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D-Wave Quantum
(NASDAQ:QBTS)
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Rating:52Neutral
Price Target:
$21.50
â–²(32.63% Upside)
Action:Reiterated
Date:08/06/26
The score is held back primarily by very large ongoing losses and persistent negative free cash flow despite improving revenue scale and strong gross margins. The latest earnings call was a key positive, citing stronger bookings/backlog and clearer shipment timing, but near-term results remain volatile with widening EBITDA losses. Technical signals are mixed and valuation metrics offer limited support given a negative P/E and no dividend.
Positive Factors
Peer‑reviewed technical validation (Nature paper)
A peer‑reviewed Nature result demonstrating high‑fidelity, fast two‑qubit gates materially reduces technical risk and validates D‑Wave’s dual‑rail approach. This durable credibility supports long‑term R&D progress toward fault‑tolerant milestones, attracts partners, and strengthens the company’s technology moat.
Negative Factors
Persistent negative operating and free cash flow
Consistent negative operating and free cash flow signals a structural cash burn problem: D‑Wave requires ongoing external financing or large system sales to sustain operations. This limits strategic flexibility, raises dilution risk, and makes execution on multi‑year roadmaps contingent on converting backlog to cash.
Read all positive and negative factors
Positive Factors
Negative Factors
Peer‑reviewed technical validation (Nature paper)
A peer‑reviewed Nature result demonstrating high‑fidelity, fast two‑qubit gates materially reduces technical risk and validates D‑Wave’s dual‑rail approach. This durable credibility supports long‑term R&D progress toward fault‑tolerant milestones, attracts partners, and strengthens the company’s technology moat.
Read all positive factors
D-Wave Quantum (QBTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.70B
Dividend YieldN/A
Average Volume (3M)21.72M
Price to Earnings (P/E)―
Beta (1Y)2.76
Revenue Growth-41.75%
EPS Growth-87.41%
CountryUS
Employees385
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)-0.71
Shares Outstanding367,269,070
10 Day Avg. Volume15,658,345
30 Day Avg. Volume21,722,424
Financial Highlights & Ratios
PEG Ratio-0.49
Price to Book (P/B)9.86
Price to Sales (P/S)341.62
P/FCF Ratio-110.75
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$35.79Price Target Upside120.76% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
EPS Forecast (FY)-0.3
Revenue Forecast (FY)$42.99M
D-Wave Quantum Business Overview & Revenue Model
Company Description
Operating globally, D-Wave Quantum Inc. specializes in developing and supplying quantum computing systems, software, and related services. Their offerings include Advantage, a pioneering fifth-generation quantum computer, and Launch, an onboarding...
How the Company Makes Money
D-Wave primarily generates revenue by selling access to its quantum computing capabilities and associated services. Key revenue streams include: (1) Cloud-based quantum computing access: customers pay to use D-Wave’s quantum processing units (QPUs...
D-Wave Quantum Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but constructive picture: strong technical validation (Nature paper), clear multi-year roadmaps for both gate-model and annealing platforms, growing enterprise traction with quantifiable production wins (AT&T, Optum, NTT DOCOMO), and materially expanded bookings and backlog. However, near-term financials show a substantial decline in first-half revenue versus last year (driven by timing of a prior large system sale), deteriorating gross margins versus a prior-period high-margin sale, rising adjusted EBITDA losses driven by personnel and development investments, and a notable cash reduction due to the Quantum Circuits acquisition. Strategic and technical progress is significant and supports medium- to long-term commercial opportunity, but the company is currently investing heavily and experiencing larger operational losses and near-term revenue volatility tied to system delivery timing.Positive Updates
Peer-Reviewed Technical Validation (Nature Publication)
Published peer-reviewed Nature paper demonstrating a fast two-qubit entangling gate on an 8-qubit dual-rail processor with ~99.9% fidelity and ~500 ns gate times. Company targets a Lambda of 10 (≈10x error reduction per error-correction increment) and provided a multi-year gate-model roadmap (17 physical qubits in 2026 targeting ~2x error reduction; 49 qubits in 2027 targeting ~20x; 181 qubits in 2028 targeting ~2,000x; 10 logical qubits by 2030; 100 logical qubits and >1M reliable operations by 2032).
Negative Updates
Widening Adjusted EBITDA Losses
Q2 adjusted EBITDA loss $37.1M, an increase of $17.1M or 85% YoY (driven by increased investments and personnel-related expenses). H1 adjusted EBITDA loss $69.9M, up $43.8M YoY.
Read all updates
Q2-2026 Updates
Positive
Negative
Peer-Reviewed Technical Validation (Nature Publication)
Published peer-reviewed Nature paper demonstrating a fast two-qubit entangling gate on an 8-qubit dual-rail processor with ~99.9% fidelity and ~500 ns gate times. Company targets a Lambda of 10 (≈10x error reduction per error-correction increment) and provided a multi-year gate-model roadmap (17 physical qubits in 2026 targeting ~2x error reduction; 49 qubits in 2027 targeting ~20x; 181 qubits in 2028 targeting ~2,000x; 10 logical qubits by 2030; 100 logical qubits and >1M reliable operations by 2032).
Read all positive updates
Company Guidance
Management guided that D‑Wave expects to ship two annealing systems in 2026 (likely both in Q4) and to book roughly 2–3 systems per year going forward (system pricing cited at $20M–$40M, with the FAU sale at $20M); they expect Q3 revenue modestly above Q2 ($3.1M) and Q4 revenue to increase significantly and comprise the majority of 2026 revenue (with some installation/calibration revenue carrying into 2027). Current bookings/backlog and liquidity metrics include H1 bookings of $35.5M (which included the $20M FAU system), Q2 bookings of $2.1M (+59% YoY), a sales pipeline up >120% since Dec 31, and remaining performance obligations (RPO) of $40.7M (up 668% YoY) with ~57% expected in 12 months and ~72% in two years; cash and marketable securities were $546.2M at June 30. On the technology road maps, management reconfirmed gate‑model milestones (17 physical qubits in 2026 targeting ~2× error reduction; 49 qubits in 2027 targeting ~20×; 181 qubits in 2028 targeting ~2,000×; 10 logical qubits by 2030; ~100 logical qubits and >1M reliable operations by 2032) and annealing targets (Advantage3 ~20,000 qubits in 2029 and ~100,000 qubits in 2031), while noting QCaaS momentum (Q2 QCaaS $1.9M, +50% YoY; H1 QCaaS $3.6M, +30% YoY, with >37% of H1 QCaaS revenue from production apps versus 9.8% in H1 2025).D-Wave Quantum Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
62
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.43M | 24.59M | 8.83M | 8.76M | 7.17M | 6.28M |
| Gross Profit | 7.97M | 20.31M | 5.56M | 4.62M | 4.25M | 4.53M |
| EBITDA | -259.31M | -348.74M | -138.05M | -80.83M | -49.03M | -34.36M |
| Net Income | -248.70M | -355.06M | -143.88M | -82.72M | -53.70M | -40.97M |
Balance Sheet | ||||||
| Total Assets | 1.16B | 915.81M | 199.85M | 59.36M | 26.95M | 29.47M |
| Cash, Cash Equivalents and Short-Term Investments | 546.22M | 884.48M | 177.98M | 41.31M | 7.07M | 9.48M |
| Total Debt | 13.22M | 43.46M | 38.38M | 72.65M | 42.28M | 39.42M |
| Total Liabilities | 75.32M | 63.58M | 137.21M | 83.84M | 56.41M | 47.82M |
| Stockholders Equity | 1.08B | 852.23M | 62.65M | -24.48M | -29.46M | -18.36M |
Cash Flow | ||||||
| Free Cash Flow | -119.08M | -75.84M | -44.75M | -61.28M | -45.72M | -36.80M |
| Operating Cash Flow | -110.88M | -71.98M | -42.64M | -60.65M | -45.23M | -34.80M |
| Investing Cash Flow | -511.36M | -251.13M | -3.14M | -630.00K | -498.00K | -2.00M |
| Financing Cash Flow | 99.36M | 779.15M | 182.45M | 95.64M | 43.27M | 24.91M |
D-Wave Quantum Risk Analysis
D-Wave Quantum disclosed 65 risk factors in its most recent earnings report. D-Wave Quantum reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
D-Wave Quantum Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $1.83B | -29.49 | -3.55% | ― | 1025.71% | 42.03% | |
53 Neutral | $4.97B | -21.20 | -43.94% | ― | 8.75% | -4.39% | |
52 Neutral | $6.70B | -15.72 | -44.05% | ― | -41.75% | -87.41% | |
52 Neutral | $13.60B | 404.89 | -39.34% | ― | 334.58% | ― |
* Technology Sector Average
QBTS
D-Wave Quantum
20.76
3.86
22.84%
QUBT
Quantum Computing
9.18
-6.95
-43.09%
IONQ
IonQ
44.43
2.58
6.16%
RGTI
Rigetti Computing
17.94
2.50
16.19%
D-Wave Quantum Corporate Events
Business Operations and StrategyProduct-Related Announcements
D-Wave Quantum Unveils Breakthrough Gate-Model Hardware Architecture
Positive
Aug 5, 2026
On August 5, 2026, D-Wave Quantum Inc. announced a major hardware breakthrough in gate-model quantum computing, reporting results in Nature that validate its superconducting dual-rail qubit architecture as a scalable basis for fault-tolerant syste...
Business Operations and Strategy
D-Wave Quantum, Nasdaq Verafin explore crime detection tech
Positive
Aug 3, 2026
On August 3, 2026, D-Wave Quantum Inc. and Nasdaq Verafin announced an agreement to evaluate quantum computing for financial crime detection through a proof-of-concept project, with potential expansion to pilot applications. The initiative centers...
Business Operations and StrategyProduct-Related Announcements
D-Wave Quantum, AT&T expand quantum network optimization
Positive
Jul 27, 2026
On July 27, 2026, D-Wave Quantum Inc. and ATT announced an agreement to expand ATT’s use of D-Wave’s quantum computing across the telecom group’s network operations, building on early work that cut a key optimization workload fro...
Business Operations and StrategyDelistings and Listing Changes
D-Wave Quantum Marks Nasdaq Listing Debut and Growth
Positive
Jul 24, 2026
On July 24, 2026, D-Wave Quantum Inc. announced that CEO Dr. Alan Baratz and the management team will ring the Nasdaq Opening Bell on July 27, 2026, to mark the company’s listing debut on the exchange after voluntarily transferring its commo...
Business Operations and StrategyDelistings and Listing Changes
D-Wave Quantum to Transfer Stock Listing to Nasdaq
Positive
Jul 15, 2026
On July 14, 2026, D-Wave Quantum Inc. announced that it would voluntarily transfer the listing of its common stock from the New York Stock Exchange to the Nasdaq Stock Market, ending NYSE trading after market close on July 24, 2026. The shares are...
Business Operations and Strategy
D-Wave Quantum Named IDC Quantum Computing Leader
Positive
Jul 7, 2026
On July 7, 2026, D-Wave announced it was named one of only two companies in the Leaders category of IDC’s Worldwide Quantum Computing 2026 Vendor Assessment, underscoring its strong commercial traction and platform maturity. IDC highlighted ...
Business Operations and Strategy
D-Wave Wins NSF Grant to Advance Quantum Computing
Positive
Jun 30, 2026
On June 30, 2026, D-Wave Quantum Inc. announced it was selected to receive a $1.57 million grant from the U.S. National Science Foundation’s National Quantum Virtual Laboratory program to support its role in the ERASE project, led by Yale Un...
Business Operations and StrategyProduct-Related Announcements
D-Wave Unveils Error-Aware Gate-Model Quantum Simulator
Positive
Jun 18, 2026
On June 18, 2026, D-Wave Quantum Inc. announced a forthcoming gate-model quantum computing simulator designed for error-aware programming, built on its dual-rail technology and expected to be the first of its kind. The simulator, which will suppor...
Executive/Board ChangesShareholder Meetings
D-Wave Quantum Announces New Board Leadership Structure
Positive
Jun 8, 2026
On June 4, 2026, D-Wave Quantum Inc. held its 2026 annual meeting of stockholders, where shareholders re-elected Alan E. Baratz and Sharon Holt as Class I directors to serve until the 2029 annual meeting and ratified Grant Thornton LLP as the comp...
Business Operations and StrategyFinancial Disclosures
D-Wave Quantum Announces First Investor Day at NYSE
Positive
Jun 1, 2026
D-Wave Quantum will host its first Investor Day at the New York Stock Exchange and online on June 1, 2026, beginning at 1:00 p.m. ET, featuring presentations by senior management and multiple QA sessions. The agenda includes technical overviews of...
Business Operations and StrategyProduct-Related Announcements
D-Wave Unveils Roadmap for Fault-Tolerant Quantum System
Positive
Jun 1, 2026
On June 1, 2026, D-Wave Quantum announced a gate-model development roadmap aimed at delivering a 100-logical-qubit, fault-tolerant superconducting quantum system capable of executing over one million operations by 2032. The plan leverages the comp...
Business Operations and Strategy
D-Wave Quantum Defends Beyond-Classical Computation Benchmark Claims
Positive
May 26, 2026
On May 26, 2026, D-Wave Quantum Inc. defended its previously published demonstration of beyond-classical quantum computation in quantum simulation against claims that new classical simulation research had overturned its result. The company argued ...
Business Operations and StrategyPrivate Placements and Financing
D-Wave Quantum Secures Second-Year Defense Microelectronics Funding
Positive
May 26, 2026
On May 26, 2026, D-Wave Quantum Inc. announced it had secured second-year funding for its Improved Materials for Superconducting Qubits with Scalable Fabrication project from the Northeast Regional Defense Technology Hub. The award, granted to sub...
Business Operations and StrategyPrivate Placements and Financing
D-Wave Quantum Secures Proposed $100M CHIPS Act Funding
Positive
May 21, 2026
On May 21, 2026, D-Wave Quantum announced that it had signed a Letter of Intent with the U.S. Department of Commerce for $100 million in proposed funding under the CHIPS and Science Act, with the Department expected to receive an equivalent value ...
Financial DisclosuresRegulatory Filings and Compliance
D-Wave Quantum Corrects Quarterly Outstanding Share Disclosure
Neutral
May 13, 2026
On May 12, 2026, D-Wave Quantum Inc. disclosed that its Form 10-Q for the quarter ended March 31, 2026 contained an error on the cover page regarding the number of outstanding common shares. The filing initially reported 366,737,601 common shares ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.