D-Wave Quantum Inc. (QBTS) reported strong financial results for the first quarter of 2025, marking a significant milestone in the company’s commercial trajectory. The company generated $15 million in revenue, a record figure and a 509% increase year-over-year, primarily driven by selling a quantum computing system to a high-performance computing center. This impressive report is already reflected in its stock performance, climbing almost 20% (at the time of writing) in pre-market trading. To summarise right at the beginning, QBTS is shifting from a speculative play into a commercially validated quantum leader.
What Was on Show
Gross profit reached $13.9 million, a record for the company. The gross margin was 92.5%, up from 67.3% in the prior-year period. The non-GAAP gross margin stood at 93.6%. The quarter’s performance reflects growing commercial adoption of D-Wave’s quantum systems and services.
Net loss narrowed to $5.4 million, or $0.02 per share, compared to a loss of $17.3 million, or $0.11 per share, in the same period last year. Adjusted EBITDA loss was $6.1 million, a 53% improvement from Q1 2024.
The company ended the quarter with $304.3 million in cash, its highest cash balance to date, following a $146 million capital raise through an at-the-market offering. D-Wave stated that its current liquidity is expected to support its path to profitability.
Operational Highlights
During the quarter, d-Wave achieved a key technical milestone, publishing peer-reviewed research in Science that claimed quantum supremacy on a practical problem, simulating magnetic materials faster than any classical supercomputer. The company also reported new production deployments, including a quantum scheduling application by Ford Otosan (F) and a drug discovery project with Japan Tobacco (JAPAF).
The firm expanded its customer base to 133 organizations, including 25 from the Forbes Global 2000 list. It added new capabilities to its hybrid quantum solvers, enabling broader use cases in optimization and resource planning.
Outlook
CEO Dr. Alan Baratz called the quarter one of the most significant in D-Wave’s history, citing strong customer momentum and major technical validation. While bookings were down year-over-year, the company emphasized growing enterprise interest and its ability to scale revenue through larger system sales.
D-Wave’s results highlight early traction in the commercial quantum computing market as it transitions from proof-of-concept pilots to production-scale deployments.
Is QBTS a Good Stock to Buy?
Analyst consensus signals a Strong Buy, and it’s reasonable to assume that after this impressive earnings call, the bullish sentiment will only be enhanced. The average QBTS stock price target is $9.63, implying a 39.77% upside potential.
