D-Wave Quantum (NYSE:QBTS – Get Free Report) announced its quarterly earnings results on Tuesday. The company reported ($0.05) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.08) by $0.03, FiscalAI reports. D-Wave Quantum had a negative net margin of 1,444.10% and a negative return on equity of 58.58%. The firm had revenue of $2.86 million for the quarter, compared to analyst estimates of $4.19 million. During the same quarter in the previous year, the firm posted ($0.02) earnings per share. The business’s revenue was down 80.9% on a year-over-year basis.
Here are the key takeaways from D-Wave Quantum’s conference call:
- D-Wave highlighted a record Q1 bookings figure of $33.4 million, up nearly 2,000% year over year, driven by major deals including a $20 million system sale to Florida Atlantic University and a $10 million enterprise QaaS agreement.
- Management said the sales pipeline more than doubled sequentially in Q1, and raised its expectations for system deals to 2 to 3 sales per year, with at least 2 systems expected to be delivered in 2026.
- The company reported $588.4 million in cash and marketable investments at quarter end and said this liquidity is sufficient to support a fully funded path to profitability.
- D-Wave emphasized progress in its dual-platform strategy, combining its annealing leadership with the Quantum Circuits acquisition to pursue gate-model quantum computing, including a roadmap to 100 logical qubits by 2032.
- Revenue was $2.9 million in Q1, down sharply from last year because the prior-year quarter included a large system sale, while operating losses widened as the company increased spending on R&D, sales and marketing, and Quantum Circuits integration.
D-Wave Quantum Stock Down 2.2%
QBTS traded down $0.52 during trading on Tuesday, reaching $23.51. 14,187,814 shares of the stock were exchanged, compared to its average volume of 29,329,650. The company has a debt-to-equity ratio of 0.04, a quick ratio of 42.25 and a current ratio of 42.38. The stock’s 50 day moving average price is $17.83 and its two-hundred day moving average price is $22.84. D-Wave Quantum has a twelve month low of $10.36 and a twelve month high of $46.75. The stock has a market cap of $8.70 billion, a P/E ratio of -20.97 and a beta of 1.95.
Key Headlines Impacting D-Wave Quantum
- Positive Sentiment: D-Wave beat earnings expectations, posting an adjusted loss of $0.05 per share versus the $0.08 loss analysts expected, which suggests better-than-feared profitability trends. QBTS earnings report
- Positive Sentiment: Bookings surged nearly 2,000%, a major sign that customer demand is accelerating even though current revenue remains uneven. TipRanks article
- Positive Sentiment: Investors appear to be focusing on the company’s “lumpy” but potentially scaling commercialization story, including new government deals and momentum for its Advantage2 systems. Barron’s article
- Neutral Sentiment: Revenue fell sharply to $2.86 million, well below expectations, showing that the business is still early and highly volatile quarter to quarter. QBTS earnings report
- Neutral Sentiment: The company remains unprofitable, with a large negative net margin and return on equity, so valuation and execution risk remain important concerns for investors. Seeking Alpha preview
Insider Activity
In related news, VP Sophie C. Ames sold 3,070 shares of the firm’s stock in a transaction dated Monday, April 20th. The shares were sold at an average price of $21.35, for a total value of $65,544.50. Following the completion of the sale, the vice president directly owned 643,678 shares in the company, valued at approximately $13,742,525.30. This trade represents a 0.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John D. Dilullo sold 8,000 shares of D-Wave Quantum stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $18.01, for a total value of $144,080.00. Following the transaction, the director owned 19,803 shares of the company’s stock, valued at $356,652.03. The trade was a 28.77% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 31,776 shares of company stock worth $574,571. Insiders own 3.20% of the company’s stock.
Institutional Inflows and Outflows
Several hedge funds and other institutional investors have recently made changes to their positions in QBTS. UBS Group AG raised its stake in D-Wave Quantum by 541.6% in the 3rd quarter. UBS Group AG now owns 12,089,703 shares of the company’s stock valued at $298,737,000 after acquiring an additional 10,205,427 shares during the period. Marex Group plc raised its stake in D-Wave Quantum by 74.9% in the 4th quarter. Marex Group plc now owns 4,592,656 shares of the company’s stock worth $120,098,000 after purchasing an additional 1,966,500 shares in the last quarter. State Street Corp boosted its stake in shares of D-Wave Quantum by 41.3% in the second quarter. State Street Corp now owns 6,648,395 shares of the company’s stock valued at $97,333,000 after buying an additional 1,941,762 shares during the period. Man Group plc bought a new stake in shares of D-Wave Quantum during the 2nd quarter valued at $26,535,000. Finally, Defiance ETFs LLC bought a new stake in D-Wave Quantum during the fourth quarter worth about $39,120,000. 42.47% of the stock is currently owned by institutional investors.
Analyst Upgrades and Downgrades
Several research firms recently commented on QBTS. TD Cowen began coverage on shares of D-Wave Quantum in a research note on Thursday, February 12th. They issued a “buy” rating for the company. Mizuho decreased their price objective on D-Wave Quantum from $46.00 to $40.00 and set an “outperform” rating for the company in a report on Friday, February 27th. Northland Securities assumed coverage on D-Wave Quantum in a research note on Monday, April 20th. They issued a “market perform” rating and a $22.00 target price on the stock. Roth Mkm decreased their price target on shares of D-Wave Quantum from $40.00 to $30.00 and set a “buy” rating for the company in a research note on Friday, February 27th. Finally, Weiss Ratings cut shares of D-Wave Quantum from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Wednesday, April 29th. Fourteen analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, D-Wave Quantum presently has a consensus rating of “Moderate Buy” and an average target price of $35.53.
Check Out Our Latest Research Report on QBTS
D-Wave Quantum Company Profile
D-Wave Quantum Inc (NYSE: QBTS) develops and provides quantum computing systems, software and services focused on quantum annealing technology. Headquartered in Burnaby, British Columbia, D-Wave designs specialized processors that leverage quantum mechanics to solve complex optimization and sampling problems. Since its founding in 1999 by physicists including Geordie Rose, the company has pursued the development of commercially viable quantum hardware and accompanying software tools.
The company’s product portfolio centers on its quantum annealers, which are complemented by hybrid solvers that integrate classical and quantum computing resources.
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