Key Highlights

  • D-Wave shares are trading down 5.42% at $10.07 versus a prior close of $10.65.
  • Third quarter Revenue rose 21% to $4.5 million.
  • Quarterly bookings fell 19% to $1.9 million, while nine-month bookings rose 611%.
  • The adjusted EBITDA loss widened 83% to $37.7 million.
  • Cash and marketable securities were $503.4 million.

D-Wave Quantum (NYSE:QBTS) is trading down 5.42% at $10.07, following an 8.63% drop on Tuesday to $10.48. Third quarter revenue of $4.5 million topped estimates, but a wider loss and weaker quarterly bookings weigh.

Revenue Mix

Revenue rose 21% from a year ago. Quantum Computing as a service subscription revenue was $2.2 million, up 56%, and professional services were $2.0 million, up 318%. Commercial enterprises were 52% of revenue.

Bookings and Backlog

Quarterly bookings fell 19% to $1.9 million, while nine-month bookings were up 611%. Remaining performance obligations were $38.3 million, over 13 times the prior year, with 59% expected to be recognized within 12 months and 71% within 24 months. Pipeline value rose more than 75% from the second quarter and has more than tripled since the end of 2025, driven by system sales interest.

Fourth Quarter Outlook

A substantial portion of the roughly $20 million Florida Atlantic University system revenue is expected to be recognized on delivery in the fourth quarter, with the remainder over the installation period in early 2027. Management gave no formal guidance but expects system sales, subscriptions, professional services and partner sales to all grow in 2027, with system sales and government becoming a larger share of the mix.

Margins and Losses

Non-GAAP gross Margin was 63.6%, with GAAP gross margin at 52.9%, down because of more lower-margin professional services. GAAP operating expenses were $55.9 million, up 84%, and non-GAAP adjusted operating expenses were $40.5 million. The net loss was $48.2 million, or $0.13 per share, and the adjusted EBITDA loss was $37.7 million.

Cash

Cash and marketable securities were $503.4 million, down 40% from a year ago mainly because of the roughly $253 million Quantum Circuits acquisition.

Analyst View

Mizuho cut its target to $23 from $29 with an Outperform rating, following B. Riley's cut to $22. All 12 analysts covering the stock are bullish, with an average target of $30.25 and a range of $20 to $40.

System Delivery Decides the Next Move

The Florida Atlantic University delivery is the main fourth quarter event. Investors will watch whether revenue is recognized on delivery as planned, whether bookings rebound from $1.9 million and whether spending growth of 84% slows relative to revenue.

Pipeline conversion into system sales is the longer-term marker.