D-Wave Quantum Inc. (QBTS) reported a second-quarter 2026 adjusted loss of 10 cents per share, wider than the Zacks Consensus Estimate of a loss of 8 cents.
On a GAAP basis, the loss per share narrowed significantly to 13 cents, compared with 55 cents in the same quarter a year ago.
Total revenues came in at $3.08 million, slipping 0.6% year over year and missing the consensus estimate by 19.5%.
Following the earnings release, QBTS shares dropped 5.2%, reflecting investor disappointment over the missed targets.
QCaaS subscription revenues climbed approximately 50% year over year to $1.86 million, while professional services revenues rose more than 18% to $0.93 million.
Commercial customers accounted for 62.4% of quarterly revenues, up sharply from 45.1% in the prior-year quarter, signaling growing adoption among enterprise clients.
Forbes Global 2000 customers contributed 47.7% of revenues, a dramatic increase from just 20.4% in the year-ago quarter, reflecting stronger engagement with major global enterprises.
First-half bookings surged to $35.5 million, a 1,120% increase from $2.9 million a year ago, bolstered by a $20 million annealing quantum computer system sale to Florida Atlantic University.
Remaining performance obligations reached $40.7 million as of June 30, 2026, up 668% year over year, with about 57% expected to convert to revenues within 12 months.
Management also noted that the dollar value of its sales opportunity pipeline grew more than 120% from year-end 2025 through June 30, 2026.
Non-GAAP gross margin contracted to 64.9%, down 690 basis points year over year, with higher personnel costs and increased product development investments driving the decline.
Non-GAAP adjusted operating expenses surged 76% year over year to $39.1 million as D-Wave accelerated spending on product development and go-to-market initiatives.
Adjusted EBITDA loss widened to $37.1 million from $20.0 million in the year-ago quarter, underscoring the heavy investment phase the company is navigating.
D-Wave ended June with $546.2 million in cash and marketable investment securities, down 33% year over year, with more than 90% of the decline tied to approximately $250 million in cash consideration for the January 2026 Quantum Circuits acquisition.
Net cash used in operating activities totaled $73.46 million for the first half, while investing activities consumed $260.58 million during the same period.
Among the quarter’s key highlights, D-Wave received a grant from the U.S. National Science Foundation through its National Quantum Virtual Laboratory program, alongside several new and renewed customer engagements.
Despite the mixed results, D-Wave currently carries a Zacks Rank #2 (Buy), suggesting analysts still see longer-term value in the quantum computing company.
Other top-ranked stocks in the broader technology sector include AppFolio (APPF), Amkor Technology (AMKR), and Amphenol (APH), each carrying a Zacks Rank #1 (Strong Buy).
The Zacks Consensus Estimate for AMKR’s 2026 earnings stands at $2.62 per share, reflecting a projected year-over-year rise of 74.7%, while APH’s consensus estimate of $5.25 per share implies a 57.2% increase.
APPF’s 2026 earnings consensus sits at $6.90 per share, indicating a 30.4% year-over-year increase, even as AppFolio shares have declined 14.2% year to date.
