D-Wave Quantum Stock (QBTS) Gains Ground With Earnings on Deck

D-Wave Quantum's stock (NASDAQ: QBTS) is trading up 5.95% through this morning's pre-market with earnings on deck before market open.

All eyes are on on the print, with analysts projecting revenue of $10.5 million, a 326% year-over-year increase, driven by the sale of its Advantage annealing quantum computer. This forecast represents a stark acceleration from the company’s 2024 performance, where annual revenue remained flat at $8.8 million despite a 128% surge in bookings.

The anticipated revenue jump signals potential operational scalability, particularly as the company transitions from research partnerships to commercial deployments.

Markets will also be scrutinizing D-Wave’s cash position, which exceeded $300 million as of Q1 2025. This liquidity buffer, bolstered by a $161.3 million equity raise in late 2024, provides runway for R&D and customer acquisition but raises questions about long-term dilution risks.

The company’s ability to convert its $23.9 million in 2024 bookings into recognised revenue will be critical to sustaining investor confidence.

D-Wave’s Q4 2024 results revealed a widening net loss of $86.1 million, up from $16 million year-over-year, attributed to non-cash charges tied to warrant liabilities. However, excluding these one-time items, the adjusted net loss narrowed to $75.6 million, with gross margins improving to 72.8% on higher-margin quantum-as-a-service (QCaaS) contracts.

Recent Developments

On April 29, 2025, D-Wave’s stock fell 3% following a short report by Kerrisdale Capital, which accused the company of overstating its quantum computing capabilities and relying on “classical computing solutions.” The short interest in QBTS stands at 17% of the float, reflecting skepticism about its valuation, which trades at a price-to-sales ratio of 262.07.

Operationally, the company achieved quantum computational supremacy in 2024, solving a materials simulation problem faster than classical supercomputers in a milestone that was published in Science. Collaborations with Japan Tobacco and Ford Motor Company demonstrated practical applications in drug discovery and manufacturing optimization, respectively.

These advancements underscore D-Wave’s technical credibility but have yet to translate into sustained revenue growth.

Analyst Sentiment

Wall Street remains bullish, with all six analysts covering QBTS maintaining a Strong Buy rating and a median price target of $9.90 (37.4% upside from the current $7.21). Craig-Hallum and other firms highlight D-Wave’s first-mover advantage in quantum annealing and its expanding client base, which includes 28 Forbes Global 2000 companies.

There is a 14.7% implied move in the QBTS stock post-earnings based on options activity.