D-Wave Quantum’s Stock (QBTS) Soars as Q1 Results Smash Expectations

D-Wave Quantum Inc. (NYSE: QBTS) shares rocketed higher Thursday after the quantum computing pioneer reported record-breaking first-quarter results that significantly exceeded Wall Street expectations, showcasing the growing commercial adoption of its quantum systems.

D-Wave Quantum Inc. Delivers Exceptional Results with Surprising Q1 Results

D-Wave Quantum Inc. delivered exceptional financial results for the first quarter of 2025, with revenue reaching a record $15 million, representing a 509% increase from the $2.5 million reported in the same period last year. This performance substantially exceeded analyst expectations of $10.87 million in sales and an EPS of -$0.05.

The company reported a gross profit of $13.9 million with an impressive gross margin of 92.5%, up from 67.3% in Q1 2024. Net loss narrowed significantly to $5.4 million ($0.02 per share), compared to a $17.3 million loss ($0.11 per share) a year ago.

Adjusted EBITDA loss decreased by 53% to $6.1 million. D-Wave’s balance sheet strengthened considerably, ending the quarter with a record $304.3 million in cash after raising $146.2 million through its third At-The-Market program. Management expressed confidence that this cash position is sufficient to fund the company’s path to profitability.

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D-Wave Quantum Inc. Took a Massive Leap in First-Quarter

The first quarter marked what CEO Dr. Alan Baratz called “arguably the most significant in D-Wave’s history,” highlighted by the company becoming the first to demonstrate quantum supremacy over classical computing on a practical, real-world problem. This breakthrough was validated in a peer-reviewed paper published in Science, showing that D-Wave’s annealing quantum computer performed a magnetic materials simulation in minutes that would take nearly one million years on one of the world’s most powerful classical supercomputers.

D-Wave also achieved several commercial milestones, including recognizing revenue on its first Advantage™ system sale to the Jülich Supercomputing Centre, Europe’s premier exascale computing facility. Ford Otosan successfully deployed a hybrid-quantum application in production that reduced vehicle scheduling time from 30 minutes to less than five minutes for its Ford Transit manufacturing line.

The company’s customer base expanded to 133, including 69 commercial customers (with 25 Fortune Global 2000 companies), 52 research organizations, and 12 government customers. Its annual user conference, Qubits 2025, saw record attendance with in-person participation up 23% and virtual attendance nearly doubling year-over-year.

QBTS Stock Brief

Investors responded enthusiastically to D-Wave’s results, sending the stock soaring 39.04% to $9.58 as of 11:25 AM EDT on Thursday, significantly above the previous day’s close of $6.89. Trading volume exploded to nearly 113 million shares, almost double the average daily volume.

The stock has been on a remarkable run, delivering a staggering 605.14% return over the past year, far outpacing the S&P 500’s 9.38% gain during the same period.

With a current market capitalization of $2.79 billion, D-Wave continues to attract attention from investors betting on the future of quantum computing. Analysts remain unanimously bullish, with all covering the stock maintaining “Buy” ratings.

Price targets range from $8.00 to $12.00, with an average target of $9.58 – exactly matching the current trading price, suggesting potential for upgraded targets following these results.

What’s in the Pipeline for D-Wave

With the physical assembly of a D-Wave Advantage2™ annealing quantum system nearing completion at Davidson Technologies’ headquarters in Huntsville, Alabama, the company continues to expand its technological capabilities. This system is designed to support mission-critical challenges in national defense and will eventually operate in a secure facility for sensitive applications.

D-Wave has also introduced new hybrid quantum solver capabilities and additional use cases to drive adoption of its quantum optimization offerings. These enhancements include support for continuous variables with linear interactions, enabling new applications such as budget allocation and resource distribution.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.