D-Wave Quantum Inc.

🇺🇸New York Stock Exchange
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D-Wave Quantum Inc. stock analysis QBTS overview
Bullish +75

D-Wave Quantum Is Down 15% This Year. Is Now the Time to Buy?

📉 D-Wave Quantum's stock price is down 15% year-to-date despite a massive 245% gain over the past 12 months.

🚀 Revenue surged 179% and gross profit jumped 265% in fiscal year 2025.

💰 The company holds record-breaking cash reserves of over $884 million on its balance sheet.

📅 Bookings momentum is exceptional, with customer contracts up 471% in 2025 and Q1 2026 bookings exceeding last year's total revenue.

⚠️ The stock is still unprofitable, posting a net loss of $355 million for fiscal year 2025.

🎤 CEO Alan Baratz recently warned GPU rivals like Nvidia about the rising threat from quantum computing capabilities.

📊 Wall Street prices the stock at a heavy premium with an enterprise-value-to-revenue ratio near 280x.

💹 Despite high valuations and industry risks, some analysts view the recent price dip as a compelling entry point for patient investors.

🏆 The Motley Fool Stock Advisor team recently identified ten superior stocks but did not include D-Wave Quantum in their latest list.

📈 Historical examples of Stock Advisor recommendations show massive long-term returns, such as Netflix returning 51x in 20 years and Nvidia returning 123x.

⚖️ Investors are urged to balance the potential upside with the reality that quantum computing is still early-stage and unprofitable.

🔒 Disclosure notes indicate The Motley Fool holds positions in and recommends competitor stock Nvidia.

Bullish Signals
  • D-Wave's stock has gained 245% over the past 12 months despite a recent price dip, indicating strong long-term momentum.
  • The company is generating all-time highs in both cash position and bookings, with $884 million in liquidity on the balance sheet as of end-2025.
  • Revenue surged 179% year-over-year in 2025, while gross profit expanded 265%, demonstrating powerful operating scale.
  • Bookings momentum is robust, increasing 471% in 2025 and exceeding $32 million through Q1 2026.
  • First quarter bookings of over $32 million already surpassed last year's full-year revenue by nearly $8 million, highlighting accelerating commercial traction.
  • CEO Alan Baratz has generated positive industry buzz by warning GPU competitors like Nvidia that quantum computing capabilities pose a future threat.
  • Wall Street analysts see significant long-term upside potential for D-Wave Quantum as the company gains commercial market traction.
  • The recent stock price drop presents an attractive entry point for patient investors positioned to capture growth in the quantum computing industry.
Risk Factors
  • D-Wave Quantum is down 15% this year, indicating recent market skepticism or selling pressure.
  • The company is not yet profitable, posting a net loss of $355 million for the 2025 fiscal year.
  • Wall Street values D-Wave at a heavy premium with an enterprise-value-to-revenue ratio near 280, suggesting potential overvaluation risks.
  • Despite positive bookings growth, the negative side explicitly notes the company isn't close to profitability yet.
  • The Motley Fool's Stock Advisor team did not include D-Wave Quantum in their list of the 10 best stocks for investors to buy now.
Full Analysis
D-Wave Quantum Inc. (NYSE: QBTS) has experienced significant volatility in recent periods, dropping 15% this year after posting substantial gains of 245% over the last 12 months. The company's financial position is characterized by all-time highs in both cash reserves and bookings, with its balance sheet liquidity exceeding $884 million at the end of the most recent fiscal year. Despite these strong balance sheet indicators, revenue growth remains robust, having increased by 179% in 2025, while gross profit surged by an even more pronounced 265%. A key bullish indicator highlighted for D-Wave is its dramatic acceleration in bookings momentum. During the 2025 fiscal year, customer contracts grew by 471%, and through the first quarter of 2026, total bookings surpassed $32 million. This figure represents nearly $8 million more than the company's entire revenue for the previous year, signaling strong commercial interest and future revenue visibility even though the company is not yet profitable, having recorded a net loss of $355 million in fiscal 2025. Analyst perspectives on D-Wave are mixed due to its valuation and competitive landscape concerns. The stock currently trades at a heavy premium with an enterprise-value-to-revenue ratio near 280, reflecting significant long-term upside potential according to Wall Street while acknowledging inherent industry risks. Company leadership remains confident in its technology trajectory, with CEO Alan Baratz recently warning competitors like Nvidia of the emerging capabilities of quantum computing. However, investment research firm The Motley Fool's Stock Advisor team did not include D-Wave in their top 10 picks, noting that the company was absent from a recent list of ten stocks recommended for investors despite its historical performance as an investment opportunity.