QBTS (D-Wave) Q1 2026 Earnings Call Summary

1Key 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.

2Strategic 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.

3Forward 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.

4Bad 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.

5Notable 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.