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PALO ALTO, Calif. - On Thursday, D-Wave Quantum Inc. (NYSE:QBTS) reported second-quarter earnings that missed analyst expectations despite revenue growth.
The company’s shares were down 2.79% in pre-market trading following the release.
The quantum computing company posted an adjusted loss of $0.08 per share, missing analyst estimates of $0.05 per share. Revenue came in at $3.1 million, exceeding the consensus estimate of $2.59 million and representing a 42% increase YoY from $2.2 million in the same quarter last year.
D-Wave’s stock decline reflects investor concerns about the company’s profitability timeline despite its technological advancements. The company reported an Adjusted EBITDA loss of $20 million, up 44% from $13.9 million in the year-ago period, primarily due to higher operating expenses.
"Our second quarter results show consistently strong performance across a multitude of technical and business metrics," said Dr. Alan Baratz, CEO of D-Wave. "During the quarter, we brought to market our sixth-generation quantum computer, signed a memorandum of understanding related to the acquisition of an on-premises system in South Korea, completed physical assembly of the previously announced system at Davidson Technologies, and ended the quarter with a record $819 million in cash."
The company significantly strengthened its financial position, completing a $400 million At-the-Market equity offering and ending the quarter with approximately $819 million in cash, the highest in the company’s history. This represents a dramatic increase from $40.9 million in the same quarter last year.
D-Wave’s gross profit rose 42% YoY to $2 million, with a gross margin of 63.8%, slightly up from 63.6% in the second quarter of 2024. Operating expenses increased 41% to $28.5 million, driven by higher personnel costs, stock-based compensation, and fabrication activities.
During the quarter, D-Wave announced the general availability of its Advantage2 quantum computer, its most advanced system to date, designed to solve complex problems beyond the capabilities of classical computers.
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