D-Wave Quantum (NYSE:QBTS) Stock Price Down 9.3% on Disappointing Earnings

Key Points

• D-Wave Quantum shares fell 9.3% after the company reported quarterly EPS of a $0.13 loss, missing the expected $0.08 loss, while revenue of $3.08 million came in below estimates of about $4.03 million.
• Despite the earnings miss, customer bookings surged approximately 1,120% year over year and the company reported a backlog of roughly $40.7 million, signaling stronger future demand that has not yet translated into recognized revenue.
• Analysts remain broadly positive, with the stock carrying a “Moderate Buy” consensus rating and a $36.40 average price target, but substantial losses—including a negative net margin of about 2,957%—remain a key investor concern.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s share price was down 9.3% during trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $18.33 and last traded at $19.41. 23,542,683 shares were traded during mid-day trading, a decline of 21% from the average daily volume of 29,927,717 shares. The stock had previously closed at $21.39.

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

Trending Headlines about D-Wave Quantum

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

• Positive Sentiment: Customer bookings surged approximately 1,120% year over year, while D-Wave reported a backlog of about $40.7 million. The figures suggest improving commercial demand, although the revenue has not yet been recognized. Why D-Wave Quantum Stock Is Sliding After Earnings Reveal a 1,120% Surge in Bookings
• Positive Sentiment: D-Wave recently announced a Nature-published hardware breakthrough involving a high-fidelity, two-qubit entangling gate. The research could strengthen its path toward fault-tolerant, gate-model quantum computing and support its longer-term technology narrative. D-Wave Demonstrates Major Hardware Breakthrough
• Neutral Sentiment: The company operates across both annealing and gate-model quantum systems, software and services, giving investors exposure to multiple potential quantum-computing markets. However, the commercial impact of the newer technology remains uncertain. D-Wave’s Quantum Breakthrough Adds a Tailwind
• Negative Sentiment: Second-quarter revenue was $3.08 million, below analyst estimates of roughly $4.03 million to $4.08 million. The company reported a loss of $0.13 per share, wider than the expected $0.08 loss, though it improved from a $0.55 loss a year earlier. D-Wave Q2 Results
• Negative Sentiment: D-Wave continues to operate with substantial losses, including a reported negative net margin of roughly 2,957%. Investors appear concerned that bookings and backlog are not translating into current revenue quickly enough to justify the stock’s elevated valuation.

Analysts Set New Price Targets

A number of research firms have weighed in on QBTS. Jefferies Financial Group reissued a "buy" rating on shares of D-Wave Quantum in a research note on Tuesday, May 12th. Weiss Ratings upgraded D-Wave Quantum from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, June 23rd. Roth Capital restated a "buy" rating on shares of D-Wave Quantum in a report on Thursday. Stifel Nicolaus set a $35.00 price target on D-Wave Quantum in a research report on Tuesday, June 2nd. Finally, Canaccord Genuity Group set a $35.00 price objective on shares of D-Wave Quantum in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $36.40.

Insiders Place Their Bets

In other D-Wave Quantum news, Director John D. Dilullo sold 7,850 shares of the business's stock in a transaction on Friday, June 5th. The shares were sold at an average price of $24.43, for a total value of $191,775.50. Following the transaction, the director directly owned 21,310 shares of the company's stock, valued at approximately $520,603.30. The trade was a 26.92% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Markovich sold 200,000 shares of the company's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $25.71, for a total transaction of $5,142,000.00. Following the transaction, the chief financial officer owned 1,142,820 shares of the company's stock, valued at approximately $29,381,902.20. The trade was a 14.89% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 1,363,842 shares of company stock valued at $35,789,148. 1.30% of the stock is owned by insiders.

Hedge Funds Weigh In On D-Wave Quantum

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. UBS Group AG grew its stake in shares of D-Wave Quantum by 541.6% during the 3rd quarter. UBS Group AG now owns 12,089,703 shares of the company's stock worth $298,737,000 after purchasing an additional 10,205,427 shares during the period. Northwestern Mutual Wealth Management Co. raised its position in shares of D-Wave Quantum by 136,842.4% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,194,866 shares of the company's stock worth $83,546,000 after purchasing an additional 3,192,533 shares during the last quarter. Goldman Sachs Group Inc. lifted its position in shares of D-Wave Quantum by 311.6% in the fourth quarter. Goldman Sachs Group Inc. now owns 3,548,013 shares of the company's stock valued at $92,781,000 after acquiring an additional 2,685,980 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of D-Wave Quantum during the 2nd quarter worth about $54,951,000. Finally, Marex Group plc boosted its position in D-Wave Quantum by 74.9% during the fourth quarter. Marex Group plc now owns 4,592,656 shares of the company's stock worth $120,098,000 after acquiring an additional 1,966,500 shares during the last quarter. Institutional investors and hedge funds own 42.47% of the company's stock.

D-Wave Quantum Stock Performance

The company has a debt-to-equity ratio of 0.03, a current ratio of 21.41 and a quick ratio of 21.31. The firm has a market cap of $7.18 billion, a PE ratio of -17.18 and a beta of 2.15. The stock has a 50-day moving average price of $22.13 and a 200 day moving average price of $20.65.

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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