TLDR
- D-Wave doubles revenue, boosts profits, and hits record $836M cash reserve.
- Quantum demand soars as D-Wave’s Q3 revenue and margins surge to new highs.
- Strong Q3 for D-Wave: 100% revenue growth and 156% gross profit leap.
- D-Wave expands globally with $12M in new bookings and Italy quantum deal.
- Despite higher costs, D-Wave narrows adjusted losses and fuels R&D growth.
D-Wave Quantum Inc. (NYSE: QBTS) closed at $31.02, marking a 4.30% gain after reporting robust Q3 results.
D-Wave Quantum Inc., QBTS
The company’s financial performance highlighted a 100% increase in quarterly revenue and a 235% rise in year-to-date revenue. Alongside financial growth, the company also recorded its highest cash balance ever, surpassing $836 million.
Revenue and Gross Profit Surge Highlight Operational Strength
D-Wave reported Q3 fiscal 2025 revenue of $3.7 million, doubling from $1.9 million in the prior year’s third quarter. Year-to-date revenue climbed to $21.8 million, up from $6.5 million, reflecting strong customer traction. Gross profit also expanded, reaching $2.7 million GAAP for Q3, an increase of 156% year-over-year.
Non-GAAP gross profit rose to $2.9 million, driven by increased sales and upgraded system installations. Margins strengthened as the GAAP gross margin rose to 71.4%, up from 55.8% the previous year. Non-GAAP gross margin also improved to 77.7%, up from 67.2%, underscoring enhanced operational efficiency.
Year-to-date gross profit reached $18.5 million GAAP, a jump of 353% from the previous year’s $4.1 million. This performance was supported by a high-margin quantum system sale during the period. Non-GAAP gross profit for the nine-month period also climbed 304% to $19.2 million.
Bookings and Global Commercial Expansion Accelerate
Bookings in Q3 stood at $2.4 million, a 3% increase from Q3 2024 and 80% higher than the prior quarter. After quarter-end, D-Wave secured over $12 million in additional bookings, strengthening forward visibility. The company also announced a €10 million Q4 booking for its Advantage2™ system in Italy.
This European deal involves a five-year capacity agreement supporting a new quantum facility in Lombardy. D-Wave partnered with the Italian government and Q-Alliance to advance quantum research. Additionally, the company conducted regional workshops to boost adoption among universities.
D-Wave added several enterprise and research customers, including Japan Tobacco, Yapi Kredi, SkyWater, and Korea Quantum Computing. The company also showcased quantum hybrid use cases with BASF and North Wales Police. Over 100 revenue-generating customers were served during the last four quarters, including nearly two dozen Global 2000 firms.
Operational Spend Grows as Net Loss Widens
Q3 GAAP operating expenses reached $30.4 million, rising 40% year-over-year due to higher personnel and fabrication costs. Non-GAAP operating expenses also rose 56% to $23.5 million, reflecting growth investments. Adjusted EBITDA loss widened to $20.6 million, up 49% from the prior year.
Despite the operating expense increase, adjusted net loss narrowed to $18.1 million from $23.2 million in Q3 2024. The reported net loss widened to $140 million due to $121.9 million in non-cash warrant-related charges. Year-to-date net loss rose to $312.7 million, primarily from similar non-operating charges.
The adjusted net loss for the nine months stood at $52.8 million, down from $57.8 million a year ago. D-Wave stated that 78% of the personnel cost increase supported growth in R&D and sales. The company continues to scale operations while absorbing short-term financial impacts from expansion efforts.
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