D-Wave’s $550M Acquisition Gives QBTS Stock a Stronger Safety Net

In the mid-December roundup of quantum computing stocks, we tagged D-Wave Quantum (NYSE: QBTS) as a distinct exposure to an alternative quantum computing approach. As we explained then, D-Wave’s quantum annealing differs from universal gate-based machines in that annealing is less affected by coherence problems.

Given the fundamental challenge of addressing decoherence with quantum error correction (QEC) techniques, this positions annealing, and D-Wave, as a more pragmatic approach. The tradeoff is that quantum annealing systems are more specialized, typically suited for use cases involving optimization problems.

Nonetheless, D-Wave’s approach makes it highly integrable with classical computing through hybrid solvers, APIs, and software development kits that leverage quantum processing units (QPUs).

For investors looking for early quantum exposure, this makes QBTS stock an appealing proposition, made even more compelling by D-Wave’s latest acquisition.

Quantum Circuit Acquisition Examined

Founded in 1999, D-Wave went public in August 2022 through a merger with SPAC DPCM Capital at a combined valuation of $1.6 billion. Until now, the company had never completed an acquisition.

This Wednesday, D-Wave announced the acquisition of Quantum Circuits for $550 million, of which $250 million is in cash and $300 million in QBTS common stock.

Spun out of Yale University, Quantum Circuits was co-founded in 2015 by Prof. Robert Schoelkopf, one of the pioneers in superconducting quantum computing. At Yale, researchers led by Schoelkopf developed the first solid-state quantum processor to run an algorithm in 2009 with circuit quantum electrodynamics (cQED).

Since the founding, the company’s philosophy has been “we correct first, then scale”. As we have noted numerous times when covering quantum stocks, the key advances come not with maximizing qubit count but in translating physical qubits into robust logical qubits, which are then used in actual computation within error-resilient systems.

After all, to properly scale, quantum computing has to minimize the massive overhead between physical qubits and logical qubits.

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Why Is Quantum Circuit Important?

Quantum Circuit (QCI) was the first to develop dual-rail qubit, a superconducting qubit with built-in error detection, announced in late August. This marked a pivotal milestone as it allowed error detection in real time at the physical qubit level. Specifically, by combining quantum error detection (QED), error detection handling (EDH) and real-time control flow (RTCF).

In the same month, the company secured a $60 million founding round. Building on this funding, alongside its cloud service and software development kit, Quantum Circuit announced the launch of Aqumen Seeker in November 2024, an 8-qubit QPU utilizing dual-rail architecture. Aqumen attracted interest from Algorithmiq, a firm specialized in advanced quantum algorithms to pave the way for solving complex problems in life sciences, such as drug discovery.

By acquiring a company with this pedigree, D-Wave is expanding beyond the annealing approach and into full-stack quantum computing with the emphasis on robust gate-model architecture for universal computing.

In other words, D-Wave’s legacy of annealing – best for optimization – is now complemented with QCI’s tech – best for differential equations, factoring and universal computing. This elevates QBTS stock from a niche, optimization-focused annealing pure play into a diversified, full-stack quantum computing platform with credible exposure to fault-tolerant computing.

D-Wave’s Financials Examined

Although presently valued at $10.95 billion, D-Wave Quantum’s latest Q3 2025 earnings report showed a revenue of just $3.7 million, an increase of 100% from $1.9 million in the year-ago quarter.

Prior to the recent acquisition of Quantum Circuit, the company focused on institutional adoption of its Advantage2 annealing system, typically within universities and organizations in Italy, Japan, Korea and Turkey.

Additionally, Germany’s Jülich Supercomputing Centre is upgrading its existing Advantage to 4,400+ qubit Advantage2, while its deployment at Davidson Technologies in Huntsville, Alabama, has been completed in Q3.

Altogether, D-Wave reported revenue generation from over 100 customers since the year-ago quarter, with a gross margin of 71.4%, which is up 15.6% from Q3 2024. Expectedly in this early stage of the quantum field, the company continues to rack up net losses. In Q3 2025, this was $18.1 million adjusted net loss, compared to $23.2 million in the year-ago quarter.

For the nine months leading to Q3 (ending September), this left D-Wave with an adjusted net loss of $52.8 million. Yet, D-Wave still has a long runway, with cash & cash equivalents position worth $836.2 million against $195.26 million in total liabilities ($15.5 million of which are current).

QBTS Stock Price Targets

Over a year, QBTS stock is up over 400% to the present price of $29.28 per share. Fitting the quantum uncertainty theme, investors had multiple opportunities to lock-in profits. Specifically, at its all-time high price of $44.78 mid-October and more recently in late December at $32.19 per share.

Over the last 52-weeks, the average QBTS price is $16.92. According to the Wall Street Journal’s consensus, the bottom outlook is now more than double that at $35 per share. The average QBTS price target is $39.64, while the ceiling price target is higher than its ATH at $48 per share.

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.