Summary of D-Wave Quantum Inc. Q4 2025 Earnings Call

1Key Financial Results and Metrics

Fiscal Year 2025 Revenue: $24.6 million, a 179% increase year-over-year from $8.8 million in FY 2024.

Breakdown: $16.2 million from system sales, $5.5 million from Quantum Compute-as-a-Service (QCaaS), and $2.7 million from professional services.

Q4 2025 Revenue: $2.8 million, up 19% from $2.3 million in Q4 2024.

Bookings:

FY 2025 bookings totaled $18.7 million, down 22% from $23.9 million in FY 2024.

Q4 bookings were $13.4 million, a 471% increase from Q3 2025 ($2.4 million).

Gross Profit:

FY 2025 GAAP gross profit was $20.3 million (82.6% margin), up from $5.6 million (63% margin) in FY 2024.

Q4 GAAP gross profit was $1.8 million (64.8% margin), up from $1.5 million (63.8% margin) in Q4 2024.

Net Loss:

FY 2025 net loss was $355 million ($1.11 per share), compared to a loss of $143.9 million ($0.75 per share) in FY 2024.

Q4 net loss was $42.3 million ($0.12 per share), improved from a loss of $86.1 million ($0.37 per share) in Q4 2024.

Cash Position: As of December 31, 2025, cash and marketable securities totaled $884.5 million, a 397% increase year-over-year.

2Strategic Updates and Business Highlights

D-Wave achieved significant milestones, including the sale of its Advantage quantum computer to the Jülich Supercomputing Center and demonstrating quantum supremacy on a real-world problem.

The company launched its Advantage2 system and reported a 1,500% increase in its sales opportunity pipeline year-over-year.

D-Wave acquired Quantum Circuits, enhancing its capabilities in gate-model quantum computing and positioning itself as a leader in both annealing and gate-model technologies.

The company is focusing on government solutions and has launched a dedicated business unit to address U.S. government needs, showcasing operational relevance through a missile defense simulation.

D-Wave plans to relocate its headquarters to Boca Raton, Florida, to enhance its R&D capabilities.

3Forward Guidance and Outlook

D-Wave did not provide formal financial guidance for 2026 but indicated strong momentum with bookings exceeding any previous annual totals within the first month of 2026.

The company expects incremental revenue growth in the second half of 2026 compared to the first half, driven by system sales and QCaaS agreements.

Operating expenses are anticipated to increase by approximately 15% sequentially throughout the year, reflecting investments in technology development and expansion of the workforce.

4Bad News, Challenges, or Points of Concern

FY 2025 bookings declined by 22%, primarily due to the absence of large system sales that characterized FY 2024.

The net loss increased significantly due to non-cash charges related to warrant liabilities, raising concerns about financial sustainability.

The company faces competitive pressures, particularly as other quantum computing firms pursue similar technological advancements and government contracts.

The complexity of the sales cycle for system sales may delay revenue recognition, impacting short-term revenue visibility.

5Notable Q&A Insights

Management emphasized the competitive advantage of their dual-rail technology in gate-model systems, which allows for fewer physical qubits and faster error correction.

The integration of Quantum Circuits is expected to enhance D-Wave's sales pipeline and revenue contributions, particularly in government-related projects.

There is optimism regarding the QCaaS segment, with larger enterprise deals expected to increase in size and frequency, although revenue recognition will be gradual.

D-Wave's leadership expressed confidence in their unique position within the quantum computing landscape, highlighting their operational capabilities and customer engagement strategies as key differentiators.