QBTS-WT — D-Wave Quantum Inc.

Summary of D-Wave Quantum Inc. Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Fiscal Year 2025 Revenue: $24.6 million, a 179% increase from $8.8 million in FY 2024.
  • Revenue Breakdown: $16.2 million from systems sales, $5.5 million from QCaaS subscriptions, and $2.7 million from professional services.
• Bookings: $18.7 million for FY 2025, a decrease of 22% year-over-year. Q4 bookings were $13.4 million, up 471% sequentially from Q3.
• Gross Profit: GAAP gross profit for FY 2025 was $20.3 million (82.6% margin), up from $5.6 million (63% margin) in FY 2024.
• Net Loss: $355 million for FY 2025, compared to $143.9 million in FY 2024. Adjusted net loss was $84.5 million, an increase of 11.8% year-over-year.
• Cash Position: As of December 31, 2025, cash and marketable securities totaled $884.5 million, up 397% from $178 million a year prior.

2. Strategic Updates and Business Highlights

• D-Wave marked 2025 as a pivotal year, transitioning from research to commercial viability in quantum computing.
• Closed significant sales, including a $20 million system sale to Florida Atlantic University and a $10 million enterprise QCaaS deal with a Fortune 100 company.
• Acquired Quantum Circuits, enhancing D-Wave's capabilities in gate-model quantum computing and positioning it for leadership in error-corrected systems.
• Launched a dedicated U.S. government solutions business unit, focusing on real-world applications rather than R&D grants.
• Announced plans to relocate headquarters to Boca Raton, Florida, to enhance R&D and attract talent.

3. Forward Guidance and Outlook

• While formal guidance for FY 2026 was not provided, management indicated strong momentum with year-to-date bookings exceeding prior annual totals.
• Anticipated revenue growth in the second half of FY 2026, with a significant pipeline of sales opportunities.
• Operating expenses expected to increase by approximately 15% sequentially each quarter due to ongoing investments in R&D and expansion efforts.

4. Bad News, Challenges, or Points of Concern

• Despite record revenue, the net loss increased significantly due to non-cash charges related to warrant liabilities.
• Bookings for FY 2025 decreased compared to FY 2024, indicating potential volatility in future sales.
• Competitive pressures remain, particularly with other companies pursuing similar technologies and capabilities.
• Concerns about reliance on a small number of large contracts and the complexity of the sales cycle for system sales.

5. Notable Q&A Insights

• Management emphasized the competitive advantage of their dual-rail technology for gate-model systems, which could reduce the number of physical qubits needed for error correction, thus speeding up time to market.
• The integration of Quantum Circuits is expected to enhance operational capabilities and contribute to revenue in FY 2026.
• There is growing interest from existing annealing customers in exploring gate-model technology, indicating potential cross-selling opportunities.
• Management acknowledged the risks associated with supply chain dependencies and the need for alternative fabrication sources amidst competitive acquisitions in the industry.

Overall, D-Wave is positioned as a frontrunner in the quantum computing sector, demonstrating significant commercial traction and technical advancements, although challenges related to profitability and competitive landscape remain.