D-Wave Quantum Inc. (QBTS): Results of Operations and Financial Condition
D-Wave Quantum Inc. (QBTS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 D-Wave Reports Second Quarter 2026 Results 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 Ye
How this was made
The 30-second read
Why it matters
Traders can reassess QBTS’s commercial traction using first-half bookings and remaining performance obligations, while also weighing profitability pressure from lower GAAP gross margin and flat revenue.
Market read
Fresh Q2 financials plus large YoY jumps in bookings and remaining performance obligations can drive re-rating, but flat revenue and margin decline limit upside conviction.
What to watch
QCaaS production revenue mix and personnel-cost-driven margin pressure could indicate higher near-term operating drag even as engagements expand.
D-Wave Reports Second Quarter 2026 Results
Second-quarter revenue was essentially flat, while bookings increased 59% and first-half bookings and remaining performance obligations rose sharply. Gross profit and gross margin declined, and operating expenses and adjusted EBITDA loss increased substantially as the Company invested in product development and go-to-market initiatives.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, second quarter of 2026GAAP | $3.1 million | – | essentially flat |
| Commercial customer revenue mix, second quarter of 2026other | 62.4% | – | – |
| Forbes Global 2000 customer revenue mix, second quarter of 2026other | 47.7% | – | – |
| Bookings, second quarter of 2026other | $2.1 million | – | 59% |
| Average Booking size, second quarter of 2026other | over 87% | – | over 87% |
| Gross profit, second quarter of 2026GAAP | $1.7 million | – | $0.3 million |
| Gross margin, second quarter of 2026GAAP | 55.4% | – | 8.4% |
| Gross profit, second quarter of 2026non-GAAP | $2.0 million | – | $0.2 million |
| Gross margin, second quarter of 2026non-GAAP | 64.9% | – | 6.9% |
| Operating expenses, second quarter of 2026GAAP | $55.0 million | – | 93% |
| Adjusted operating expenses, second quarter of 2026non-GAAP | $39.1 million | – | 76% |
| Net loss, second quarter of 2026GAAP | $48.0 million | – | $119.3 million |
| Net loss per share, second quarter of 2026GAAP | $0.13 per share | – | $0.42 per share |
| Adjusted EBITDA Loss, second quarter of 2026non-GAAP | $37.1 million | – | 85% |
| Revenue, six months ended June 30, 2026GAAP | $5.9 million | – | 67% |
| Commercial customer revenue mix, first half 2026other | 67.7% | – | – |
| Forbes Global 2000 customer revenue mix, first half 2026other | 48.5% | – | – |
| QCaaS revenue derived from production applications, first half 2026other | $1.3 million | – | – |
| QCaaS revenue derived from production applications as a percentage of total QCaaS revenue, first half 2026other | 37.3% | – | – |
| Bookings, six months ended June 30, 2026other | $35.5 million | – | 1,120% |
| Average Booking size, first half of 2026other | over 1,120% | – | over 1,120% |
| Remaining performance obligations as of June 30, 2026other | $40.7 million | – | 668% |
| Remaining performance obligations expected to be recognized as revenue in the next 12 monthsother | Approximately 57% | – | – |
What drove it
- Bookings for the first six months of 2026 were $35.5 million, including a $20 million system sale, the revenue for which will be recognized in subsequent quarters.
- 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.
- 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.
- The Company signed new and renewing customer engagements with commercial and research customers including AT&T, Nasdaq Verafin, Oki Electric Industry Co., Ltd., Shionogi & Co. Ltd., and Unisys.
- The Company was selected to receive a $1,566,240 grant from the U.S. National Science Foundation through the National Quantum Virtual Laboratory program.
Concerns
- GAAP gross profit decreased $0.3 million, or 14%, due primarily to increased personnel costs.
- GAAP operating expenses increased $26.5 million, or 93%, driven primarily by increases in personnel costs, non-cash stock-based compensation, non-cash depreciation and amortization, third party professional services, and marketing expenses.
- Adjusted EBITDA Loss increased $17.1 million, or 85%, due primarily to increased investments supporting accelerated product development and go-to-market initiatives.
- Revenue for the six months ended June 30, 2026 decreased $12.2 million, or 67%, from the prior-year period, which included $13.7 million in revenue recognized from the Company's first sale of an annealing quantum computing system.
What to watch
- Revenue recognition from the $20 million system sale included in first-half 2026 bookings.
- Conversion of the $40.7 million remaining performance obligations balance into revenue, with approximately 57% expected to be recognized as revenue in the next 12 months.
- Gross-margin performance following higher personnel costs and the exclusion of stock-based compensation and depreciation and amortization from non-GAAP gross profit.
- Delivery of a 17-physical-qubit system in 2026 and completion of a 49-physical-qubit system in 2027 under the gate-model roadmap.
- The intermediate 20,000 qubit annealing system expected to be available in 2029 and the 100,000 qubit Advantage3 system targeted by 2031.
Analysis
D-Wave reported second-quarter revenue of $3.1 million, essentially flat compared with the second quarter of 2025. The customer mix shifted toward commercial and large-enterprise accounts: commercial customers generated 62.4% of quarterly revenue compared with 45.1% a year earlier, while Forbes Global 2000 customers represented 47.7% compared with 20.4%. First-half revenue was $5.9 million, down 67%, with the Company attributing the prior-year comparison in part to $13.7 million of revenue from its first annealing quantum computing system sale.
Management, verbatim
This quarter reinforced the strength and breadth of D-Wave’s leadership.
Dr. Alan Baratz, CEO of D-Wave
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.
Dr. Alan Baratz, CEO of D-Wave
Not in the filing
stated, not guessed- Full filing text beyond the truncated remaining performance obligations disclosure
- GAAP operating income or loss
- Non-GAAP net income or loss and non-GAAP EPS
- Cash balance
- Debt balance
- Operating cash flow
- Free cash flow
- Capital expenditures
- Share repurchases
- Dividend information
- Quarter-over-quarter comparisons for reported metrics
- Reportable segment revenue
- Financial guidance for revenue, gross margin, operating expenses, or tax rate
- Previous-release outlook needed for guidance comparison
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with Exhibit 99.1 covering D-Wave’s Q2 2026 financial results and updated technology and commercial highlights.
Ticker impact
D-Wave reports Q2 2026 results and discloses first-half bookings of $35.5M, up 1,120% YoY, plus remaining performance obligations of $40.7M.
Likely supportive for QBTS sentiment, but tempered by flat revenue and lower GAAP gross margin versus the prior year.
Bookings and remaining performance obligations show outsized YoY growth, while revenue is flat and gross margin declines, creating a mixed fundamental read-through for traders.
Market effects
Reinforces investor focus on quantum computing commercialization metrics (bookings, QCaaS mix) rather than only hardware milestones.
Limited direct regional spillover; primarily affects US-listed quantum peers via sentiment read-through.
IDC “Leader” positioning and Nature-published research may influence global perception of dual-platform quantum progress.
Counterpoint
The headline bookings surge may not translate into near-term revenue growth, given revenue is essentially flat and gross margin fell year over year.
Key entities
- companyD-Wave Quantum Inc.
NASDAQ-listed dual-platform quantum computing company reporting Q2 2026 results and updated roadmap milestones.
- organizationIDC MarketScape
Industry assessment naming D-Wave a “Leader” in Worldwide Quantum Computing 2026 Vendor Assessment.
- publicationNature (journal)
Peer-reviewed research cited for a faster, high-fidelity two-qubit entangling gate relevant to fault-tolerant gate-model progress.
- government_programNSF National Quantum Virtual Laboratory (NQVL)
U.S. funding source awarding a $1,566,240 grant tied to gate-model efforts via the ERASE project.
