QBTS Q2 Earnings Miss Estimates, Shares Fall Pre-Market

D-Wave Quantum QBTS reported second-quarter 2025 adjusted net loss per share of 8 cents, wider than the Zacks Consensus Estimate of a loss of 6 cents. Adjusted net loss, however, narrowed by 4 cents from the year-ago period. The quarter’s one-time adjustments include non-cash, non-operating warrant remeasurement-related charges.

The quarter’s GAAP net loss per share was 55 cents, significantly wider than the year-ago net loss of 10 cents per share.

Following the earnings announcement, QBTS shares dropped nearly 6% in pre-market trading today.

QBTS Q2 Revenues

D-Wave Quantum registered revenues of $3.09 million in the reported quarter, up 42% year over year. The figure topped the Zacks Consensus Estimate by 22.6%.

Bookings (customer orders received that are expected to generate net revenues in the future) for the second quarter were $1.3 million, up 92% year over year. Over the past four quarters, D-Wave served more than 100 revenue-generating customers.

QBTS' Q2 Margin Performance

In the reported quarter, GAAP gross profit was $2.0 million, marking a 42% increase from the same period last year. This growth was primarily fueled by a rise in revenues. Meanwhile, GAAP gross margin expanded 20 basis points (bps) year over year to 63.8%.

On an adjusted basis, which excludes non-cash stock-based compensation and depreciation and amortization, gross profit came in at $2.2 million, up 39% a year ago. Adjusted gross margin was 71.8%, a 130-bps contraction from the prior-year comparable quarter.

Operating loss was $26.5 million in the second quarter, wider than the year-ago operating loss of $18.8 million.

D-Wave Quantum Inc. Price, Consensus and EPS Surprise

D-Wave Quantum Inc. price-consensus-eps-surprise-chart | D-Wave Quantum Inc. Quote

QBTS’ Financial Update

D-Wave exited the second quarter of 2025 with cash and cash equivalents of $819.3 million compared with $177.9 million at the end of 2024.

In the second quarter, D-Wave raised $400 million through its fourth ATM equity offering, $99.3 million from warrant exercises and $37.8 million via its Equity Line of Credit with Lincoln Park, completing the $150 million commitment secured in June 2022. The company ended the quarter with $694.3 million in stockholders’ equity.

Our Take on QBTS

D-Wave Quantum exited the second quarter of 2025 with earnings missing estimates but revenues beating the same. The company delivered strong results across key technical and business metrics. Major highlights included the launch of its sixth-generation quantum computer, progress on an on-premises system agreement in South Korea, completion of system assembly at Davidson Technologies, and the release of new quantum AI and machine learning tools.

However, the contraction in its adjusted gross margin and its wider operating loss are concerning.

QBTS' Zacks Rank and Key Picks

Currently, D-Wave carries a Zacks Rank #3 (Hold).

Some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector are Bumble BMBL, Arista Networks ANET and MongoDB MDB. Bumble sports a Zacks Rank #1 (Strong Buy) at present, while Arista Networks and MongoDB carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Bumble’s 2025 earnings has been revised upward by a penny to $1.05 per share in the past 30 days, implying a strong improvement from a loss of $4.61 reported in 2024. Bumble shares have declined 17.9% year to date.

The Zacks Consensus Estimate for Arista Networks’ 2025 earnings has been revised downward by a penny to $2.57 per share over the past seven days and suggests a year-over-year increase of 13.2%. Arista Networks shares have rallied 25.7% year to date.

The Zacks Consensus Estimate for MongoDB’s fiscal 2026 earnings has been revised upward by 4 cents to $3.07 per share in the past 60 days, calling for a 16.1% year-over-year decline. MongoDB shares have risen 1.2% year to date.

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

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