D-Wave Quantum's Q2 Earnings and the Future of Quantum Computing Stocks

D-Wave Quantum reported a wider-than-expected loss of $0.08 per share in Q2, but revenue grew 42% YoY and cash reserves increased significantly. The company's growth and strong cash position make it an attractive investment for long-term investors, despite the recent pullback in shares. Analysts see further upside in QBTS stock, with a consensus rating of "Strong Buy" and a mean target of $20, indicating a potential 20% increase.

D-Wave Quantum Inc. (QBTS) reported a wider-than-expected loss of $0.08 per share for the second quarter ended June 2025, falling short of analyst earnings expectations. Despite this, the company's revenue grew 42% year-over-year (YoY) to $3.1 million, surpassing the consensus estimate of $2.59 million. This marks a significant increase from the same quarter last year when revenue stood at $2.2 million [2].

The company's adjusted EBITDA loss of $20 million was up 44% from the year-ago period, driven by increased operating expenses. However, D-Wave's gross profit increased 42% YoY to $2 million, with a gross margin of 63.8%, slightly higher than the 63.6% recorded in Q2 2024 [2].

D-Wave Quantum's cash reserves have significantly increased. The company closed the quarter with approximately $819 million in cash, a dramatic rise from $40.9 million in the same quarter last year. This substantial cash position is a result of a $400 million At-the-Market equity offering completed during the quarter [2].

The company's stock price fell 2.79% in pre-market trading following the announcement, reflecting investor concerns about the company’s path to profitability despite its technological progress. However, the stock has added about 109.3% since the beginning of the year versus the S&P 500's gain of 7.9% [1].

Analysts remain optimistic about D-Wave Quantum's future prospects. The consensus rating is "Strong Buy" with a mean target of $20, indicating a potential 20% increase. The company's earnings outlook and the industry's overall performance are key factors that investors should monitor [1].

References:

[1] https://www.nasdaq.com/articles/d-wave-quantum-inc-qbts-reports-q2-loss-beats-revenue-estimates

[2] https://ih.advfn.com/market-news/article/14257/d-wave-quantum-shares-drop-nearly-3-as-earnings-miss-overshadows-revenue-growth