D-Wave Quantum (NYSE:QBTS) Q4 2025 Earnings call February 26, 2026 08:00 AM ET Speaker13Good morning, everyone, and welcome to D-Wave's fourth quarter fiscal year 2025 earnings conference call. Today's conference call is being recorded. At this time, I would like to turn the call over to Kevin Hunt, Senior Director of Investor Relations. Please go ahead.Speaker10Thank you and good morning. With me today are Dr. Alan Baratz, our Chief Executive Officer, and John Markovich, our Chief Financial Officer. Before ...

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]