D‑Wave Quantum Inc. announced the creation of a new U.S. government business unit designed to accelerate federal adoption of its quantum systems, software, and services. The unit will focus on developing and delivering solutions that meet the unique needs of national security, defense, and critical infrastructure customers.
The new unit is headed by Jack Sears Jr., a veteran defense‑sector executive with more than 25 years of experience in growth strategy for federal‑government clients. Sears previously led teams at Precise Systems, Aquia Inc., Parsons Corporation, and Epsilon Systems, and he will oversee go‑to‑market strategy, secure product development, and federal compliance for D‑Wave’s quantum offerings.
The announcement follows the recent deployment of D‑Wave’s Advantage2 quantum system at Davidson Technologies’ Alabama headquarters, which became operational on November 3, 2025. Davidson Technologies, a mission‑driven technology company, supports the U.S. Department of War and commercial aerospace customers, positioning D‑Wave to deliver quantum solutions to high‑stakes defense applications.
D‑Wave’s Q3 2025 financial results provide context for the new unit’s launch. Revenue rose to $3.7 million, a 100 % year‑over‑year increase from $1.85 million in Q3 2024, and beat analyst expectations by $0.67 million. Earnings per share were a loss of $0.05 versus an expected loss of $0.07, a beat of $0.02. The company’s cash reserves climbed to $836.2 million, driven largely by warrant exercises and equity offerings, giving it a strong runway for continued investment. Net loss for the quarter was $140 million, largely attributable to non‑cash warrant‑related charges, while gross margin expanded to 71.4 % from 55.8 % a year earlier, reflecting a higher mix of high‑margin quantum services and improved operational leverage.
CEO Dr. Alan Baratz emphasized the strategic importance of the new unit: “By formalizing a U.S. government‑focused business unit under Jack’s leadership, we aim to accelerate the rapid development of quantum applications that address national security, defense, and infrastructure challenges.” He added that the operational Advantage2 system at Davidson Technologies “can help the U.S. government apply quantum computing today to drive mission‑critical decision‑making, fuel operational efficiencies, and protect national interests.”
The launch signals D‑Wave’s confidence in the growing demand for quantum solutions in the federal sector. With a robust cash position and a clear focus on government customers, the company is positioned to capture a share of the expanding quantum market, while also navigating competitive pressures from major tech players such as Google and IBM. The new unit underscores D‑Wave’s commitment to delivering tangible, mission‑critical quantum capabilities to U.S. defense and infrastructure stakeholders.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.