D-Wave Quantum (US:QBTS)2025-11-06 14:02Financial Data and Key Metrics Changes - Revenue for Q3 2025 totaled $3.7 million, a 100% increase from $1.9 million in Q3 2024 [25] - GAAP gross profit for Q3 2025 was $2.7 million, up 156% from $1 million in Q3 2024 [28] - Net loss for Q3 2025 was $140.8 million, compared to a net loss of $22.7 million in Q3 2024, primarily due to $121.9 million in non-cash non-operating charges [29] - Adjusted Net Loss for Q3 2025 was $18.1 million, a decrease of $5.1 million from $23.2 million in Q3 2024 [30] - Cash balance as of September 30, 2025, was $836.2 million, a 2,700% increase from $29.3 million a year earlier [40] Business Line Data and Key Metrics Changes - Q3 2025 revenue included $1.8 million from systems revenue, $1.4 million from Quantum Computing as a Service (QCAS), and $500,000 from professional services [26] - Bookings for Q3 2025 totaled $2.4 million, a 3% increase from $2.3 million in Q3 2024 [26] - Year-to-date revenue for the first nine months of 2025 was $21.8 million, a 235% increase from $6.5 million in the same period of 2024 [31] Market Data and Key Metrics Changes - D-Wave has over 100 revenue-generating customers, including approximately two dozen Forbes Global 2000 companies [28] - The company signed a EUR 10 million agreement for a D-Wave Advantage2 system in Europe, which will be recognized over five years [27] Company Strategy and Development Direction - D-Wave is focused on commercializing its quantum computing technology, emphasizing customer success and sales as key to growth [6][7] - The company aims to be the first independent, publicly held quantum computing company to achieve sustained profitability [41] - D-Wave is developing both annealing and gate model quantum computers, with a focus on superconducting technology [14][16] Management's Comments on Operating Environment and Future Outlook - Management highlighted the increasing interest from the U.S. government in D-Wave's technology for national security applications [46][47] - The company is optimistic about its growth trajectory, with a strong pipeline for system sales and QCAS deals [21] - Management noted that the quantum computing market is evolving, with a focus on real-world applications rather than experimental systems [39] Other Important Information - D-Wave's Advantage2 system has been recognized for demonstrating quantum supremacy on useful real-world problems [19][20] - The company is exploring innovative procurement models, such as the Q-Alliance deal, which could serve as a blueprint for future agreements [62] 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 [46][47] Question: Details on gate model product and timeline - Management confirmed the use of superconducting technology for the gate model and provided a timeline of several years for a scaled error-corrected system [50][52] Question: Davidson relationship and national security initiatives - Management stated that the next step with Davidson is to secure the system for classified applications, marking a significant milestone [56] Question: Q-Alliance transaction details - Management clarified that the EUR 10 million contract does not imply a straightforward doubling for the full system purchase, as there are additional benefits for customers [59][60] Question: Investment in R&D and operational capabilities - Management confirmed a planned 15% increase in operating expenses, primarily in R&D, to accelerate technology development [66][68] Question: Focus on ancillary quantum opportunities - Management stated that D-Wave remains focused on quantum computing and does not view other modalities as central to its strategy [74]