QBTS — D-Wave Quantum Inc.

QBTS (D-Wave) Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: $2.9 million, down 81% from $15 million in Q1 2025, primarily due to a significant prior year system sale.
• Bookings: $33.4 million, a remarkable increase of nearly 2,000% year-over-year and up 149% from Q4 2025.
• Gross Profit: $1.8 million, an 87% decline from $13.9 million in Q1 2025.
• Operating Expenses: $56.5 million, up 125% from $25.2 million in Q1 2025, driven by acquisition costs and increased personnel expenses.
• Net Loss: $18.4 million ($0.05 per share), compared to a net loss of $5.4 million ($0.02 per share) in Q1 2025.
• Adjusted EBITDA Loss: $32.8 million, an increase from $6.1 million in Q1 2025.
• Cash Position: $588.4 million, a 93% increase from $304.3 million in Q1 2025, bolstered by the acquisition of Quantum Circuits.

2. Strategic Updates and Business Highlights

• D-Wave emphasizes its leadership in quantum computing, particularly in annealing and gate model technologies, following the acquisition of Quantum Circuits.
• The company is targeting a roadmap that includes 100 logical qubits by 2032 and plans to demonstrate quantum error correction technology by 2028.
• D-Wave's annealing systems are being deployed in real-world applications across various sectors, including manufacturing and healthcare.
• A collaboration with Postquant Labs has led to the launch of a quantum-classical blockchain testNet, which has garnered significant interest.
• D-Wave is also exploring applications in AI, with promising results from partnerships with pharmaceutical companies.

3. Forward Guidance and Outlook

• D-Wave expects modest revenue growth in Q2 2026, with a significant portion of revenue anticipated in the second half of the year.
• The company is optimistic about securing 2-3 system sales in 2026, driven by a strong sales pipeline and ongoing negotiations.

4. Bad News, Challenges, or Points of Concern

• Revenue decline of 81% compared to the previous year raises concerns about the sustainability of revenue streams.
• Increased operating expenses may pressure profitability in the short term, despite a strong cash position.
• The competitive landscape is evolving, with potential new entrants in the annealing space and gate model companies exploring hybrid approaches, which could impact D-Wave's market share.

5. Notable Q&A Insights

• Management expressed confidence in achieving 2-3 system sales in 2026, driven by a robust pipeline and ongoing negotiations.
• There is ongoing interest from both commercial and academic sectors in D-Wave's systems, with a potential shift towards more commercial sales in blockchain and AI applications.
• The company is focused on ensuring that its technology remains competitive, particularly in terms of error correction and qubit fidelity.
• Management acknowledged the growing interest in annealing quantum computing but maintains that D-Wave's established position provides a significant competitive advantage.

Overall, while D-Wave has demonstrated substantial growth in bookings and maintains a strong cash position, it faces challenges with declining revenue and increasing competition in the quantum computing landscape.