D-Wave Quantum Q4 Earnings Call Highlights - Yahoo Finance

D-Wave Quantum Q4 Earnings Call Highlights MarketBeat Sat, February 28, 2026 at 5:05 PM EST 8 min read QBTS -6.75% D-Wave Quantum logo Key Points D-Wave said it entered 2026 with “extraordinary momentum,” reporting January bookings that exceeded all of fiscal 2025 and announcing major wins including a $20M Advantage2 system sale, a $10M two‑year QCaaS deal, and the Quantum Circuits acquisition to position the company as a dual‑platform quantum provider. The technology roadmap advances both annealing and gate models: Advantage3 will add analog‑digital controls and multi‑chip scaling, while Quantum Circuits’ dual‑rail qubits (8‑qubit systems available now, 17‑qubit expected later in 2026) claim >99.9% gate fidelities and on‑chip cryogenic control demonstrated without loss of fidelity. Fiscal 2025 revenue rose 179% to $24.6M and gross margin expanded, but D‑Wave reported a $355M net loss largely driven by a $250.5M non‑cash warrant remeasurement; liquidity is strong with $884.5M in cash and marketable securities after raising >$800M and spending $250M on the acquisition, and management plans increased R&D and ~15% quarterly opex growth in 2026. Interested in D-Wave Quantum Inc.? Here are five stocks we like better. MarketBeat Week in Review – 02/23 - 02/27 D-Wave Quantum (NYSE:QBTS) executives used the company’s fiscal fourth-quarter 2025 earnings call to emphasize accelerating commercial traction, expanding bookings early in fiscal 2026, and what management described as a step-change in its technology roadmap following the acquisition of Quantum Circuits. Management highlights: “inflection point” year and early 2026 momentum Chief Executive Officer Dr. Alan Baratz called fiscal 2025 an “inflection point” for both D-Wave and the broader quantum computing industry, arguing the company has moved beyond research-driven activity toward “real-world impact.” Baratz pointed to several milestones discussed on the call, including the company’s first Advantage quantum computer system sale to the Jülich Supercomputing Centre and the general availability launch of the Advantage2 system in May. → Diamondback Sees Resilient Demand Despite Cautious Guidance Despite a Double Miss, D-Wave's Earnings Could Fuel a New Rally Baratz also said the company entered 2026 with “extraordinary momentum,” noting that in January alone D-Wave generated more bookings than in all of fiscal 2025. He cited three major developments that occurred after year-end: A $20 million Advantage2 system sale with Florida Atlantic University A two-year, $10 million enterprise quantum compute-as-a-service (QCaaS) agreement with a Fortune 100 company The completed acquisition of Quantum Circuits Story Continues Baratz described Quantum Circuits as “transformational,” positioning D-Wave as a dual-platform provider spanning annealing and gate-model quantum computing. He said the strategy of supporting both architectures has been in place for five years, with D-Wave “dominat[ing] optimization today” using annealing, while aiming to compete in error-corrected superconducting gate-model systems through Quantum Circuits’ dual-rail qubit approach and D-Wave’s on-chip cryogenic control technology. Technology roadmap: annealing focus, gate-model ambitions, and Advantage3 development→ AI Is Separating Software Winners From Losers, 2 Experts ExplainMarketBeat Week in Review – 02/16 - 02/20 On annealing, Baratz said optimization remains a major near-term commercial opportunity across industries including logistics, defense, telecom, manufacturing, finance, and energy. He also said the company is seeing “early promise” from customers exploring annealing’s potential impact on AI and blockchain.Looking ahead, he said D-Wave’s Advantage3 system is in development and is expected to extend performance. In the Q&A, Baratz described two primary functional elements for Advantage3: adding “analog-digital” capability (including digital controls integrated into the annealing fabric) and “multi-chip” approaches to scale more quickly. He said D-Wave has received initial chips that incorporate analog-digital controls and is close to having early chips demonstrating multi-chip interconnect. → NVIDIA’s AI Boom Isn’t Slowing After Blowout Q4On the gate-model side, Baratz contrasted Quantum Circuits’ dual-rail approach with transmon-based superconducting architectures used by many competitors. He said dual-rail qubits provide built-in erasure detection and referenced gate fidelities that “exceed 99.9%,” an “observed erasure rate of 0.5%,” and an ability to reach logical qubits with fewer physical qubits than conventional superconducting designs. Baratz also emphasized speed, saying dual-rail gate speeds are “1,000 times faster” than ion trap or neutral atom systems.In January, D-Wave demonstrated that its on-chip cryogenic control—already used in its annealing systems—can control gate-model qubits “without loss of fidelity,” which Baratz described as an industry first. He said the company is now working to leverage the technology to provide “full qubit control at scale,” with the longer-term goal of reducing control-line wiring requirements versus competing approaches. Management said an 8-qubit gate-model system is available to select customers today and expects a 17-qubit system later in 2026. Baratz said D-Wave expects to begin generating some gate-model QCaaS revenue in 2026 while building a system sales pipeline for deliveries beginning in 2027.Fiscal 2025 financial results: revenue growth and margin expansionChief Financial Officer John Markovich reported fiscal 2025 revenue of $24.6 million, up 179% from $8.8 million in fiscal 2024. He said fiscal 2025 revenue included:$16.2 million in system sales revenue $5.5 million in QCaaS subscription revenue $2.7 million in professional services revenue Markovich also emphasized that D-Wave’s revenue is derived from “selling, providing access to, or providing services for quantum computing systems,” and said the company does not recognize revenue from areas such as quantum sensing, quantum networking, or encryption products that rely on quantum physics but are not quantum computing. He added that D-Wave does not provide funding to customers intended for purchases of D-Wave products or services.Fiscal 2025 GAAP gross profit was $20.3 million, up 265% year over year, and GAAP gross margin expanded to 82.6% from 63%. Non-GAAP gross profit was $21.1 million and non-GAAP gross margin was 86%. For fiscal 2025, Markovich reported a net loss of $355 million, or $1.11 per share, compared with a $143.9 million loss, or $0.75 per share, in fiscal 2024. He attributed the increase primarily to $250.5 million in non-cash, non-operating charges related to remeasurement of the company’s warrant liability and realized losses from warrant exercises, which he said were tied to increases in the price of the company’s warrants and common stock. Excluding that remeasurement charge, adjusted net loss was $84.5 million, or $0.26 per share. Adjusted EBITDA loss was $71.8 million.Quarterly trends: Q4 revenue, bookings rebound, and customer metricsIn the fourth quarter, revenue was $2.8 million, up 19% year over year. Markovich said Q4 revenue included $1.0 million in QCaaS subscription revenue, $1.0 million in professional services revenue, and about $700,000 in system sales revenue.Fourth-quarter bookings were $13.4 million, down year over year due to a prior-year quarter that included an eight-figure system sale. Sequentially, however, bookings increased 471% from $2.4 million in Q3, driven primarily by a previously announced €10 million booking tied to a multi-year 50% capacity commitment for an Advantage2 system supporting a quantum computing and research facility in Lombardy, Italy.Markovich said D-Wave recognized revenue in fiscal 2025 from more than 135 individual customers, including over 70 commercial customers and more than two dozen Forbes Global 2000 enterprises. He reported that average revenue per commercial customer increased 20% year over year, total revenue from Forbes Global 2000 customers increased 70%, and the average Forbes Global 2000 deal size rose 90%. Liquidity, investment plans, and 2026 operating expense outlookMarkovich said D-Wave raised more than $800 million in gross proceeds during fiscal 2025 through equity issuance under two ATM programs and an ELOC program, plus warrant and stock option exercises. As of Dec. 31, 2025, cash and marketable securities totaled $884.5 million, up from $178 million a year earlier. He added the company received $63.7 million in cash proceeds from warrant exercises during Q4.After year-end, D-Wave invested $250 million in cash related to the Quantum Circuits acquisition. Markovich said the company believes remaining liquidity is sufficient to support “a fully funded plan to profitability.” While D-Wave did not provide formal guidance, Markovich outlined several revenue-recognition considerations, including percentage-of-completion accounting for system sales installations, ratable revenue recognition for the $10 million two-year enterprise QCaaS deal beginning in the current quarter, and ratable recognition of the €10 million Italy booking over five years beginning after installation, which the company expects in the second half of the year. On spending, Markovich said D-Wave plans to invest aggressively in both annealing and gate-model development, including R&D, headcount, fabrication expense, and some capex. He said the Quantum Circuits acquisition added about 65 R&D professionals and that D-Wave intends to expand the New Haven-based gate-model team by at least 50% in 2026. He also described planned investments in a Boca Raton, Florida R&D facility, where D-Wave intends to expand its annealing R&D team and eventually install one or more annealing systems to support its Leap cloud service. Markovich said the company expects quarterly operating expenses to increase by approximately 15% sequentially during fiscal 2026, and confirmed in Q&A that this expectation includes Quantum Circuits-related costs. About D-Wave Quantum (NYSE:QBTS)D-Wave Quantum Inc (NYSE: QBTS) develops and provides quantum computing systems, software and services focused on quantum annealing technology. Headquartered in Burnaby, British Columbia, D-Wave designs specialized processors that leverage quantum mechanics to solve complex optimization and sampling problems. Since its founding in 1999 by physicists including Geordie Rose, the company has pursued the development of commercially viable quantum hardware and accompanying software tools.The company's product portfolio centers on its quantum annealers, which are complemented by hybrid solvers that integrate classical and quantum computing resources.The article "D-Wave Quantum Q4 Earnings Call Highlights" was originally published by MarketBeat.