D-Wave Quantum (NASDAQ:QBTS) Issues Quarterly Earnings Results

D-Wave Quantum (NASDAQ:QBTS) announced its earnings results on Tuesday. The company reported ($0.13) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.10) by ($0.03), FiscalAI reports. The firm had revenue of $4.51 million for the quarter, compared to analyst estimates of $4.37 million. D-Wave Quantum had a negative net margin of 1,188.79% and a negative return on equity of 15.39%. During the same period last year, the firm earned ($0.41) earnings per share.

Here are the key takeaways from D-Wave Quantum’s conference call:

• Third-quarter revenue rose 21% year over year to $4.5 million, with QCaaS subscription revenue up 56% and professional services up 318%. Bookings were mixed: down 19% in the quarter to $1.9 million, but up 611% year to date to $37.4 million, including a $20 million Florida Atlantic University system sale expected to generate substantial revenue in Q4.
• Commercial indicators strengthened, with the sales pipeline up more than 75% from Q2 and remaining performance obligations reaching $38.3 million, over 13 times the year-earlier balance. D-Wave said 59% of RPO is expected to convert to revenue within 12 months; NTT DOCOMO also deployed a second production application using its technology.
• Costs and losses increased: GAAP operating expenses rose 84% year over year to $55.9 million, while adjusted EBITDA loss widened by $17 million to $37.7 million. GAAP gross margin fell to 52.9%, which the company attributed mainly to a greater share of lower-margin professional services revenue.
• D-Wave secured a definitive agreement providing access to up to $100 million in CHIPS Act funding, subject to milestones, and reported $503.4 million in cash and marketable securities at quarter-end. It also advanced hardware plans, including a dual-chip annealing processor entering fabrication and scalable control chips expected back for testing.
• The company reiterated its goal of a 17-qubit gate-model system and said it is discussing orders for delivery in 2027; its longer-term target is 100 fault-tolerant logical qubits by 2032. These remain roadmap goals, and management said no quantum computing company has yet produced a logical qubit meeting its stated fault-tolerant standard.

D-Wave Quantum Stock Up 1.6%

D-Wave Quantum stock opened at $10.65 on Thursday. D-Wave Quantum has a twelve month low of $8.48 and a twelve month high of $32.39. The company has a debt-to-equity ratio of 0.03, a quick ratio of 20.42 and a current ratio of 20.55. The firm has a market cap of $3.94 billion, a PE ratio of -24.77 and a beta of 2.35. The firm’s 50 day moving average price is $14.22 and its two-hundred day moving average price is $18.68.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on QBTS. Rosenblatt Securities lowered their price target on D-Wave Quantum from $43.00 to $30.00 and set a “buy” rating on the stock in a report on Wednesday. Stifel Nicolaus reduced their price objective on D-Wave Quantum from $35.00 to $23.00 and set a “buy” rating for the company in a research note on Wednesday. B. Riley Financial reduced their price objective on D-Wave Quantum from $27.00 to $22.00 and set a “buy” rating for the company in a research note on Monday. Wedbush started coverage on D-Wave Quantum in a research report on Monday, August 3rd. They set an “outperform” rating and a $40.00 price objective for the company. Finally, Roth Capital reaffirmed a “buy” rating and set a $30.00 target price on shares of D-Wave Quantum in a research note on Thursday, August 6th. Fifteen investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $30.00.

Latest D-Wave Quantum News

Investors following QBTS have been watching these news items:

• Positive Sentiment: On its earnings call, D-Wave highlighted a growing system-sales pipeline and technical milestones for its annealing and gate-model platforms, bolstering its longer-term growth case. QBTS Q3 Earnings Call Highlights System Sales and Quantum Roadmap
• Negative Sentiment: Third-quarter results were mixed: revenue rose 21% to $4.51 million and beat estimates, but the $0.13-per-share loss was wider than expected. Quarterly bookings fell about 19% year over year, while operating costs and cash burn drew investor concern. D Wave Quantum Stock Price Sinks As Q3 Results Expose Cash Burn
• Negative Sentiment: Multiple law firms publicized a pending securities class action and the December 15 lead-plaintiff deadline. The lawsuit adds headline risk; its allegations have not been established in court. Faruqi & Faruqi investor notice

About D-Wave Quantum

D-Wave Quantum develops quantum computing systems, software and services for commercial, government and research users. The company focuses on quantum annealing, an approach designed to help solve complex optimization and sampling problems, and offers hybrid tools that combine quantum processing with classical computing. Its offerings include Advantage quantum computers, the Leap quantum cloud service, and software for building and running applications. D-Wave’s technology is used to explore challenges such as scheduling, resource allocation and supply-chain optimization.