QBTS Stock Before Q2 Earnings: Should You Buy Now or Wait?

D-WAVE QUANTUM QBTS is set to report second-quarter 2025 results on Aug. 7.

QBTS earnings exceeded the Zacks Consensus Estimate in one of the trailing four quarters, missed twice and matched once, the negative average earnings surprise being 65.28%.

D-Wave Quantum Inc. Price

D-Wave Quantum Inc. price | D-Wave Quantum Inc. Quote

The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $2.52 million, indicating an increase of 15.7% year over year.

The consensus mark for the bottom line is currently pegged at a loss of 7 cents per share, unchanged over the past 90 days. QBTS incurred a loss of 10 cents per share in the year-ago quarter.

Let’s see how things have shaped up prior to this announcement.

Factors to Focus on Ahead of QBTS' Q2 Earnings

GA Launch of Advantage2 System: D-Wave’s second-quarter 2025 performance is likely to have benefited from the long-anticipated general availability (GA) launch of its Advantage2 system, which was earlier targeted for release by the end of the quarter. The Advantage2 system offers significant technical upgrades, including enhanced coherence time, fast annealing and advanced error mitigation, that position it to handle more complex optimization, AI and material science problems. If GA had been achieved on schedule, it might have started to enable broader customer access through the Leap Cloud platform.

Customer Wins and Production Use Cases: In the second quarter, D-Wave might have witnessed an expansion of customer wins and production use cases, building on the successful deployments at Ford Otosan and Japan Tobacco highlighted in the earlier-reported quarter. Management previously indicated that more applications were expected to move into production throughout 2025, and the Leap Launchpad program, which saw strong uptake in the first quarter, could have facilitated additional trial-to-paid conversions. All these might have contributed to the company’s second-quarter top-line growth.

Increased Focus on AI and Blockchain Partnerships: D-Wave’s second-quarter update is likely to reflect increased focus on AI and blockchain partnerships as potential catalysts for system sales. In Q1, the company introduced a quantum-powered blockchain architecture and a PyTorch-integrated AI toolkit, both of which management described as early-stage but more aligned with driving system sales than quantum computing-as-a-service (QCAAS) revenues.These efforts have the potential to evolve into commercial agreements in the to-be-reported quarter, particularly in sectors focused on quantum-enhanced AI applications and energy-efficient blockchain solutions.

Sequential Revenue Decline Likely: D-Wave’s Q2 revenues are likely to have witnessed a sequential decline following the exceptional first-quarter performance, which was boosted by a one-time $12.6 million Advantage2 system sale to the Julich Supercomputing Center. With no additional system sales confirmed for the second quarter and management emphasizing that such deals are long-lead opportunities, revenues this quarter are expected to have normalized, driven primarily by recurring streams from QCAAS and professional services.

QBTS Shares Underperformed Industry, Sector and Peers

QBTS shares surged 97.3% during the second quarter (ending June 30, 3025) compared with the broader Zacks Computer and Technology sector’s rise of 20.4% and Internet - Software industry’s increase of 25.1%. The S&P 500 Index gained 10.7% during the period. QBTS’ direct peers like IonQ IONQ and Rigetti Computing RGTI rallied 85.3% and 51.8%, respectively, during this period.

QBTS Q2 Stock Performance

QBTS Stock Trading at a Premium

D-WAVE QUANTUM shares are currently overvalued, as suggested by its Value Score of F. 

In terms of the forward 12-month price/sales (P/S), QBTS is trading at 162.47X, significantly higher than its median of 82.17X and the Zacks Computer and Technology sector’s 6.71X.

Price/Sales Ratio (Forward 12 Months)

What Should Investors Do With QBTS Stock Ahead of Q2 Earnings?

Ahead of the Q2 earnings release, investors should maintain a cautious but watchful stance on D-Wave Quantum, which currently carries a Zacks Rank #3 (Hold). Revenues are expected to normalize following the one-time system sale in the first quarter, and while progress in Advantage2 system availability, AI/blockchain partnerships and new production use cases could support long-term growth, near-term financial performance may remain volatile. Its expensive valuation also raises concerns. Investors may consider waiting for the second-quarter earnings release before turning more bullish.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research