Is D-Wave Quantum a Buy?

D-Wave Quantum (QBTS -5.08%) is a genuine rarity. It's a pure-play quantum computing company with actual paying customers, and its systems are already running production workloads. Real customers, real results AT&T cut a complex network optimization task from roughly an hour to under 15 seconds using D-Wave's annealing technology. That's not a demo. That's a useful business tool. Management discussed the AT&T project among several other deals on the recent Q2 2026 earnings call. Remaining performance obligations (RPO) hit $40.7 million at the end of June, up 668% year over year. More than half of this backlog should convert into revenue over the next year. The business is also broadening. D-Wave's January acquisition of Quantum Circuits added a gate-model program to its established annealing platform. A peer-reviewed Nature paper published this summer validated key architectural claims about the resulting dual-rail approach. Management is targeting 100 logical qubits and over 1 million reliable gate operations by 2032 -- thresholds often seen as the minimum for large-scale commercial operations. Image source: The Motley Fool. Growing pains But this year brought some turbulence alongside the progress. CFO John Markovich announced his retirement this week, effective Sept. 2. His interim replacement is a capable finance veteran, but leadership continuity matters. D-Wave's stock fell 9.5% on the day of that announcement. The company is burning cash fast and spending heavily to build out a brand-new gate-model business. Is that the right time to install new financial leadership? Early production deployments are not the same thing as a profitable business. Free cash flow was -$119 million over the last four quarters, up from -$76 million in fiscal year 2025 and -$45 million in 2024. The lights are staying on (and D-Wave was able to spend $250 million of cash plus $300 million in stock on the Quantum Circuits buyout) because the company isn't shy about asking shareholders for more money. The share count has doubled in two years, diluting the value of existing shares. ExpandNASDAQ: QBTSD-Wave QuantumPremium FeatureMoneyball Superscore66/100Today's Change(-5.08%) $-0.91Current Price$16.99Key Data PointsMarket Cap$6.3BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.Day's Range$16.68 - $17.7252wk Range$12.75 - $46.75Volume18.2MAvg Vol23MGross Margin-730.78% The safer quantum trade Investors who want quantum exposure without massive financial and execution risks should look at tech giants like IBM (IBM -1.34%) or Alphabet (GOOG +1.53%) (GOOGL +1.74%) instead. These titans can afford to outspend specialists like D-Wave for years. Neither is engaged in annealing technology yet, but that could change in a heartbeat. If pure-play quantum is nonnegotiable for a portfolio, D-Wave is probably the most defensible choice in that category -- it has real customers and a dual-platform strategy its peers lack. Just size it accordingly, because the valuation assumes everything goes right, and the CFO transition is a reminder that things don't always go right. Personally, I'm not comfortable with the 500x price-to-sales ratio.Read NextAug 28, 2026 •By Johnny RiceWhy Did D-Wave Quantum Stock Fall 16.6% This Week?Aug 27, 2026 •By Will HealyIf You Invested $1,000 in D-Wave Quantum Stock 3 Years Ago, This Is How Much You Would Have TodayAug 26, 2026 •By Eric VolkmanWhy D-Wave Quantum Stock Was Plummeting TodayAug 24, 2026 •By Robert IzquierdoD-Wave Quantum vs. Rigetti Computing: Which Quantum Computing Stock Is a Better Investment in 2026?Aug 23, 2026 •By Robert IzquierdoWhat Does a D-Wave Quantum Insider's Sale of 23,850 Shares Mean for Investors?Aug 21, 2026 •By Rich SmithWhy Did Rigetti Quantum Stock Pop Today?About the AuthorAnders Bylund is a contributing Motley Fool media and technology analyst covering semiconductors, cloud computing, internet infrastructure, quantum computing, and streaming media. Previously, Anders was a systems administrator for Nielsen Technology and CSX, gaining hands-on experience with enterprise-class systems. He was also a freelance writer for Ars Technica, TIME, USA Today, CNN, WIRED, and AOL's Daily Finance. He holds a bachelor’s degree in English and a master’s degree in library and information sciences from Florida State University. He believes in coyotes and time as an abstract.TMFZahrimX@TMFZahrimStocks MentionedD-Wave QuantumNASDAQ: QBTS$16.99(-5.08%)-$0.91Motley Fool Stock Advisor’s Latest PickGet Access---% Avg ReturnInternational Business MachinesNYSE: IBM$235.59(-1.34%)-$3.20AlphabetNASDAQ: GOOGL$346.59(+1.74%)+$5.94AlphabetNASDAQ: GOOG$342.88(+1.53%)+$5.17*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.