10-K: D-Wave Quantum Reports Soaring Revenue Amidst Deepening Losses

D-Wave Quantum Inc. announced a significant revenue increase of 179% to $24.6 million in 2025, driven by system sales and professional services, yet reported a net loss of $355.1 million, a 147% increase from the prior year, as it continues heavy investment in quantum computing R&D and strategic acquisitions.

Summary

• Revenue surged by 179% to $24.6 million in 2025, up from $8.8 million in 2024, primarily due to $16.2 million in system sales and an increase in professional services revenue.
• Net loss for 2025 widened to $355.1 million, a 147% increase from $143.9 million in 2024, largely influenced by a $270.5 million mark-to-market charge on warrant liabilities.
• Operating expenses rose by 46% to $120.7 million in 2025, with significant increases in research and development (44% to $50.7 million) and sales and marketing (91% to $28.8 million).
• Cash used in operating activities increased to $72.0 million in 2025 from $42.6 million in 2024, reflecting continued investment in growth and R&D.
• The company completed the acquisition of Quantum Circuits, Inc. on January 20, 2026, solidifying its position as a dual-platform quantum computing company offering both annealing and gate-model systems.
• D-Wave launched its sixth-generation annealing quantum computing system, Advantage2™, in May 2025, and achieved a 'world-first quantum supremacy result' in March 2025.
• Multiple at-the-market (ATM) equity offerings in 2024 and 2025 generated substantial net proceeds, totaling $717.9 million, alongside $202.9 million from warrant exercises in 2025.
• The company plans to transition its corporate headquarters to Boca Raton, Florida, and open a new R&D facility there by the end of 2026.
• D-Wave's Leap quantum cloud service achieved SOC 2 Type 2 compliance in December 2023 and successfully completed its third audit in November 2025.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a mixed bag. While significant revenue growth and strategic acquisitions are positive, the substantial and increasing net losses and cash burn, coupled with the need for continuous capital raises, indicate ongoing financial challenges and a long path to profitability in a highly competitive and evolving industry.

Positives

• Revenue increased significantly by 179% to $24.6 million in 2025, driven by strong system sales and professional services growth.
• Gross profit saw a substantial increase of 265% to $20.3 million in 2025, indicating improved efficiency in core offerings.
• Successful completion of the acquisition of Quantum Circuits, Inc. positions D-Wave as the first and only dual-platform quantum computing company.
• Achieved a 'world-first quantum supremacy result' in March 2025, demonstrating superior performance over classical computers for a real-world problem.
• Launched the sixth-generation Advantage2™ annealing quantum computing system in May 2025, featuring 20-way connectivity, 40% higher energy scale, and two times longer coherence time.
• Demonstrated scalable on-chip cryogenic control of gate-model qubits in January 2026, a key milestone for commercially viable gate-model quantum computers.
• Secured significant capital through multiple at-the-market offerings and warrant exercises, bolstering liquidity with cash and cash equivalents reaching $635.3 million by December 31, 2025.
• The Leap quantum cloud service maintains high reliability (99.9% uptime) and achieved SOC 2 Type 2 compliance, enhancing customer trust and security.

Negatives

• Net loss significantly increased by 147% to $355.1 million in 2025, primarily due to a large non-cash mark-to-market charge on warrant liabilities.
• Operating losses grew by 30% to $100.4 million in 2025, indicating that core operations are not yet profitable.
• Cash used in operating activities increased by $29.3 million to $72.0 million in 2025, reflecting a higher cash burn rate.
• Accumulated deficit reached $982.0 million by December 31, 2025, highlighting a history of significant losses since inception.
• QCaaS revenue decreased by $1.2 million in 2025, despite overall revenue growth, suggesting potential challenges in this recurring revenue stream.
• The company is in a growth stage with difficulty forecasting future results and funding requirements, indicating ongoing financial uncertainty.
• The integration of Quantum Circuits, Inc. poses potential operational difficulties and costs that could adversely affect financial results.

Risks

• Difficulty forecasting future results of operations and funding requirements due to being in a growth stage.
• History of losses and expectation to incur significant expenses and continuing losses for the foreseeable future.
• Risk of not adequately funding research and development efforts or effectively using R&D teams, potentially harming technological goals and competitiveness.
• Failure to integrate Quantum Circuits, Inc. successfully could have a material adverse effect on business, financial condition, and results of operations.
• Dependence on retaining existing senior management and key employees, and attracting new skilled personnel.
• Potential need for additional capital or financing sooner than planned, with no assurance of availability on acceptable terms.
• Highly competitive industry from both quantum and classical competitors, potentially impacting market share and pricing.
• Vulnerability to cybersecurity-related attacks, data breaches, or disruptions of IT systems, which could damage reputation and financial results.
• Market adoption of cloud-based online quantum computing platform solutions is relatively new and unproven, potentially limiting demand for QCaaS.
• Adverse effects from global public health crises, unfavorable conditions in the industry or global economy (inflation, recessions, war).
• System failures, interruptions, delays in service, catastrophic events, or inadequate infrastructure could harm reputation and business.
• Inability to obtain, maintain, and protect intellectual property or prevent unauthorized use by third parties.
• Potential for patent infringement and other intellectual property claims, leading to costly defense or significant damage awards.
• Volatility in the market price of Common Shares, which may decline regardless of operating performance.
• Potential for future write-downs, write-offs, restructuring, or impairment charges that could negatively affect financial condition.
• Issuance of additional Common Shares or other equity securities without stockholder approval, leading to dilution.
• Anti-takeover provisions in the D-Wave Charter that could adversely affect stockholder rights.
• Exposure to litigation, investigations, and regulatory proceedings, including product liability claims.
• Unanticipated changes in effective tax rates or adverse outcomes from tax return examinations.
• Risks associated with operating as a public company, including increased costs and management time devoted to compliance.
• Risk of delisting from the NYSE if compliance requirements are not met.
• Failure to maintain an effective system of internal controls over financial reporting and disclosure controls and procedures.
• Exposure to U.S., Canadian, and foreign anti-corruption, anti-bribery, export/import controls, and economic sanctions laws.
• Governmental decisions regarding national security risks associated with quantum computing technology could impede sales.
• Adverse effects from climate change on operations, business, customers, and partners.
• Rising inflation and interest rates increasing operating costs and cost of capital.
• Failure to offer high-quality customer support or inconsistent cost of support relative to revenue.

Future Outlook

D-Wave Quantum Inc. anticipates continued significant losses as it invests heavily in R&D for both annealing and gate-model quantum computers, hybrid solvers, and cloud platforms. The company expects to make an initial dual-rail gate-model quantum computer generally available in 2026 and aims to expand its portfolio of applicable use cases, including quantum AI. Future growth is dependent on scaling manufacturing, attracting new customers, and converting existing customers to production applications, with a focus on key vertical markets and government sales.

Management Comments

• Our mission is to help customers realize the value of quantum computing to address complex computational problems that cannot be solved with classical computing alone.
• We believe that we are leading the industry in ushering in the era of enterprise quantum computing.
• Our relentless commitment to innovation and invention means that we are laser-focused on continuously building quantum solutions that push the boundaries of what is possible.
• We believe this acquisition [of Quantum Circuits] will allow D-Wave to deliver the industry's first scaled and error corrected gate-model quantum computing system.
• Our solutions drive tangible business outcomes such as lower costs, increased operational efficiency and incremental revenue opportunities, and our technical roadmap is focused on delivering product advancements that facilitate our customer's return on investment (ROI), now and in the future.
• We believe that our initiative to develop and bring to market applications that combine the power of generative artificial intelligence ('AI') and quantum computing technologies will further extend our value proposition to our customers, as we launch the commercial era of quantum AI.

Industry Context

StockSavvy.ai notes that D-Wave Quantum Inc. operates in a nascent yet rapidly evolving quantum computing market, characterized by intense competition from both established tech giants (e.g., Google, IBM, Microsoft) and specialized quantum startups (e.g., IonQ, Rigetti). D-Wave's dual-platform strategy, combining annealing and gate-model systems, aims to address a broader total addressable market compared to competitors focused on a single approach. The company's emphasis on 'quantum supremacy' and 'quantum advantage' for real-world commercial applications, coupled with its SOC 2 Type 2 compliance for its cloud service, seeks to differentiate it in a market where many competitors are still primarily focused on scientific discovery and early-stage development. The significant capital raises reflect the high investment required in this cutting-edge industry, while the increasing losses underscore the long and costly path to widespread commercialization and profitability.

Comparison to Industry Standards

• D-Wave's Advantage2™ system, with 4400+ qubits and 20-way connectivity, is among the largest commercially available annealing quantum computers, surpassing many early-stage gate-model systems from competitors like IonQ (35-100 qubits in ion trap systems) and Rigetti (superconducting qubits).
• The 'quantum supremacy' demonstration in March 2025, solving a complex materials simulation problem in minutes that would take a powerful classical supercomputer (like Oak Ridge National Laboratory's Frontier) nearly a million years, sets a benchmark for specific problem-solving capabilities, though broad quantum advantage across many applications is yet to be achieved by any quantum computer.
• D-Wave's Leap quantum cloud service offers 99.9% availability and uptime, a commercial-grade reliability that distinguishes it from some alternative platforms which may have less consistent access or longer queues.
• The acquisition of Quantum Circuits, Inc. brings 'dual-rail qubits' with high gate fidelities comparable to ion trap and neutral atom architectures, which D-Wave believes is a significant industry breakthrough unmatched by other superconducting quantum computing vendors.
• D-Wave's cryogenic platforms, drawing 12.5 kilowatts of system power for over 5,000 qubits, contrast with some competitors using massive dilution refrigerators that require increasingly more power for scaling, potentially offering a long-term power efficiency advantage.
• NIST rated D-Wave's annealing quantum computing technology at TRL 8 (mature technology) in 2021, while gate-model superconducting technologies were rated TRL 1-3 (basic and feasibility research), indicating D-Wave's relative maturity in its primary annealing offering compared to the broader gate-model landscape at that time.

Corporate Governance

Legal Proceedings

• There are currently no pending or threatened legal proceedings or claims against the company that are likely to have a material adverse effect on its business, operating results, financial condition, or cash flows.

Related Party Transactions

• The Term Loan with PSPIB Unitas Investments II Inc., a related party to the company's largest shareholder, was fully repaid and extinguished on October 22, 2024. As of December 31, 2025, PSPIB is no longer considered a related party.

Stakeholder Impact

• **Shareholders**: Experience significant dilution from multiple at-the-market equity offerings and warrant exercises, but also benefit from increased liquidity and continued investment in future growth. The volatile share price and increasing net losses pose risks to investment value.
• **Employees**: Benefit from continued investment in R&D and expansion, including new R&D facilities. The company's ability to attract and retain skilled personnel is critical for future success. Stock-based compensation is a significant component of employee remuneration.
• **Customers**: Gain access to advanced quantum computing systems (Advantage2™) and services (Leap, hybrid solvers), with a roadmap for gate-model systems. The SOC 2 Type 2 compliance enhances data security and trust for enterprise customers. Professional services aim to accelerate application development and production deployment.
• **Suppliers**: D-Wave relies on third-party suppliers for components and services, particularly in the electronics and semiconductor industries. Supply chain disruptions could impact the company's ability to manufacture products.
• **Creditors**: The company has actively managed its debt, including the full repayment of the Term Loan. New equipment financing provides capital for specific purchases, but the ongoing losses indicate a reliance on equity financing for broader operations.

Next Steps

• Continue to invest in research and development efforts to enhance annealing quantum computers and further develop gate-model quantum computers.
• Advance superconducting bump bond process and upgrade printed circuit board packaging manufacturing.
• Broaden the functionality and improve the reliability, availability, and scalability of the QCaaS cloud platform.
• Make an initial dual-rail gate-model quantum computer generally available in 2026.
• Transition corporate headquarters to Boca Raton, Florida, and open a new R&D facility there by the end of 2026.
• Expand into cutting-edge and high-growth markets via blockchain and AI applications.
• Accelerate sales cycles and upsell customers through the on-board process to move them into production applications.
• Increase focus on partners and resellers to broaden reach and potential customer footprint.
• Pursue government sales and grants, including through a newly formed business unit dedicated to the U.S. government market.
• Work in good faith with SkyWater Technology Foundry, Inc. to replace the Semiconductor Line Operation Agreement with a new agreement by December 31, 2025.

Key Dates

Recommendation

D-Wave Quantum Inc. demonstrates strong technological innovation and significant revenue growth, particularly in system sales. The strategic acquisition of Quantum Circuits and the development of dual-platform quantum computing are positive long-term differentiators. However, the company continues to incur substantial and increasing net losses, alongside a growing accumulated deficit and significant cash burn from operations. While recent capital raises have bolstered liquidity, the ongoing need for financing in a highly competitive and unproven market suggests considerable risk. A 'hold' recommendation is appropriate for seasoned investors, acknowledging the company's potential for future breakthroughs but also the significant financial challenges and uncertainties in achieving sustained profitability and broad market adoption.

Keywords

Quantum Computing, Annealing Quantum Computing, Gate-Model Quantum Computing, QCaaS, Quantum Cloud Service, Advantage2, Quantum Supremacy, Superconducting Qubits, Hybrid Quantum Solvers, Artificial Intelligence, Machine Learning, Optimization Problems, SEC Filing, 10-K, D-Wave Quantum Inc., QBTS, Quantum Circuits Acquisition, Cryogenic Control, Error Correction, Financial Results, Revenue Growth, Net Loss, Capital Raise, R&D, Intellectual Property, Corporate Governance