QBTS · D-Wave Quantum Inc.

D-Wave Quantum Inc. announced first quarter 2026 results marked by a significant revenue decline to $2.9 million from $15.0 million in the prior year, primarily due to the absence of a $12.6 million annealing quantum computing system sale recognized in Q1 2025. Despite lower revenue, the company achieved record bookings of $33.4 million, up nearly 2,000% year-over-year, driven by a $20 million Advantage2 system purchase by Florida Atlantic University and a $10 million two-year QCaaS agreement with a Fortune 100 company. This bookings surge expanded remaining performance obligations to $42.4 million, up 563% YoY, with 54% expected to convert to revenue within 12 months. Gross margins compressed to 63.6% GAAP (70.6% non-GAAP) from over 92% last year due to product mix shift away from high-margin system sales. Operating expenses more than doubled to $56.5 million GAAP ($34.8 million adjusted), fueled by $9.1 million in non-recurring Quantum Circuits acquisition costs, headcount growth in R&D and sales, and elevated stock-based compensation. Net loss expanded to $18.4 million ($0.05/share) from $5.4 million, partly offset by a $28.5 million income tax benefit from the acquisition. CEO Dr. Alan Baratz highlighted the company's dual-platform leadership, with the Quantum Circuits acquisition of dual-rail qubit technology expected to accelerate error-corrected gate-model systems, targeting 175 physical qubits by 2028. Balance sheet strengthened post-acquisition, with $588.4 million in cash and investments supporting runway amid $297 million cash burn, largely from the $250.8 million business combination. Over 100 customers contributed revenue, with 50%+ commercial enterprises, underscoring expanding adoption of annealing systems in optimization applications.