors, leveraging its technology to create innovative products [11] Financial Outlook - Analysts have a mixed outlook on D-Wave's stock, with a 12-month price forecast averaging $15.22, indicating a potential downside of 17.14% from the current price [12] - Warning signs from the first-quarter earnings include a significant drop in deferred revenue and a cash burn nearing $20 million, contributing to a high short interest in the stock [13]