D-Wave, SuperQ, and Verge: A New Path Forward for Quantum?

Finally breaking above $20 per share in mid-July, quantum computing giant D-Wave Quantum Inc. (NYSE: QBTS) extended its rally as it touched new all-time highs. As shares have nearly doubled in value year-to-date (YTD), investors will undoubtedly be watching the company's early-August earnings for clues about its ongoing commercialization efforts.

There are plenty of reasons to be optimistic—over a quarter of surveyed business leaders expect a quantum investment to provide an ROI of more than $5 million in the first year, with another 46% anticipating ROI between $1 million and $5 million. This suggests a bullish customer base ready to spend heartily on quantum technology that could transform industries.

D-Wave's major sales in recent quarters have been entire quantum computing systems, including the first sale of its Advantage system in the first quarter of 2025. But a partnership with another quantum firm—Canada's SuperQ Quantum Computing Inc. and agricultural software firm Verge Ag—may provide insight into how D-Wave's product lineup may expand in the future.

Proof of Concept for Annealing Tech

D-Wave first announced its collaboration with SuperQ and Verge in February 2025, but the partnership made headlines again in July thanks to the realization of the first related revenue contract, which was earned from Verge.

The purpose of the collaboration between these three companies was to utilize quantum annealing, the technology for which D-Wave is best known, to aid in developing Verge's Launch Pad platform. Specifically, D-Wave's tech is used to help create optimized plans for the movement of robots across thousands of agricultural fields simultaneously. 

This is exactly the type of project for which quantum annealing is ideally suited, given the technology's ability to evaluate a large number of possibilities and determine the optimal choice.

Notably, D-Wave has faced criticism from analysts and investors who believe that quantum annealing may not be as fruitful an area of the quantum computing landscape as some alternatives. In fact, criticism of annealing and its potential compared to other approaches, such as gate-model quantum architecture, was a major feature of a popular short seller's argument against the company advanced earlier this year by Kerrisdale Capital.

The fact that this collaboration has yielded its first revenue contract and that annealing tech was particularly well-suited to making this project possible are points in favor of D-Wave and its unique quantum focus.

A Path Forward for Delivering Marketable Products?

Besides being an effective proof of concept for quantum annealing, D-Wave's collaboration provides a model for driving future revenue. So far, D-Wave has depended on just a few high-profile sales of its computing systems to grow its revenue. 

However, organizations positioned to benefit from owning a massive and expensive quantum computing setup are relatively small in number, such as city and regional governments, large university systems, and similarly sized entities.

Though no direct customer partnered with D-Wave to commission the agricultural project with SuperQ and Verge, the companies have still managed to find interest among buyers.

D-Wave could continue to work alongside similar partners across various sectors, leveraging industry-specific products and expertise alongside annealing tech to create previously unattainable products. 

This latest project even shows the potential benefits of partnering with peers in the quantum computing space.

Beware Revenue Warning Signs

Quantum stocks continue to race higher, but marketability remains a crucial concern. Few of these companies have logged substantial sales or demonstrated the capacity to grow revenue. Investors should keep this in mind, despite D-Wave's tendency to bounce upward on positive news.

After all, the firm showed some warning signs in its first-quarter earnings, including a drop in deferred revenue by about two-thirds, an adjusted EBITDA loss, and a sizable cash burn approaching $20 million.

This may help to explain why short interest in QBTS shares represents an eye-popping 20.5%, even as all nine analyst ratings of the stock are Buys.

Investors may want to watch D-Wave closely for signs that the company is open to expanding its path toward increased revenue through further partnerships like the one with SuperQ and Verge. Doing so would likely open up important avenues for growth.

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