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1. Company Snapshot

1.a. Company Description

D-Wave Quantum Inc.develops and delivers quantum computing systems, software, and services worldwide.The company offers Advantage, a fifth-generation quantum computer; Launch, a quantum computing onboarding service; Ocean a full suite of open-source programming tools; and Leap, a cloud-based service that provides real-time access to a live quantum computer, as well as access to Advantage, hybrid solvers, the Ocean software development kit, live code, demos, learning resources, and a vibrant developer community.


It also provides D-Wave Launch, a quantum professional service that guides enterprises from problem discovery through in-production application deployment.The company's quantum solutions are used in artificial intelligence, materials sciences, drug discovery, scheduling, cybersecurity, fault detection, and financial modeling.It serves manufacturing and logistics, financial services, life sciences, and other industries.


D-Wave Quantum Inc.is based in Burnaby, Canada.

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1.b. Last Insights on QBTS

The recent performance of D-Wave Quantum Inc. has been driven by several positive factors. The company's aggressive go-to-market strategies, as seen in its three-month trial Leap Quantum LaunchPad program, have significantly aided its investment thesis. Additionally, the looming installation of one of D-Wave Quantum's quantum computing systems has drawn investors to the company's stock, resulting in a notable increase in value. Furthermore, the company's growing bookings and improving margins have made its stock more compelling, despite its high valuation.

1.c. Company Highlights

2. D-Wave's Q3 2025 Earnings: A Strong Performance

D-Wave reported a revenue of $3.7 million for Q3 2025, marking an increase from the same period last year. The non-GAAP gross profit was $2.5 million, and the non-GAAP gross margin was 67.6%. The adjusted net loss was $14.8 million, and the adjusted net loss per share was $0.22. The actual EPS came out at -$0.41, relative to estimates at -$0.07. The company's GAAP gross profit for the third quarter was $2.7 million, an increase of $1.7 million or 156% from the previous year.

Publication Date: Nov -18

📋 Highlights
  • Q-Alliance EUR 10M Contract:: Secured EUR 10 million agreement for Advantage2 system in Italy, part of Q-Alliance quantum hub initiative.
  • Revenue Growth:: Q3 revenue reached $1.9 million, up 100% QoQ, driven by $1.8 million in system sales and $1.4 million in QCaaS revenue.
  • Cash Balance Surge:: Consolidated cash totaled $836.2 million as of Q3 2025, a 2,700% YoY increase, with $40.3 million in warrant proceeds.
  • Gate Model Progress:: Completed fluxonium qubits and superconducting control chips, aiming for scalable gate model demonstrations within 1–5 years.
  • Pipeline & Bookings:: Bookings exceeded $10 million, with $800M+ cash supporting M&A and expansion; EUR 10M contract to be recognized over 5 years.

Bookings and Revenue Growth

The company's bookings exceeded $10 million, with a strong pipeline of opportunities for both system sales and quantum computing as a service deals. The EUR 10 million contract with the Q-Alliance and the Italy government will be reflected in fourth-quarter bookings. The revenue recognition for this contract will be ratably over 5 years, commencing when the system becomes operational, expected to be sometime next year. Analysts estimate next year's revenue growth at 54.3%.

Operational Highlights

D-Wave has seen significant commercial traction, with a diverse customer portfolio including major airlines, chemical companies, and mobile carriers. The company has demonstrated the effectiveness of its hybrid quantum computing solutions, including a proof-of-concept project with BASF. As Alan Baratz stated, "We're now being engaged by larger companies interested in addressing larger and more challenging optimization problems, and the results are speaking for themselves, allowing us to move forward more aggressively."

Valuation Metrics

Considering the current valuation metrics, D-Wave's P/S Ratio stands at 327.85, and the EV/EBITDA is -24.95. The company's ROE is -97.58%, and the ROIC is -10.07%. These metrics indicate that the market is pricing in significant growth expectations, which may be challenging to meet given the current financial performance.

Future Outlook

D-Wave is working on a gate model quantum computer using superconducting qubits, with a focus on fluxonium qubits controlled with magnetic flux. The company expects to have the first demonstration of cryogenic control of gate model qubits within the coming year. With a healthy cash balance of over $800 million, the company is well-positioned to expand its business organically and through M&A.

3. NewsRoom

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Arrowstreet Capital Limited Partnership Takes $45.37 Million Position in D-Wave Quantum Inc. $QBTS

Dec -06

Source: defenseworld.net

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QBTS Fortifies Its Balance Sheet Amid Competition With IONQ, RGTI

Dec -05

Source: zacks.com

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Franklin Resources Inc. Invests $1.51 Million in D-Wave Quantum Inc. $QBTS

Dec -05

Source: defenseworld.net

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These 4 Quantum Computing Pure-Play Stocks Can Soar Up to 264% in 2026, According to Select Wall Street Analysts

Dec -05

Source: fool.com

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1 Quantum Computing Stock That Could Make You a Multimillionaire

Dec -05

Source: fool.com

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Time to Buy Quantum Stocks? (QBTS, IONQ, RGTI)

Dec -04

Source: zacks.com

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QBTS Stock Outlook: After 168% Gains, What's Next?

Dec -04

Source: forbes.com

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Better Quantum Computing Stock: D-Wave Quantum vs. IBM

Dec -04

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (30.51%)

6. Segments

Quantum Computing as a Service

Expected Growth: 32.6%

D-Wave Quantum Inc.'s Quantum Computing as a Service growth is driven by increasing adoption in industries like finance, healthcare, and logistics, seeking to solve complex optimization problems. The 32.6% growth is also fueled by advancements in quantum annealing, reduced error rates, and expanded cloud accessibility, making quantum computing more viable for real-world applications.

Professional Services

Expected Growth: 27.9%

D-Wave Quantum Inc.'s 27.9% growth in Professional Services is driven by increasing adoption of quantum computing in various industries, growing demand for complex problem-solving, and expansion of its customer base. Additionally, the company's strategic partnerships, innovative quantum cloud services, and expertise in quantum software development are contributing to its rapid growth.

Other

Expected Growth: 19.9%

D-Wave Quantum Inc.'s 19.9% growth is driven by increasing adoption of quantum computing in industries like finance, healthcare, and cybersecurity. Growing demand for complex problem-solving, optimization, and simulation capabilities fuels the need for quantum technology. Strategic partnerships, government investments, and expanding applications in machine learning and artificial intelligence also contribute to the company's rapid growth.

7. Detailed Products

D-Wave 2000Q

A type of quantum computer processor that uses a process called quantum annealing to solve complex optimization problems

D-Wave Leap

A cloud-based quantum computing platform that provides real-time access to D-Wave's quantum computers

D-Wave Ocean

A software development kit (SDK) that provides tools and libraries for building quantum applications

D-Wave Qbsolv

A hybrid solver service that combines classical and quantum computing to solve complex optimization problems

D-Wave Quantum Application Environment (QAE)

A software framework that provides tools and libraries for building and deploying quantum applications

8. D-Wave Quantum Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

D-Wave Quantum Inc. has a low threat of substitutes due to its unique quantum computing technology, which is not easily replicable by other companies.

Bargaining Power Of Customers

D-Wave Quantum Inc. has a medium bargaining power of customers, as it has a niche market with limited customers, but those customers have some bargaining power due to the high cost of the technology.

Bargaining Power Of Suppliers

D-Wave Quantum Inc. has a low bargaining power of suppliers, as it has a limited number of suppliers for its unique quantum computing components.

Threat Of New Entrants

D-Wave Quantum Inc. has a high threat of new entrants, as the quantum computing market is rapidly growing and attracting new companies, including tech giants like Google and IBM.

Intensity Of Rivalry

D-Wave Quantum Inc. has a high intensity of rivalry, as it competes with other quantum computing companies, including Rigetti Computing and IonQ, for market share and talent.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 159.50%
Debt Cost 3.95%
Equity Weight -59.50%
Equity Cost 9.14%
WACC 0.85%
Leverage -268.06%

11. Quality Control: D-Wave Quantum Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Quantum

A-Score: 4.4/10

Value: 10.0

Growth: 1.0

Quality: 5.8

Yield: 0.0

Momentum: 9.5

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Identiv

A-Score: 4.4/10

Value: 8.4

Growth: 3.6

Quality: 6.3

Yield: 0.0

Momentum: 4.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
One Stop Systems

A-Score: 3.9/10

Value: 7.4

Growth: 0.6

Quality: 4.2

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
D-Wave Quantum

A-Score: 3.8/10

Value: 6.0

Growth: 2.3

Quality: 4.2

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Strong Global Entertainment

A-Score: 3.4/10

Value: 6.6

Growth: 2.6

Quality: 6.3

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
3D Systems

A-Score: 3.0/10

Value: 8.4

Growth: 0.7

Quality: 3.8

Yield: 0.0

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

27.0$

Current Price

27$

Potential

0.00%

Expected Cash-Flows