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

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

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 8.6%

QBTS stock opened at $10.48 on Wednesday. D-Wave Quantum has a 1-year low of $8.48 and a 1-year high of $32.39. The business has a fifty day moving average price of $14.34 and a 200-day moving average price of $18.76. The company has a debt-to-equity ratio of 0.03, a quick ratio of 20.42 and a current ratio of 20.55.

Analyst Ratings Changes

Several brokerages recently commented on QBTS. Wall Street Zen raised shares of D-Wave Quantum from a “strong sell” rating to a “sell” rating in a research report on Saturday, August 8th. BMO Capital Markets assumed coverage on shares of D-Wave Quantum in a research note on Thursday, August 20th. They set an “outperform” rating and a $35.00 price objective for the company. Benchmark started coverage on shares of D-Wave Quantum in a report on Monday, July 27th. They issued a “buy” rating and a $30.00 target price for the company. Weiss Ratings upgraded shares of D-Wave Quantum from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Friday, August 28th. Finally, Roth Capital reiterated a “buy” rating and issued a $30.00 target price on shares of D-Wave Quantum in a research note on Thursday, August 6th. Thirteen research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $34.21.

Key D-Wave Quantum News

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

• Positive Sentiment: Revenue increased 21% year over year to $4.51 million, topping estimates. Nine-month bookings rose 611% to $37.4 million, while remaining performance obligations reached $38.3 million. D-Wave also reported $503.4 million in cash and investments and an agreement for access to up to $100 million in conditional CHIPS Act funding. D-Wave Reports Third Quarter 2026 Results
• Negative Sentiment: The company reported a quarterly loss of $0.13 per share, wider than the roughly $0.10 loss analysts expected, and a $48.2 million net loss. Operating expenses were $55.9 million, intensifying investor concern about cash burn despite the revenue beat. D Wave Quantum Stock Sinks As Q3 Results Expose Cash Burn
• Negative Sentiment: Third-quarter bookings fell about 19% year over year to $1.9 million, and reports noted weaker system sales. The nine-month bookings surge may not signal broad, steady demand: coverage says it was heavily influenced by a large university system sale, raising questions about the repeatability of growth. D-Wave Sinks as Q3 Loss Misses and Quarterly Bookings Fall
• Negative Sentiment: B. Riley cut its price target from $27 to $22, though it maintained a Buy rating. Separately, a securities class action has been filed alleging misstatements; the allegations are not proven, but the litigation adds uncertainty. B. Riley Financial Issues Pessimistic Forecast for D-Wave Quantum Class action announcement

About D-Wave Quantum

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.