D-Wave Quantum (NASDAQ:QBTS) Releases Quarterly Earnings Results, Misses Expectations By $0.02 EPS

D-Wave Quantum (NASDAQ:QBTS) announced its quarterly earnings data on Thursday. The company reported ($0.10) earnings per share for the quarter, missing the consensus estimate of ($0.08) by ($0.02), reports. D-Wave Quantum had a negative net margin of 2,001.59% and a negative return on equity of 28.19%. The firm had revenue of $3.08 million during the quarter, compared to analyst estimates of $4.03 million. During the same quarter last year, the company earned ($0.08) EPS. The company’s quarterly revenue was down 0.6 compared to the same quarter last year.

Here are the key takeaways from D-Wave Quantum’s conference call:

• Commercial traction improved: Q2 bookings rose 59% year over year to $2.1 million, while first-half bookings increased 1,120% to $35.5 million, including a $20 million Florida Atlantic University system sale. Remaining performance obligations reached $40.7 million, with 57% expected to convert to revenue within 12 months.
• Production adoption expanded, with six customer applications now in production. Production applications generated more than 37% of first-half QCaaS revenue, up from 9.8% a year earlier, and customers including AT&T, Optum, and NTT Docomo reported material efficiency improvements.
• D-Wave highlighted technical validation for its gate-model strategy, including a peer-reviewed Nature paper demonstrating approximately 99.9% two-qubit gate fidelity and roughly 500-nanosecond gate times. Management reiterated milestones for a 17-qubit system by year-end 2026 and a 100-logical-qubit system capable of more than one million reliable operations by 2032.
• Revenue was essentially flat year over year at $3.1 million in Q2, while adjusted EBITDA loss widened 85% to $37.1 million as the company increased personnel spending for product development and go-to-market efforts. First-half revenue fell 67% because the prior-year period included a large system sale.
• Cash and marketable securities declined to $546.2 million, primarily following the approximately $250 million cash acquisition of Quantum Circuits. Management expects only modest revenue growth in Q3, with the majority of 2026 revenue dependent on two annealing-system deliveries and related installation work in Q4 and potentially 2027.

D-Wave Quantum Trading Up 7.0%

NASDAQ QBTS traded up $1.35 on Friday, hitting $20.76. 16,240,271 shares of the stock were exchanged, compared to its average volume of 17,081,524. The company’s 50-day moving average price is $21.74 and its two-hundred day moving average price is $20.59. The company has a debt-to-equity ratio of 0.03, a current ratio of 21.41 and a quick ratio of 21.31. D-Wave Quantum has a 52-week low of $12.75 and a 52-week high of $46.75. The company has a market capitalization of $7.68 billion, a price-to-earnings ratio of -29.24 and a beta of 2.15.

Analyst Upgrades and Downgrades

QBTS has been the subject of a number of research analyst reports. Roth Capital reissued a “buy” rating and issued a $30.00 price target on shares of D-Wave Quantum in a report on Thursday. Mizuho lifted their price objective on shares of D-Wave Quantum from $29.00 to $35.00 and gave the stock an “outperform” rating in a research note on Monday, June 15th. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $40.00 price objective on shares of D-Wave Quantum in a research note on Wednesday, May 13th. Wedbush initiated coverage on shares of D-Wave Quantum in a report on Monday, August 3rd. They issued an “outperform” rating and a $40.00 target price on the stock. Finally, Jefferies Financial Group set a $40.00 target price on shares of D-Wave Quantum in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, D-Wave Quantum presently has a consensus rating of “Moderate Buy” and a consensus price target of $36.36.

Insider Buying and Selling

In related news, CFO John M. Markovich sold 200,000 shares of the company’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $25.71, for a total transaction of $5,142,000.00. Following the transaction, the chief financial officer directly owned 1,142,820 shares of the company’s stock, valued at approximately $29,381,902.20. The trade was a 14.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Alan E. Baratz sold 687,627 shares of the company’s stock in a transaction on Monday, June 8th. The shares were sold at an average price of $26.13, for a total value of $17,967,693.51. Following the transaction, the chief executive officer directly owned 3,299,771 shares in the company, valued at $86,223,016.23. The trade was a 17.25% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 1,363,842 shares of company stock valued at $35,789,148. 1.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On D-Wave Quantum

A number of large investors have recently made changes to their positions in the business. UBS Group AG increased 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 buying an additional 10,205,427 shares during the period. Marex Group plc grew its holdings in shares of D-Wave Quantum by 74.9% during the 4th quarter. Marex Group plc now owns 4,592,656 shares of the company’s stock valued at $120,098,000 after acquiring an additional 1,966,500 shares in the last quarter. State Street Corp increased 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 worth $97,333,000 after acquiring an additional 1,941,762 shares during the last quarter. Man Group plc acquired a new position in shares of D-Wave Quantum in the second quarter worth $26,535,000. Finally, Defiance ETFs LLC purchased a new stake in shares of D-Wave Quantum during the fourth quarter worth $39,120,000. Institutional investors and hedge funds own 42.47% of the company’s stock.

Key Headlines Impacting D-Wave Quantum

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

• Positive Sentiment: Bookings and customer adoption improved substantially. D-Wave reported a roughly 1,120% year-over-year increase in first-half bookings, a $40.7 million backlog and growing exposure to commercial customers. Management said production annealing usage is expanding, supporting the company’s long-term growth narrative. D-Wave CEO says QBTS ready to lead the quantum market after a 1,100% surge in first-half bookings
• Positive Sentiment: Analyst confidence is providing support. Rosenblatt Securities reaffirmed its “Buy” rating and set a $43 price target, implying substantial upside from current levels. Broader coverage also identifies quantum computing as a potential beneficiary of increasing AI investment and government support for next-generation computing. Beyond NVIDIA and GPUs: The Next AI and Quantum Winners Leading 2026
• Neutral Sentiment: The investment case remains dependent on execution. D-Wave is developing a staged path toward commercially relevant gate-model quantum computing, while management expects a disproportionate share of 2026 revenue to arrive in the fourth quarter. That outlook could produce significant upside if adoption accelerates, but also leaves results sensitive to timing and customer deployments. QBTS Q2 Earnings Call Focuses on Adoption and Quantum Roadmaps
• Negative Sentiment: Second-quarter results missed expectations. Revenue was $3.08 million versus approximately $4.03 million expected, while the loss was $0.10 per share compared with an anticipated $0.08 loss. Revenue also declined slightly year over year, and the company continues to report substantial net losses. These results initially pressured the shares despite the bookings growth. QBTS Stock Falls on Wider-Than-Expected Q2 Loss and Revenue Miss

About D-Wave Quantum

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.