Summary of D-Wave (QBTS) Q2 2026 Earnings Call

1Key Financial Results and Metrics

Revenue: Q2 2026 revenue was $3.1 million, flat compared to Q2 2025. For the first half of 2026, revenue totaled $5.9 million, down 67% from $18.1 million in the same period in 2025.

Customer Base: Approximately 100 individual customers in Q2, with 62.4% of revenue from commercial enterprises, up from 45.1% year-over-year. Forbes Global 2000 customers accounted for 47.7% of revenue.

Bookings: Q2 bookings were $2.1 million, a 59% increase from Q2 2025. First half bookings totaled $35.5 million, up 1,120% year-over-year.

Gross Profit: Q2 GAAP gross profit was $1.7 million (55.4% margin), down from $2 million (63.8% margin) in Q2 2025, primarily due to increased personnel costs.

Net Loss: Q2 net loss was $48 million ($0.13 per share), significantly improved from a loss of $167.3 million ($0.55 per share) in Q2 2025, largely due to a decrease in non-cash charges.

Adjusted EBITDA: Adjusted EBITDA loss was $37.1 million, an 85% increase from $20 million in Q2 2025, attributed to higher personnel-related expenses.

2Strategic Updates and Business Highlights

Market Position: D-Wave was recognized as a leader in the IDC MarketScape for quantum computing, emphasizing its differentiated technology and enterprise-ready systems.

Technical Developments: D-Wave aims for a fault-tolerant quantum computer with a roadmap targeting significant error correction improvements and logical qubit scalability by 2032.

Customer Engagements: Notable partnerships include expanded agreements with AT&T, Optum, and NTT DOCOMO, demonstrating the application of D-Wave's technology in real-world scenarios.

Government Support: D-Wave received $1.57 million from the U.S. National Science Foundation for its participation in the ERASE project, highlighting government confidence in its technology.

3Forward Guidance and Outlook

Revenue Expectations: Q3 revenue is expected to be modestly higher than Q2, with Q4 anticipated to show significant growth, driven by system deliveries and installations.

Future Systems: D-Wave plans to deliver a 17-qubit system by year-end 2026, with further advancements in the pipeline, including a 49-qubit system in 2027 and a 181-qubit system by 2028.

4Bad News, Challenges, or Points of Concern

Revenue Decline: The significant year-over-year revenue drop for the first half of 2026 raises concerns about the company's short-term financial health.

Increased Losses: The adjusted EBITDA loss has increased due to heightened investments in product development and personnel, indicating potential cash flow challenges.

Market Competition: The quantum computing market is becoming increasingly crowded, necessitating D-Wave to continually differentiate its offerings amid growing competition.

5Notable Q&A Insights

Pipeline Growth: CEO Alan Baratz noted a rapidly expanding pipeline, particularly for QCaaS, with larger deals being closed with major corporations.

Production Applications: The transition of customers like Optum from proof-of-concept to production applications is seen as a positive trend, though it may vary based on customer readiness.

Gate-Model Interest: There is growing interest in D-Wave's gate-model systems, with inquiries from both existing annealing customers and new prospects, indicating potential for future revenue streams.

Operational Challenges: Questions about the operationalization of recent technical advancements and how they translate to revenue were addressed, with expectations set for gradual revenue recognition as systems are developed and sold. Overall, while D-Wave is making strides in technology and customer engagement, it faces significant financial challenges and competitive pressures in the evolving quantum computing landscape.