D-Wave Quantum Inc. (QBTS)
NYSE:QBTS
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D-Wave Quantum
(NYSE:QBTS)
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Rating:62Neutral
Price Target:
$29.00
▲(33.70% Upside)
Action:Reiterated
Date:05/27/26
The score is driven primarily by a mixed fundamental picture: a de-risked balance sheet but very weak profitability and ongoing cash burn. Technicals are notably strong and provide meaningful support, while valuation is constrained by negative earnings and no dividend. The earnings call and recent events add upside via improving bookings/backlog and funding catalysts, tempered by higher expenses and lumpy revenue recognition.
Positive Factors
Balance sheet strength
Very low debt and a >$500M cash plus marketable securities position after the Quantum Circuits acquisition materially reduce refinancing and solvency risk. This durable liquidity buffer supports multi-year R&D, capital-intensive system builds, and gives management flexibility to execute scaling without immediate fundraising.
Negative Factors
Ongoing cash burn
Sustained negative operating and free cash flow at nearly triple-digit millions per year creates a structural funding need. Even with current liquidity, persistent burn elevates dilution or financing risk over 2–3 years if commercial revenue and margin expansion do not accelerate to materially reduce reliance on external capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Very low debt and a >$500M cash plus marketable securities position after the Quantum Circuits acquisition materially reduce refinancing and solvency risk. This durable liquidity buffer supports multi-year R&D, capital-intensive system builds, and gives management flexibility to execute scaling without immediate fundraising.
Read all positive factors
D-Wave Quantum (QBTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.91B
Dividend YieldN/A
Average Volume (3M)38.88M
Price to Earnings (P/E)―
Beta (1Y)2.56
Revenue Growth-41.75%
EPS Growth-87.41%
CountryUS
Employees216
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)-1.15
Shares Outstanding366,737,600
10 Day Avg. Volume52,394,372
30 Day Avg. Volume38,881,210
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 Cap0.99
Enterprise Value/Revenue865.24
Enterprise Value/Gross Profit1.31K
Enterprise Value/Ebitda-26.98
Forecast
1Y Price Target
$36.50Price Target Upside68.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)-0.34
Revenue Forecast (FY)$42.78M
D-Wave Quantum Business Overview & Revenue Model
Company Description
D-Wave Quantum Inc. develops and delivers quantum computing systems, software, and services worldwide. The company offers Advantage, a fifth-generation quantum computer; Launch, a quantum computing onboarding service; Ocean a full suite of open-so...
How the Company Makes Money
D-Wave primarily generates revenue by selling access to its quantum computing capabilities and related offerings rather than selling consumer products. Key revenue streams include: (1) Cloud-based quantum computing access: Customers pay to access ...
D-Wave Quantum Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presents strong commercial momentum indicators (record bookings, a sharply increased RPO/backlog, expanding pipeline, and a robust cash position after the Quantum Circuits acquisition) alongside meaningful technical progress in gate-model dual-rail qubits and early application wins in blockchain and quantum-AI. However, near-term GAAP revenue fell sharply YoY (driven by timing of prior system sale), operating expenses and losses increased materially (including acquisition-related and R&D investments), and system sales revenue recognition remains lumpy. Overall, the narrative is that D‑Wave is investing aggressively to scale technology and commercial footprint with improving sales pipeline and liquidity but will absorb near-term higher expenses and uneven revenue while longer-term gate-model benefits remain multi-year.Positive Updates
Record Bookings Growth
Bookings of $33.4M in Q1 2026, an increase of $31.8M or 1,994% YoY and up 149% from Q4 2025 ($13.4M).
Negative Updates
Sharp YoY Revenue Decline
Total revenue of $2.9M in Q1 2026, down $12.1M or 81% YoY from $15.0M in Q1 2025 (prior period included a $12.6M system sale). GAAP gross profit was $1.8M (down 87% YoY) and GAAP gross margin declined to 63.6% from 92.5% in Q1 2025 (-29 percentage points).
Read all updates
Q1-2026 Updates
Positive
Negative
Record Bookings Growth
Bookings of $33.4M in Q1 2026, an increase of $31.8M or 1,994% YoY and up 149% from Q4 2025 ($13.4M).
Read all positive updates
Company Guidance
Management gave directional (not numeric) guidance: Q2 revenue is “likely up modestly” from Q1’s $2.9M with a substantial portion of 2026 revenue expected in H2; they now expect 2–3 system sales per year with at least 2 systems to be delivered in 2026; Q1 bookings were $33.4M (up 1,994% YoY, 149% QoQ) including a $20M system sale and a $10M enterprise QCaaS deal, RPO/backlog was $42.4M (up 563% YoY, 216% QoQ) with ~54% of RPO to be recognized in 12 months and ~71% in 2 years; the dual‑rail gate roadmap targets ~175 physical qubits by end‑2028, 10 logical qubits by 2030 and 100 logical qubits by end‑2032 with dual‑rail metrics of ~90% error identification, a 0.5% observed erasure rate, >99.9% fidelity and up to a 10x reduction in physical qubits per logical qubit; for context Q1 GAAP operating expenses were $56.5M (up 125% YoY), non‑GAAP adjusted Opex $34.8M (up 73% YoY), adjusted EBITDA loss $32.8M, net loss $18.4M ($0.05/sh), and cash plus marketable securities totaled $588.4M after investing $250M in the Quantum Circuits acquisition.D-Wave Quantum Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
72
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.44M | 24.59M | 8.83M | 8.76M | 7.17M | 6.28M |
| Gross Profit | 8.25M | 20.31M | 5.56M | 4.62M | 4.25M | 4.53M |
| EBITDA | -399.03M | -348.74M | -138.05M | -80.83M | -49.03M | -34.36M |
| Net Income | -368.00M | -355.06M | -143.88M | -82.72M | -53.70M | -40.97M |
Balance Sheet | ||||||
| Total Assets | 1.20B | 915.81M | 199.85M | 59.36M | 26.95M | 29.47M |
| Cash, Cash Equivalents and Short-Term Investments | 588.39M | 884.48M | 177.98M | 41.31M | 7.07M | 9.48M |
| Total Debt | 46.82M | 43.46M | 38.38M | 72.65M | 42.28M | 39.42M |
| Total Liabilities | 75.56M | 63.58M | 137.21M | 83.84M | 56.41M | 47.82M |
| Stockholders Equity | 1.12B | 852.23M | 62.65M | -24.48M | -29.46M | -18.36M |
Cash Flow | ||||||
| Free Cash Flow | -102.17M | -75.84M | -44.75M | -61.28M | -45.72M | -36.80M |
| Operating Cash Flow | -97.66M | -71.98M | -42.64M | -60.65M | -45.23M | -34.80M |
| Investing Cash Flow | -502.70M | -251.13M | -3.14M | -630.00K | -498.00K | -2.00M |
| Financing Cash Flow | 633.39M | 779.15M | 182.45M | 95.64M | 43.27M | 24.91M |
D-Wave Quantum Technical Analysis
Positive
21.69
Price Trends
19.50
Positive
20.71
Positive
23.20
Positive
Market Momentum
2.46
Negative
68.33
Neutral
81.81
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QBTS, the sentiment is Positive. The current price of 21.69 is below the 20-day moving average (MA) of 23.41, above the 50-day MA of 19.50, and below the 200-day MA of 23.20, indicating a bullish trend. The MACD of 2.46 indicates Negative momentum. The RSI at 68.33 is Neutral, neither overbought nor oversold. The STOCH value of 81.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QBTS.
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 |
|---|---|---|---|---|---|---|---|
63 Neutral | $8.98B | ― | -43.94% | ― | 8.75% | -4.39% | |
62 Neutral | $10.91B | ― | -44.05% | ― | -41.75% | -87.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $26.18B | 93.33 | 9.08% | ― | 334.58% | ― | |
58 Neutral | $2.76B | ― | -3.55% | ― | 1025.71% | 42.03% |
* Technology Sector Average
QBTS
D-Wave Quantum
30.14
13.03
76.15%
QUBT
Quantum Computing
11.96
0.16
1.36%
IONQ
IonQ
72.07
31.50
77.64%
RGTI
Rigetti Computing
25.54
13.28
108.32%
D-Wave Quantum Corporate Events
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 ...
Business Operations and Strategy
D-Wave Quantum Highlights European Expansion with Qubits Conference
Positive
May 5, 2026
D-Wave Quantum announced on May 5, 2026, that it will host Qubits Europe 2026: Quantum Realized, a full-day user conference in London on June 18, 2026, aimed at showcasing how customers are applying its quantum technologies to complex business, sc...
Executive/Board Changes
D-Wave Quantum Enhances CEO Compensation to Support Growth
Positive
May 4, 2026
On April 30, 2026, D-Wave Quantum Inc. and its subsidiary D-Wave Commercial Inc. amended the employment agreement of President and CEO Dr. Alan Baratz to update his compensation package, following approval by the board of directors based on a reco...
Business Operations and StrategyM&A Transactions
D-Wave Quantum Plans First Investor Day to Highlight Strategy
Positive
Apr 29, 2026
On April 29, 2026, D-Wave Quantum announced plans to hold its first Investor Day on June 1, 2026, at the New York Stock Exchange and online, under the theme “The D-Wave Difference.” The event is intended to showcase the company’s...
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.