To The Moon

On 07 Aug 2025, $D-Wave Quantum Inc.(QBTS)$ a leader in commercial quantum computing systems, software, and services, released its Q2 2025 earnings.

In the words of D-Wave Quantum Inc, CEO, Dr Alan Baratz — Q2 2025 results show consistently strong performance across a multitude of technical and business metrics. (more on that, later)

Besides that, QBTS has accomplished the followings during the April - June period:

• Brought to market its 6th-generation quantum computer.

• Signed a memorandum of understanding (MOU) related to the acquisition of an on-premises system in South Korea.

• Completed physical assembly of the previously announced system at Davidson Technologies.

• Introduced a collection of developer tools to advance quantum AI & machine learning innovation.

Q2 2025 Earnings.

For 2025, QBTS’s 2nd quarter earnings is as such:

• Loss per share: came in at -$0.08 vs analysts’ estimates -$0.05 vs Q2 2024’s -$0.12; that’s a +33.33% YoY improvement.

• Revenue: was $3.10 million vs analysts’ estimates $2.55 million vs Q2 2024’s $2.2 million, that’s a +42% YoY gain.

• Gross Profit (GAAP): came in at $2.0 million vs Q2 2024’s $1.4 million, an increase of $0.6 million, or +42% YoY gain.

• Gross Margin (GAAP): was 63.8% vs Q2 2024’s 63.6%, that’s an increase of +0.2% YoY.

• Net Loss: widened to -$167.3 million, driven by $142 million in noncash warrant remeasurements.

Most important, QBTS ended Q2 2025 with a record $819 million in cash vs $177.9 million at the end of FY 2024.

The company has expressed confidence in its ability to continue delivering long-term value for (a) customers, (b) partners, and (c) shareholders.

Customers - New & Renewed.

For the most recent 4 quarters, D-Wave had in excess of 100 revenue generating customers.

Below is a list of commercial & research customers that QBTS has newly signed up or renewed in Q2:

• E.ON – a European multinational electric utility company.

• $GE Vernova Inc.(GEV)$ – a global energy company.

• National Quantum Computing Centre (NQCC) – UK’s national lab for quantum computing.

• Nikon Corporation – a multinational corporation specializing in optics and precision technologies.

• NTT Data Corp. – a multinational IT services and consulting company.

• NTT DOCOMO – Japan’s leading mobile operator.

• Sharp Corporation – a multinational electronics company.

• University of Oxford.

My viewpoints: (mine only)

I am not going to sugar coat what and how I feel about QBTS. It is what it is.

Prior to 2025, QBTS received only sporadic coverage since its IPO in August 2022.

Its coming of age happened in H1 2025 when mainstream Wall Street interest reached a fever pitch after QBTS’s transformative run.

A string of high-profile business milestones and explosive financial results helped:

• The real turning point was after QBTS reported record-breaking Q1 2025 earnings in May 2025.

• With revenue surging +509% YoY to $15million & gross margins climbing to +92%, beating analyst expectations and led to a dramatic rise in share price and trading volume.

• A further price target revision by financial institute Canaccord Genuity in July 2025, to $20 per share coupled with a “Buy” rating helped seal the deal.

Cue to Q2 2025, QBTS exited the 2nd quarter with :

• Earnings missing estimates.

• Revenues beating the same.

• Personally, I think QBTS delivered fairly strong-ish results across key technical and business metrics.

The significant development for QBTS’s future included:

• The launch of its 6th-generation quantum computer, paving the way for an even more powerful quantum processor in the near future.

• Progress on an on-premises system agreement in South Korea to advance and seal its position in the quantum realm, away from the prying eyes of the current administration.

• Completion of system assembly at Davidson Technologies, and the release of new quantum AI and machine learning tools.

Just to note :

• Davidson Technologies acts both as (a) a host for D-Wave’s cutting-edge quantum hardware and (b) a strategic partner and reseller — actively promoting and integrating quantum computing solutions for defense and aerospace applications.

• It is positioning itself & QBTS at the forefront of secure quantum technology for US national interests.

The Negatives.

It remains a fact that contractions in its (a) adjusted gross margin and (b) its wider operating loss are concerning.

As said, this quantum company has been diligently and quietly working in the shadow since its late 2022 debut.

Like any debutante, its burn-rate will be high for the initial few years. Equally important for any company is the ability to acquire and grow its customer base.

On that front, QBTS is doing a decent job in acquiring the new and retaining the old.

If an investor pays too much attention to its financials and ignore its potentials, its akin to being “penny wise and pound foolish” - no ?

Remember to check out my other posts. (See below). Help to Repost ok, Thanks.

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• Do you think QBTS’s Q2 2025 earnings are decent for a relatively new IT stock?

• Do you think QBTS Q2 earnings will be head and shoulders above $Rigetti Computing(RGTI)$ slated to release its Q2 earnings on Tuesday, after market close ?

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