Why D-Wave Quantum Computing Stock Crashed Today - The Motley Fool
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By Rich Smith – Feb 27, 2026 at 11:11AM ESTKey PointsInvestors bid up D-Wave Quantum immediately after earnings -- then sold as Wall Street lowered price targets.Investors in D-Wave must weigh weak current results against the possibility of a breakthrough in 2028.NYSE: QBTSD-Wave QuantumMarket Cap$7.5BToday's Changeangle-down(-12.16%) $2.45Current Price$17.69Price as of February 27, 2026 at 11:14 AM ETD-Wave is losing money and orders are shrinking, but positive free cash flow could be just around the corner.D-Wave Quantum Inc. (QBTS 12.16%) stock tumbled 10.3% through 10:45 a.m. ET Friday, one day after the self-proclaimed "world's first commercial supplier of quantum computers" reported fiscal 2025 earnings. In that report, D-Wave boasted that it grew annual revenue 179% year over year, gross profit 265% year over year, and "ended 2025 with highest liquidity position in company's history at over $884 million." Sound impressive? At least two prominent Wall Street analysts were not impressed. Evercore ISI and Mizuho both cut price targets on D-Wave Quantum stock after the report, probably sparking today's sell-off. Image source: Getty Images. D-Wave Quantum 2025 earnings While D-Wave's percentage gains were big, the actual numbers D-Wave reported were objectively small for a quantum stock valued at nearly $6.7 billion. In all of 2025, D-Wave generated only $24.6 million in sales, giving the stock a price-to-sales ratio of more than 260x. Bookings for the year, which foreshadow future revenue, fell 22% year over year to just $18.7 million. On the bottom line, D-Wave reported a $1.11 per share loss -- up 48% year over year. Rounding out the bad news, D-Wave suffered $75.8 million in negative free cash flow, burning 69% more cash in 2025 than it did in 2024. ExpandNYSE: QBTSD-Wave QuantumToday's Change(-12.16%) $-2.45Current Price$17.69Key Data PointsMarket Cap$7.5BDay's Range$17.66 - $19.4752wk Range$4.45 - $46.75Volume387KAvg Vol33MGross Margin82.82% Is D-Wave stock a sell? The good news is that D-Wave ended 2025 with $635.3 million in cash and equivalents, with a further $249.1 million in marketable securities -- more than $884 million total, and enough to permit D-Wave to keep burning cash for the next dozen years if it needs to. The better news is that it may not need to. At last report, most analysts polled by S&P Global Market Intelligence still believe D-Wave Quantum could begin generating positive free cash flow by 2028. We shall see.Read NextFeb 26, 2026 •By Howard SmithWhy D-Wave Quantum Stock Popped Thursday MorningFeb 25, 2026 •By Adam SpataccoSoftware Bear Market: Should You Buy the Dip in D-Wave Quantum Stock Right Now?Feb 23, 2026 •By Manali Pradhan, CFADown 60%, Should You Buy the Dip on D-Wave Quantum?Feb 22, 2026 •By Rick OrfordD-Wave Quantum Lands A Deal That Could Change Its FutureFeb 19, 2026 •By Will HealyTrybe Capital Loads Up D-Wave Quantum With 1.9 Million Shares BoughtFeb 17, 2026 •By Lyle DalyShould You Buy D-Wave Quantum Stock Before Earnings?About the AuthorRich Smith is a contributing Motley Fool defense and stock market analyst covering publicly traded and emerging companies in defense, space, aerospace, and other sectors. Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D.C. He holds a bachelor’s degree in international relations from the College of William & Mary, a law degree from the University of Baltimore, and a language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation. The Globe and Mail once featured him as “one of the best stock pickers since 2009.”TMFDittyX@RichSmithFoolStocks MentionedD-Wave QuantumNYSE: QBTS$17.69 (12.16%) $2.45*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.