QBTS-WT — D-Wave Quantum Inc.

Summary of D-Wave Q3 2025 Earnings Call

1. Key Financial Results and Metrics

• Revenue: Q3 2025 revenue totaled $3.7 million, a 100% increase from $1.9 million in Q3 2024. Year-to-date revenue reached $21.8 million, up 235% from $6.5 million in the same period last year.
• Bookings: Q3 bookings were $2.4 million, a 3% increase year-over-year and an 80% increase from the previous quarter.
• Gross Profit: GAAP gross profit for Q3 was $2.7 million (71.4% margin), up 156% from $1 million in Q3 2024. Non-GAAP gross profit was $2.9 million (77.7% margin), a 131% increase.
• Net Loss: Q3 net loss was $140.8 million ($0.41 per share), significantly higher due to $121.9 million in noncash charges related to warrant liabilities. Adjusted net loss was $18.1 million ($0.05 per share), an improvement from $23.2 million in Q3 2024.
• Cash Position: As of September 30, 2025, cash balance stood at $836.2 million, a 2,700% increase year-over-year.

2. Strategic Updates and Business Highlights

• D-Wave announced a EUR 10 million contract to provide a D-Wave Advantage2 system in Italy, marking a significant partnership with the Italian government and the Q-Alliance.
• The company is focused on commercial traction, with notable clients including major airlines, chemical companies, and banks.
• D-Wave's Advantage2 system has been operational at Davidson Technologies, supporting U.S. Department of Defense applications.
• The company is advancing its gate model quantum computing program, with plans for scalable systems using superconducting technology.
• D-Wave's hybrid quantum applications have shown significant real-world success, including efficiency improvements for BASF and North Wales Police.

3. Forward Guidance and Outlook

• D-Wave expects continued growth in bookings and revenue, with a strong pipeline of opportunities.
• The company plans to increase operational expenses by 15% sequentially, primarily in R&D and sales/marketing, to accelerate technology development and market capabilities.
• The company is optimistic about achieving sustained profitability with a focus on commercial-grade systems and QCaaS.

4. Bad News, Challenges, or Points of Concern

• The substantial increase in net loss is concerning, primarily driven by noncash charges related to warrant liabilities.
• Bookings for the first nine months of 2025 decreased by 7% compared to the same period in 2024, indicating potential challenges in maintaining momentum.
• Competitive pressures remain, particularly from other quantum computing companies, which may impact market positioning.

5. Notable Q&A Insights

• Management emphasized that their approach differs from competitors by focusing on delivering value through operational systems rather than relying on government R&D funding.
• The Q-Alliance deal may serve as a model for future international partnerships, indicating a strategic shift towards establishing global presence.
• The company is exploring new business models that bundle multiple proofs of concept and production applications, which could enhance revenue streams.
• There is a clear commitment to superconducting technology for future gate model systems, with timelines indicating a potential launch in 5-10 years for scaled error-corrected systems.

In conclusion, D-Wave's Q3 2025 results reflect strong revenue growth and strategic advancements, although challenges related to net losses and bookings persist. The company is positioned to capitalize on its first-mover advantage in the quantum computing space while navigating competitive pressures and operational challenges.