D-Wave Quantum Inc. (QBTS) reported a disappointing second quarter, missing analyst expectations on both revenue and earnings per share.
The company posted earnings per share of ($0.13) for the second quarter, falling short of the analyst consensus estimate of ($0.09) by $0.04.
Revenue for the quarter came in at $3.07 million, well below the consensus estimate of $4.03 million, leaving investors broadly underwhelmed with the results.
Shares dropped 10.5% in pre-market trading on Thursday following the release of the quarterly figures.
Second quarter revenue remained flat compared to the same period last year, underscoring the challenges the quantum computing systems provider still faces in scaling its commercial business.
The company reported a net loss of $48.0 million, or $0.13 per share, compared to a net loss of $167.3 million, or $0.55 per share, in the second quarter of 2025.
The significantly narrower loss was largely the result of a $142.0 million decrease in non-cash, non-operating charges related to warrant liability remeasurement, rather than underlying operational improvement.
Gross margin declined to 55.4% from 63.8% in the prior year period, with the company attributing the drop to higher personnel costs and the absence of a high-margin annealing quantum computer system sale that occurred in Q2 2025.
Operating expenses climbed to $55.0 million from $28.5 million in the year-ago quarter, driven by product development investments, go-to-market initiatives, and costs tied to the Quantum Circuits acquisition.
Bookings for the second quarter totaled $2.1 million, up 59% from $1.3 million in the same quarter last year, offering a modest bright spot in an otherwise weak report.
First-half 2026 bookings reached $35.5 million, a 1,120% increase from $2.9 million in the first half of 2025, including a $20 million system sale with revenue to be recognized in future quarters.
The company reported remaining performance obligations of $40.7 million as of June 30, 2026, with D-Wave expecting 57% of that amount to convert into recognized revenue within the next 12 months.
D-Wave outlined an ambitious long-term technology roadmap, including plans to launch a 20,000 qubit annealing system in 2029 and reach 100,000 qubits by 2031.
The company also aims to deliver a 17-qubit gate-model system in 2026 and scale that to a 49-qubit system by 2027, signaling a broader push into gate-model quantum computing.
As of June 30, 2026, D-Wave held $546.2 million in cash and marketable investment securities, down 33% from $819.3 million a year earlier, with over 90% of the decline attributed to cash used in the Quantum Circuits acquisition completed in January 2026.
