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DQ

D-Wave Quantum Inc. (QBTS)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 revenue was $3.10M, up 42% YoY, and beat Wall Street consensus by ~$0.55M; GAAP gross margin was 63.8% and non-GAAP gross margin was 71.8% .*
  • Normalized EPS came in at -$0.08 vs -$0.054 consensus (miss), while GAAP EPS was -$0.55 reflecting large non-cash warrant liability remeasurement; Adjusted EBITDA loss widened to $20.0M .*
  • Cash reached a record $819.3M, supported by a $400M ATM offering, $99.3M in warrant exercises, and $37.8M under the ELOC; stockholders’ equity ended Q2 at $694.3M .
  • Product and go-to-market catalysts: Advantage2 general availability, new cryogenic packaging initiative, and South Korea MOU (Yonsei/Incheon) that contemplates on-premise Advantage2 system acquisition .
  • External headline risk emerged from law-firm announcements tied to a short-seller report, though not a company release; investors should monitor narrative and potential litigation headlines .

Note: Asterisks denote values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Product execution: “We brought to market our sixth-generation quantum computer… introduced developer tools… ended the quarter with a record $819 million in cash” — CEO Dr. Alan Baratz .
  • Commercial traction: Q2 bookings rose 92% YoY to $1.3M; customer base exceeded 100 revenue-generating customers over the last four quarters .
  • Balance sheet strength: Cash grew to $819.3M and stockholders’ equity to $694.3M, enhancing funding capacity for roadmap and acquisitions .

What Went Wrong

  • Profitability deterioration: Adjusted EBITDA loss increased to $20.0M vs $13.9M in Q2 2024, driven by higher operating expenses .
  • OpEx intensity: GAAP operating expenses rose 41% YoY to $28.5M on personnel, stock comp, fabrication, and professional fees, indicating heavier investment load .
  • GAAP net loss optics: GAAP net loss surged to $167.3M, primarily due to $142.0M non-cash warrant liability remeasurement and losses on exercises, complicating headline P&L comparability .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD)$2.183M $15.001M $3.095M
GAAP Gross Margin (%)63.6% 92.5% 63.8%
Non-GAAP Gross Margin (%)73.1% N/A71.8%
GAAP EPS ($)-$0.10 -$0.02 -$0.55
Adjusted EPS ($)-$0.12 N/A-$0.08
Adjusted EBITDA ($)-$13.894M -$6.112M -$19.999M

Comparison vs estimates (Q2 2025):

MetricConsensusActualDelta
Revenue ($USD)$2.541M*$3.095M +$0.554M*
Primary EPS ($)-$0.054*-$0.08 -$0.026*
EBITDA ($USD)-$16.505M*-$26.164M -$9.659M*

KPI snapshot:

KPIQ2 2024Q2 2025
Bookings ($USD)$0.7M $1.3M
Customers (last four quarters)N/A>100
Cash Balance ($USD)$40.9M $819.3M
Stockholders’ Equity ($USD)N/A$694.3M

Segment breakdown: D-Wave does not disclose formal segments; revenue sources include system sales, QCaaS, and professional services, with H1 growth driven primarily by system sales of $13.7M .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ1 2025 (provided in March)“Expect Q1 revenue to exceed $10M” Actual: $15.0M Exceeded prior guidance
Revenue / Margins / OpExQ3 2025 / FY 2025Not providedNot provided in Q2 materials Maintained (no guidance)

Note: No quantitative Q3/FY guidance was provided in the Q2 2025 8-K press release, investor slides, or filings .

Earnings Call Themes & Trends

Note: The full Q2 2025 transcript content was unavailable in the repository; themes reflect Q2 press/investor materials, and prior-quarter press releases.

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
AI/Technology InitiativesQuantum supremacy on useful problem; Advantage2 prototype calibration Advantage2 general availability; quantum AI/ML toolkit released Accelerating productization
Cryogenic Packaging / ManufacturingN/ANew strategic initiative leveraging JPL superconducting bump-bond process for scaling to 100,000-qubit roadmap New initiative, scaling focus
Partnerships / Regional ExpansionCarahsoft public sector reseller; Jülich on-prem system purchase Yonsei/Incheon MOU in South Korea, contemplating Advantage2 acquisition Expanding international footprint
Commercial Traction / CustomersRecord FY bookings; user conference and production apps Renewals/new logos: E.ON, GE Vernova, NQCC, Nikon, NTT Data, DOCOMO, Sharp, Oxford Broadening enterprise/research mix
Financing / Liquidity>$300M cash post ATM/ELOC; debt repaid $400M ATM completion; $819.3M cash; ELOC fulfilled; warrant exercises $99.3M Significantly strengthened liquidity
Regulatory/Legal NarrativeN/AExternal law-firm PR cites short-seller report alleging tech credibility risk Emerging headline risk

Management Commentary

  • “Our second quarter results show consistently strong performance across a multitude of technical and business metrics… brought to market our sixth-generation quantum computer… introduced developer tools to advance quantum AI and machine learning innovation, and ended the quarter with a record $819 million in cash.” — Dr. Alan Baratz, CEO .
  • Liquidity priorities: proceeds to support strategic acquisitions, working capital, and capex, reflecting intent to accelerate roadmap and commercialization .

Q&A Highlights

  • Q2 2025 earnings call transcript was not available in the document repository; Q&A specifics and tone changes cannot be assessed from primary sources at this time .

Estimates Context

  • Revenue beat: Actual $3.095M vs consensus $2.541M (approx. +22% beat).*
  • Normalized EPS miss: Actual -$0.08 vs consensus -$0.054 (more negative by ~$0.026).*
  • EBITDA miss: Actual -$26.164M vs consensus -$16.505M (worse by ~$9.66M).*
  • Implications: Expect upward revisions to near-term revenue trajectories to reflect Advantage2 GA and customer adds, but continued investment intensity suggests EBITDA/normalized EPS may see cautious revisions until OpEx growth moderates .

Values retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue momentum and product cadence: Advantage2 GA, new AI/ML tools, and marquee customer adds underpin demand; Q2 revenue beat and YoY growth support commercialization trajectory .*
  • Profitability headwinds near term: Higher OpEx to build sales/R&D capacity widened Adjusted EBITDA loss; watch OpEx growth rates and operating leverage as system sales normalize beyond Q1 spike .
  • Balance sheet optionality: $819.3M cash and $694.3M equity provide runway for acquisitions and capex; financing risk materially reduced vs 2024 .
  • GAAP optics vs non-GAAP reality: Warrant liability remeasurement drove GAAP net loss volatility; normalized EPS (-$0.08) is more indicative of operating performance and missed consensus by ~$0.03 .*
  • Pipeline and regional expansion: South Korea MOU and on-prem pathways (building on Jülich) expand addressable market; monitor conversion of MOU to system sale and associated margin mix .
  • External narrative risk: Law-firm PR based on a short-seller report could create headline volatility; focus on customer deployments, Advantage2 performance metrics, uptime, and commercial case studies to gauge fundamental traction .
  • Trading lens: Near-term stock moves likely keyed to bookings/system-sale visibility and margin trajectory; medium term hinges on Advantage2 adoption, operating leverage, and converting MOUs/POCs to production contracts .

Asterisks denote values retrieved from S&P Global.