D-Wave Quantum

D-Wave Quantum (QBTS) Q1 2025 Earnings

Reported May 8, 2025 at 3:02 AM ET · SEC Source

Q1 25 EPS

$-0.02

BEAT +44.44%

Est. $-0.04

Q1 25 Revenue

$15.0M

BEAT +42.85%

Est. $10.5M

vs S&P Since Q1 25

+176.0%

BEATING MARKET

QBTS +207.8% vs S&P +31.8%

Market Reaction

Did QBTS Beat Earnings? Q1 2025 Results

D-Wave Quantum put up what may prove to be a landmark quarter in the young history of commercial quantum computing, posting Q1 2025 revenue of $15.00 million, a staggering 508.6% jump year over year, while narrowing its loss per share to $0.02 agains… Read more D-Wave Quantum put up what may prove to be a landmark quarter in the young history of commercial quantum computing, posting Q1 2025 revenue of $15.00 million, a staggering 508.6% jump year over year, while narrowing its loss per share to $0.02 against a consensus estimate of $0.04, a beat of 44.44%. The single most material driver was the sale of an Advantage quantum computing system to the Jülich Supercomputing Centre, a marquee European HPC facility, which alone propelled GAAP gross margin to 92.5% from 67.3% a year ago and compressed the net loss to $5.42 million from $17.31 million. Revenue of $15.00 million cleared the $10.50 million consensus by 42.85%, though some observers have flagged the lumpy, deal-driven nature of this growth as a complicating factor for forward projections. Management, bolstered by a record cash position of $304.32 million, stated it believes that balance is sufficient to carry the company to profitability, a forward-looking signal the market greeted with a sharp rally.

Key Takeaways

  • First Advantage system sale to Jülich Supercomputing Centre drove majority of revenue increase
  • High-margin system sale drove GAAP gross margin to 92.5% from 67.3%
  • Demonstration of quantum computational supremacy on useful real-world problem validated technology leadership
  • Ford Otosan deployment of hybrid-quantum application into commercial production
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QBTS YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

“The first quarter of 2025 was arguably the most significant in D-Wave's history, especially in terms of our unique ability to deliver quantum value today to our customers and the scientific community. We recognized revenue on our first Advantage system sale to a major research institution, moved an additional customer application into commercial production, and became the first to demonstrate quantum supremacy over classical computing on a useful real-world problem. The end result was a record revenue and gross profit quarter.”

— Alan Baratz, Q1 2025 Earnings Press Release