First Half Bookings of $35.5 Million Up over 1,120% Year over Year
First Half QCaaS Production Revenue Comprised 37.3% of Total QCaaS Revenue
First Half Remaining Performance Obligations of $40.7 Million Up 668% Year Over Year
PALO ALTO, Calif.--(BUSINESS WIRE)--August 06, 2026--
D-Wave Quantum Inc. (NASDAQ: QBTS) ("D-Wave" or the "Company"), the only dual-platform quantum computing company, providing both annealing and gate-model systems, software, and services, today announced financial results for its second quarter ended June 30, 2026.
"This quarter reinforced the strength and breadth of D-Wave's leadership, " said Dr. Alan Baratz, CEO of D-Wave. "We expanded commercial momentum through stronger bookings and engagements with major global organizations, while achieving important milestones across our dual-platform technology roadmap. The peer-reviewed validation of our dual-rail architecture and recognition by IDC as an industry Leader reflects growing confidence in both our ability to deliver customer value and our approach to building scalable quantum computer systems. D-Wave is translating technical leadership into commercial progress, and we believe that our differentiated technology, expanding customer base and disciplined execution position us to lead as the quantum computing market accelerates."
Recent Business and Technical Highlights
-- Bookings for the first six months of 2026 were $35.5 million, a 1,120%
year over year increase from bookings of $2.9 million for the first six
months of 2025.
-- Named a Leader in the IDC MarketScape: Worldwide Quantum Computing 2026
Vendor Assessment. IDC evaluated quantum computing companies based on
their current capabilities and future strategies. D-Wave was one of only
two companies named to the "Leaders" category.
-- Provided additional details on the Company's annealing quantum
computing roadmap, which involves packaging and superconducting
interconnect technologies to scale the annealing architectures to
multi-chip fabrics. We expect this multi-chip approach will allow the
next generation Advantage3$(TM)$ system to ultimately reach 100,000 qubits
by 2031, with an intermediate step of a 20,000 qubit system available in
2029. The Company also announced the design of a new prototype for
scalable I/O that would allow quantum processing unit (QPU) scaling with
an expectation of reaching a 100,000 qubit system with no more than a 20%
increase over the number of I/O lines required for the current 4,500
qubit Advantage2(TM) system.
-- Announced a new gate-model quantum computing roadmap, designed to
accelerate the development of commercial, fault-tolerant gate model
quantum computing, which includes the following key milestones:
-- 2026: Delivery of a 17-physical-qubit system that supports
logical error rates 2 times lower than physical error rates
-- 2027: Completion of a 49-physical-qubit system that can deliver
an expected 20-fold error reduction factor over the physical error
rate
-- 2028: Completion of a 181-physical-qubit system that can deliver
an expected 2,000-fold error reduction factor over the physical
error rate; representing the scalable blueprint for fault-tolerant
architectures
-- 2030: Completion of a 10-logical qubit system that can support
the first fault tolerant algorithms
-- 2032: Completion of a 100-logical-qubit system capable of
successfully performing more than one million operations that can
support initial quantum chemistry and quantum AI applications
-- Announced a major research breakthrough, as published in the
peer-reviewed scientific journal Nature, that advances a faster, more
practical path to fault tolerant gate-model quantum computing. The
research demonstrates a fast, high-fidelity two-qubit entangling gate
that preserves the inherent error-correction advantages of D-Wave's
superconducting dual-rail qubit architecture, addressing one of the
industry's most consequential challenges by reducing the immense hardware
overhead typically required to detect and correct quantum errors as
systems scale.
-- Announced a forthcoming gate-model quantum computing simulator, which
is expected to be the first of its kind designed for error-aware
programming. Built around D-Wave's dual-rail technology, we expect the
simulator to give developers visibility into errors, so they can design
applications and workflows that respond to errors as they occur. D-Wave
will offer new quantum development bundles that provide access to both
the simulator and gate-model systems.
-- Selected to receive a $1,566,240 grant from the U.S. National Science
Foundation (NSF) through the agency's National Quantum Virtual Laboratory
(NQVL) program. This funding will support D-Wave's gate model efforts as
a partner in the ERASE (Erasure Qubits and Dynamic Circuits for Quantum
Advantage) project, which is focused on developing foundational
technologies for fault-tolerant quantum computing and strengthening U.S.
leadership in quantum innovation.
-- Awarded second year funding for the Improved Materials for
Superconducting Qubits with Scalable Fabrication (SQFab) project by the
Northeast Regional Defense Technology Hub (NORDTECH). The SQFab project
is one of four innovative programs selected by the U.S. Department of War
$(DOW)$ through NORDTECH that collectively received more than $25 million
in funding after achieving key first-year benchmarks.
-- Signed a number of new and renewing customer engagements for both
commercial and research applications, including with: one of the world's
largest gambling and entertainment companies; AT&T -- one of the world's
largest telecommunications companies; Nasdaq Verafin -- a global
technology company serving the capital markets and other industries; Oki
Electric Industry Co., Ltd. -- a leading Japanese technology company
focused on info-telecom and infrastructure innovation; Shionogi & Co.
Ltd. -- a major Japanese pharmaceutical company dedicated to innovative
medicines; and Unisys -- a global technology solutions company that
powers breakthroughs for the world's leading organizations.
-- Awarded the Great Place to Work Certification(TM) for 2026. Great Place
to Work is regarded as a global authority on workplace culture, employee
experience and leadership behaviors proven to help organizations build
high-performing workplaces.
Second Quarter 2026 Financial Highlights
-- Revenue: Revenue for the second quarter of 2026 was $3.1 million,
essentially flat when compared with the second quarter of 2025 revenue of
$3.1 million. 62.4% of second quarter of 2026 revenue was derived from
commercial customers compared to 45.1% in the second quarter of 2025.
Forbes Global 2000 customers accounted for 47.7% of total revenue in the
second quarter of 2026 compared to 20.4% of total revenue in the second
quarter of 2025.
-- Bookings1: Bookings for the second quarter of 2026 were $2.1 million,
an increase of $0.8 million, or 59%, from the second quarter of 2025
Bookings of $1.3 million, with the average Booking size increasing by
over 87% on a year over year basis.
-- GAAP Gross Profit: GAAP gross profit for the second quarter of 2026 was
$1.7 million, a decrease of $0.3 million, or 14%, from the second quarter
of 2025 GAAP gross profit of $2.0 million, with the decrease due
primarily to increased personnel costs.
-- GAAP Gross Margin: GAAP gross margin for the second quarter of 2026 was
55.4%, a decrease of 8.4% from the second quarter of 2025 GAAP gross
margin of 63.8%.
-- Non-GAAP Gross Profit2: Non-GAAP Gross Profit for the second quarter of
2026 was $2.0 million, a decrease of $0.2 million, or 10%, from the
second quarter of 2025 Non-GAAP Gross Profit of $2.2 million. The
difference between GAAP and Non-GAAP Gross Profit is limited to non-cash
stock-based compensation, and depreciation and amortization expenses that
are excluded from the Non-GAAP Gross Profit.
-- Non-GAAP Gross Margin2: Non-GAAP Gross Margin for the second quarter of
2026 was 64.9%, a decrease of 6.9% from the second quarter of 2025
Non-GAAP Gross Margin of 71.8%. The difference between GAAP and Non-GAAP
Gross Margin is limited to non-cash stock-based compensation and
depreciation and amortization expenses that are excluded from the
Non-GAAP Gross Margin.
-- GAAP Operating Expenses: GAAP operating expenses for the second quarter
of 2026 were $55.0 million, an increase of $26.5 million, or 93%, from
the second quarter of 2025 GAAP operating expenses of $28.5 million, with
the increase driven primarily by increases of $9.7 million in personnel
costs, $4.5 million in non-cash stock-based compensation, $4.4 million in
non-cash depreciation and amortization, $1.8 million in third party
professional services, and $1.0 million in marketing expenses. The
increased operating expenses stem from investments to support the
Company's accelerated product development and go-to-market initiatives.
-- Non-GAAP Adjusted Operating Expenses2: Non-GAAP Adjusted Operating
Expenses for the second quarter of 2026 were $39.1 million, an increase
of $16.9 million, or 76%, from the second quarter of 2025 Non-GAAP
Adjusted Operating Expenses of $22.2 million, with the difference between
GAAP and Non-GAAP Adjusted Operating Expenses being primarily non-cash
stock-based compensation expense, depreciation and amortization, and
non-recurring or non-operating expenses that are excluded from the
Non-GAAP Adjusted Operating Expenses.
-- Net Loss: Net loss for the second quarter of 2026 was $48.0 million, or
$0.13 per share, a decrease of $119.3 million, or $0.42 per share, from
the second quarter of 2025 net loss of $167.3 million, or $0.55 per
share. The decrease was primarily due to a $142.0 million decrease in the
amount of non-cash, non-operating charges related to the remeasurement of
the Company's warrant liability. All of the Company's remaining publicly
traded warrants were redeemed in November 2025.
-- Adjusted EBITDA Loss2: Adjusted EBITDA Loss for the second quarter of
2026 was $37.1 million, an increase of $17.1 million, or 85%, from the
second quarter of 2025 Adjusted EBITDA Loss of $20.0 million, with the
increase due primarily to increased investments to support the Company's
accelerated product development and go-to-market initiatives.
Financial Results for the First Half of 2026
-- Revenue: Revenue for the six months ended June 30, 2026 was $5.9
million, a decrease of $12.2 million, or 67%, from revenue of $18.1
million for the six months ended June 30, 2025, which included $13.7
million in revenue recognized from the Company's first sale of an
annealing quantum computing system. 67.7% of first half 2026 revenue was
derived from commercial customers compared to 16.0% in the first half of
2025. Forbes Global 2000 customers accounted for 48.5% of total first
half 2026 revenue compared to 7.5% in the first half of 2025. QCaaS
revenue derived from production applications totaled $1.3 million, or
37.3% of total QCaaS revenue, for the first half of 2026 compared with
$0.3 million, or 9.8% of total QCaaS revenue, for the first half of
2025.
-- Bookings1: Bookings for the six months ended June 30, 2026 were $35.5
million, an increase of $32.6 million, or 1,120%, from Bookings of $2.9
million for the six months ended June 30, 2025, with the average Booking
size increasing by over 1,120% on a year over year basis. The first half
of 2026 Bookings include a $20 million system sale, the revenue for which
will be recognized in subsequent quarters.
-- Remaining Performance Obligations3: As of June 30, 2026, the aggregate
amount of remaining performance obligations (RPOs) that were unsatisfied
or partially unsatisfied related to customer contracts totaled $40.7
million, an increase of $35.4 million, or 668%, from the June 30, 2025
RPO balance of $5.3 million. Approximately 57% of the $40.7 million 2026
second quarter RPO balance is expected to be recognized as revenue in the
next 12 months, and 72% is expected to be recognized as revenue in the
next two years, with the remainder to be recognized thereafter.
-- Customers: During the six months ended June 30, 2026, D-Wave recognized
revenue from over 100 individual customers with over 50% of such
customers being commercial enterprises.
-- GAAP Gross Profit: GAAP gross profit for the six months ended June 30,
2026 was $3.5 million, a decrease of $12.4 million, or 78%, from $15.9
million in GAAP gross profit for the six months ended June 30, 2025, with
the decrease due primarily to a high margin annealing quantum computer
system sale during the six months ended June 30, 2025.
-- GAAP Gross Margin: GAAP gross margin for the six months ended June 30,
2026 was 59.4%, a decrease of 28.2% from the 87.6% GAAP gross margin for
the six months ended June 30, 2025, with the decrease due primarily to a
high margin annealing quantum computer system sale during the six months
ended June 30, 2025.
-- Non-GAAP Gross Profit2: Non-GAAP Gross Profit for the six months ended
June 30, 2026 was $4.0 million, a decrease of $12.3 million, or 75%, from
the Non-GAAP Gross Profit of $16.3 million for the six months ended June
30, 2025. The difference between GAAP and Non-GAAP Gross Profit is
limited to non-cash stock-based compensation and depreciation and
amortization expenses that are excluded from the Non-GAAP Gross Profit.
-- Non-GAAP Gross Margin2: Non-GAAP Gross Margin for the six months ended
June 30, 2026 was 67.7%, a decrease of 22.2% from the 89.9% Non-GAAP
Gross Margin for the six months ended June 30, 2025. The difference
between GAAP and Non-GAAP Gross Margin is limited to non-cash stock-based
compensation and depreciation and amortization expenses that are excluded
from the Non-GAAP Gross Margin.
-- GAAP Operating Expenses: GAAP operating expenses for the six months
ended June 30, 2026 were $111.5 million, an increase of $57.9 million, or
108% from GAAP operating expenses of $53.6 million for the six months
ended June 30, 2025, with the increase partially driven by $9.3 million
of non-recurring costs related to the acquisition of Quantum Circuits,
Inc. ("Quantum Circuits") and increases of $19.0 million in salaries and
related personnel costs, 73% of which relate to increases in Sales &
Marketing and Research & Development personnel; $16.4 million in non-cash
stock-based compensation and depreciation and amortization expenses, $3.9
million in fabrication costs and $2.3 million in marketing expenses.
These increased operating expenses stem from investments to support the
Company's accelerated product development and go-to-market initiatives,
as well as Quantum Circuits expenses incurred subsequent to the January
acquisition closing date.
-- Non-GAAP Adjusted Operating Expenses2: Non-GAAP Adjusted Operating
Expenses for the six months ended June 30, 2026 were $73.9 million, an
increase of $31.5 million, or 74%, from Non-GAAP Adjusted Operating
Expenses of $42.4 million for the six months ended June 30, 2025, with
the difference between GAAP and Non-GAAP Operating Expenses being
primarily non-cash stock-based compensation expense, non-cash
depreciation and amortization expense, and non-recurring one-time
expenses that are excluded from the Non-GAAP Adjusted Operating
Expenses.
-- Net Loss: Net loss for the six months ended June 30, 2026 was $66.4
million, or $0.18 per share, a decrease of $106.4 million, or $0.41 per
share, compared with the net loss of $172.8 million, or $0.59 per share
for the six months ended June 30, 2025, primarily due to a decrease of
$138.1 million in the amount of non-cash, non-operating charges related
to the remeasurement of the Company's warrant liability, offset by a tax
benefit of $28.4 million arising from the Quantum Circuits acquisition.
-- Adjusted EBITDA Loss2: Adjusted EBITDA Loss for the six months ended
June 30, 2026 was $69.9 million, an increase of $43.8 million from the
Adjusted EBITDA Loss of $26.1 million for the six months ended June 30,
2025, with the increase due primarily to increased investments to support
the Company's accelerated product development and go-to-market
initiatives.
(1) "Bookings" is an operating metric that is defined as customer orders received that are expected to generate net revenues in the future. Year-to-date 2026 Bookings includes $2.3 million in Quantum Circuits bookings that were closed immediately prior to the completion of the acquisition of Quantum Circuits in January 2026. We present the operating metric of Bookings because it reflects customers' demand for our products and services and to assist readers in analyzing our potential performance in future periods.
(2) "Non-GAAP Gross Profit", "Non-GAAP Gross Margin", "Non-GAAP Adjusted Operating Expenses" and "Adjusted EBITDA Loss" are non-GAAP financial measures. Please see the discussion in the section "Non-GAAP Financial Measures" and the reconciliations included at the end of this press release.
(3) Revenue allocated to remaining performance obligations represents the transaction price of noncancellable orders for which service has not been performed, which include deferred revenue and the amounts that will be invoiced and recognized as revenues in future periods from open contracts and excludes unexercised renewals.
Balance Sheet and Liquidity
As of June 30, 2026, D-Wave's consolidated cash and marketable investment securities balance totaled $546.2 million, representing a $273.1 million, or 33% decrease from the June 30, 2025 consolidated cash and marketable investment securities balance of $819.3 million, with over 90% of the decrease attributable to the cash consideration associated with the January 2026 acquisition of Quantum Circuits.
Earnings Conference Call
In conjunction with this announcement, D-Wave will host a conference call on Thursday, August 6, 2026, at 8:00 a.m. (Eastern Time), to discuss the Company's financial results and business outlook. The live dial-in number is 1-833-890-9920 (domestic) or 1-412-564-6463 (international). Participants can use those dial-in numbers or can click this link for instant telephone access to the event. The link will be made active 15 minutes prior to the call's scheduled start time, and the passcode is 3354042. An on-demand webcast will be available, and a transcript of the conference call will be posted on the D-Wave Investor Relations website after the call. Participating in the call will be Chief Executive Officer Dr. Alan Baratz and Chief Financial Officer John Markovich.
About D-Wave Quantum Inc.
D-Wave is a leader in the development and delivery of quantum computing systems, software, and services. It is the world's first commercial supplier of quantum computers, and the first and only to offer dual-platform quantum computing products and services, spanning both annealing and gate-model quantum computing technologies. D-Wave's mission is to help customers realize the value of quantum today through enterprise-grade systems available on-premises and via its Leap(TM) quantum cloud service, which offers 99.9% availability and uptime. More than 100 organizations across commercial, government and research sectors trust D-Wave to address complex computational challenges using quantum computing. Learn more about realizing the value of quantum computing today and how D-Wave is shaping the quantum-driven industrial and societal advancements of tomorrow: ir.dwavequantum.com.
Non-GAAP Financial Measures
To supplement the financial information presented in accordance with GAAP, we use non-GAAP measures of certain components of financial performance. Each of Non-GAAP Gross Profit, Non-GAAP Gross Margin, Adjusted EBITDA Loss and Non-GAAP Adjusted Operating Expenses is a financial measure that is not required by or presented in accordance with GAAP. Management believes that each measure provides investors an additional meaningful method to evaluate certain aspects of such results period over period. The Company defines each of its non-GAAP financial measures as follows:
-- Non-GAAP Gross Profit is defined as GAAP gross profit less depreciation
and amortization expense and non-cash stock-based compensation expense.
We use Non-GAAP Gross Profit to measure, understand and evaluate our core
operating performance and trends and to develop short-term and long-term
operating plans.
-- Non-GAAP Gross Margin is defined as GAAP gross margin adjusted to
exclude depreciation and amortization expense and non-cash stock-based
compensation expense. We use Non-GAAP Gross Margin to measure, understand
and evaluate our core business performance.
-- Adjusted EBITDA Loss is defined as net loss before interest income,
interest expense, depreciation and amortization expense, stock-based
compensation, remeasurements of liability-classified warrants, and other
non-operating or non-recurring income and expenses. We use Adjusted
EBITDA Loss to measure the operating performance of our business,
excluding specifically identified items that we do not believe directly
reflect our core operations and may not be indicative of our recurring
operations.
-- Non-GAAP Adjusted Operating Expenses is defined as operating expenses
before depreciation and amortization expense, non-operating or
non-recurring expenses and non-cash stock-based compensation expense. We
use Non-GAAP Adjusted Operating Expenses to measure our operating
expenses, excluding items we do not believe directly reflect our core
operations.
The presentation of non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the financial results prepared in accordance with GAAP, and our presentation of non-GAAP measures may be different from non-GAAP measures used by other companies. For a reconciliation of each of Non-GAAP Gross Profit, Non-GAAP Gross Margin, Adjusted EBITDA Loss and Non-GAAP Adjusted Operating Expenses to its most directly comparable GAAP measure, please refer to the reconciliations below.
Forward-Looking Statements
Certain statements in this press release are forward looking, as defined in the Private Securities Litigation Reform Act of 1995, including statements relating to our ability to help customers realize value from quantum computing, development of annealing and gate-model systems, enterprise-scale adoption of quantum computing, our development and commercialization plans, dual-platform roadmap and milestones, expectations regarding our quantum computing simulator, error-corrected gate-model quantum computer, among others. In some cases, you can identify forward-looking statements by the following words: "believe," "may," "will," "could," "would," "should," "expect," "intend," "plan," "anticipate," "trend," "estimate," "predict," "project," "potential," "seem," "seek," "future," "outlook," "forecast," "projection," "continue, " "ongoing," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties, and other factors that may cause actual results to differ materially from the information expressed or implied by these forward-looking statements and may not be indicative of future results. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, various factors beyond management's control, including the risks set forth under the caption "Item 1A. Risk Factors" in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption "Item 1A. Risk Factors" in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the Securities and Exchange Commission. Undue reliance should not be placed on the forward-looking statements in this press release in making an investment decision, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.
D-Wave Quantum Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
June 30, December 31,
(In thousands, except share and per
share data) 2026 2025
---------- ---------
Assets
Current assets:
Cash and cash equivalents $ 296,642 $ 635,347
Marketable investment securities 249,573 249,134
Trade accounts receivable, net of
allowance for credit losses of $1
and $176 2,019 1,587
Inventories 3,488 2,776
Prepaid expenses and other current
assets 8,872 7,388
---------- ---------
Total current assets 560,594 896,232
---------- ---------
Property and equipment, net 22,076 7,841
Operating lease right-of-use assets 12,042 6,518
Intangible assets, net 211,816 915
Goodwill 342,588 --
Other non-current assets, net 9,314 4,307
---------- ---------
Total assets $ 1,158,430 $ 915,813
========== =========
Liabilities and stockholders' equity
Current liabilities:
Trade accounts payable $ 4,521 $ 950
Accrued expenses and other current
liabilities 12,135 15,838
Current portion of operating lease
liabilities 1,250 1,448
Loans payable, net, current 146 134
Deferred revenue, current 9,234 2,778
---------- ---------
Total current liabilities 27,286 21,148
---------- ---------
Operating lease liabilities, net of
current portion 11,826 6,050
Loans payable, net, non-current 34,886 35,825
Deferred revenue, non-current 1,322 560
---------- ---------
Total liabilities $ 75,320 $ 63,583
---------- ---------
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.0001 per
share; 675,000,000 shares authorized
at both June 30, 2026 and December
31, 2025; 372,011,420 shares and
358,741,605 shares issued and
outstanding as of June 30, 2026 and
December 31, 2025, respectively. 37 35
Additional paid-in capital 2,140,499 1,843,218
Accumulated deficit (1,048,387) (982,002)
Accumulated other comprehensive loss (9,039) (9,021)
---------- ---------
Total stockholders' equity 1,083,110 852,230
---------- ---------
Total liabilities and
stockholders' equity $ 1,158,430 $ 915,813
========== =========
D-Wave Quantum Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
---------------------------- ------------------------------
(In thousands, except
share and per share
data) 2026 2025 2026 2025
----------- ----------- ----------- -----------
Revenue $ 3,076 $ 3,095 $ 5,934 $ 18,096
Cost of revenue 1,372 1,119 2,412 2,243
----------- ----------- ----------- -----------
Total gross profit 1,704 1,976 3,522 15,853
Operating expenses:
Research and
development 28,239 12,694 54,032 22,982
General and
administrative 15,388 9,151 35,663 17,108
Sales and marketing 11,355 6,633 21,832 13,556
----------- ----------- ----------- -----------
Total operating
expenses 54,982 28,478 111,527 53,646
----------- ----------- ----------- -----------
Loss from operations (53,278) (26,502) (108,005) (37,793)
Other income
(expense), net:
Interest income 5,028 4,311 10,813 7,410
Interest expense (255) (206) (514) (432)
Gain on investment
in marketable
securities, net -- -- 1,880 --
Change in fair
value of warrant
liabilities -- (142,048) -- (138,105)
Other income
(expense), net 485 (2,884) 997 (3,830)
----------- ----------- ----------- -----------
Total other
income
(expense), net 5,258 (140,827) 13,176 (134,957)
----------- ----------- ----------- -----------
Loss before income
taxes (48,020) (167,329) (94,829) (172,750)
Income tax benefit
(provision), net (8) -- 28,444 --
----------- ----------- ----------- -----------
Net loss $ (48,028) $ (167,329) $ (66,385) $ (172,750)
=========== =========== =========== ===========
Net loss per share,
basic and diluted $ (0.13) $ (0.55) $ (0.18) $ (0.59)
=========== =========== =========== ===========
Weighted-average
shares used in
computing net loss
per share, basic and
diluted 370,840,115 302,288,793 369,165,968 294,398,419
=========== =========== =========== ===========
Comprehensive loss:
Net loss $ (48,028) $ (167,329) $ (66,385) $ (172,750)
Other comprehensive
income (loss), net of
tax:
Foreign currency
translation
adjustment 140 787 158 1,285
Unrealized losses
on
available-for-sale
securities (7) -- (160) --
Reclassification
adjustment for
realized gains
(losses) included
in net income (16) -- (16) --
----------- ----------- ----------- -----------
Total other
comprehensive
income (loss),
net of tax 117 787 (18) 1,285
----------- ----------- ----------- -----------
Net comprehensive loss $ (47,911) $ (166,542) $ (66,403) $ (171,465)
=========== =========== =========== ===========
D-Wave Quantum Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended June 30,
-------------------------------
(in thousands) 2026 2025
---------- ----------
Cash flows from operating activities:
Net loss $ (66,385) $ (172,750)
Adjustments to reconcile net loss to
cash used in operating activities:
Depreciation and amortization 8,536 714
Deferred income taxes (28,365) --
Stock-based compensation 19,132 10,664
Amortization of operating
right-of-use assets 699 346
Provision for excess and obsolete
inventory (103) --
Non-cash interest income 1,262 --
Non-cash interest expense 467 387
Change in fair value of warrant
liabilities -- 138,105
Gain on marketable equity
securities (1,880) --
Unrealized foreign exchange loss
(gain) (1,740) 1,998
Other noncash items -- 267
Change in operating assets and
liabilities:
Trade accounts receivable (432) (57)
Inventories (2,605) (762)
Prepaid expenses and other
current assets (455) (1,368)
Trade accounts payable (975) 416
Accrued expenses and other
current liabilities (4,371) 2,695
Deferred revenue 7,218 (13,796)
Operating lease liability (332) (344)
Other non-current assets, net (3,134) (1,080)
---------- ----------
Net cash used in operating activities (73,463) (34,565)
---------- ----------
Cash flows from investing activities:
Acquisition of business, net of cash
acquired (252,821) --
Purchase of property and equipment (5,521) (1,187)
Purchases of marketable debt
securities (149,117) --
Maturities of marketable debt
securities 147,241 --
Proceeds from recovery of previously
written-off convertible note -- 959
Expenditures for internal-use
software (363) (129)
---------- ----------
Net cash used in investing activities (260,581) (357)
---------- ----------
Cash flows from financing activities:
Proceeds from the issuance of common
stock pursuant to the Lincoln Park
Purchase Agreement -- 37,787
Proceeds from the issuance of common
stock in at-the-market offerings,
net of issuance costs -- 536,741
Proceeds from issuance of common
stock upon exercise of warrants -- 99,319
Proceeds from the issuance of common
stock upon exercise of stock
options 1,614 6,860
Proceeds from common stock issued
under the Employee Stock Purchase
Plan 724 291
Payment of tax withheld pursuant to
stock-based compensation
settlements (6,885) (5,664)
Repayments on TPC loan -- (365)
Repayment of the Equipment Financing
Term Loan (69) --
Payments of equity issuance costs (203) --
---------- ----------
Net cash provided by (used in)
financing activities (4,819) 674,969
---------- ----------
Effect of exchange rate changes on cash
and cash equivalents 158 1,285
---------- ----------
Net increase (decrease) in cash and
cash equivalents (338,705) 641,332
Cash and cash equivalents at beginning
of period 635,347 177,980
---------- ----------
Cash and cash equivalents at end of
period $ 296,642 $ 819,312
========== ==========
D-Wave Quantum Inc.
Reconciliation of Gross Profit to Non-GAAP Gross Profit
(Unaudited)
Three Months Ended June Six Months Ended June
30, 30,
----------------------- -----------------------
(in thousands of
U.S. dollars) 2026 2025 2026 2025
---------------- ----- ----- --- ----- ------
Gross Profit $1,704 $1,976 $3,522 $15,853
Gross Margin 55.4% 63.8% 59.4% 87.6%
Excluding:
Depreciation
and
Amortization
(1) 14 14 29 42
Stock-based
compensation
(2) 279 231 464 373
----- ----- --- ----- ------
Non-GAAP Gross
Profit $1,997 $2,221 $4,015 $16,268
Non-GAAP Gross
Margin 64.9% 71.8% 67.7% 89.9%
(1) Depreciation and Amortization reflects the Depreciation and
Comments