Is This Quantum Outperformer a New Threat to D-Wave?

Key Points

• Despite recent successes, D-Wave Quantum shares are down by about 30% year-to-date, part of a broader sell-off in the quantum space.
• While most pure-play quantum firms have been heavily impacted by the dip, rival Quantum Computing has fallen by less than some of its peers.
• However, despite outperforming others in the industry, Quantum Computing carries heavy risks for investors associated with its low revenue, strong reliance on stock sales, and mounting operating expenses.

D-Wave Quantum Inc. NYSE: QBTS is off to a dynamite start to 2026 in many ways. The company began the year by closing on its $550-million acquisition of Quantum Circuits, a move that solidifies its growing presence in the traditional gate-model quantum tech space. At the same time, the company has reported multiple new deals for its pre-existing Advantage2 quantum annealing system, so it is not backing down from its original approach to quantum tech as well—the company is now a full-fledged dual-tech operation, which sets it apart from rivals. Finally, a renewed push into defense sector applications has the potential to open up a new set of clients and projects going forward.

Still, investors have punished D-Wave shares with a decline of 30% year-to-date (YTD), despite these multiple wins. What's more, the quantum industry writ large has experienced a pronounced selloff so far this year, bringing share prices down even as technological advances continue to unfold. In the face of these declines across pure-play quantum names, Quantum Computing Inc. NASDAQ: QUBT has managed to escape the worst. QUBT shares are down solidly YTD, but not quite to the same degree as QBTS and several other rivals. Is there something about this firm that stands out and should investors see it as a rival to D-Wave amid the slump?

A Closer Look At Quantum Computing's Fundamentals

On one level, Quantum Computing seems to be a strong contender amid the competitive field of companies focused exclusively on building quantum computing tech. The firm has a Moderate Buy rating, with half of the six analysts reviewing it making a bullish assessment. Beyond that, Wall Street expects that Quantum Computing shares could more than double, rising by 112% to reach $18 per share. The newest rating—an optimistic Buy coupled with a $22 price forecast—came just last month from Rosenblatt Securities.

Digging deeper, though, it's not clear that the company's fundamentals support this cheery view of Quantum Computing's potential. For one thing, the firm generated just $384,000 in revenue in the last reported quarter, with just over half a million dollars in revenue in the trailing 12-month period. This is tiny, even compared to other quantum industry firms that are growing their sales (D-Wave's revenue for the latest quarter was about $3.7 million—not huge, but certainly more compelling nonetheless).

With a YTD net loss of more than $17 million as of the end of the third quarter of 2025, Quantum Computing is spending at a much faster rate than it is generating revenue. Operating expenses continue to climb as the firm pushes to bring products to market. It has also so far financed these costs with a series of stock sales—hundreds of millions of dollars worth in 2025—that continue to dilute shares for stockholders.

What Sets Quantum Computing Apart

Quantum Computing has so far not focused on trying to build the most powerful quantum computing systems possible, instead leaving that task to competitors like D-Wave. Rather, the firm has prioritized smaller components (including photonic integrated circuits, for instance) and tools that could bring quantum technology to commercial applications sooner. The bet seems to be that by aiming for accessible products, Quantum Computing may be able to get a head start on achieving profitability compared to its rivals.

While this may be a promising strategy, so far it has failed to yield much by way of results. The firm has yet to see widespread commercial success for any of its products and has not been able to grow long-term contracts with recurring customers in a significant way. That's not to say Quantum Computing isn't seeing some traction, particularly in automotive, financial, research, and government applications, but it has yet to be able to translate that interest into top- or bottom-line improvement.

For investors considering ditching D-Wave shares for Quantum Computing stock, it's important to be aware that neither company has been able to fully realize its goals of bringing quantum to the masses so far. Both face uphill battles going forward in order to meet those aims. But D-Wave has some key advantages—its recent acquisition, its Advantage2 momentum, its more robust revenue-generating potential, for instance—that may warrant sticking with shares despite the recent sell-off. With that in mind, the sell-off may be more of a dip and a buy opportunity, given that D-Wave has upside potential of almost 94% according to analysts.