D-Wave Reports Third Quarter 2026 Results
D-Wave Quantum Inc. (QBTS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 D-Wave Reports Third Quarter 2026 Results Third Quarter Revenue Up 21% Year Over Year Remaining Performance Obligations of $38.3 Million Up 1,221% Year Over Year PALO ALTO, Calif. – November 10, 2026 – D-Wave Quantum Inc. (NASDAQ: QBTS) (“D-Wave” or the “Company”), t
How this was made
The 30-second read
Why it matters
The earnings release and federal funding agreement provide fresh catalysts that could trigger short‑term price appreciation.
Market read
First‑report earnings and a sizable government grant for a micro‑cap quantum firm, offering a clear short‑term trading opportunity.
What to watch
Execution risk on the 100k‑qubit annealer and the timeline for the $100 M milestones could delay upside.
D-Wave Q3 2026 revenue rose 21% year over year to $4.5 million, while GAAP operating expenses rose 84% and the net loss narrowed on lower non-cash warrant charges
Revenue grew 21% and remaining performance obligations rose to $38.3 million, but gross margin fell, operating expenses and adjusted EBITDA loss widened sharply, and the year-over-year improvement in net loss comes mainly from the absence of warrant liability remeasurement charges that the company describes as non-cash and non-operating.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended Sept 30, 2026GAAP | $4.51M | – | up 21% year over year |
| Cost of revenue, three months ended Sept 30, 2026GAAP | $2.13M | – | – |
| Gross profit, three months ended Sept 30, 2026GAAP | $2.39M | – | decrease of $0.3 million, or 11% |
| Gross margin, three months ended Sept 30, 2026GAAP | 52.9% | – | decrease of 18.5% (as printed in the release) |
| Non-GAAP gross profit, three months ended Sept 30, 2026non-GAAP | $2.87M | – | essentially flat |
| Non-GAAP gross margin, three months ended Sept 30, 2026non-GAAP | 63.6% | – | decrease of 14.1% |
| Research and development, three months ended Sept 30, 2026GAAP | $31.54M | – | – |
| General and administrative, three months ended Sept 30, 2026GAAP | $13.1M | – | – |
| Sales and marketing, three months ended Sept 30, 2026GAAP | $11.22M | – | – |
| Total operating expenses, three months ended Sept 30, 2026GAAP | $55.87M | – | increase of $25.5 million, or 84% |
| Non-GAAP adjusted operating expenses, three months ended Sept 30, 2026non-GAAP | $40.53M | – | increase of $17.0 million, or 72% |
| Loss from operations, three months ended Sept 30, 2026GAAP | −$53.48M | – | – |
| Interest income, three months ended Sept 30, 2026GAAP | $4.86M | – | – |
| Income tax benefit (provision), net, three months ended Sept 30, 2026GAAP | $68K | – | – |
| Net loss, three months ended Sept 30, 2026GAAP | −$48.20M | – | decrease of $91.8 million, or $0.28 per share |
| Net loss per share, basic and diluted, three months ended Sept 30, 2026GAAP | $(0.13) per share | – | decrease of $0.28 per share |
| Adjusted EBITDA loss, three months ended Sept 30, 2026non-GAAP | −$37.66M | – | increase of $17.0 million, or 83% |
| Bookings, three months ended Sept 30, 2026other | $1.9M | – | decrease of approximately $0.4 million, or 19% |
| Remaining performance obligations, as of Sept 30, 2026other | $38.3M | – | increase of 1,221% |
| Bookings, nine months ended Sept 30, 2026other | $37.4M | – | increase of $32.1 million, or 611% |
| Revenue, nine months ended Sept 30, 2026GAAP | $10.45M | – | – |
| Cost of revenue, nine months ended Sept 30, 2026GAAP | $4.54M | – | – |
| Gross profit, nine months ended Sept 30, 2026GAAP | $5.91M | – | – |
| Gross margin, nine months ended Sept 30, 2026GAAP | 56.6% | – | – |
| Non-GAAP gross margin, nine months ended Sept 30, 2026non-GAAP | 65.9% | – | – |
| Research and development, nine months ended Sept 30, 2026GAAP | $85.58M | – | – |
| General and administrative, nine months ended Sept 30, 2026GAAP | $48.76M | – | – |
| Sales and marketing, nine months ended Sept 30, 2026GAAP | $33.06M | – | – |
| Total operating expenses, nine months ended Sept 30, 2026GAAP | $167.4M | – | – |
| Non-GAAP adjusted operating expenses, nine months ended Sept 30, 2026non-GAAP | $114.4M | – | – |
| Loss from operations, nine months ended Sept 30, 2026GAAP | −$161.5M | – | – |
| Net loss, nine months ended Sept 30, 2026GAAP | −$114.6M | – | – |
| Net loss per share, basic and diluted, nine months ended Sept 30, 2026GAAP | $(0.31) per share | – | – |
| Adjusted EBITDA loss, nine months ended Sept 30, 2026non-GAAP | −$107.5M | – | – |
| Net cash used in operating activities, nine months ended Sept 30, 2026GAAP | −$109.0M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Professional servicesRevenue line with a higher proportion that the company says carries a lower margin, cited for the decline in gross margin. | not printed as a figure | – | increase of $1.5 million |
| Quantum computing as a service (QCaaS)Increase in QCaaS revenue as printed; no reason given beyond the amount. | not printed as a figure | – | increase of $0.8 million |
| System salesDecrease in system sales revenue as printed; the filing gives no explanation for the decline. | not printed as a figure | – | decrease of $1.5 million |
Capital returns
- No share repurchases or dividends are reported in the filing.
- Nine months ended Sept 30, 2026: payment of tax withheld pursuant to stock-based compensation settlements of $(14,090) thousand, compared with $(9,986) thousand in the nine months ended Sept 30, 2025.
What drove it
- Revenue rose 21% year over year, with the company citing professional services up $1.5 million, QCaaS up $0.8 million, partially offset by system sales down $1.5 million.
- The company attributes the decline in gross margin primarily to a revenue mix with a higher proportion of professional services revenue that carries a lower margin, and to a $0.2 million increase in non-cash stock-based compensation in cost of revenue.
- The company attributes the rise in GAAP operating expenses mainly to personnel costs up $12.3 million, non-cash stock-based compensation up $4.1 million, non-cash depreciation and amortization up $4.6 million, third party professional services up $1.1 million and marketing up $1.1 million.
- The company attributes the increase in adjusted EBITDA loss mainly to higher operating expenses supporting accelerated product development and go-to-market initiatives.
- The company attributes the improvement in net loss mainly to a $121.9 million decrease in non-cash, non-operating charges from remeasurement of its warrant liability; all remaining publicly traded warrants were redeemed in November 2025.
- Quantum Circuits acquisition completed in January 2026; year-to-date bookings include $2.3 million of Quantum Circuits bookings closed immediately before completion.
Concerns
- Q3 2026 bookings were $1.9 million, a decrease of approximately $0.4 million, or 19%, year over year; the company notes quarterly bookings can vary significantly with the timing of larger transactions.
- GAAP gross margin fell to 52.9% from 71.4% and non-GAAP gross margin to 63.6% from 77.7% in the same quarter last year.
- GAAP operating expenses rose 84% year over year to $55.9 million, and non-GAAP adjusted operating expenses rose 72% to $40.5 million, against revenue of $4.5 million.
- Net cash used in operating activities was $(109,025) thousand for the nine months ended Sept 30, 2026, against $(53,610) thousand a year earlier.
- Cash and marketable investment securities totaled $503.4 million at Sept 30, 2026, reflecting the acquisition outflow and the year-to-date operating cash burn shown in the cash flow statement.
What to watch
- Conversion of the $38.3 million remaining performance obligations, of which the filing says approximately 59% is expected to be recognized within the following 12 months.
- Gross margin trajectory as the revenue mix shifts toward professional services, as the company describes it.
- Milestone-based installments under the up to $100.0 million U.S. CHIPS and Science Act funding agreement, which the filing says are subject to specified milestones and conditions.
- Operating expense trend, given the company's statement that expenses are supporting accelerated product development and go-to-market initiatives.
- Bookings in subsequent quarters after the 19% decline in Q3 2026, against the triple-digit year-to-date bookings growth cited by the CEO.
Balance sheet and cash flow
- As of Sept 30, 2026, consolidated cash and marketable investment securities totaled $503.4 million (as printed in the release).
- Cash and cash equivalents: $279,366 thousand at Sept 30, 2026 vs $635,347 thousand at Dec 31, 2025.
- Marketable investment securities: $223,990 thousand at Sept 30, 2026 vs $249,134 thousand at Dec 31, 2025.
- Total assets: $1,123,244 thousand at Sept 30, 2026 vs $915,813 thousand at Dec 31, 2025.
- Goodwill: $342,588 thousand at Sept 30, 2026 (printed as a dash at Dec 31, 2025). Intangible assets, net: $208,422 thousand vs $915 thousand.
- Total liabilities: $85,972 thousand at Sept 30, 2026 vs $63,583 thousand at Dec 31, 2025. Loans payable, net, non-current: $40,073 thousand vs $35,825 thousand.
- Total stockholders' equity: $1,037,272 thousand at Sept 30, 2026 vs $852,230 thousand at Dec 31, 2025.
- Nine months ended Sept 30, 2026 investing: acquisition of business, net of cash acquired, $(252,821) thousand; purchase of property and equipment $(12,957) thousand.
- Nine months ended Sept 30, 2026 financing: net cash used in financing activities $(5,199) thousand, compared with net cash provided of $712,044 thousand in the nine months ended Sept 30, 2025.
- Net decrease in cash and cash equivalents: $(355,981) thousand for the nine months ended Sept 30, 2026.
Analysis
D-Wave reported third quarter 2026 revenue of $4,513 thousand, up 21% from $3,739 thousand in the third quarter of 2025. The company attributes the increase to professional services revenue up $1.5 million and QCaaS revenue up $0.8 million, partly offset by a $1.5 million decline in system sales. Quarterly bookings were $1.9 million, down approximately $0.4 million or 19% year over year, and the company states that quarterly bookings can vary significantly with the timing of larger transactions. Nine-month bookings were $37.4 million, up 611%, and remaining performance obligations reached $38.3 million at September 30, 2026, against $2.9 million a year earlier, with approximately 59% expected to be recognized within 12 months.
Margins moved lower. GAAP gross margin was 52.9% against 71.4% a year earlier, and non-GAAP gross margin was 63.6% against 77.7%. The filing attributes the decline primarily to a higher share of lower-margin professional services revenue and, for GAAP, to a $0.2 million increase in non-cash stock-based compensation. Gross profit on a GAAP basis was $2,386 thousand, a decrease of $0.3 million or 11%.
Cost lines grew much faster than revenue. GAAP total operating expenses were $55,868 thousand, up $25.5 million or 84%, with research and development at $31,543 thousand against $14,075 thousand, and sales and marketing at $11,225 thousand against $6,947 thousand. Non-GAAP adjusted operating expenses were $40,531 thousand, up 72%. Loss from operations widened to $(53,482) thousand from $(27,736) thousand, and adjusted EBITDA loss widened to $(37,660) thousand from $(20,615) thousand.
The headline net loss improvement is large but is not an operating improvement. Net loss was $(48,197) thousand, or $(0.13) per share, against $(139,986) thousand, or $(0.41) per share, in the prior year quarter. The company attributes the decrease to a $121.9 million reduction in non-cash, non-operating warrant remeasurement charges. Without that item, the period shows higher operating losses and lower interest income, which fell to $4,864 thousand from $8,581 thousand.
On the balance sheet, the company reports cash and marketable investment securities of $503.4 million at September 30, 2026. Total assets rose to $1,123,244 thousand from $915,813 thousand at December 31, 2025, with goodwill of $342,588 thousand and intangible assets of $208,422 thousand following the Quantum Circuits acquisition. The filing contains no guidance for the coming periods, so this read rests only on reported results.
Management, verbatim
Our triple-digit increase in year-to-date bookings and robust pipeline reinforce our confidence in the opportunity ahead.
Dr. Alan Baratz, Chief Executive Officer
Not in the filing
stated, not guessed- No forward guidance for revenue, gross margin, operating expenses or tax rate is provided in the filing.
- No prior-year or prior-quarter revenue change is printed for the nine-month period, so the nine-month revenue yoy_change is null.
- Segment revenue values for professional services, QCaaS and system sales are not printed as figures; only changes are given.
- Prior-year bookings for the three-month period and the nine-month period are not printed, so those prior values are null.
- Year-over-year changes for cost of revenue, R&D, G&A, S&M, loss from operations and interest income are not printed.
- Quarter-over-quarter figures are not provided because the prior quarter (Q2 2026) is not in the filing.
- Free cash flow is not printed; only net cash used in operating activities is shown.
- Cash and cash equivalents at Sept 30, 2025 is not printed on the balance sheet, so no prior-year balance sheet comparison is made for September dates.
- The gross margin decline is printed as '18.5%' without stating whether this is percentage points; it is copied as printed.
- The release does not provide a stock price reaction, analyst expectations or consensus figures.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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
D‑Wave Quantum Inc. is the only dual‑platform quantum computing provider, listed on NASDAQ under QBTS.
Ticker impact
D‑Wave Quantum Inc. filed its 8‑K reporting Q3 2026 results, showing revenue up 21% YoY to $4.5 M and a $100 M CHIPS Act funding agreement.
upward pressure as the market prices in higher revenue growth and the $100 M funding milestone.
The company disclosed material top‑line growth and a sizable government grant, both fresh and material for a micro‑cap, prompting short‑term buying.
Market effects
Highlights growing commercial interest in quantum computing and may lift peer quantum‑tech stocks.
U.S. quantum‑tech sector could see modest inflows following the CHIPS Act funding announcement.
International partners (NTT DOCOMO, SkyWater, CGI) signal expanding global demand for quantum solutions.
Counterpoint
The company remains cash‑burn heavy; investors may be wary of scaling challenges despite the funding.
Key entities
- companyD‑Wave Quantum Inc.
Quantum computing hardware and services provider.
- government_agencyU.S. Department of Commerce
Provider of up to $100 M CHIPS Act funding.
