D-Wave Quantum (NYSE:QBTS) Releases Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• D-Wave Quantum beat earnings expectations, posting an adjusted loss of $0.05 per share versus the expected $0.08 loss. However, quarterly revenue came in at just $2.86 million, well below estimates of $4.19 million.
• Bookings surged to a record $33.4 million in Q1, up nearly 2,000% year over year, driven by large deals including a $20 million system sale and a $10 million enterprise agreement.
• The company says it has ample cash runway, with $588.4 million in cash and marketable investments, and expects this liquidity to support a fully funded path to profitability.

D-Wave Quantum (NYSE:QBTS - Get Free Report) announced its quarterly earnings data on Tuesday. The company reported ($0.05) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.08) by $0.03, FiscalAI reports. The business had revenue of $2.86 million for the quarter, compared to the consensus estimate of $4.19 million. D-Wave Quantum had a negative net margin of 1,444.10% and a negative return on equity of 58.58%. D-Wave Quantum's quarterly revenue was down 80.9% on a year-over-year basis. During the same quarter last year, the company posted ($0.02) earnings per share.

Here are the key takeaways from D-Wave Quantum's conference call:

• D-Wave highlighted a record Q1 bookings figure of $33.4 million, up nearly 2,000% year over year, driven by major deals including a $20 million system sale to Florida Atlantic University and a $10 million enterprise QaaS agreement.
• Management said the sales pipeline more than doubled sequentially in Q1, and raised its expectations for system deals to 2 to 3 sales per year, with at least 2 systems expected to be delivered in 2026.
• The company reported $588.4 million in cash and marketable investments at quarter end and said this liquidity is sufficient to support a fully funded path to profitability.
• D-Wave emphasized progress in its dual-platform strategy, combining its annealing leadership with the Quantum Circuits acquisition to pursue gate-model quantum computing, including a roadmap to 100 logical qubits by 2032.
• Revenue was $2.9 million in Q1, down sharply from last year because the prior-year quarter included a large system sale, while operating losses widened as the company increased spending on R&D, sales and marketing, and Quantum Circuits integration.

D-Wave Quantum Price Performance

Shares of QBTS traded down $0.52 during mid-day trading on Tuesday, hitting $23.51. 14,187,814 shares of the company traded hands, compared to its average volume of 29,329,650. D-Wave Quantum has a one year low of $10.36 and a one year high of $46.75. The company has a current ratio of 42.38, a quick ratio of 42.25 and a debt-to-equity ratio of 0.04. The business has a 50-day moving average of $17.83 and a 200 day moving average of $22.84. The stock has a market capitalization of $8.70 billion, a price-to-earnings ratio of -20.97 and a beta of 1.95.

Insider Activity at D-Wave Quantum

In related news, Director Rohit Ghai sold 10,000 shares of D-Wave Quantum stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $17.62, for a total value of $176,200.00. Following the completion of the sale, the director directly owned 27,778 shares in the company, valued at $489,448.36. This trade represents a 26.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Sophie C. Ames sold 3,070 shares of the business's stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $21.35, for a total value of $65,544.50. Following the sale, the vice president directly owned 643,678 shares of the company's stock, valued at $13,742,525.30. This represents a 0.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 31,776 shares of company stock worth $574,571. Company insiders own 3.20% of the company's stock.

Institutional Trading of D-Wave Quantum

Institutional investors have recently bought and sold shares of the business. Kemnay Advisory Services Inc. bought a new position in shares of D-Wave Quantum in the 4th quarter worth $28,000. Ancora Advisors LLC bought a new position in D-Wave Quantum during the 3rd quarter worth approximately $30,000. Mcguire Capital Advisors Inc. acquired a new position in D-Wave Quantum during the fourth quarter valued at approximately $31,000. Parkside Financial Bank & Trust raised its holdings in D-Wave Quantum by 144.2% in the fourth quarter. Parkside Financial Bank & Trust now owns 1,270 shares of the company's stock worth $33,000 after purchasing an additional 750 shares during the period. Finally, Triumph Capital Management increased its position in shares of D-Wave Quantum by 650.0% in the 4th quarter. Triumph Capital Management now owns 1,500 shares of the company's stock valued at $39,000 after buying an additional 1,300 shares in the last quarter. Institutional investors and hedge funds own 42.47% of the company's stock.

D-Wave Quantum News Roundup

Here are the key news stories impacting D-Wave Quantum this week:

• Positive Sentiment: D-Wave beat earnings expectations, posting an adjusted loss of $0.05 per share versus the $0.08 loss analysts expected, which suggests better-than-feared profitability trends. QBTS earnings report
• Positive Sentiment: Bookings surged nearly 2,000%, a major sign that customer demand is accelerating even though current revenue remains uneven. TipRanks article
• Positive Sentiment: Investors appear to be focusing on the company’s “lumpy” but potentially scaling commercialization story, including new government deals and momentum for its Advantage2 systems. Barron's article
• Neutral Sentiment: Revenue fell sharply to $2.86 million, well below expectations, showing that the business is still early and highly volatile quarter to quarter. QBTS earnings report
• Neutral Sentiment: The company remains unprofitable, with a large negative net margin and return on equity, so valuation and execution risk remain important concerns for investors. Seeking Alpha preview

Analyst Upgrades and Downgrades

Several research firms have issued reports on QBTS. Rosenblatt Securities reiterated a "buy" rating and set a $43.00 price objective on shares of D-Wave Quantum in a research note on Wednesday, January 28th. Wall Street Zen lowered shares of D-Wave Quantum from a "hold" rating to a "sell" rating in a report on Saturday, February 7th. Canaccord Genuity Group set a $43.00 target price on shares of D-Wave Quantum in a research report on Thursday, January 29th. Mizuho reduced their price target on shares of D-Wave Quantum from $46.00 to $40.00 and set an "outperform" rating on the stock in a research report on Friday, February 27th. Finally, Weiss Ratings cut shares of D-Wave Quantum from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Wednesday, April 29th. Fourteen research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $35.53.

D-Wave Quantum Company Profile

D-Wave Quantum Inc NYSE: QBTS develops and provides quantum computing systems, software and services focused on quantum annealing technology. Headquartered in Burnaby, British Columbia, D-Wave designs specialized processors that leverage quantum mechanics to solve complex optimization and sampling problems. Since its founding in 1999 by physicists including Geordie Rose, the company has pursued the development of commercially viable quantum hardware and accompanying software tools.

The company's product portfolio centers on its quantum annealers, which are complemented by hybrid solvers that integrate classical and quantum computing resources.

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