D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat

Published 07/08/2025, 12:36
 D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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