D-Wave Quantum Rallies on Capital Raise: More Upside Ahead for QBTS?

D-Wave Quantum Inc. QBTS is demonstrating strong financial momentum, banking on increased operational scale. In the first quarter of 2025, the company reported a staggering 509% year-over-year increase in revenues. This surge was largely driven by the sale of an Advantage2 quantum system valued at approximately $12.6 million to Germany’s Julich Supercomputing Center. The sale highlighted QBTS’ evolving revenue model, which is shifting toward a hybrid mix of high-value system sales and recurring subscription-based Quantum Computing-as-a-Service.

Financial performance strengthened across the board. D-Wave posted a GAAP gross margin of 92.5%, achieved its lowest net loss since becoming a public company, and cut its adjusted EBITDA loss by 53% year over year, demonstrating meaningful operating leverage as revenues scaled up.

Building on this momentum, in June, D-Wave completed a $400 million at-the-market equity offering done at a 149% premium compared to its January 2025 raise. The offering boosted the company’s total cash reserves to approximately $815 million, reinforcing what management claims to be the strongest balance sheet of any publicly traded quantum computing company. These funds are kept for strategic acquisitions, expansion of cloud services, R&D and deployment of customer systems, giving the company significant flexibility to accelerate its roadmap and expand its market footprint.

As a result of these, shares of D-Wave Quantum have skyrocketed 152% over the past three months, largely outperforming the broader industry, sector and the benchmark.

Three-Month Price Comparison of QBTS

Case for D-Wave's Rivals

Rigetti Computing RGTI: In June 2025, Rigetti completed a $350 million at-the-market stock offering, boosting its cash reserves to approximately $575 million with no debt. The capital infusion will primarily fund expansion of its superconducting hardware, scale internal manufacturing capabilities, and support strategic acquisitions or partnerships. In parallel, Rigetti recently partnered with Q-CTRL to integrate its "Fire Opal" error suppression software into its latest 84-qubit Ankaa-3 system, a move aimed at improving performance for real-world applications, such as financial portfolio optimization (by 32×) and increased qubit circuit reliability.

IonQ IONQ: It has been actively executing a multi-pronged growth strategy through acquisitions and ecosystem development. In June 2025, it completed the acquisition of photonic networking specialist Lightsynq, bolstering its quantum interconnect and memory roadmap to help deliver modular, fault-tolerant architectures and advance toward building a quantum Internet. Complementing this, IonQ agreed to acquire Oxford Ionics, further accelerating its progress toward a 2-million-qubit machine and an 80,000 logical qubit target by 2030. On the commercial front, IonQ is deepening educational and networking partnerships in South Korea.

Average Target Price for QBTS Shows More Room for Growth

Based on short-term price targets offered by six analysts, D-Wave Quantum is currently trading 8% below its average Zacks price target.

D-Wave Quantum currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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