D-Wave Quantum Inc. (NASDAQ:QBTS) stock fell in premarket trading Tuesday after the company reported mixed third-quarter 2026 results.
The quantum computing company reported a quarterly loss of 13 cents per share, missing the analyst estimate of a 10-cent loss. However, the loss narrowed 68.29% from 41 cents per share a year earlier.
Revenue rose 20.7% year over year to $4.513 million, beating the analyst estimate of $4.333 million by 4.15%.
D-Wave Revenue Grows As Bookings Surge
Professional services revenue increased by $1.5 million, while quantum computing-as-a-service revenue grew by $800,000. However, system sales revenue declined by $1.5 million.
Quarterly bookings fell 19% to $1.9 million. Still, bookings for the first nine months of 2026 surged 611% to $37.4 million.
Remaining performance obligations jumped 1,221% to $38.3 million from $2.9 million a year earlier.
D-Wave expects to recognize about 59% of that amount as revenue within 12 months.
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Profit Margins Shrink As Spending Rises
GAAP gross margin narrowed to 52.9% from 71.4% a year earlier. The decline reflected a greater contribution from lower-margin professional services.
Operating expenses jumped 84% to $55.9 million, driven by higher personnel costs, stock-based compensation and depreciation.
D-Wave reported a net loss of $48.2 million, compared with $140 million a year earlier.
The improvement largely reflected a $121.9 million reduction in noncash charges tied to warrant liabilities.
However, its adjusted EBITDA loss widened to $37.7 million from $20.6 million.
D-Wave Secures Access to $100 Million in Federal Funding
During the quarter, D-Wave signed an agreement with the U.S. Department of Commerce for access to up to $100 million under the CHIPS and Science Act.
The funding remains subject to specified milestones and conditions. It will support next-generation quantum computers, including a planned 100,000-qubit annealing system.
The company also delivered Italy’s first annealing quantum computer and expanded partnerships with SkyWater and CGI.
Japan’s NTT DOCOMO also deployed a second production application using D-Wave’s hybrid quantum technology.
CEO Alan Baratz said, “Our triple-digit increase in year-to-date bookings and robust pipeline reinforce our confidence in the opportunity ahead.”
Cash Position
D-Wave ended September with $503.4 million in cash and marketable investment securities.
Cash and cash equivalents fell to $279.4 million from $635.3 million at the end of December.
Net cash used in operating activities reached $109 million during the first nine months of 2026, compared with $53.6 million a year earlier.
QBTS Price Action: D-Wave Quantum shares were down 5.41% at $10.85 during premarket trading on Tuesday, according to Benzinga Pro data.
Photo by T. Schneider via Shutterstock