D-Wave Quantum Plunges 49% in 3 Months: Time to Sell as Losses Widen?

Shares of D-Wave Quantum Inc. QBTS have plunged 48.8% over the past three months, sharply underperforming the broader Internet-Software industry’s 15.2% dip, the technology sector’s 3.3% decline and the S&P 500’s 2.3% fall, reflecting both macro and company-specific pressures.

The decline comes amid a broader tech sell-off driven by heightened geopolitical tensions, risk-off sentiment and valuation compression across high-growth, pre-profit companies. Even peers like IonQ Inc. IONQ) (down 39.9%) and Rigetti Computing Inc. RGTI (down 41.7%) have seen steep corrections, reflecting sector-wide skepticism.

Despite D-Wave Quantum’s reported 179% revenue growth in 2025, bookings volatility (down 22% over 2024), widening adjusted EBITDA losses and continued heavy cash burn signal a distant path to profitability. Moreover, much of its recent momentum, including large system sales and QCaaS deals, is subject to delayed revenue recognition, limiting near-term financial visibility.

Three Months Price Comparison

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QBTS Business Challenges in 2026

D-Wave entered 2026 with several key challenges despite its strong 2025 top-line performance. While revenue grew to $24.6 million in 2025, it remains uneven across quarters, with a 22% drop in bookings showing reliance on a few big deals. Much of its recent wins, like system sales and long-term contracts, will take time to show up as revenue, limiting near-term visibility. Losses are still high (about $71.8 million EBITDA loss) and spending is expected to increase further due to R&D expansion and the Quantum Circuits acquisition. Lastly, although the company is pushing a dual-platform strategy, its gate-model technology is still early-stage. It may lag larger, better-funded competitors, raising concerns about how quickly it can deliver real commercial results.

Industry-Wide Headwinds

At a macro level, conditions are equally challenging. The quantum computing sector remains in the Noisy Intermediate-Scale Quantum (NISQ) Phase meaning systems are not yet widely practical or commercially scalable, with meaningful adoption likely years away (closer to 2030). This keeps stocks driven more by sentiment than fundamentals.

At the same time, competition from giants like IBM and rising global investments are increasing both the pace and cost of innovation. Combined with macro pressures like geopolitical tensions, tight financial conditions and reduced appetite for high-risk tech, 2026 could be a tough year for D-Wave Quantum as it works to prove real commercial traction in a still-maturing industry.

What the Trend Shows

The Zacks Consensus Estimate for QBTS’ 2026 loss of 35 cents per share suggests a 25% decline year over year.

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Upside Potential Remains

Yet D-Wave Quantum shows promising growth prospects, driven by rising commercial adoption and strategic expansion. The company recently secured over $30 million in deals, including a $20 million Advantage2 system sale to Florida Atlantic University and a $10 million enterprise QCaaS agreement. Its Advantage2 system rollout and new features are expanding use cases in optimization and enterprise applications, while collaborations in defense and research highlight growing demand. Additionally, the $550 million acquisition of Quantum Circuits strengthens its dual-platform strategy, accelerating development of gate-model systems alongside its established annealing business.

Based on short-term price targets offered by 13 analysts, the average price target for D-Wave represents an increase of 135.1% from the last closing price of $16.49.

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Why It May Be Time to Sell QBTS Now

Given the sharp 48.8% decline, weakening bookings trend and rising losses, the near-term risk-reward for D-Wave Quantum appears unfavorable despite long-term potential. The company remains far from profitability, with increasing cash burn and limited revenue visibility due to delayed deal recognition. At the same time, macro headwinds, risk-off sentiment and intense competition continue to pressure valuations across quantum stocks. While upside targets look attractive on paper, execution risks remain high in a still-nascent industry. With a Zacks Rank #5 (Strong Sell), this may be an opportune time for investors to book profits and reduce exposure.

You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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