What to Watch for From D-Wave Now That Earnings Are Done

Key Points

• After a mixed earnings report, D-Wave Quantum shares have slumped in August, falling by about 9% over the month.
• Investors should watch for indicators that rivals are advancing while D-Wave tries to build up its top- and bottom-line performance in a race toward profitability.
• The company's short- and medium-term success also hinges on its deployment of its massive capital reserves, potentially via one or more acquisitions or major R&D efforts.

The mid-year earnings season for D-Wave Quantum Inc. NYSE: QBTS has come and gone, with the quantum computing firm posting mixed results but seeing a share price spike in the days following the announcement. But while D-Wave was up about 20% in the month leading to mid-August, as of the start of September 2025, shares have slumped by 9% in the same 30-day time period.

While there were some positive signals in D-Wave's earnings report, including a suggestion that the company may be about to embark on a significant buying spree using its more than $800 million in cash reserves, with a bit of hindsight, it seems that the market's response to D-Wave has been somewhat cooler than it initially seemed. Investors may now be questioning whether this may be an opportune time to buy the stock, or if the recent price drop may signal a plateau that is more difficult to overcome.

Intense Competition Challenges D-Wave’s Market Position

One of the key things for D-Wave investors to watch for are potential emerging threats from the company's quantum competitors. Rival IonQ Inc. NYSE: IONQ, for example, has outperformed D-Wave in the last month, with shares rising close to 8% during that time amid news that Amazon NASDAQ: AMZN took on a new equity stake in the company. Another competitor, Quantum Computing Inc. NASDAQ: QUBT, is up just over 1% in the last month.

This firm has notched achievements in the niche area of quantum sensing and stands out for its potential in cybersecurity and AI.

The quantum industry is fast-growing and far from established. D-Wave's technological breakthroughs in the annealing space, among others, have helped to position it as an early leader, but the competition is intense. To maintain a dominant position, investors will want to see the firm continue its rapid pace of innovation or risk being overtaken by other companies.

Advantage2 Quantum System Plays Key Role in Sales Growth

Earnings and revenue performance are key to success in the quantum computing race. As a nascent industry, most of the smaller companies focused on this technology—as opposed to much larger, already established tech giants with new quantum branches—are pre-profitable. To be viable over the long term, companies like D-Wave must find a path toward sustained profits.

So far, this has remained elusive for D-Wave. The company missed earnings estimates in the second quarter of the year, posting losses of 8 cents per share. While not surprising, this is also disappointing for investors hoping for a sign that the company's growing popularity and product line-up could help to move it toward profitability. Indications that profitability is, in fact, within reach could dramatically boost D-Wave's appeal.

On the other hand, the firm has had better news when it comes to revenue. Revenue climbed by more than 40% year-over-year in the last quarter, reaching over $3 million for the first time. D-Wave still has a somewhat patchy approach to revenue—the company remains reliant on a few major sales of its quantum systems, like the Advantage2, in order to reach revenue goals each quarter—but growth in this area is certainly welcome and promising for the firm's overall marketability.

Of course, investors will likely have to wait until the next earnings report in November for a fuller picture of D-Wave's earnings and revenue performance, but it is worth watching for hints from management in the meantime nonetheless.

Long-Awaited Acquisitions and R&D Updates for D-Wave

D-Wave drew investor attention from its efforts to bulk up its cash reserves in recent months, including via a $400-million equity offering earlier in the summer.

The company reached the midpoint of the year with the largest cash reserves in company history, and now investors will be eager to see what the firm does with this money. 

Management has suggested that a picture of D-Wave's acquisition strategy will emerge in the second half of the year. Investors should watch for any signs of the company's interest in potential buyouts of rivals.

R&D is another possible beneficiary of D-Wave's ample cash holdings. The company could expand its technological exploration in many areas, from its recent pursuit of gate-model quantum tech to niche areas like cryogenic packaging.

Announcements of tech developments may take time, but they will be a helpful indicator of D-Wave's strategic priorities.