TLDR
- D-Wave Quantum generated 509% year-over-year revenue growth in Q1 2025, reaching $15 million
- IonQ reported flat Q1 revenue of $7.6 million but announced a $1 billion equity offering
- D-Wave’s growth came from selling its first Advantage quantum machine, departing from its usual service model
- IonQ is building a quantum computing network through acquisitions and expects 2025 revenue between $75-95 million
- Both companies trade at high valuations compared to larger tech competitors like Microsoft
Two quantum computing companies are taking different approaches to capture the emerging market. D-Wave Quantum and IonQ both offer investment opportunities in the quantum computing space, but their recent performance tells different stories.
D-Wave Quantum posted strong first-quarter results with revenue jumping 509% year-over-year to $15 million. This quarterly figure exceeded the company’s entire 2024 revenue of $8.8 million. The growth came from D-Wave’s first sale of its proprietary Advantage quantum machine.
Previously, D-Wave relied mainly on quantum computing as a service (QCaaS). Customers paid fees for remote access to the company’s quantum capabilities through cloud computing. The machine sale represents a shift in the company’s revenue model.
D-Wave’s operating loss improved to $11.3 million in Q1 from $17.5 million in the prior year. The company maintains a strong balance sheet with $325.6 million in total assets and $304.3 million in cash as of the first quarter.
The company has since raised additional funds through an equity offering. This boosted cash reserves to approximately $815 million. Management plans to use some proceeds for acquisitions.
IonQ took a different path in the first quarter. The company reported flat revenue of $7.6 million compared to 2024. Operating losses increased to $75.7 million from $52.9 million in the prior year period.
Despite the weaker quarterly results, IonQ ended 2024 with 95% year-over-year revenue growth to $43.1 million. The company projects 2025 sales between $75 million and $95 million.
Strategic Approaches
IonQ is building a quantum computing network through acquisitions. The company acquired Lightsynq Technologies to work on extending the range of quantum device networks. Current quantum networks have limited range, making this technology important for widespread adoption.
IonQ announced a $1 billion equity offering in July to fund its network-building strategy. The company had $850.1 million in total assets and $85 million in liabilities as of Q1.
D-Wave claims to be the only provider of both quantum gate technology and quantum annealing. Quantum annealing helps find optimal solutions among many possibilities.
Valuation Concerns
Both companies trade at high price-to-sales ratios compared to larger competitors. D-Wave’s stock gained over 90% in 2025, hitting a 52-week high of $19.77 in May. IonQ shares rose 9% through July 9.
Microsoft has developed its own quantum technology called topological qubits. This creates competition from well-funded tech giants with existing quantum research programs.
The high valuations suggest both stocks may be overpriced relative to their current revenue. D-Wave’s strong Q1 may not repeat since the Advantage system sale differs from typical service revenue.
IonQ’s Q1 results were disappointing but the company maintains guidance for strong 2025 growth. The quantum networking approach could prove valuable if the technology develops as planned.
Both companies face uncertainty about which quantum computing approach will dominate long-term. The industry remains in early stages with technical challenges around error rates and scalability.
IonQ expects to provide Q2 2025 results that could show whether the company can achieve its projected growth targets for the year.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
