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 [21] - 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 [24] - 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 [26] 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 [21] - Fiscal 2025 bookings were $18.7 million, a decrease of 22% from fiscal 2024 bookings of $23.9 million [22] - The average revenue per commercial customer increased by 20% over fiscal 2024, and total revenue from Forbes Global 2000 customers increased by 70% year-over-year [23] Market Data and Key Metrics Changes - D-Wave recognized revenue from over 135 individual customers, including over 70 commercial customers, with significant engagement from Forbes Global 2000 enterprises [23] - The sales opportunity pipeline entering 2026 was up nearly 1,500% compared to the beginning of 2025 [33] 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 [7] - The dual-platform approach allows D-Wave to address the full quantum computing market, focusing on both annealing and gate model systems [8] - The company aims to be the first independent, publicly held quantum computing company to achieve sustained profitability with less funding than competitors [38] Management's Comments on Operating Environment and Future Outlook - Management believes that quantum computing is entering a new phase characterized by commercial separation, with a focus on real performance advantage and commercial adoption [18] - The company is experiencing extraordinary momentum entering 2026, with bookings in January alone exceeding the entirety of fiscal 2025 [6] - Management emphasizes the importance of solving real mission-critical problems for government and commercial customers [15] 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 [17] - The company raised over $800 million in gross proceeds from equity issuance and warrant exercises during fiscal 2025 [32] 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 [41][42] Question: How much OpEx would you expect to incur in 2026 with the acquisition of QCI? - Management stated that the 15% sequential growth in OpEx includes costs associated with the QCI acquisition [46] Question: What metrics are customers focused on when evaluating Quantum as a solution? - Management indicated that customers are primarily focused on the commercial value and ROI delivered by annealing quantum systems [62]

Industry Overview - The quantum computing sector has experienced strong stock gains due to significant technical and commercial advancements, indicating a shift from research to commercial viability [1][2] - Market focus is now on quantum computing's potential to fundamentally transform the technology sector, with a long-term value creation thesis emerging [2][16] Company Summaries D-Wave Quantum - D-Wave's stock is linked to its strategy of delivering immediate business value, with 81% of business leaders acknowledging the limits of classical computing for optimization [4][6] - The company reported a 509% year-over-year revenue growth in Q1 2025, driven by the sale of its Advantage2 system, showcasing its technology's effectiveness in real-world applications [6] Rigetti Computing - Rigetti's stock surged 30% following a breakthrough in achieving 99.5% two-qubit gate fidelity, significantly reducing error rates in its quantum computers [8][10] - The company is focused on developing a universal quantum computer, with its engineering strategy showing promising results in accuracy [9][10] Quantum Computing Inc. - Quantum Computing Inc. secured a major U.S. commercial contract for a quantum cybersecurity testbed, highlighting its disruptive potential with room-temperature integrated photonics technology [12][14] - The company's approach aims to provide more practical and cost-effective quantum systems, validated by its recent bank contract [13][14] Market Dynamics - The quantum sector's market valuations are based on future potential rather than current revenues, similar to early internet stocks, with an investment thesis centered on capturing a future market worth trillions [15][16] - Each company in the sector is pursuing distinct strategies: D-Wave focuses on near-term sales, Rigetti on long-term technological advancements, and Quantum Computing Inc. on practical hardware solutions [17]

Core Insights - D-Wave Quantum Inc. has experienced over 1,000% stock growth in the past year, driven by rising interest in quantum computing [2] - The company is well-positioned to capitalize on the transition from research to commercial applications in quantum computing [10] Group 1: Growth Catalysts - The quantum computing industry is moving towards commercial applications, with D-Wave's quantum annealing technology effective in sectors like logistics, finance, drug discovery, and AI [3] - D-Wave's cloud-based quantum computing services present a significant revenue opportunity, allowing customers to access quantum capabilities without heavy capital investments [4] - Government investments in quantum research and development create opportunities for D-Wave to secure long-term contracts, ensuring consistent revenue streams [4] Group 2: Technological Advancements - D-Wave's latest 4,400-qubit processor marks a significant technological advancement, reinforcing its leadership in quantum annealing technology [5] - The Advantage2 quantum system, designed for complex optimization and AI tasks, showcases improvements in qubit connectivity, coherence, and energy efficiency [5] Group 3: Competitive Landscape - D-Wave's first-mover advantage in commercial quantum computing has led to stronger client relationships and advanced technology infrastructures [13] - The scalability of D-Wave's technology is evident, with successive generations showing significant improvements in qubit performance [13] Group 4: Market Context - The current environment, characterized by rising computational demands and substantial government spending, mirrors the early phases of the internet and AI revolutions [11] - D-Wave's established technology positions it to capture significant value as the quantum computing market evolves [11]