TLDR:
- D-Wave reported Q1 revenue of $15 million (509% increase) with a smaller-than-expected loss of 2 cents per share
- The company sold an Advantage quantum machine to Germany’s Jülich Supercomputing Centre
- D-Wave’s stock jumped 20-21% following the earnings report
- CEO Alan Baratz called it “arguably the most significant quarter in D-Wave’s history”
- D-Wave’s peer IonQ also reported encouraging results with shares up 7.2%
D-Wave Quantum reported record-breaking first-quarter results on Thursday, sending its stock soaring in early trading. The quantum computing company posted revenue of $15 million for the March quarter, representing a massive 509% increase compared to the same period last year.
The company reported a loss of 2 cents per share on an adjusted basis, which was better than expected. Wall Street analysts had forecast a 4-cent loss on revenue of $10.5 million.
Investors reacted positively to the news, pushing D-Wave’s stock up approximately 20-21% to around $8.30 in early trading. Prior to the earnings announcement, the stock had been down nearly 20% year-to-date in 2025.
The revenue surge was largely driven by the $12.2 million sale of an Advantage quantum computing system to the Jülich Supercomputing Centre in Germany. This key deal, announced in February, helped offset the 64% decline in Q1 bookings, which fell to $1.6 million.
Financial Outlook
D-Wave’s management reported that the company’s consolidated cash balance stood at $304.3 million as of March 31. They stated this amount was “sufficient to fund the company to profitability.”
While operating expenses climbed 31% to $25.2 million during the quarter, D-Wave’s overall loss narrowed significantly to $5.4 million from $17.3 million a year earlier.
The strong financial performance prompted CEO Alan Baratz to describe the quarter as “arguably the most significant in D-Wave’s history.”
Scientific Achievements
Beyond the financial results, D-Wave highlighted its controversial peer-reviewed paper published in the journal Science in March. The company claimed its Advantage2 system solved a problem in just 20 minutes that would have taken one of the world’s most powerful supercomputers nearly 1 million years to complete.
These claims sparked debate in the scientific community. Scientists from the Center for Computational Quantum Physics contested the findings, while other researchers supported D-Wave’s central argument that their system achieved performance beyond classical computing capabilities.
The quantum computing sector as a whole showed positive momentum. IonQ, one of D-Wave’s pure-play competitors, reported a narrower quarterly loss and better-than-expected first-quarter revenue on Wednesday. IonQ’s shares rose 7.2% following their announcement.
Quantum computing technology operates on a subatomic level, often utilizing exotic approaches like supercold superconductor chips. The ultimate goal is to solve problems too complex for today’s classical computers.
The sector has experienced volatility in 2025, partly due to controversy involving Nvidia over the timeline for commercially viable quantum technology.
Despite the challenges, D-Wave’s strong performance suggests growing commercial viability for quantum computing solutions.
The company’s ability to secure a major sale with the Jülich Supercomputing Centre demonstrates increasing institutional confidence in D-Wave’s technology.
As quantum computing continues to mature, companies like D-Wave and IonQ are positioning themselves as leaders in what could become a transformative technological field.
D-Wave’s stock performance on Thursday represents a bright spot for investors who have weathered volatility in the quantum computing sector throughout early 2025.
The company’s record revenue of $15 million for Q1 2025 marks a potential turning point as D-Wave works toward profitability.
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