On Thursday, D-Wave Quantum Inc. (NYSE:QBTS) reported second-quarter results that fell short of analyst earnings expectations despite posting revenue gains. Shares fell 2.79% in pre-market trading following the announcement.
The quantum computing firm posted an adjusted loss of $0.08 per share, missing the analyst estimate of a $0.05 per share profit. Revenue, however, rose to $3.1 million, beating the consensus estimate of $2.59 million and marking a 42% increase from $2.2 million in the same quarter last year.
The stock decline reflects investor concerns about the company’s path to profitability despite its technological progress. D-Wave reported an adjusted EBITDA loss of $20 million, up 44% from $13.9 million a year earlier, mainly due to increased operating expenses.
“Our second quarter results show consistently strong performance across a multitude of technical and business metrics,” said Dr. Alan Baratz, CEO of D-Wave. “During the quarter, we brought to market our sixth-generation quantum computer, signed a memorandum of understanding related to the acquisition of an on-premises system in South Korea, completed physical assembly of the previously announced system at Davidson Technologies, and ended the quarter with a record $819 million in cash.”
The company significantly bolstered its financial position by completing a $400 million At-the-Market equity offering and closing the quarter with approximately $819 million in cash—the highest in its history. This represents a dramatic rise from $40.9 million in the same quarter last year.
D-Wave’s gross profit increased 42% year-over-year to $2 million, with a gross margin of 63.8%, slightly higher than the 63.6% recorded in Q2 2024. Operating expenses climbed 41% to $28.5 million, driven by higher personnel costs, stock-based compensation, and fabrication activities.
During the quarter, D-Wave announced the general availability of its Advantage2 quantum computer, the company’s most advanced system yet, designed to tackle complex problems beyond classical computing capabilities.
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