D-Wave Quantum (NYSE:QBTS) Issues Earnings Results

D-Wave Quantum (NYSE:QBTS) released its quarterly earnings data on Tuesday. The company reported ($0.05) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.08) by $0.03, FiscalAI reports. D-Wave Quantum had a negative return on equity of 58.58% and a negative net margin of 1,444.10%.The company had revenue of $2.86 million for the quarter, compared to analyst estimates of $4.19 million. During the same quarter in the previous year, the company posted ($0.02) earnings per share. The firm’s revenue for the quarter was down 80.9% compared to the same quarter last year.

Here are the key takeaways from D-Wave Quantum’s conference call:

• D-Wave highlighted a record Q1 bookings figure of $33.4 million, up nearly 2,000% year over year, driven by major deals including a $20 million system sale to Florida Atlantic University and a $10 million enterprise QaaS agreement.
• Management said the sales pipeline more than doubled sequentially in Q1, and raised its expectations for system deals to 2 to 3 sales per year, with at least 2 systems expected to be delivered in 2026.
• The company reported $588.4 million in cash and marketable investments at quarter end and said this liquidity is sufficient to support a fully funded path to profitability.
• D-Wave emphasized progress in its dual-platform strategy, combining its annealing leadership with the Quantum Circuits acquisition to pursue gate-model quantum computing, including a roadmap to 100 logical qubits by 2032.
• Revenue was $2.9 million in Q1, down sharply from last year because the prior-year quarter included a large system sale, while operating losses widened as the company increased spending on R&D, sales and marketing, and Quantum Circuits integration.

D-Wave Quantum Stock Performance

NYSE:QBTS traded down $0.89 during mid-day trading on Wednesday, reaching $21.46. 14,858,666 shares of the stock were exchanged, compared to its average volume of 29,588,291. The company has a 50 day simple moving average of $17.90 and a 200-day simple moving average of $22.80. The stock has a market capitalization of $7.94 billion, a P/E ratio of -19.56 and a beta of 1.95. The company has a quick ratio of 42.25, a current ratio of 42.38 and a debt-to-equity ratio of 0.04. D-Wave Quantum has a 1 year low of $10.60 and a 1 year high of $46.75.

D-Wave Quantum News Summary

Here are the key news stories impacting D-Wave Quantum this week:

• Positive Sentiment: Rosenblatt Securities reiterated its buy rating and raised its price target to $43, implying substantial upside for QBTS. Rosenblatt Securities reaffirms buy rating on D-Wave Quantum
• Positive Sentiment: Cantor Fitzgerald reaffirmed its overweight rating and kept a bullish $40 price target, reinforcing a constructive long-term view. Cantor Fitzgerald reaffirms overweight rating on D-Wave Quantum
• Positive Sentiment: Needham also reiterated buy on QBTS with a $40 target, indicating analysts see upside if bookings growth continues. Needham reiterates buy rating on D-Wave Quantum
• Neutral Sentiment: Mizuho lowered its price target to $29 from $31 but kept an outperform rating, suggesting some caution after the quarter while still expecting gains. Mizuho lowers D-Wave Quantum price target
• Negative Sentiment: Analysts and media reports highlighted the revenue shortfall and steep year-over-year sales decline, which are weighing on sentiment despite the better-than-expected loss and strong bookings. D-Wave Quantum slides on back of Q1 results

Insider Transactions at D-Wave Quantum

In other D-Wave Quantum news, Director John D. Dilullo sold 8,000 shares of the stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $18.01, for a total transaction of $144,080.00. Following the completion of the sale, the director directly owned 19,803 shares of the company’s stock, valued at approximately $356,652.03. This trade represents a 28.77% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Sophie C. Ames sold 3,070 shares of D-Wave Quantum stock in a transaction on Monday, April 20th. The shares were sold at an average price of $21.35, for a total transaction of $65,544.50. Following the completion of the transaction, the vice president owned 643,678 shares in the company, valued at approximately $13,742,525.30. This trade represents a 0.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 31,776 shares of company stock worth $574,571. 3.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On D-Wave Quantum

A number of large investors have recently bought and sold shares of QBTS. Comerica Bank raised its position in shares of D-Wave Quantum by 1.8% during the 3rd quarter. Comerica Bank now owns 36,443 shares of the company’s stock valued at $901,000 after buying an additional 643 shares in the last quarter. Parkside Financial Bank & Trust raised its position in shares of D-Wave Quantum by 144.2% during the 4th quarter. Parkside Financial Bank & Trust now owns 1,270 shares of the company’s stock valued at $33,000 after buying an additional 750 shares in the last quarter. Kemnay Advisory Services Inc. purchased a new position in D-Wave Quantum in the 4th quarter worth $28,000. Newbridge Financial Services Group Inc. raised its position in D-Wave Quantum by 133.3% in the 3rd quarter. Newbridge Financial Services Group Inc. now owns 1,925 shares of the company’s stock worth $48,000 after purchasing an additional 1,100 shares during the period. Finally, PFG Advisors raised its position in D-Wave Quantum by 10.7% in the 3rd quarter. PFG Advisors now owns 12,261 shares of the company’s stock worth $303,000 after purchasing an additional 1,188 shares during the period. Hedge funds and other institutional investors own 42.47% of the company’s stock.

Analysts Set New Price Targets

Several brokerages have recently commented on QBTS. Northland Securities began coverage on D-Wave Quantum in a research note on Monday, April 20th. They issued a “market perform” rating and a $22.00 price target on the stock. Needham & Company LLC reaffirmed a “buy” rating and issued a $40.00 price target on shares of D-Wave Quantum in a research note on Wednesday. Jefferies Financial Group reaffirmed a “buy” rating on shares of D-Wave Quantum in a research note on Tuesday. Canaccord Genuity Group decreased their price target on D-Wave Quantum from $43.00 to $41.00 and set a “buy” rating on the stock in a research note on Wednesday. Finally, Rosenblatt Securities reaffirmed a “buy” rating and issued a $43.00 price target on shares of D-Wave Quantum in a research note on Wednesday. Fourteen research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $34.67.

D-Wave Quantum Company Profile

D-Wave Quantum Inc (NYSE: QBTS) develops and provides quantum computing systems, software and services focused on quantum annealing technology. Headquartered in Burnaby, British Columbia, D-Wave designs specialized processors that leverage quantum mechanics to solve complex optimization and sampling problems. Since its founding in 1999 by physicists including Geordie Rose, the company has pursued the development of commercially viable quantum hardware and accompanying software tools.

The company’s product portfolio centers on its quantum annealers, which are complemented by hybrid solvers that integrate classical and quantum computing resources.