Key Takeaways D-Wave's Q3 revenues doubled year over year, beating estimates by nearly 20%.Gross margins jumped over 1,000 bps as bookings surged 80% sequentially to $2.4 million.Cash reserves rose to $836.2 million, though valuation remains elevated at 250.58x P/S.Investors seeking long-term upside should take a close look at pure-play quantum computing stocks like D-Wave Quantum (QBTS) . Despite the short-term fluctuations inherent in a nascent capital-intensive industry, the company’s third-quarter 2025 ...

Core Insights - Rigetti Computing (RGTI) is demonstrating early commercial traction with approximately $5.7 million in purchase orders for its Novera quantum processing units (QPUs) and related services, indicating validation of its hardware capabilities after extensive R&D investment [1][7] - The company secured a $5.8 million award from the Air Force Research Laboratory in collaboration with QphoX, positioning Rigetti at the forefront of quantum networking [2][7] - Despite uneven quarterly revenues, these developments suggest a turning point for Rigetti, as its technology is being adopted rather than merely tested [3][7] Company Developments - Rigetti's recent contracts and partnerships highlight a successful alignment of technological innovation with commercial opportunities, showcasing growing institutional confidence in its manufacturing and chip-packaging capabilities [2] - The deployment of two Novera systems to an Asian tech manufacturer and a California AI startup marks Rigetti's most significant commercialization milestone to date, with deployments scheduled for the first half of 2026 [1][2] Financial Performance - Rigetti's shares have increased by 136.3% year-to-date, significantly outperforming the industry growth of 19.2% [6] - The Zacks Consensus Estimate for Rigetti's 2025 earnings indicates a substantial 86.1% increase compared to the previous year [10] Valuation Metrics - Rigetti is currently trading at a price-to-book ratio of 21.13, which is above the industry average, and carries a Value Score of F [8]

Core Insights - Rigetti Computing (RGTI) has secured purchase orders totaling approximately $5.7 million for two 9-qubit Novera quantum computing systems, indicating a significant advancement in commercial traction for its hardware [1][6] - The orders are from an Asian technology manufacturer and a California-based AI startup, with deliveries expected in the first half of 2026, reflecting increasing global interest in small-scale, upgradeable quantum systems [1][6] Company Developments - The Novera platform utilizes Rigetti's Ankaa-class architecture, featuring a 9-qubit processor designed for high-fidelity operations, and includes advanced control systems and integration support for quantum research [2] - The recent orders validate Rigetti's Fab-1 manufacturing model and modular system design, positioning the company favorably in the expanding quantum R&D hardware market [2][6] Peer Updates - D-Wave Quantum has launched its Advantage2 system, enhancing qubit connectivity and coherence, and is expanding developer access with new hybrid toolkits [3] - Quantum Computing Inc. has shipped its first commercial entangled photon source to a research institution in South Korea, marking a significant step in its market transition [4] Financial Performance - RGTI shares have increased by 187.7% year-to-date, significantly outperforming the industry average growth of 18.7% [5] - Rigetti's current price-to-book ratio stands at 25.73, which is above the industry average, and the company has a Value Score of F [8] - The Zacks Consensus Estimate for Rigetti's 2025 earnings suggests an 86.1% increase compared to the previous year [10]

D-Wave Quantum TodayQBTSD-Wave Quantum$25.27 -1.49 (-5.57%) 52-Week Range$0.87▼$29.18Price Target$20.27Add to WatchlistD-Wave Quantum Inc. NYSE: QBTS has presented an interesting share price trajectory throughout the first three quarters of 2025. Dipping early in the year and remaining flat for several months, shares climbed in May but leveled off for most of the summer.  Then, in the last month, the price of QBTS increased by an impressive 68%. Investors are likely wondering why shares of one of the hotte ...

Financial Performance - IonQ reported Q2 2025 revenue of $20.7 million, an increase of approximately 82% year over year, but incurred a net loss of $177.5 million [1] - D-Wave Quantum's Q2 2025 revenue rose 42% year over year to $3.1 million, with gross margins near 64% and bookings up 92%, while still facing significant losses [7] - Rigetti Computing posted Q2 2025 revenue of $1.8 million, down approximately 41% year over year, with a net loss of $39.7 million [8][9] Strategic Acquisitions - IonQ agreed to acquire Oxford Ionics for $1.075 billion, enhancing its trapped-ion technology, and has also completed other acquisitions while raising $1 billion through an equity offering [2] - D-Wave has focused on quantum annealing and has developed the Advantage2 system, which improves qubit connectivity [6] Market Dynamics - There is a disconnect between public market skepticism and private market enthusiasm for quantum technology, with governments viewing quantum supremacy as a national security issue [3] - Major investors like BlackRock, Temasek, and Nvidia are backing quantum startups, indicating strong belief in the sector's potential [4] Industry Trends - The quantum computing sector is transitioning from research to revenue, with early commercial milestones and technological breakthroughs being observed [5] - Companies are experiencing increasing demand for quantum services, with enterprises already paying for these services [3] Investment Outlook - IonQ is seen as having infrastructure dominance, D-Wave is recognized for near-term revenue potential, and Rigetti is viewed as a high-risk, high-reward investment opportunity [14] - The valuations in the quantum sector may reflect the price of admission to a significant technological shift, similar to early investments in AI [12]

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 reported mixed earnings results with revenue growth exceeding analyst expectations but wider-than-expected losses [1][2] - Despite the mixed results, D-Wave's stock performance remains strong, with shares up nearly 20% in the last month [2] Financial Performance - D-Wave experienced a 42% year-over-year revenue increase, with bookings nearly doubling to $1.3 million [3] - The company ended the quarter with $819 million in cash reserves, positioning it well for future technological advancements and potential M&A strategies [5] Market Position and Competitors - D-Wave's marketability is bolstered by partnerships with a large aerospace and defense firm and law enforcement in North Wales, indicating growing use cases for its technology [4] - In comparison, IonQ reported an 81.6% year-over-year revenue increase, reaching $20.7 million for the quarter, which is significantly higher than D-Wave's growth rate [7][8] - IonQ's expanding global presence and partnerships with major tech firms like Amazon and Microsoft may pose competitive challenges for D-Wave [10] Future Outlook - D-Wave's Advantage2 system is now generally available, which is expected to drive additional sales and upgrades for existing customers [3] - Quantum Computing, another competitor, is set to report earnings soon and has operationalized a new foundry in Arizona, which could enhance its revenue growth [13][14]

Core Insights - IonQ (IONQ) is poised to release its second-quarter 2025 results, with investor optimism driven by rapid strategic execution and an impressive 86% stock increase during the April-June quarter [1][9] Group 1: Growth Drivers - IonQ is expanding its global footprint through strategic partnerships, particularly in Europe and Asia, with the acquisition of a majority stake in ID Quantique (IDQ) enhancing access to European telecom and cybersecurity markets [4][5] - The partnership with Intellian in South Korea aims to co-develop infrastructure for space-to-ground quantum communications, further extending IonQ's reach into critical defense and telecom markets across Asia [5] Group 2: Financial Performance - In the first quarter of 2025, IonQ's revenues exceeded the midpoint of guidance, despite a net loss of $32.3 million and an adjusted EBITDA loss of $35.8 million, ending the quarter with $697.1 million in liquidity and zero debt [6][9] - The growing revenue base and strategic investments are expected to support an improving profit trajectory in the second quarter [7] Group 3: Competitive Positioning - Rigetti Computing (RGTI) is facing challenges with a 52% year-over-year revenue drop, despite a net profit in the first quarter due to a non-cash accounting gain [10] - D-Wave Quantum (QBTS) is gaining momentum, particularly in Europe, with strong revenues and reduced net loss driven by demand in various industries [11] Group 4: Valuation and Estimates - IonQ's stock is trading at a high forward 12-month price-to-sales (P/S) ratio of 91.63, significantly above the industry average of 3.7, indicating potential risk if second-quarter results disappoint [12] - The Zacks Consensus Estimate for second-quarter 2025 loss per share has narrowed to 13 cents, indicating a narrower loss compared to the previous year, with an estimated revenue growth of 49.6% year-over-year [13]

Core Viewpoint - D-Wave (QBTS) has experienced a significant increase of 120% in stock price in 2025, attributed to the momentum surrounding its Advantage2 system and a substantial capital raise [1] Group 1: Company Performance - The stock price surge is linked to the performance of the Advantage2 system, indicating strong market interest and potential growth in the quantum computing sector [1] - Despite the impressive stock performance, the company is facing challenges such as negative cash flow and concerns regarding dilution, raising questions about its sustainability as a high-growth tech stock [1] Group 2: Investment Considerations - Investors are advised to weigh the potential of D-Wave as a breakout tech stock against the risks associated with its financial health and market volatility [1] - The article suggests that investors should make informed decisions before the broader market recognizes the stock's potential, highlighting the importance of due diligence in investment strategies [1]

Core Insights - D-WAVE QUANTUM (QBTS) is scheduled to report its second-quarter 2025 results on August 7, with projected revenues of $2.52 million, reflecting a year-over-year increase of 15.7% [1][7]. Financial Performance - The consensus estimate for QBTS's earnings is a loss of 7 cents per share, unchanged over the past 90 days, compared to a loss of 10 cents per share in the same quarter last year [2][3]. - QBTS's earnings have exceeded the Zacks Consensus Estimate in one of the last four quarters, missed twice, and matched once, with an average negative earnings surprise of 65.28% [1]. Revenue Drivers - The anticipated general availability (GA) launch of the Advantage2 system is expected to positively impact second-quarter performance, offering significant technical upgrades for complex optimization and AI problems [4]. - D-Wave may have experienced an expansion in customer wins and production use cases, building on previous deployments at Ford Otosan and Japan Tobacco, which could contribute to revenue growth [5]. - Increased focus on AI and blockchain partnerships is likely to be reflected in the second-quarter update, with potential commercial agreements emerging from new quantum-powered solutions [6]. Market Performance - QBTS shares surged 97.3% in Q2, outperforming the broader Zacks Computer and Technology sector's rise of 20.4% and the Internet - Software industry's increase of 25.1% [9]. - Despite the strong stock performance, QBTS is currently trading at a high forward price/sales (P/S) ratio of 162.47X, significantly above its median of 82.17X and the sector's 6.71X [12]. Sequential Revenue Trends - A sequential revenue decline is expected in Q2 due to a one-time $12.6 million system sale in Q1, with revenues likely normalizing primarily from recurring streams [8].