D-Wave Quantum (NASDAQ:QBTS) Releases Quarterly Earnings Results, Misses Expectations By $0.03 EPS

Key Points

• D-Wave reported adjusted EPS of -$0.13, missing analysts’ estimate by $0.03, while revenue rose 21% year over year to $4.51 million, slightly above expectations.
• Demand indicators were mixed: nine-month bookings surged 611% to $37.4 million and remaining performance obligations reached $38.3 million, but quarterly bookings fell 19% to $1.9 million.
• Operating expenses climbed 84% to $55.9 million and adjusted EBITDA loss widened to $37.7 million. D-Wave ended the quarter with $503.4 million in cash and marketable securities and said it could access up to $100 million in conditional CHIPS Act funding.

D-Wave Quantum (NASDAQ:QBTS - Get Free Report) announced its quarterly earnings results on Tuesday. The company reported ($0.13) EPS for the quarter, missing the consensus estimate of ($0.10) by ($0.03), FiscalAI reports. The company had revenue of $4.51 million during the quarter, compared to analysts' expectations of $4.37 million. D-Wave Quantum had a negative return on equity of 26.67% and a negative net margin of 2,001.59%. During the same quarter in the previous year, the firm earned ($0.41) EPS.

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

• Third-quarter revenue rose 21% year over year to $4.5 million, with QCaaS subscription revenue up 56% and professional services up 318%. Bookings were mixed: down 19% in the quarter to $1.9 million, but up 611% year to date to $37.4 million, including a $20 million Florida Atlantic University system sale expected to generate substantial revenue in Q4.
• Commercial indicators strengthened, with the sales pipeline up more than 75% from Q2 and remaining performance obligations reaching $38.3 million, over 13 times the year-earlier balance. D-Wave said 59% of RPO is expected to convert to revenue within 12 months; NTT DOCOMO also deployed a second production application using its technology.
• Costs and losses increased: GAAP operating expenses rose 84% year over year to $55.9 million, while adjusted EBITDA loss widened by $17 million to $37.7 million. GAAP gross margin fell to 52.9%, which the company attributed mainly to a greater share of lower-margin professional services revenue.
• D-Wave secured a definitive agreement providing access to up to $100 million in CHIPS Act funding, subject to milestones, and reported $503.4 million in cash and marketable securities at quarter-end. It also advanced hardware plans, including a dual-chip annealing processor entering fabrication and scalable control chips expected back for testing.
• The company reiterated its goal of a 17-qubit gate-model system and said it is discussing orders for delivery in 2027; its longer-term target is 100 fault-tolerant logical qubits by 2032. These remain roadmap goals, and management said no quantum computing company has yet produced a logical qubit meeting its stated fault-tolerant standard.

D-Wave Quantum Trading Down 8.1%

Shares of NASDAQ QBTS traded down $0.93 during trading hours on Tuesday, hitting $10.54. 13,883,263 shares of the company traded hands, compared to its average volume of 25,396,240. The stock has a market capitalization of $3.90 billion, a price-to-earnings ratio of -14.79 and a beta of 2.35. The company has a current ratio of 20.55, a quick ratio of 20.42 and a debt-to-equity ratio of 0.03. The company's 50 day moving average price is $14.47 and its 200 day moving average price is $18.84. D-Wave Quantum has a 12 month low of $8.48 and a 12 month high of $32.39.

Wall Street Analyst Weigh In

QBTS has been the subject of a number of research reports. Canaccord Genuity Group set a $35.00 price target on D-Wave Quantum in a research note on Thursday, August 6th. Wedbush assumed coverage on D-Wave Quantum in a research note on Monday, August 3rd. They issued an "outperform" rating and a $40.00 price objective on the stock. Jefferies Financial Group set a $40.00 price objective on D-Wave Quantum in a report on Friday, August 7th. Wall Street Zen upgraded D-Wave Quantum from a "strong sell" rating to a "sell" rating in a research report on Saturday, August 8th. Finally, Weiss Ratings upgraded D-Wave Quantum from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Friday, August 28th. Thirteen analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $35.07.

Key Stories Impacting D-Wave Quantum

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

• Positive Sentiment: Nine-month bookings surged 611% year over year to $37.4 million, while remaining performance obligations rose 1,221% to $38.3 million. These figures point to stronger demand and a growing future-revenue pipeline. D-Wave reports Q3 results
• Positive Sentiment: Revenue increased 21% to $4.51 million, slightly exceeding analysts’ $4.37 million estimate. The quarterly net loss narrowed to $48.2 million from $140.0 million a year earlier. D-Wave reports Q3 results
• Positive Sentiment: D-Wave said it can access up to $100 million in federal CHIPS and Science Act funding, subject to conditions and milestones. It also reported $503.4 million in cash and marketable securities, supporting its financial flexibility. D-Wave reports Q3 results
• Neutral Sentiment: B. Riley cut its price target to $22 from $27 but maintained a Buy rating, reflecting a lower valuation outlook while retaining a positive recommendation. B. Riley rating information
• Negative Sentiment: Adjusted quarterly loss per share of $0.13 was wider than the $0.10 analysts expected. Quarterly bookings fell about 19% year over year, and operating expenses reportedly climbed 84% to $55.9 million—signs that commercialization and profitability remain challenges. D-Wave bookings and Q3 revenue
• Negative Sentiment: Several law firms publicized a securities class action covering investors who bought shares from February 26 through August 25, 2026. The complaint alleges material misstatements or omissions; the claims are allegations, but the litigation creates reputational and legal uncertainty. Class action deadline notice

D-Wave Quantum Company Profile

D-Wave Quantum develops quantum computing systems, software and services for commercial, government and research users. The company focuses on quantum annealing, an approach designed to help solve complex optimization and sampling problems, and offers hybrid tools that combine quantum processing with classical computing.

Its offerings include Advantage quantum computers, the Leap quantum cloud service, and software for building and running applications. D-Wave's technology is used to explore challenges such as scheduling, resource allocation and supply-chain optimization.

Founded in 1999, D-Wave has long focused on bringing quantum computing into practical use.

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