Core Insights - D-Wave Quantum is experiencing significant commercial traction, with fiscal 2025 being described as an "inflection point" for the company and the quantum computing industry, moving towards real-world impact [1][2] - The company reported a remarkable revenue growth of 179% in fiscal 2025, reaching $24.6 million, despite a substantial net loss of $355 million primarily due to non-cash charges [3][14] - D-Wave entered 2026 with strong momentum, achieving more bookings in January than in all of fiscal 2025, including major sales and strategic acquisitions [5][6] Financial Performance - Fiscal 2025 revenue was $24.6 million, up from $8.8 million in fiscal 2024, with a gross profit of $20.3 million and a gross margin of 82.6% [12][13] - The company reported a net loss of $355 million, or $1.11 per share, compared to a loss of $143.9 million, or $0.75 per share, in the previous fiscal year [14] - Liquidity remains strong with $884.5 million in cash and marketable securities as of December 31, 2025, following a capital raise of over $800 million [20][21] Technology Developments - D-Wave's technology roadmap includes advancements in both annealing and gate models, with the Advantage3 system expected to enhance performance through analog-digital controls and multi-chip scaling [4][8] - The acquisition of Quantum Circuits positions D-Wave as a dual-platform provider, enhancing its capabilities in both annealing and gate-model quantum computing [6][9] - The company is developing an 8-qubit gate-model system available to select customers, with a 17-qubit system expected later in 2026 [11] Market Position and Strategy - D-Wave is focusing on optimization as a near-term commercial opportunity across various industries, including logistics, defense, and finance, while also exploring applications in AI and blockchain [7] - The company aims to leverage its on-chip cryogenic control technology to provide full qubit control at scale, which is considered an industry first [10] - D-Wave plans to invest aggressively in R&D and operational expansion, with a projected 15% increase in quarterly operating expenses in fiscal 2026 [22]

Core Insights - D-Wave Quantum Inc. (QBTS) reported a fourth-quarter 2025 net loss of 12 cents per share, which was worse than the Zacks Consensus Estimate of a loss of 5 cents but improved from a loss of 37 cents in the same quarter last year [1]. Financial Performance - The net loss per share for 2025 was $1.11, compared to a loss of 75 cents in 2024 [2]. - D-Wave Quantum's revenues for the reported quarter were $2.75 million, reflecting a year-over-year increase of 19.2%, but fell short of the Zacks Consensus Estimate by 33.49% [3]. - The company reported adjusted gross profit of $1.8 million in the fourth quarter, a 17% increase from the previous year, with an adjusted gross margin of 71.8%, down 1.2% year over year [5]. - Adjusted operating expenses reached $27 million, up 59% year over year, leading to an adjusted EBITDA loss of $25 million for the fourth quarter, which is a 63% increase year over year [5]. - D-Wave Quantum ended the fourth quarter of 2025 with cash and marketable investment securities totaling $884.5 million, a significant increase from $178 million at the end of 2024 [6]. Business Developments - The company recognized revenues from over 135 individual customers, including more than 70 commercial enterprises and over two dozen Forbes Global 2000 companies [4]. - D-Wave Quantum closed its first Advantage quantum computer system sale to the Jülich Supercomputing Center and launched the general availability of its Advantage2 system, which expanded the sales opportunity pipeline [8]. - In January 2026, D-Wave Quantum generated over $30 million in bookings, indicating strong momentum entering the new year [9]. Market Reaction - Following the earnings announcement, QBTS shares rose by 2.5%, closing at $20.14 [4].

Financial Data and Key Metrics Changes - Revenue for fiscal 2025 totaled $24.6 million, an increase of $15.8 million, or 179% from fiscal 2024 revenue of $8.8 million [25] - GAAP gross profit for fiscal 2025 was $20.3 million, an increase of $14.7 million, or 265% from fiscal 2024 GAAP gross profit of $5.6 million [28] - Net loss for fiscal 2025 was $355 million, or $1.11 per share, compared with the fiscal 2024 loss of $143.9 million, or $0.75 per share [29] Business Line Data and Key Metrics Changes - Fiscal 2025 revenue included $16.2 million in systems sales revenue, $5.5 million in QCaaS subscription revenue, and $2.7 million in professional services revenue [25] - Fiscal 2025 bookings were $18.7 million, a decrease of 22% from fiscal 2024 bookings of $23.9 million [26] - The average revenue per commercial customer increased by 20% over fiscal 2024, and total revenue recognized from Forbes Global 2000 customers increased by 70% year-over-year [27] Market Data and Key Metrics Changes - D-Wave recognized revenue from over 135 individual customers, encompassing over 70 commercial customers, including over 2 dozen Forbes Global 2000 enterprises [27] - The sales opportunity pipeline entering 2026 was up nearly 1,500% compared to the beginning of 2025 [37] Company Strategy and Development Direction - D-Wave's acquisition of Quantum Circuits fundamentally changes the competitive landscape, positioning the company as the world's leading quantum computing company [9] - The dual-platform approach allows D-Wave to address the full quantum computing market, focusing on both annealing and gate model quantum computing solutions [10] - The company aims to be the first independent, publicly held quantum computing company to achieve sustained profitability with less funding than competitors [41] Management's Comments on Operating Environment and Future Outlook - Management emphasized that 2025 marked a transition from research to real-world impact in quantum computing, with D-Wave leading this change [5] - The company is experiencing extraordinary momentum entering 2026, with significant bookings already exceeding the entirety of fiscal 2025 [8] - Management noted that the U.S. government is increasingly interested in D-Wave's technologies, leading to the establishment of a dedicated U.S. Government Solutions Business Unit [18] Other Important Information - D-Wave's headquarters will relocate from Palo Alto, California, to Boca Raton, Florida, where a major U.S.-based R&D center will be opened [21] - The company raised over $800 million in gross proceeds during fiscal 2025, significantly increasing its cash and marketable securities balance to $884.5 million [36] Q&A Session Summary Question: Can you help us think about the advantage with the built-in error correction? - Management confirmed that the dual-rail technology provides a timing advantage due to lower complexity in building fully error-corrected systems [45][46] Question: How much OpEx would you expect to incur in 2026 with the QCI acquisition? - Management stated that the 15% sequential growth in OpEx includes costs associated with the QCI acquisition [49] Question: What is the ideal net retention rate for QCaaS? - Management indicated that retention rates have not been published, but larger transactions are being seen, providing more visibility on growth [52] Question: Can you speak to the levels of engagement with Quantum Circuits? - Management expects revenue contributions from Quantum Circuits this year, particularly from professional services and QCAST [56] Question: Have you started conversations on potential longer-term roadmap opportunities with gate model computing? - Management confirmed that several annealing customers have expressed interest in exploring gate model technology for additional use cases [69]

Financial Data and Key Metrics Changes - Revenue for fiscal 2025 totaled $24.6 million, an increase of 179% from fiscal 2024 revenue of $8.8 million [31] - GAAP gross profit for fiscal 2025 was $20.3 million, an increase of 265% from fiscal 2024 gross profit of $5.6 million [37] - Net loss for fiscal 2025 was $355 million, compared to a loss of $143.9 million in fiscal 2024, primarily due to non-cash charges related to warrant liability [40] - Adjusted EBITDA loss for fiscal 2025 was $71.8 million, an increase of 28% from the previous year [42] Business Line Data and Key Metrics Changes - Fiscal 2025 bookings were $18.7 million, a decrease of 22% from fiscal 2024 bookings of $23.9 million [34] - The average revenue per commercial customer increased by 20% over fiscal 2024, with total revenue from Forbes Global 2000 customers increasing by 70% year-over-year [36] - Fourth quarter revenue totaled $2.8 million, an increase of 19% from the fourth quarter of fiscal 2024 [43] Market Data and Key Metrics Changes - D-Wave recognized revenue from over 135 individual customers, including over 70 commercial customers, with significant contributions from Forbes Global 2000 enterprises [35] - The sales opportunity pipeline entering 2026 expanded by nearly 1,500% compared to the beginning of 2025 [54] Company Strategy and Development Direction - D-Wave's acquisition of Quantum Circuits is expected to fundamentally change the competitive landscape and secure its position as a leading quantum computing company [9] - The company aims to be a one-stop shop for solving complex problems through its dual-platform approach, combining annealing and gate model technologies [10] - D-Wave is focusing on both annealing and gate model technologies, with plans to expand its R&D capabilities and workforce significantly [61] Management's Comments on Operating Environment and Future Outlook - Management believes that D-Wave has transitioned from a participant to a front-runner in the quantum computing industry, with significant momentum entering 2026 [25] - The company is committed to solving real mission-critical problems for government and commercial customers, with a dedicated U.S. Government Solutions Business Unit launched to support this effort [18] - Management expects to achieve sustained profitability with less funding than required by other quantum computing companies [63] Other Important Information - D-Wave's headquarters will relocate to Boca Raton, Florida, where a major U.S.-based R&D center will be opened [23] - The company raised over $800 million in gross proceeds during fiscal 2025, significantly increasing its cash and marketable securities balance to $884.5 million [51][52] Q&A Session Summary Question: Can you help us think about the advantage with the built-in error correction? - Management confirmed that the dual-rail technology provides a timing advantage due to lower complexity in building fully error-corrected systems [68][70] Question: How much OpEx would you expect to incur in 2026 with the acquisition of QCI? - Management indicated that the 15% sequential growth in OpEx includes costs associated with the QCI acquisition [74] Question: What do you think an ideal net retention rate for QCaaS can be? - Management noted that while retention rates have not been published, larger transactions are being seen, indicating growth in the QCaaS segment [78][80] Question: Can you speak to the levels of engagement with Quantum Circuits? - Management expects revenue contributions from Quantum Circuits this year, particularly from professional services and QCaaS [85] Question: How are customer conversations evolving regarding QCaaS? - Management highlighted that initial applications are leading to strong ROI, encouraging customers to explore additional applications [95] Question: Have you started conversations on potential longer-term roadmap opportunities with gate model? - Management confirmed that several annealing customers are engaging in discussions about potential use cases for gate model technology [99]

Core Insights - Quantum computing is poised to transform the tech industry, with Rigetti Computing, Inc. (RGTI) and D-Wave Quantum Inc. (QBTS) as key players experiencing increasing share values, prompting investor interest in their respective stocks [1] Group 1: Rigetti Computing, Inc. (RGTI) - Rigetti received financial support from the Air Force Office of Scientific Research to enhance quantum computing chip production, enabling the development of error-resistant machines and operational expansion [1] - The introduction of the Ankaa-3 system, featuring 84 qubits, is expected to reverse Rigetti's declining revenue trend and support long-term business sustainability [2] - Rigetti's revenues were $1.5 million in Q1, a 52% decline year-over-year, primarily due to the expiration of government contracts, with total revenues of $10.8 million in 2024 reflecting a 10% decline from the previous year [3] - The company has minimal debt and $575 million in cash as of June, with recent equity offerings generating $350 million to cover operational expenses [4] Group 2: D-Wave Quantum Inc. (QBTS) - D-Wave Quantum reported Q1 revenues of $15 million, a 509% increase year-over-year, driven by the delivery of its first "Advantage" quantum computer system [5] - The company’s cloud-based quantum computing services (QCaaS) have attracted 133 customers, up from 128 last year, including notable clients like Lockheed Martin and Mastercard [6] - D-Wave's cash balance of $815 million in July significantly exceeds its total liabilities of $118.2 million, and the company raised $400 million through an equity offering in June, positioning it well for potential acquisitions [7] Group 3: Investment Considerations - Given Rigetti's declining revenues, D-Wave Quantum appears to be a more favorable investment choice, although Rigetti's Ankaa-3 system may help increase revenues in the near future [8] - Both companies have strong cash positions but are facing operating losses and tough competition, which may lead to investor caution [9] - D-Wave's rising revenues and strong cash reserves, along with its pioneering role in quantum annealing, suggest potential for substantial future revenue generation [10]

Core Viewpoint - Artificial intelligence (AI) is significantly transforming the global economy, with quantum computing poised to enhance AI capabilities by addressing complex challenges and analyzing large datasets beyond classical computers' reach [1]. Group 1: Rigetti Computing - Rigetti Computing is leveraging qubits to harness quantum physics principles, enabling parallel processing that surpasses traditional computers [4]. - The company's 84-qubit Ankaa-3 system, set to launch in Q1 2025, is expected to revolutionize various fields including machine learning and cryptography, contributing to a remarkable 937% stock return over the past year [6][8]. - Rigetti's modular design allows for the combination of multiple quantum processing units (QPUs), potentially making it more versatile for AI applications compared to D-Wave Quantum [7]. - Despite financial losses and limited sales, with Q1 revenue at $1.5 million, projections indicate revenue growth from $8.8 million in 2025 to $23 million in 2026, amidst a quantum computing market expected to reach $90 billion to $170 billion by 2040 [8][9]. Group 2: D-Wave Quantum - D-Wave Quantum has a commercial lead with Q1 revenue of $15 million, a 509% increase year-over-year, driven by the delivery of its "Advantage" quantum computer system [10]. - The company has 133 customers, including major firms like Mastercard and Accenture, benefiting from its quantum computing as-a-service (QCaaS) model [11]. - D-Wave's stock has surged by 1,184% over the past year, but it trades at a high price-to-sales (P/S) ratio of 173, indicating a premium valuation compared to competitors like Nvidia [12]. - Investors optimistic about D-Wave's future in computing and AI may justify its high valuation, anticipating further upside [13]. Group 3: Investment Considerations - D-Wave Quantum is viewed as the better AI stock due to its growth momentum, but its high valuation makes it a speculative investment [14].