D-Wave Quantum (NYSE:QBTS) Shares Gap Down After Earnings Miss

Key Points

• D-Wave Quantum shares fell sharply after the company reported a quarterly loss of $0.13 per share, versus the expected $0.08 loss, and revenue of $3.08 million, below the $4.03 million consensus estimate.
• Despite the earnings miss, bookings rose 1,120% year over year and the company reported a $40.7 million backlog, pointing to stronger future demand. D-Wave also highlighted a quantum hardware breakthrough involving an approximately 99.9%-fidelity two-qubit gate.
• Wall Street remains broadly optimistic, with analysts assigning a consensus “Moderate Buy” rating and a $36.80 price target, although significant ongoing losses and recent insider selling remain concerns.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s stock price gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $21.39, but opened at $18.44. D-Wave Quantum shares last traded at $19.9090, with a volume of 8,062,664 shares traded.

The company reported ($0.13) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.08) by ($0.05). D-Wave Quantum had a negative return on equity of 44.06% and a negative net margin of 2,957.23%.The firm had revenue of $3.08 million for the quarter, compared to the consensus estimate of $4.03 million.

D-Wave Quantum News Roundup

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

• Positive Sentiment: Bookings surged 1,120% year over year, and D-Wave reported a $40.7 million backlog, suggesting stronger customer demand and potential future revenue growth. Why D-Wave Quantum Stock Is Sliding After Earnings Reveal a 1,120% Surge in Bookings
• Positive Sentiment: A Nature-published study demonstrated a high-fidelity, two-qubit entangling gate—reported at approximately 99.9% fidelity—supporting D-Wave’s effort to develop practical, fault-tolerant gate-model quantum computing. The advance could strengthen its technology roadmap and commercial positioning. D-Wave Demonstrates Major Hardware Breakthrough
• Neutral Sentiment: Wedbush began coverage of D-Wave, potentially increasing institutional attention, although the available report did not provide a detailed rating or price target. Wedbush Begins Coverage on D-Wave Quantum
• Negative Sentiment: Second-quarter revenue was $3.08 million, below the $4.03 million analyst consensus, while adjusted earnings of negative $0.13 per share missed expectations of negative $0.08. The wider-than-expected loss overshadowed the backlog and bookings growth. D-Wave Stock Sinks as Wider Losses Overshadow Backlog
• Negative Sentiment: D-Wave remains deeply unprofitable, with a reported negative net margin of 2,957.23%, and investors may be concerned that commercialization is not yet translating into meaningful revenue or earnings. The broader quantum-computing group has also retreated from recent highs, adding to sector volatility.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the stock. Rosenblatt Securities reiterated a "buy" rating and set a $43.00 price target on shares of D-Wave Quantum in a research report on Tuesday, July 28th. Stifel Nicolaus set a $35.00 price target on shares of D-Wave Quantum in a research note on Tuesday, June 2nd. Wedbush initiated coverage on D-Wave Quantum in a research note on Monday. They set an "outperform" rating and a $40.00 price objective on the stock. Needham & Company LLC reiterated a "buy" rating and issued a $40.00 price objective on shares of D-Wave Quantum in a report on Tuesday, June 2nd. Finally, Roth Capital boosted their target price on D-Wave Quantum from $30.00 to $40.00 and gave the company a "buy" rating in a research note on Tuesday, June 2nd. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $36.80.

Insider Buying and Selling

In related news, Director Rohit Ghai sold 13,518 shares of the business's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $26.41, for a total transaction of $357,010.38. Following the transaction, the director owned 23,617 shares in the company, valued at $623,724.97. The trade was a 36.40% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Sophie C. Ames sold 3,070 shares of the company's stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $16.95, for a total value of $52,036.50. Following the transaction, the vice president directly owned 589,009 shares of the company's stock, valued at $9,983,702.55. The trade was a 0.52% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,363,842 shares of company stock valued at $35,789,148 over the last ninety days. Corporate insiders own 1.30% of the company's stock.

Institutional Trading of D-Wave Quantum

Large investors have recently added to or reduced their stakes in the stock. Handelsbanken Fonder AB increased its position in D-Wave Quantum by 23.6% during the 2nd quarter. Handelsbanken Fonder AB now owns 133,200 shares of the company's stock valued at $3,195,000 after purchasing an additional 25,400 shares during the period. Bay Rivers Group lifted its position in shares of D-Wave Quantum by 62.2% in the 2nd quarter. Bay Rivers Group now owns 17,357 shares of the company's stock worth $416,000 after purchasing an additional 6,657 shares during the period. Thurston Springer Miller Herd & Titak Inc. boosted its stake in shares of D-Wave Quantum by 428.6% during the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 1,850 shares of the company's stock valued at $44,000 after purchasing an additional 1,500 shares in the last quarter. Castle Rock Wealth Management LLC purchased a new position in shares of D-Wave Quantum during the second quarter valued at about $213,000. Finally, Evanson Financial LLC purchased a new position in shares of D-Wave Quantum during the second quarter valued at about $214,000. Institutional investors own 42.47% of the company's stock.

D-Wave Quantum Trading Down 5.3%

The company has a market capitalization of $7.50 billion, a P/E ratio of -18.00 and a beta of 2.15. The stock's 50 day moving average is $22.13 and its 200-day moving average is $20.65. The company has a debt-to-equity ratio of 0.03, a current ratio of 21.41 and a quick ratio of 21.31.

About D-Wave Quantum

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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