D‑Wave Quantum Inc. reported third‑quarter 2025 results for the quarter ended September 30, 2025, showing revenue of $3.74 million—an exact 100 % year‑over‑year increase from $1.87 million in the same period last year. GAAP gross profit rose to $2.67 million, up 156 % YoY, while non‑GAAP gross profit reached $2.90 million, reflecting a margin expansion to 71.4 % GAAP and 77.7 % non‑GAAP. The company posted a GAAP net loss of $140.0 million, or $0.41 per share, a figure that missed consensus estimates of a $0.07 loss per share.
The revenue beat was driven by a 22 % to 24 % exceedance of consensus estimates, largely due to strong demand for the Advantage 2 quantum computer and related services. The higher‑margin system sales shifted the revenue mix toward more profitable segments, enabling the company to lift its gross margin despite the overall increase in operating expenses. The 156 % jump in GAAP gross profit reflects both the higher mix and improved pricing power in the core quantum‑computing business.
Adjusted earnings per share were $‑0.05, beating the consensus estimate of $‑0.07 by $0.02. The beat was largely a result of disciplined cost management and the exclusion of non‑cash warrant‑liability remeasurement charges that drove the GAAP net loss. During the quarter, D‑Wave raised $39.9 million through warrant exercise, and an additional $21.3 million was raised through November 4, 2025, further bolstering the company’s cash position.
Cash on hand topped $836.2 million, the highest in the company’s history. The record balance, combined with the recent warrant proceeds, provides a substantial runway for continued investment in quantum‑computing research and market expansion. However, investors have expressed concern about the high valuation multiples that accompany the company’s rapid revenue growth, as well as the persistent GAAP net loss, which signals that the business is still in a capital‑intensive growth phase.
For the fourth quarter, D‑Wave guided revenue to approximately $3.5 million and an EPS loss of $0.07 per share. The guidance indicates management’s confidence in sustaining the current demand trajectory while acknowledging the ongoing need for capital to support product development and market penetration. The guidance also reflects a cautious outlook on the broader economic environment, which could impact customer spending on high‑tech infrastructure.
CEO Dr. Alan Baratz emphasized that the quarter’s results “reflect the momentum we see building across every aspect of our business, with key metrics, including revenue, gross profit, bookings and cash balance, clearly indicating D‑Wave’s success in accelerating global quantum‑computing adoption.” He added that “sales and customer success are key to business growth and driving shareholder value in the near and long term,” underscoring the company’s focus on expanding its customer base while maintaining operational discipline.
The market reaction was negative, driven primarily by the GAAP net loss per share that missed estimates, the high valuation multiples that investors associate with the company’s rapid growth, and the inherent volatility of the quantum‑computing sector. While the revenue and adjusted EPS beats were notable, investors prioritized profitability and sustainable cash flow, leading to a tempered response to the earnings announcement.
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