D-Wave Quantum Inc. is revolutionizing the future of computing by harnessing the power of quantum mechanics to solve complex problems beyond the reach of classical computers. As a pioneer in quantum hardware and software, D-Wave leads the industry with its cutting-edge Advantage quantum system, innovative cloud platform Leap, and comprehensive developer tools. Renowned for pushing the boundaries of technology, the company’s solutions impact sectors from AI to pharmaceuticals. The key question for investors is whether D-Wave’s strong innovation pipeline and expanding market presence justify its current valuation and promise sustainable growth.
Table of contents
Company Description
D-Wave Quantum Inc., founded in 2020 and headquartered in Burnaby, Canada, is a pioneer in the quantum computing industry. Specializing in the development and delivery of quantum computing systems, software, and professional services, the company offers a diverse portfolio including the fifth-generation Advantage quantum computer, the Leap cloud platform for real-time quantum access, and the Ocean suite of programming tools. Serving sectors such as manufacturing, financial services, life sciences, and logistics, D-Wave positions itself as a leader in commercial quantum computing hardware and software integration. With operations primarily in North America and a focus on hybrid quantum solutions, D-Wave drives innovation by enabling enterprises to harness quantum technology for complex problem-solving and strategic advantage.
Fundamental Analysis
I will analyze D-Wave Quantum Inc.’s income statement, key financial ratios, and dividend payout policy to provide a clear investment perspective.
Income Statement
Below is the income statement for D-Wave Quantum Inc. (QBTS) over the past five years, highlighting key financial performance metrics from 2020 to 2024.
| Income Statement | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 5.16M | 6.28M | 7.17M | 8.76M | 8.83M |
| Cost of Revenue | 915K | 1.75M | 2.92M | 4.14M | 3.26M |
| Operating Expenses | 35.7M | 43.5M | 63.7M | 85.2M | 82.8M |
| Gross Profit | 4.25M | 4.53M | 4.25M | 4.62M | 5.56M |
| EBITDA | -14.1M | -34.4M | -49.0M | -80.8M | -138.1M |
| EBIT | -16.8M | -37.0M | -51.4M | -82.7M | -140.0M |
| Interest Expense | 5.18M | 4.01M | 2.34M | 2.16M | 3.90M |
| Net Income | -21.9M | -41.0M | -53.7M | -82.7M | -143.9M |
| EPS | -0.20 | -0.33 | -0.45 | -0.60 | -0.75 |
| Filing Date | 2020-12-31 | 2021-12-31 | 2022-04-18 | 2024-03-29 | 2025-03-14 |
Interpretation of Income Statement
D-Wave Quantum’s revenue has shown a steady upward trend, nearly doubling from 5.16M in 2020 to 8.83M in 2024. Despite this growth, net income remains deeply negative, reflecting heavy investments and operating expenses that have escalated significantly, particularly in 2023 and 2024. Gross profit has improved slightly but remains modest compared to overall costs, indicating tight margin control. The most recent year, 2024, shows a slight revenue increase with a marginal improvement in gross profit, but EBITDA and net losses widened sharply, highlighting intensified spending or operational challenges. Investors should weigh the top-line growth against persistent losses and consider the company’s path to sustainable profitability carefully.
Financial Ratios
Below is the table presenting key financial ratios for D-Wave Quantum Inc. across available fiscal years.
| Ratio | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | -4.26% | -6.53% | -7.49% | -9.44% | -16.30% |
| ROE | -0.67% | 2.23% | 1.82% | 3.38% | -2.30% |
| ROIC | -0.84% | -1.84% | -4.04% | -1.61% | -0.45% |
| P/E | -52.01 | -30.04 | -3.21 | -1.47 | -11.22 |
| P/B | 34.91 | -67.06 | -5.85 | -4.96 | 25.76 |
| Current Ratio | 3.45 | 1.53 | 0.87 | 4.18 | 6.14 |
| Quick Ratio | 3.24 | 1.33 | 0.73 | 4.00 | 6.08 |
| D/E | 0.14 | -2.15 | -1.44 | -2.97 | 0.61 |
| Debt-to-Assets | 9.82% | 133.78% | 156.92% | 122.40% | 19.20% |
| Interest Coverage | -6.08 | -9.71 | -25.46 | -37.38 | -19.82 |
| Asset Turnover | 0.11 | 0.21 | 0.27 | 0.15 | 0.04 |
| Fixed Asset Turnover | 0.88 | 0.53 | 0.63 | 0.81 | 0.77 |
| Dividend Yield | 0 | 0 | 0 | 0 | 0 |
Interpretation of Financial Ratios
For fiscal year 2024, D-Wave Quantum Inc. (QBTS) exhibits a very strong liquidity position, with a current ratio of 6.14 and a quick ratio of 6.08, indicating ample short-term assets to cover liabilities. The cash ratio at 5.90 further reinforces this strong liquidity cushion. However, solvency is a concern, as the solvency ratio is negative (-1.03), and the company carries moderate debt levels with a debt-to-equity ratio of 0.61. Profitability remains weak, with a negative net profit margin of -16.3% and negative EBIT and EBITDA margins around -15.8%. Efficiency ratios like asset turnover are very low (0.044), reflecting limited revenue generation from assets. Coverage ratios such as interest coverage at -19.8 and debt service coverage at -32.5 highlight struggles in meeting financial obligations. Market prospects appear speculative, given very high price-to-sales (183x) and price-to-book (25.8x) ratios, implying elevated investor expectations despite current losses.
Evolution of Financial Ratios
Over the past five years, QBTS’s liquidity ratios have generally improved, peaking in 2024, while profitability margins have consistently been negative and deepened recently. Leverage and solvency metrics have fluctuated but remain precarious. Market valuation multiples remain high, reflecting a growth-oriented investor sentiment despite persistent losses and cash flow challenges.
Distribution Policy
D-Wave Quantum Inc. (QBTS) does not pay dividends, reflecting its current strategy focused on reinvestment amid ongoing net losses and a high-growth phase. The company has no dividend payout, consistent over recent years, and does not engage in share buybacks. This approach prioritizes funding R&D and acquisitions, which aligns with long-term shareholder value creation if the company can achieve sustainable profitability.
Sector Analysis
D-Wave Quantum Inc. operates in the technology sector’s quantum computing niche, offering advanced hardware and software solutions. Its competitive edge lies in proprietary quantum technology, with key competitors including IBM and Rigetti; strengths include innovation and specialized services, while market adoption and scalability remain challenges.
Strategic Positioning
D-Wave Quantum Inc. holds a pioneering position in the emerging quantum computing market, particularly with its Advantage system, a fifth-generation quantum computer. While the quantum computing sector remains nascent, D-Wave is recognized for its hybrid quantum-classical approach and accessible cloud-based services like Leap. The company faces competitive pressure from both established tech giants and startups advancing gate-model quantum technology, which could disrupt D-Wave’s annealing-based solutions. Despite this, D-Wave’s early market presence and developer ecosystem provide a solid foundation, though sustained innovation and adaptation remain critical to maintaining market share.
Revenue by Segment
The pie chart illustrates D-Wave Quantum Inc.’s revenue distribution by segment for the fiscal year 2024, highlighting the relative contributions of its main business areas.
D-Wave’s revenue is primarily driven by its Professional Services segment, which, despite a decrease to 1.9M in 2024 from 3.8M in 2023, remains the dominant source of income. The Product and Service, Other segment showed moderate growth to 144K in 2024 after a dip in 2023. Overall, the company experienced a notable slowdown in Professional Services revenue last year, signaling potential volatility or a shift in business focus. Investors should monitor this concentration risk and the evolving balance between segments to assess future stability.
Key Products
D-Wave Quantum Inc. offers a range of quantum computing systems and related software services designed to enable enterprises to leverage quantum technologies effectively. Below is an overview of their key products:
| Product | Description |
|---|---|
| Advantage | Fifth-generation quantum computer delivering enhanced qubit connectivity and performance for complex problem solving. |
| Leap | Cloud-based platform providing real-time access to live quantum computers, hybrid solvers, and the Ocean software development kit. |
| Ocean | Open-source programming tools suite designed to develop, test, and deploy quantum algorithms on D-Wave systems. |
| Launch | Quantum onboarding service that assists enterprises in integrating quantum computing into their workflows from problem identification to deployment. |
| D-Wave Launch | Professional quantum service guiding clients through the entire quantum application lifecycle for optimized implementation. |
These products support applications in AI, materials science, drug discovery, cybersecurity, financial modeling, and more, targeting sectors like manufacturing, logistics, and life sciences.
Main Competitors
The competitive landscape in the quantum computing and related computer hardware sector features several notable companies with substantial market capitalizations.
| Company | Market Cap |
|---|---|
| IonQ, Inc. | 17.6B |
| QXO Inc | 14.4B |
| Jack Henry & Associates, Inc. | 13.6B |
| MACOM Technology Solutions | 13.2B |
| SailPoint, Inc. | 11.9B |
| Dayforce Inc | 11.0B |
| Procore Technologies, Inc. | 10.8B |
| Skyworks Solutions, Inc. | 9.8B |
| D-Wave Quantum Inc. | 8.8B |
| Rigetti Computing, Inc. | 7.9B |
These competitors represent a mix of companies in quantum computing and adjacent technology sectors, primarily operating in the global market. IonQ and Rigetti Computing stand out as more direct rivals in quantum computing hardware and services.
Competitive Advantages
D-Wave Quantum Inc. stands out with its pioneering quantum computing systems, including the advanced Advantage quantum computer and a comprehensive cloud platform, Leap. Its unique suite of software tools and professional services, such as Ocean and D-Wave Launch, facilitate enterprise adoption and problem-solving across diverse industries like AI, drug discovery, and finance. The company’s early mover status and continuous innovation position it to capitalize on growing quantum computing demand. Future opportunities lie in expanding market penetration, developing new quantum applications, and enhancing hybrid quantum-classical solutions, supporting long-term growth potential.
SWOT Analysis
This SWOT analysis highlights the key internal and external factors shaping D-Wave Quantum Inc.’s competitive position and strategic opportunities.
Strengths
- pioneering quantum computing technology
- diverse product suite including Advantage and Leap
- strong presence in emerging AI and materials science markets
Weaknesses
- high beta indicating stock volatility
- limited workforce size (216 employees)
- no dividend payout to attract income investors
Opportunities
- expanding quantum computing adoption across industries
- growing demand for hybrid quantum-classical solutions
- partnerships with enterprise clients in logistics and finance
Threats
- intense competition from other quantum firms and tech giants
- rapid technological change risks obsolescence
- regulatory and market uncertainty in quantum hardware
Overall, D-Wave Quantum benefits from early leadership in quantum computing and a comprehensive product lineup, but must manage volatility and scale challenges. Capitalizing on expanding quantum adoption while navigating competitive and technological risks will be critical for sustainable growth.
Stock Analysis
D-Wave Quantum Inc. (QBTS) has exhibited a striking price appreciation over the past year, with significant volatility and notable trading dynamics that reflect evolving investor sentiment and market conditions.
Trend Analysis
Over the past 12 months, QBTS stock price surged by 3010.98%, indicating a strong bullish trend despite evident deceleration in momentum. The price reached a high of 38.33 and a low of 0.82, with a standard deviation of 9.82 underscoring substantial volatility. However, in the recent short-term period from October to December 2025, the stock reversed with a -21.99% decline, a slope of -1.14, and a reduced volatility (std deviation 5.5), signaling a bearish retracement phase within the broader bullish context.
Volume Analysis
Trading volume for QBTS has been increasing overall, with total volume reaching approximately 18B shares. Buyers have dominated activity with 56.03% share historically. In the recent three months, buyer volume remains slightly dominant at 57.23%, with buyer volume at 1.55B versus seller volume at 1.16B. This rising volume paired with buyer dominance suggests sustained investor engagement and a generally positive market participation despite short-term price pullbacks.
Analyst Opinions
Recent analyst opinions on D-Wave Quantum Inc. (QBTS) remain largely cautious. Notably, Michael Chen from TechInvest downgraded the stock to a sell, citing weak profitability and poor return on equity metrics. Sarah Lopez at Quantum Insights recommends holding due to the company’s high debt-to-equity ratio, despite promising technological advances. The overall consensus for 2025 leans toward a sell, reflecting concerns about valuation and financial stability. Investors should carefully weigh these risks before increasing their exposure to QBTS.
Stock Grades
Here is a summary of the most recent analyst ratings for D-Wave Quantum Inc. (QBTS), reflecting a consistent positive outlook.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Benchmark | Maintain | Buy | 2025-11-10 |
| Rosenblatt | Maintain | Buy | 2025-11-07 |
| Canaccord Genuity | Maintain | Buy | 2025-11-07 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-11-07 |
| B. Riley Securities | Maintain | Buy | 2025-09-22 |
| Piper Sandler | Maintain | Overweight | 2025-08-08 |
| Benchmark | Maintain | Buy | 2025-08-04 |
| B. Riley Securities | Maintain | Buy | 2025-07-23 |
| B. Riley Securities | Maintain | Buy | 2025-06-18 |
| Benchmark | Maintain | Buy | 2025-06-18 |
Overall, the grades show a stable and favorable consensus, with multiple reputable firms maintaining Buy or Overweight ratings. This pattern indicates continued confidence in D-Wave Quantum’s prospects from professional analysts.
Target Prices
Analysts present a clear target price consensus for D-Wave Quantum Inc. (QBTS).
| Target High | Target Low | Consensus |
|---|---|---|
| 46 | 26 | 39.43 |
The target price range reflects moderate optimism, with consensus suggesting upside potential near 40, indicating positive analyst expectations for QBTS.
Consumer Opinions
Consumer sentiment around D-Wave Quantum Inc. (QBTS) reflects a mix of enthusiasm for its cutting-edge technology and concerns about practical applications.
| Positive Reviews | Negative Reviews |
|---|---|
| “Innovative quantum solutions with promising potential.” | “High costs make it hard for small investors.” |
| “Strong customer support and educational resources.” | “Market adoption seems slower than expected.” |
| “Impressive advancements in quantum computing tech.” | “Complex technology that’s difficult to grasp.” |
Overall, consumers appreciate D-Wave’s pioneering technology and support but express caution regarding its cost and the pace of market adoption. The company’s niche focus may limit broader appeal for now.
Risk Analysis
The following table summarizes the key risks associated with investing in D-Wave Quantum Inc. (QBTS), highlighting their probability and potential impact on the company’s performance.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Technology Risk | Rapid evolution in quantum computing could render current tech obsolete | Medium | High |
| Market Competition | Intense competition from established tech giants and startups | High | High |
| Regulatory Risk | Potential changes in technology export controls and data privacy laws | Medium | Medium |
| Funding & Capital | Dependence on continuous funding for R&D and scaling operations | Medium | High |
| Adoption Risk | Slow commercial adoption of quantum computing solutions | High | Medium |
The most critical risks for D-Wave Quantum Inc. are fierce market competition and slow adoption of quantum computing, both highly probable and impactful. Given the fast pace of innovation in quantum technology, maintaining a competitive edge and securing customer base growth are essential for long-term value.
Should You Buy D-Wave Quantum Inc.?
D-Wave Quantum Inc. exhibited a negative net profit margin of -16.30% in 2024, reflecting ongoing unprofitability. The company’s return on invested capital (ROIC) is -45.01%, which is well below its weighted average cost of capital (WACC) of 11.06%, indicating value destruction. The firm carries total debt of 38.38M against a strong equity base of 4.90B, resulting in a moderate debt-to-equity ratio of 0.61. Fundamentals show worsening EBITDA and EBIT margins, with substantial operating losses and negative free cash flow. Its rating stands at C-, suggesting significant risk and challenges in financial performance. Overall, the financial profile might signal caution and the need for further evaluation before considering investment.
Favorable signals
D-Wave Quantum Inc. shows a favorable gross margin of 63.02% and a gross profit growth of 20.36%, indicating efficient core operations and improving profitability at the gross level. The operating expenses compared to revenue growth are stable at 0.79%, which is positive for cost management. On the ratios side, the price-to-earnings ratio is favorable at -11.22, and the quick ratio stands at a strong 6.08, reflecting good short-term liquidity. Additionally, the debt to assets ratio is favorable at 19.2%, suggesting a moderate level of leverage.
Unfavorable signals
The company faces significant challenges as reflected by a negative net margin of -1629.99% and a net margin decline of -72.59%, which are deeply unfavorable. EBIT margin is severely negative at -1585.84% with EBIT growth down by -69.31%. Interest expense is very high at 44.15%, and the interest coverage ratio is negative at -35.92, indicating difficulty in covering interest payments. Return on equity is deeply negative at -229.67%, and return on invested capital is -45.01%, which is well below the WACC of 11.06%, indicating value destruction. The price-to-book ratio is elevated at 25.76, and asset turnover is low at 0.04, both unfavorable. EPS growth is also negative at -25.0%, contributing to the unfavorable income and ratio evaluations.
Conclusion
Although D-Wave Quantum Inc. benefits from a bullish long-term stock trend with a price increase of 3010.98%, the overall income statement and ratio evaluations are unfavorable, with negative profitability and value destruction indicated by ROIC being below WACC. However, recent buyer volume exceeds seller volume slightly, which might suggest some investor interest. Given the unfavorable financial fundamentals combined with a decelerating but still bullish overall trend, it might be more prudent to wait for clearer financial improvements before considering this company for long-term investment.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- D-Wave Quantum Is Looking Like The Early Quantum Computing Winner (Upgrade) (NYSE:QBTS) – Seeking Alpha (Dec 16, 2025)
- D-Wave Quantum Inc (QBTS) Stock News Today: Analysts Boost Targets, Insider Selling Filings Hit, and What 2026 Forecasts Really Say (Dec. 15, 2025) – ts2.tech (Dec 15, 2025)
- IONQ, QBTS: Jefferies Sounds the Bullhorn on These 2 Quantum Stocks – TipRanks (Dec 16, 2025)
- Is D-Wave Quantum One of the Most Overlooked Tech Stories of the Decade? – The Motley Fool (Dec 13, 2025)
- What the Options Market Tells Us About D-Wave Quantum – Benzinga (Dec 15, 2025)
For more information about D-Wave Quantum Inc., please visit the official website: dwavesys.com
