TLDR
- D-Wave Quantum (QBTS) stock dropped 13% last week as investors took profits following earlier gains from the Advantage2 quantum computer launch
- The company’s stock has surged 1,154% over the past 12 months, reaching a market cap of $5 billion
- First-quarter revenue jumped 500% year-over-year to $15 million, driven by the sale of its first Advantage quantum annealing system
- Operating losses decreased from $17.5 million to $11.3 million, showing improvement toward profitability
- D-Wave’s Advantage2 system recently solved a problem faster than the world’s fastest supercomputer, sparking investor interest
D-Wave Quantum stock fell 13% last week as investors cashed in on recent gains. The drop came after the company’s massive rally following the launch of its new Advantage2 quantum computer.
The Vancouver-based company has delivered extraordinary returns over the past year. Shares have climbed 1,154% in 12 months, pushing the market cap to $5 billion.
Last week’s decline reflected typical profit-taking behavior rather than fundamental problems. Investors sold positions after the stock’s recent surge tied to the Advantage2 launch.
The new quantum computer can tackle complex problems beyond classical computers’ capabilities. It addresses real-world applications in optimization, materials simulation, and artificial intelligence.
Customers can access the Advantage2 through D-Wave’s Leap quantum cloud service. The platform operates in over 40 countries with 99.9% uptime and sub-second response times.
The system meets enterprise security requirements with SOC 2 Type 2 compliance. This positions D-Wave to serve large corporate clients seeking quantum computing solutions.
Financial Performance Shows Strong Growth
D-Wave posted impressive first-quarter results that justify investor excitement. Revenue jumped 500% year-over-year to a record $15 million.
Today we announced Q1 FY25 #earnings. Record revenue of $15.0 million for the quarter. Record quarterly GAAP gross profit of $13.9 million. Record quarter end cash position of $304.3 million. One of the most significant quarters in our company’s history. $QBTS…
— Alan Baratz (@Alan_Baratz) May 8, 2025
The revenue surge came from selling its first Advantage quantum annealing system. A major research institution, likely Germany’s Forschungszentrum Jülich, made the purchase.
Operating losses also improved from $17.5 million to $11.3 million. This trend suggests the company could reach profitability if growth continues.
D-Wave maintains a strong balance sheet with $304.3 million in cash and equivalents. This war chest provides runway to sustain operations while scaling the business.
The company’s gross margin of 83.23% demonstrates healthy unit economics. High margins indicate D-Wave can generate substantial profits as revenue grows.
Quantum Computing Breakthrough Drives Interest
D-Wave achieved a scientific milestone that boosted investor confidence. The Advantage2 system solved a problem faster than the Department of Energy’s Frontier supercomputer.
Frontier holds the title of world’s fastest classical supercomputer. D-Wave’s victory represents a concrete demonstration of quantum computing’s potential.
The company uses quantum annealing technology to find optimal solutions. This approach differs from the generalized quantum computing pursued by Google and IBM.
While some debate whether D-Wave represents “true” quantum computing, the results speak for themselves. The technology delivers measurable performance advantages for specific applications.
D-Wave has operated since 1999 and went public in 2022. Notable backers include Amazon founder Jeff Bezos and the CIA’s venture capital arm In-Q-Tel.
The company claims to sell the only commercially available quantum computers. These refrigerator-sized systems use quantum phenomena like superposition and tunneling.
McKinsey analysts estimate quantum computing could create $45 billion to $131 billion in value by 2040. D-Wave positions itself to capture a share of this emerging market.
Current stock price sits at $16.39 after the recent pullback. The 52-week range spans from $0.75 to $19.77, showing the stock’s volatile nature.
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