D-Wave Quantum (QBTS) Showcases Revenue Growth, Record Cash, and Advantage2 Boost

Business Insider

2 days ago

D-Wave Quantum (QBTS) is one of the more promising quantum computing stocks on Wall Street. Over the past year, it has made major technology gains, built a stronger cash position, and seen its share price climb over 1800%. Last Thursday, the company reported its second-quarter results for 2025 with a mix of strong growth and ongoing challenges. The stock closed at $16.90 on August 8, down 1.57% for the day, and ticked slightly higher after hours. Year-to-date, the stock has gained 101%, helped by steady progress in its technology and customer reach.
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Quarter's Highlights & Lowlights
In the quarter, revenue rose 42% from last year to $3.1 million. Bookings climbed 92% to $1.3 million. The company credited this growth to the launch of its Advantage2 quantum computer. This system delivered a real-world result in materials simulation and improved on earlier models with double coherence time, a 40% increase in energy scale, and higher qubit connectivity.
D-Wave also reported a rise in its customer base. New and renewed agreements came from E.ON (FRA:EOAN), GE Vernova (GEV), Nikon Corporation, and the University of Oxford. The company also formed a strategic link with Yonsei University and Incheon Metropolitan City in South Korea. Customer retention stayed above 90%, with users spanning both corporate and government sectors.
At the same time, the company's net loss widened to $167.3 million from $17.8 million a year ago. This was mainly due to $142 million in noncash charges from warrant liability remeasurement. While second-quarter bookings grew strongly, bookings for the first half of the year fell 13% compared with the same period in 2024, as large enterprise deals took longer to close.
One clear strength is D-Wave's balance sheet. The company's cash position reached $819.3 million, supported by $500 million in equity raised during the quarter. Management said this will be used for research and development and possible acquisitions.
Top Analyst Raises His Price Target on QBTS
On the Street, analysts remain optimistic. In the past three months, 11 analysts rated the stock a Buy, with no Holds or Sells. The average price target is $22.18, about 31% above the last close. The highest target is $30, and the lowest is $20. Piper Sandler's top analyst, Harsh Kumar, raised his target from $13 to $22 after the earnings release, pointing to traction from Advantage2 and new business areas. Rosenblatt Securities' Kevin Garrigan has the highest target at $30, expecting a gain of over 77%.
TipRanks' AI Analyst rates the stock at 63 out of 100, which is Neutral. The model cites the company's leadership in applied quantum computing, its partnerships, and strong cash position as positives. It also flags the steep losses, slower booking pace in the first half, and valuation as negatives.
What's Next?
D-Wave plans to expand Advantage2 adoption through its Leap cloud service. It is also working on a gate-model quantum system aimed at problems in chemistry and fluid dynamics, areas that current annealing systems cannot solve. The company's roadmap includes more enterprise and government engagements and potential international expansion.
The next few quarters will show whether growing interest in quantum technology can translate into faster revenue growth and improved financial results.
Is QBTS a Good Stock to Buy?
The sentiment on the Street is on the bullish side, with D-Wave boasting a Strong Buy consensus rating. The average price target for QBTS stock is $22.18, implying a 31.24% upside for the current price.