QBTS Stock Falls on Wider-Than-Expected Q2 Loss and Revenue Miss

Following the announcement, QBTS shares plunged 5.2% yesterday. 

QBTS Revenue Mix Shows Stronger Commercial Exposure

QCaaS subscription revenues reached $1.86 million, up about 50% year over year, while professional services revenues rose more than 18% to $0.93 million. System sales contributed $0.26 million, with another $0.03 million from other revenues. 

Commercial customers generated 62.4% of quarterly revenues, up from 45.1% a year earlier. Forbes Global 2000 customers accounted for 47.7% of revenues compared with 20.4% in the prior-year quarter, reflecting a larger contribution from major enterprises. 

D-Wave Builds Backlog Despite Modest Q2 Bookings

First-half bookings totaled $35.5 million, up 1,120% from $2.9 million a year ago. The figure included the $20 million annealing quantum computer system sale to Florida Atlantic University, for which revenues will be recognized in the subsequent quarters. 

Remaining performance obligations totaled $40.7 million as of June 30, 2026, up 668% year over year. About 57% of that balance is expected to convert to revenues within 12 months and 72% within two years. Management also said the dollar value of its sales opportunity pipeline increased more than 120% from year-end 2025 through June 30. 

QBTS Non-GAAP Margin Contracts on Higher Cost Base

Non-GAAP gross profit for the second quarter of 2026 was $2.0 million, down 10% from $2.2 million in the year-ago quarter. Non-GAAP gross margin was 64.9%, down 690 basis points year over year. The contraction reflected higher personnel costs and increased investments supporting D-Wave’s product development and go-to-market initiatives.

Non-GAAP adjusted operating expenses increased 76% year over year to $39.1 million as D-Wave stepped up investments in product development and go-to-market initiatives. Consequently, adjusted EBITDA loss widened to $37.1 million from $20.0 million a year earlier.

QBTS Liquidity Supports Heavy Investment and Q4 Shipments

D-Wave ended June with $546.2 million in cash and marketable investment securities, down 33% year over year. More than 90% of the decline was tied to approximately $250 million of cash consideration for the January 2026 Quantum Circuits acquisition. Net cash used in operating activities was $73.46 million for the first half, while investing activities used $260.58 million. 

Our Take on QBTS

D-Wave Quantum exited the second quarter of 2026 with a wider-than-expected loss, with revenues missing estimates.  Additionally, the contraction of non-GAAP gross margin in the quarter is discouraging.

On a positive note, during the quarter, the company expanded commercial momentum through stronger bookings and engagements with major global organizations, while achieving milestones across its dual-platform technology roadmap. 

Some of the quarter's key highlights included receiving a grant from the U.S. National Science Foundation (“NSF”) through the agency's National Quantum Virtual Laboratory (“NQVL”) program, as well as signing several new and renewed customer engagements across both commercial and research applications.

QBTS' Zacks Rank & Other Key Picks

Currently, D-Wave carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Zacks Computer and Technology sector are AppFolio APPF, Amkor Technology AMKR and Amphenol APH, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of AppFolio have plunged 14.2% year to date. The Zacks Consensus Estimate for APPF’s 2026 earnings is pegged at $6.90 per share, up 2.2% over the past 30 days, indicating an increase of 30.4% year over year.

Shares of Amkor Technology have jumped 41.5% year to date. The Zacks Consensus Estimate for AMKR’s 2026 earnings is pegged at $2.62 per share, up 17.5% over the past seven days, indicating a rise of 74.7% year over year.

Amphenol shares have surged 26.8% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $5.25 per share, up 7.8% over the past seven days, indicating an increase of 57.2% year over year.

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