QBTS Q3 Earnings Miss Estimates, Revenues Rise Y/Y, Stock Climbs

D-Wave Quantum Inc. QBTS reported a third-quarter 2025 net loss of 41 cents per share compared to the Zacks Consensus Estimate of a loss of 7 cents. The figure compares unfavorably with the year-ago period’s loss of 11 cents. 

Excluding one-time adjustments, such as non-cash, non-operating warrant remeasurement-related charges, adjusted net loss was 5 cents per share in the quarter compared with 12 cents in the year-ago period.

QBTS’ Q3 Revenues

D-Wave Quantum registered revenues of $3.74 million in the reported quarter, up 100% year over year. The figure topped the Zacks Consensus Estimate by 19.84%.

Bookings (customer orders received that are expected to generate net revenues in the future) for the third quarter were $2.4 million, up 3% year over year. Over the past four quarters, D-Wave had more than 100 revenue-generating customers, including nearly two dozen Forbes Global 2000 companies.

Following the earnings announcement, QBTS shares rose nearly 4% in pre-market trading today.

QBTS' Q3 Margin Performance

In the reported quarter, GAAP gross profit was $2.7 million, marking a 156% increase from the same period last year. This growth was primarily fueled by a rise in revenues. Meanwhile, the GAAP gross margin expanded 1560 basis points (bps) year over year to 71.4%.

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

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

On an adjusted basis, which excludes non-cash stock-based compensation and depreciation and amortization, the gross profit came in at $2.9 million, up 131% year over year. The adjusted gross margin was 77.7%, a 1050-bps expansion from the prior-year comparable quarter.

The operating loss was $27.7 million in the third quarter, wider than the year-ago operating loss of $20.6 million.

QBTS’ Financial Update

D-Wave exited the third quarter of 2025 with cash and cash equivalents of $836.2 million compared with $819.3 million at the end of the second quarter.

In the third quarter, D-Wave raised $39.9 million in cash proceeds from the exercise of warrants. The company ended the quarter with $670.5 million in stockholders’ equity.

Our Take on QBTS

D-Wave Quantum exited the third quarter of 2025 with earnings missing and revenues beating estimates. The performance reflected strong momentum across all categories of its business, with key metrics, including revenues, gross profit, bookings and cash balance, signaling the company’s success in accelerating global quantum computing adoption. The expansion of both margins in the quarter is highly promising.

Among major highlights, D-Wave signed several new and renewing customer engagements for both commercial and research applications, including one of the largest U.S.-based international airlines. The company also collaborated with customers on a variety of quantum hybrid applications, including BASF, one of the world’s leading chemical companies, to optimize manufacturing workflows in a BASF liquid filling facility.

QBTS' Zacks Rank and Key Picks

Currently, D-Wave carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the broader Computer and Technology sector are Western Digital WDC, Astera Labs ALAB and Advanced Energy Industries AEIS.

Western Digital, currently sporting a Zacks Rank #1 (Strong Buy), reported a first-quarter fiscal 2026 EPS of $1.78, which beat the Zacks Consensus Estimate by 12%. Revenues of $2.82 billion surpassed the Zacks Consensus Estimate of $2.72 billion. You can see the complete list of today’s Zacks #1 Rank stocks here.

WDC has a long-term earnings growth rate of 22.7% compared with the industry’s 13.8% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 9.18%.

Astera Labs, carrying a Zacks Rank #2 (Buy) at present, posted third-quarter 2025 earnings of 49 cents per share, exceeding the Zacks Consensus Estimate by 25.64%. Net revenues of $230.58 million beat the Zacks Consensus Estimate by 11.53%.

ALAB has a long-term earnings growth rate of 48.6% compared with the industry’s 20.7% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 29.79%.

Advanced Energy Industries, currently carrying a Zacks Rank #2, reported a third-quarter 2025 EPS of $1.74, which topped the Zacks Consensus Estimate by 18.37%. Revenues of $463.3 million surpassed the consensus mark by 5.14%.

AEIS has a long-term earnings growth rate of 27.9% compared with the industry’s 24.4% growth. The company’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 18.28%.

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

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