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Interested in D-Wave Quantum Inc.? Here are five stocks we like better. D-Wave Quantum missed Q2 2026 earnings and revenue expectations, yet its stock has risen roughly 20% over the past month. Bookings surged 1,120% to $35.5 million in the first half of 2026, and backlog rose 668% to $40.7 million, signaling potential future revenue. Despite disappointing headline results, growing commercial customer counts and rising production-application usage suggest deeper quantum computing adoption is underway. The tail end of the summer may be giving investors in quantum computing a bit of whiplash. On the one hand, D-Wave Quantum Inc. (NASDAQ: QBTS) delivered one of the more underwhelming Q2 2026 earnings reports, missing on both earnings and revenue, with sales growth seemingly grinding to a halt while competitors saw healthy acceleration. On the other hand, shares of QBTS are up about 20% in the last month, perhaps the first sign of a recovery after a multi-month decline that has been ongoing since May. Short interest in the stock is up, but only to about 1.3% of the float over the past month. → What Rising Delivery Forecasts Say About Rivian's Stock Prospects Despite missing expectations and appearing to fall behind the pack in its last earnings, there is nonetheless a compelling bull case for D-Wave going forward—based on the company's strong potential to convert contracted projects into realized revenue, its capacity to build bookings, its rising backlog, and more. All of these factors could combine to justify Wall Street's continued enthusiasm and the impressive 90% predicted upside for QBTS stock. → NVIDIA Reveals $21 Billion SpaceX Stake: Signal of Confidence or Circular Financing? D-Wave's Q2 sales slump is, on the surface, discouraging—particularly given that rivals like IonQ Inc. (NYSE: IONQ) posted strong growth in this area in their recent reports. However, there are signs beyond revenue that D-Wave's commercial adoption may be poised to take off. Commercial revenues represented some 62% of revenue for the quarter, an increase of 45% compared to the prior-year quarter. The company is also generating its revenue from more customers—over 100 in the first half of the year—which is an important development for a firm and industry that has traditionally relied heavily on a small number of lucrative contracts to fuel bottom lines. → Walmart and Home Depot Earnings Show the K (Shaped Economy) Is Here to Stay Crucially, customers are moving beyond experimentation with quantum tech. Production applications accounted for more than 37% of D-Wave's quantum computing as a service (QCaaS) revenue in the first half of 2026, nearly quadruple their share of those sales in the first half of 2025. This could be an indication that clients are more thoroughly integrating quantum computing into their day-to-day operations. Perhaps the strongest argument that investors should not write D-Wave off just yet is the company's strong customer demand, as evidenced by its bookings. While much of this demand has not yet translated to realized revenue, the firm noted 59% year over year (YOY) improvement in its quarterly bookings. Looking at the entire first half of the year, bookings were up a stratospheric 1,120% to $35.5 million. Yes, more than half of that latter figure is due to a single annealing system sale to Florida Atlantic University—though a good portion of that contract has not yet been recognized as revenue in a quarterly earnings report owing to the lengthy delivery, installation, and testing process. This, however, gives investors a glimpse of future earnings, with the anticipation that the majority of that contract—and others—will show up in future revenue figures. Looking at D-Wave's backlog also gives the impression that momentum is building in key areas. The firm's remaining performance obligations (RPO) suggest that future revenue could be much higher than recent results would indicate. As of the end of June 2026, D-Wave's RPO stood at $40.7 million, a massive 668% up from the same figure one year earlier. If the expected 57% of that backlog converts to revenue in the coming year, investors may look ahead to a major sales boost. The quantum race is continuing at breakneck speed, and despite the potential suggested by some details in D-Wave's recent earnings report, investors should keep in mind the risks. The industry may be stratifying into top performers, middling firms, and up-and-coming stars, and there is always the threat posed by major legacy tech companies as well. D-Wave's earnings were a disappointment, with revenue coming in below expectations, losses appearing wider than analysts had predicted, and investors reminded that quarterly results are lumpy and unpredictable. Beyond that, quantum as an industry remains speculative, as none of the firms has achieved widespread commercial adoption yet. D-Wave's technology is compelling, and its poor revenue performance may not reflect the real momentum that is building among customers. However, the company still very much faces an uphill battle if it is to lead the quantum industry in its efforts to revolutionize computing across the board. The article "The Bull Case for D-Wave After a Disappointing Earnings Season" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Download the Complete Report Here Key Takeaways: XNDU’s 2Q26 hardware progress and higher fabrication activity are beginning to translate post-listing capital into faster roadmap execution. XNDU’s second public-company quarter provided more tangible evidence that its expanded capital base is supporting measurable photonic-component improvements and a faster development cadence. The company achieved average edge-coupling loss of 0.085 dB per facet, supported by its internal advanced photonic chip-packaging facility, customized fiber and fiber-array work with Corning, and wafer-singulation support from DISCO. The 0.085 dB result represents a significant component-level improvement and, according to XNDU, may be the lowest edge-coupling loss achieved in the industry. XNDU’s remaining 5-10x loss gap provides a more measurable framework for tracking progress toward fault tolerance. The aggregate optical-loss gap has declined by as much as 200x over roughly four years, with a further 5-10x reduction still required to reach the threshold for scalable fault-tolerant operation. This gives investors a clearer benchmark for evaluating whether future hardware improvements are translating into meaningful progress against the company’s long-term roadmap. XNDU is addressing the remaining loss gap through both hardware improvement and architectural simplification. Progress is coming from more chip runs and improvements across fabrication, packaging, propagation loss, coupling, and detector efficiency, while architectural changes are designed to reduce the number of components and optical operations photons must traverse. XNDU expects to provide a more detailed loss and hardware roadmap around the end of summer or Analyst Day, consolidating these contributors into two principal optical paths and extending the framework toward 2029-2030. The update should be an important near-term catalyst by providing clearer benchmarks around current performance, required thresholds, timing, and system dependencies. Higher wafer throughput should accelerate development cycles across the company’s two core material platforms. Fabrication activity increased approximately 75% for thin-film lithium niobate and 50% for silicon nitride. Silicon-nitride availability through NY CREATES increased from approximately 100 to 150 wafers, while thin-film-lithium-niobate activity through WaferTech, a UMC subsidiary, increased from slightly above 100 to approximately 175 wafers per month. XNDU expects both corridors to increase further. Albany expansion should strengthen XNDU’s access to U.S. semiconductor infrastructure and engineering talent. XNDU is expanding its U.S. operations around Albany, New York, where proximity to semiconductor research, photonics infrastructure, foundry partners, and government stakeholders should improve coordination across design, fabrication, packaging, and testing. U.S. headcount has increased more than fivefold since 2023, with further significant growth expected by year-end. The public listing has also improved recruiting visibility and compensation flexibility through liquid equity awards, broadening the pool of specialized engineering candidates. Together, the expanded U.S. footprint and deeper talent base should support higher tapeout and wafer activity, greater parallel component development, and a faster hardware iteration cadence. QROM improvements demonstrate how software innovation can reduce future hardware requirements and reinforce the value of the full-stack model. The company published a patent-filed quantum read-only memory, or QROM, technique that cuts required Toffoli-gate operations by roughly half by reducing unnecessary data-movement and unlocking steps. Because QROM is a common subroutine for loading classical data into quantum algorithms, lower gate requirements could ultimately reduce physical-qubit, error-correction, and runtime needs, easing the burden on the hardware roadmap; the implementation is already available through PennyLane. XNDU also trained a Fourier-based quantum-machine-learning model with more than one million parameters to learn the distribution of ribosomal RNA, demonstrating the software stack’s ability to support increasingly complex scientific workloads, although commercial applicability remains early. PennyLane continues to expand its developer reach and strengthen XNDU’s future customer funnel, while monetization remains early. The company released PennyLane 0.45 and Catalyst 0.15, improving end-to-end algorithm development and compilation, while the foundational PennyLane paper surpassed 2,000 citations. Active users, university relationships, and corporate engagement continue to grow, with the latest disclosed metrics at more than 35,000 active users, approximately 200,000 monthly downloads, and roughly 150 university partners. PennyLane remains more important today as a developer and customer-acquisition funnel than as a software revenue driver, with researchers and enterprises trained on the platform potentially becoming future users of enterprise software, application-development services, and quantum-compute access as fault-tolerant hardware becomes available toward 2029-2030. Partnership activity is increasingly supporting application development, workforce readiness, and future enterprise adoption. The company expanded its Lockheed Martin relationship through a joint quantum-machine-learning and workforce-training initiative that uses PennyLane, educational resources, and dedicated workshops to train AI developers and research engineers through the Quantum Talent Pipeline. The program addresses a shortage of internal quantum specialists while broadening PennyLane adoption across aerospace and defense. XNDU also brought PennyLane and its Lightning simulator to Oak Ridge National Laboratory’s Frontier supercomputer, enabling distributed quantum simulation across AMD-powered nodes; renewed its multi-year Rolls-Royce collaboration in computational fluid dynamics and aerodynamics; continued research with Fidelity FCAT; and disclosed advanced-stage engagements with several major banks focused on systematic-risk modeling and multi-input correlations. Engagement with Los Alamos and membership in the Unitary Foundation further extend the company’s research, talent-development, and open-source ecosystem. Project OPTIMISM is nearing a potential funding decision that could materially reduce the capital intensity of XNDU’s manufacturing roadmap. The program remains in final discussions, with a potential update expected over the next one to two months. It could provide up to C$390 million of support from the governments of Canada and Ontario for photonic packaging, wafer-level testing, heterogeneous integration, and quantum-module assembly. If finalized, the funding would strengthen XNDU’s manufacturing capacity while supporting Canada’s sovereign quantum supply chain. The program should not be viewed as unrestricted upfront liquidity, however, as funding is expected to be received over time against qualifying R&D and capital investments; final terms, eligible expenditures, cost-sharing requirements, and reimbursement timing will determine the ultimate balance-sheet and cash-flow benefit. DARPA Stage C could provide an important external validation point for the company’s fault-tolerance roadmap. DARPA remained the principal driver of 2Q26 revenue through Stage B of the Quantum Benchmarking Initiative, with XNDU indicating that required milestones are being met and expressing confidence around potential advancement to Stage C. Selection would matter beyond incremental funding by providing independent validation of the company’s loss-reduction and fault-tolerance progress, strengthening the credibility of its hardware roadmap, and increasing visibility with U.S. government and sovereign-compute customers. Continued progress through DARPA’s benchmarking process could also improve the longer-term pathway toward government procurement. The synthetic ATM expands funding flexibility for roadmap acceleration. XNDU established a synthetic ATM facility with Yorkville Advisors for up to $300 million over 36 months, allowing the company to issue up to 30 million Class B shares with no minimum usage requirement. During 2Q26, the company raised $67.2 million through the issuance of 5.5 million shares at an average net price of $12.28, with the company retaining flexibility to draw selectively based on market conditions and valuation. The facility reduces near-term financing risk and supports additional engineering, wafer, and manufacturing investment; however, future issuance will need to translate into measurable optical-loss reduction, qubit-factory progress, and faster roadmap execution. Revenue remains early-stage, concentrated, and largely program-driven. 2Q26 revenue increased 43% y/y to $1.5 million from $1.1 million but declined approximately 47% from $2.8 million in 1Q26, primarily reflecting the timing of DARPA Stage B revenue and milestone recognition. Two customers represented approximately 75% of 2Q26 revenue and 79% of 1H26 revenue, reinforcing the limited recurring nature of the current revenue base. Until revenue shifts toward scalable software subscriptions, cloud access, system sales, IP licensing, or repeatable application-development work, quarterly results should be viewed primarily as evidence of technical engagement and government validation rather than product-market maturity. Higher R&D and capex are beginning to translate the post-listing capital base into a faster engineering cadence. R&D expense increased to $19.7 million from $17.3 million in 1Q26, driven by engineering and manufacturing hiring, stock-based compensation, and broader development activity, while G&A rose to $11.1 million from $9.8 million on higher headcount, public-company costs, and capital-markets activity. Capital expenditures increased to $6.4 million from $0.3 million as the company invested in specialized equipment for chip testing, process refinement, and manufacturing scale-up. The step-up is consistent with the broader roadmap, as higher wafer throughput and tapeout activity require additional engineering capacity, testing infrastructure, and process-control capabilities, providing a clearer test of whether incremental capital is accelerating hardware development. Wider adjusted EBITDA losses reflect the deliberate step-up in R&D and public-company investment. Adjusted EBITDA loss widened to $21.3 million from $13.9 million in 1Q26 and $13.4 million in 2Q25, driven by higher R&D, G&A, and lower grant revenue, while GAAP net loss increased to $42.1 million. The GAAP result included $12.5 million of fair-value losses, $4.7 million of stock-based compensation, and $2.3 million of non-recurring transaction and financing expenses, which explain much of the gap between reported net loss and underlying operating investment. The core trend, however, remains one of higher spending and wider losses as XNDU accelerates engineering, manufacturing, and public-company buildout. Physical infrastructure commitments are increasing alongside XNDU’s manufacturing and engineering buildout. The company recognized a $19.1 million operating lease liability for a new Toronto facility under a 15-year term, driving much of the increase in long-term lease liabilities to $25.6 million from $7.2 million at year-end. The expanded footprint supports higher manufacturing, testing, and engineering activity as the roadmap scales, although it also increases the fixed-cost base ahead of scaled commercialization. The expanded balance sheet provides substantial capacity to accelerate technical execution. XNDU ended 2Q26 with $312.8 million of cash and approximately $32.5 million of debt, implying net cash of roughly $280 million. Operating cash use was $30.6 million in 1H26 versus $27.4 million a year earlier, while investing outflow totaled $7.2 million. Liquidity reflects the post-SPAC capital raise, supplemented by $67.2 million of 2Q26 synthetic ATM proceeds, providing flexibility to expand wafer activity, engineering headcount, and manufacturing infrastructure. Near-term financing risk remains limited, but with R&D and capex expected to increase through 2H26, the more relevant measure of capital efficiency will be whether higher spending translates into faster optical-loss reduction, qubit-factory progress, and broader roadmap execution. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. XNDU’s valuation has reset despite measurable technical and ecosystem progress and remains below listed quantum peers. At $10.4 per share, XNDU trades at a market capitalization of approximately $3.2 billion and enterprise value of roughly $2.9 billion, compared with approximately $4.1 billion and $4.3 billion, respectively, at the time of the May earnings update. This represents a roughly 22% decline in market capitalization and 33% reduction in EV despite progress in optical loss, materially higher wafer throughput, expanded manufacturing capacity, and broader software and partner engagement. XNDU’s current market capitalization is also roughly 47% below the peer average of about $6.0 billion, while its EV is approximately 44% below the roughly $5.2 billion peer average. The valuation gap is notable given XNDU’s scarce pure-play photonic exposure, differentiated architecture, and full-stack positioning, although relative valuation remains sensitive to differences in revenue scale, technical maturity, and commercialization timelines across quantum platforms. Architecture credibility, funding capacity and milestone execution remain the more relevant valuation framework. XNDU ended 2Q26 with $312.8 million of cash and has increased fabrication activity by approximately 75% for thin-film lithium niobate and 50% for silicon nitride, while the aggregate optical-loss gap has narrowed by as much as 200x over roughly four years, with a further 5-10x reduction estimated to remain. These metrics provide a more useful framework for assessing whether higher R&D, capex, and infrastructure investment are reducing technical risk and accelerating development. The upcoming detailed loss and hardware roadmap should therefore be particularly important for valuation, as it is expected to provide clearer benchmarks around current performance, required thresholds, timing, and the path toward the 2029-2030 roadmap. Rerating potential remains tied to measurable technical, funding, and commercial catalysts. Key drivers include further reduction in the remaining 5-10x optical-loss gap, continued increases in wafer and tapeout velocity, qubit-factory progress, DARPA Stage C advancement, finalization of Project OPTIMISM, updated PennyLane adoption metrics, and conversion of strategic partnerships into paid or procurement-linked demand. Successful execution across these milestones could support a narrowing of XNDU’s current valuation discount as technical risk declines and revenue visibility improves. Conversely, slower loss reduction, qubit-factory delays, rising R&D and capex without comparable technical progress, additional ATM dilution, or continued uncertainty around government funding could constrain rerating potential. Download the Complete Report Here Read Exec Edge’s Initiation on Xanadu Quantum Here Watch IPO Edge Fireside Chat with Xanadu Founder & CEO Christian Weedbrook Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post Xanadu Accelerates Chip Production as Investors Await Next Catalyst in Race to Scalable Quantum Computing – Quarterly Update Report appeared first on ExecEdge.

Interested in D-Wave Quantum Inc.? Here are five stocks we like better. Revenue was essentially flat year over year at $3.1 million, but QCaaS subscription revenue rose 50% and bookings increased 59% to $2.1 million. Backlog surged 668% to $40.7 million, with 57% expected to convert to revenue within 12 months. D-Wave’s net loss narrowed to $48 million from $167.3 million, largely because of lower non-cash warrant-related charges, while its adjusted EBITDA loss widened to $37.1 million as the company increased spending on product development and sales. Cash and marketable securities totaled $546.2 million after the Quantum Circuits acquisition. Commercial adoption is expanding: production applications generated 37% of first-half QCaaS revenue, with deployments at AT&T, Optum and NTT Docomo. D-Wave expects modest third-quarter revenue growth and a significantly stronger fourth quarter driven by system shipments. Quantum Earnings Could Decide Whether the Sector’s Sell-Off Has Gone Too Far D-Wave Quantum (NASDAQ:QBTS) reported second-quarter 2026 revenue of $3.1 million, essentially unchanged from the year-earlier period, as growth in quantum computing-as-a-service subscriptions and professional services offset a smaller contribution from systems revenue. The company said second-quarter QCaaS subscription revenue rose 50% year over year to $1.9 million, while professional services revenue increased more than 18% to about $900,000. Systems and other revenue was approximately $300,000, primarily tied to installation and site-preparation activities for a previously announced $20 million system sale to Florida Atlantic University. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth D-Wave’s AT&T Deal Shows Quantum Computing Is Moving Beyond Theory Bookings increased 59% from a year earlier to $2.1 million in the quarter, while the average booking size rose more than 87%, according to Chief Financial Officer John Markovich. The company recognized revenue from about 100 customers, with commercial enterprises accounting for 62.4% of revenue, up from 45.1% a year earlier. Forbes Global 2000 customers represented 47.7% of quarterly revenue, compared with 20.4% in the prior-year quarter. D-Wave posted a second-quarter net loss of $48 million, or $0.13 per share, compared with a net loss of $167.3 million, or $0.55 per share, a year earlier. The narrower net loss was primarily driven by a $142 million decline in non-cash, non-operating charges related to the remeasurement of its former warrant liability. The company redeemed all of its remaining publicly traded warrants in November 2025. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? Adjusted EBITDA loss widened to $37.1 million from $20 million in the prior-year quarter. Markovich said the increase reflected higher personnel-related spending to support accelerated product development and go-to-market initiatives. GAAP gross profit declined 14% to $1.7 million, and gross margin fell to 55.4% from 63.8%, which the company attributed primarily to increased personnel costs. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling For the first six months of 2026, revenue was $5.9 million, down 67% from $18.1 million in the first half of 2025. The prior-year period included $13.7 million of revenue from D-Wave’s first annealing quantum computer system sale. First-half bookings, however, climbed to $35.5 million from $2.9 million, including the $20 million Florida Atlantic University system order. Remaining performance obligations, or backlog, totaled $40.7 million as of June 30, up 668% from a year earlier. D-Wave said about 57% of that balance is expected to be recognized as revenue within 12 months and 72% within two years. Chief Executive Officer Alan Baratz said the company now has six customer applications in production and is seeing broader interest from large enterprises. More than 37% of first-half QCaaS revenue, or $1.3 million, came from production business applications, compared with 9.8%, or about $300,000, in the first half of 2025. D-Wave highlighted several customer deployments during the call: AT&T expanded its agreement with D-Wave to apply annealing quantum computing to network optimization. D-Wave said one early application reduced processing time from about one hour to less than 15 seconds. AT&T plans to assess further uses involving outage response, technician routing, network planning and traffic management. Optum, a UnitedHealth Group subsidiary, moved from an initial proof-of-technology effort directly into a production application for optimization problems involving thousands of variables and hundreds of thousands of constraints. Baratz said the application had run about 30,000 jobs by mid-June after launching in May. NTT Docomo used D-Wave technology in mobile-network optimization applications. The company said one deployment reduced paging signals by 15%, while another reduced location-registration signals by about 65% and paging signals by 7% during peak periods. Baratz said the company’s QCaaS pipeline is expanding and that D-Wave is closing larger deals with larger companies. He also said roughly 25% to 30% of current discussions involve business units directly or bring business units into conversations early, compared with none a year ago. D-Wave also detailed progress on its gate-model quantum computing program following its acquisition of Quantum Circuits earlier this year. The company announced peer-reviewed research published in Nature describing a two-qubit entangling gate on an eight-qubit dual-rail processor. According to Baratz, the research demonstrated approximately 99.9% fidelity in two-qubit operations with gate times of about 500 nanoseconds. The company expects to deliver a 17-physical-qubit dual-rail system later in 2026, followed by a 49-physical-qubit system in 2027 and a 181-physical-qubit system in 2028. D-Wave said the systems are designed to demonstrate progressively lower logical error rates. Its longer-term roadmap calls for a 10-logical-qubit system in 2030 and a system with 100 logical qubits and more than 1 million reliable operations by 2032. Baratz said D-Wave expects to make a gate-model simulator available through its Leap quantum cloud platform later this year. The company said the simulator is intended to support error-aware quantum programming based on the expected behavior of its dual-rail architecture. On the annealing side, D-Wave reiterated plans for a 20,000-qubit Advantage 3 system in 2029 and a 100,000-qubit system in 2031. The company also expects to ship two annealing quantum computer systems in 2026, likely during the fourth quarter. Markovich said third-quarter revenue is expected to rise modestly from second-quarter levels, while fourth-quarter revenue should increase significantly from the third quarter and account for the majority of 2026 revenue. The timing reflects expected fourth-quarter system shipments and the subsequent installation and calibration work, some of which may carry into 2027. As of June 30, D-Wave had $546.2 million in cash and marketable investment securities, down from $819.3 million a year earlier. More than 90% of the decrease was related to approximately $250 million in cash consideration paid for the Quantum Circuits acquisition, the company said. D-Wave Quantum Inc (NYSE: QBTS) develops and provides quantum computing systems, software and services focused on quantum annealing technology. Headquartered in Burnaby, British Columbia, D-Wave designs specialized processors that leverage quantum mechanics to solve complex optimization and sampling problems. Since its founding in 1999 by physicists including Geordie Rose, the company has pursued the development of commercially viable quantum hardware and accompanying software tools. The company’s product portfolio centers on its quantum annealers, which are complemented by hybrid solvers that integrate classical and quantum computing resources. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "D-Wave Quantum Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

D-Wave Quantum Inc. QBTS used its second-quarter 2026 earnings call to emphasize two priorities: expanding commercial use of annealing quantum computing and advancing a defined path toward fault-tolerant gate-model systems. Management also set expectations for a back-end-loaded revenue year, with system deliveries concentrated in the fourth quarter and gate-model commercial applications remaining a longer-term objective. President and CEO Alan Baratz said D-Wave is targeting a gate-model system with 100 logical qubits and more than 1 million reliable operations by 2032, which management views as the threshold for initial commercial applications. Baratz said the company expects a 17-physical-qubit system later in 2026, followed by 49 physical qubits in 2027 and 181 in 2028. A 10-logical-qubit system is targeted for 2030. He highlighted peer-reviewed work showing roughly 99.9% fidelity for a two-qubit entangling gate with gate times of about 500 nanoseconds, supporting D-Wave's dual-rail architecture and error-correction road map. Baratz pointed to six customer applications in production. Production applications contributed 37.3% of first-half QCaaS revenues, up from 9.8% a year earlier. Baratz highlighted AT&T, where an early optimization application reduced processing time from about one hour to less than 15 seconds, and Optum, which had run about 30,000 jobs by mid-June. In Q&A, Baratz told a ROTH Capital analyst that about 25% to 30% of commercial discussions now involve a line of business directly or from the outset, versus none a year earlier. CFO John Markovich said third-quarter revenues should rise modestly from the second quarter, while fourth-quarter revenues should increase significantly and account for the majority of 2026 revenues. Markovich said D-Wave still expects to ship two annealing systems during the balance of the year, both in the fourth quarter, with some installation and calibration revenues carrying into 2027. He also noted $40.7 million of remaining performance obligations at June 30, with about 57% expected to convert to revenues within 12 months and 72% within two years. Second-quarter revenues of $3.1 million were essentially flat year over year. Bookings rose 59% to $2.1 million and average booking size increased more than 87%. GAAP gross margin fell to 55.4% from 63.8%, which Markovich attributed to higher personnel costs. Adjusted EBITDA loss widened to $37.1 million from $20 million as product development and go-to-market spending increased. Adjusted loss was 10 cents per share compared with the Zacks Consensus Estimate of a loss of 8 cents. Revenues of $3.1 million were below the $3.8 million consensus estimate. D-Wave Quantum Inc. price-consensus-eps-surprise-chart | D-Wave Quantum Inc. Quote An Evercore analyst asked when gate-model milestones could begin contributing meaningful revenue. Baratz said government contracts are already generating initial gate-model revenues and more than one company has expressed interest in buying a dual-rail system. Baratz said research-focused system sales could precede broader commercial adoption, while significant gate-model QCaaS revenues are not expected until around the 2032 commercial-relevance milestone. A Benchmark analyst asked about annealing system economics. CFO John Markovich said pricing ranges from $20 million to $40 million, with research and university systems toward the lower end, and revenue recognition generally spanning about two quarters once a site is ready. Baratz framed D-Wave's position around differentiated technology, enterprise readiness and demonstrated execution, emphasizing production annealing applications alongside measurable gate-model milestones. Baratz also said the Quantum Circuits integration is progressing well and reiterated that the 17-qubit dual-rail system remains on track for delivery before year-end. Management's near-term focus remains commercial expansion in annealing, while the gate-model program advances through staged technical milestones. QBTS carries a Zacks Rank #2 (Buy). Its Value Score is F and Growth Score is D. Its Momentum Score is C and its VGM Score is F. Zacks methodology favors Rank #1 (Strong Buy) or #2 stocks paired with A or B Style Scores, so the current combination presents a favorable Rank alongside weak style readings. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Rank reflects earnings estimate revisions over a one-to-three-month horizon, while the Style Scores assess value, growth and momentum characteristics. The Rank can change as analysts revise estimates following the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report D-Wave Quantum Inc. (QBTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. D-Wave Quantum (QBTS) is back in focus after second quarter results showed revenue of US$3.08 million and a net loss of US$48.03 million, which came in weaker than analyst expectations. See our latest analysis for D-Wave Quantum. The Q2 miss triggered a sharp 1 day share price decline of 9.28%, yet D-Wave Quantum still carries a positive 1 year total shareholder return of 13.02% and a very large 3 year total shareholder return. This suggests that long term momentum has so far outweighed the recent pullback. If this kind of quantum computing volatility has your attention, it could be a good moment to see what else is moving in the space through 26 quantum computing stocks D-Wave Quantum now trades lower after the earnings miss, yet still sits on strong multi year gains and a sizeable gap to analyst targets. Is most of the easy upside already captured, or does the recent drop reset the valuation story? The most followed D-Wave Quantum narrative pegs fair value at $40.65 per share, compared with the latest close of $19.41. That wide gap centers on a very specific view of where quantum adoption and the company’s role in it could head. Read the complete narrative. Want to understand why this narrative sees such a large gap to the current D-Wave Quantum share price? The core assumptions focus on rapid top line expansion, a shift toward higher value cloud services, and the impact of a dual platform quantum model on future margins and scale. Curious which revenue mix and profitability path underpin that fair value and how the liquidity “war chest” feeds into the story. Result: Fair Value of $40.65 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, D-Wave Quantum still faces execution risk on its dual platform roadmap, and any slowdown in enterprise or government demand could quickly challenge this upbeat, liquidity-driven narrative. Find out about the key risks to this D-Wave Quantum narrative. With sentiment on D-Wave Quantum pulled between optimism and concern, it helps to move quickly and weigh the trade off yourself using the 1 key reward and 4 important warning signs. If D-Wave Quantum has sharpened your curiosity, do not stop here. Broadening your watchlist across sectors can help you stress test your thesis and spot fresh opportunities. Target resilient balance sheets and steady fundamentals by scanning companies in the solid balance sheet and fundamentals stocks screener (49 results). Hunt for potential value opportunities by reviewing companies highlighted in the 50 high quality undervalued stocks. Spot lesser known prospects with strong metrics before they gain wider attention through the screener containing 19 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include QBTS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes their market leadership to a dual-platform strategy that provides customers with access to both annealing and gate-model quantum computing technologies, allowing them to utilize the architecture best suited to their specific computational problems. The company's superconducting dual-rail architecture is positioned as a transformational approach to error correction, targeting a 'Lambda' of 10 to significantly reduce physical qubit overhead. Operational focus has shifted from raw qubit counts to platform maturity, including hybrid integration with existing AI and enterprise computing environments. Performance gains in the annealing business are driven by a transition from experimental proofs-of-concept to live production deployments with Fortune Global 2000 customers. Strategic positioning is reinforced by peer-reviewed validation in Nature, demonstrating 99.9% fidelity in two-qubit operations on an 8-qubit dual-rail processor. Management emphasizes that their 15-year history in building commercial quantum stacks provides a competitive moat in hardware, cryogenics, and cloud infrastructure. The gate-model roadmap targets 100 logical qubits and 1 million reliable operations by 2032 to address commercial quantum chemistry and AI applications. Near-term hardware milestones include a 17-qubit system in late 2026 and a 49-qubit system in 2027 designed for a 20-fold error reduction factor. Annealing system scaling targets 20,000 qubits by 2029 and 100,000 qubits by 2031 using advanced multi-chip fabric interconnects. Financial guidance assumes two annealing system deliveries in the fourth quarter of 2026, with revenue recognition likely carrying into 2027. Management expects to book two to three system sales annually, with pricing ranging between $20 million and $40 million per unit. The $250 million cash consideration for the Quantum Circuits acquisition in January drove a 33% year-over-year decrease in cash and marketable securities. Adjusted EBITDA loss increased by 85% year-over-year, primarily due to aggressive personnel investments in product development and go-to-market initiatives. Production applications now account for over 37% of QCaaS revenue, a significant structural shift from 9.8% in the prior year. Backlog (RPO) increased by 668% to $40.7 million, though 57% is tied to revenue recognition within the next 12 months. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that customers like Optum are skipping traditional stages when data readiness is high and initial results are immediately strong. The transition is increasingly driven by line-of-business leaders rather than just innovation or research teams. The dual-rail architecture achieves superconducting speeds (nanoseconds) with trapped-ion fidelities (99.9%), which management calls the 'best of both worlds.' A Lambda of 10 would allow 100-200 physical qubits to create one logical qubit, versus thousands required by competitors. Initial revenue is currently coming from government contracts (NSF and NORDTECH). System sales to research institutions are expected next, but significant QCaaS revenue from gate-model systems is not anticipated until 2032.