D Wave Quantum : Wave Q1 2025 Earnings Press Release
QBTS
Published on 05/08/2025 at 07:25
Record Quarterly Revenue of $15 Million - Up Over 500% Year over Year
Record Quarterly GAAP Gross Profit of $13.9 Million
Record Quarter End Cash Position of $304.3 Million
PALO ALTO, Calif.--(BUSINESS WIRE)-- D-Wave Quantum Inc., (NYSE: QBTS) ("D-Wave" or the "Company") a leader in commercial quantum computing systems, software, and services, today announced financial results for its first quarter ended March 31, 2025.
"The first quarter of 2025 was arguably the most significant in D-Wave's history, especially in terms of our unique ability to deliver quantum value today to our customers and the scientific community," said Dr. Alan Baratz, CEO of D-Wave. "We recognized revenue on our first Advantage™ system sale to a major research institution, moved an additional customer application into commercial production, and became the first to demonstrate quantum supremacy over classical computing on a useful real-world problem. The end result was a record revenue and gross profit quarter."
Recent Business and Technical Highlights
First Quarter Fiscal 2025 Financial Highlights
__________________
1"Bookings" is an operating metric that is defined as customer orders received that are expected to generate net revenues in the future. We present the operational metric of Bookings because it reflects customers' demand for our products and services and to assist readers in analyzing our potential performance in future periods.
2"Non-GAAP Gross Profit", "Non-GAAP Gross Margin", "Non-GAAP Adjusted Operating Expenses", and "Adjusted EBITDA Loss", are non-GAAP financial measures or metrics. Please see the discussion in the section "Non-GAAP Financial Measures" and the reconciliations included at the end of this press release.
Balance Sheet and Liquidity
As of March 31, 2025, D-Wave's consolidated cash balance totaled a record $304.3 million. During the first fiscal quarter of 2025, the Company raised $146.2 million in net proceeds through its third At-The-Market (ATM) program.
As of March 31, 2025, the Company had $37.8 million in available issuance capacity under the Equity Line of Credit (the "ELOC") with Lincoln Park Capital Fund, LLC, with the investment commitment running through October 2025. D-Wave's ability to raise additional funds under the ELOC is subject to a number of conditions including having a sufficient number of registered shares and D-Wave's stock price being above $1.00 per share.
Earnings Conference Call
In conjunction with this announcement, D-Wave will host a conference call on Thursday, May 8, 2025, at 8:00 a.m. (Eastern Time), to discuss the Company's financial results and business outlook. The live dial-in number is 1-877-407-0784 (domestic) or 1-201-689-8560 (international). Participants can use those dial-in numbers or can click this link for instant telephone access to the event. The link will be made active 15 minutes prior to the call's scheduled start time. Participating in the call will be Chief Executive Officer Dr. Alan Baratz and Chief Financial Officer John Markovich.
About D-Wave Quantum Inc.
D-Wave is a leader in the development and delivery of quantum computing systems, software, and services. We are the world's first commercial supplier of quantum computers, and the only company building both annealing and gate-model quantum computers. Our mission is to help customers realize the value of quantum, today. Our 5,000+ qubit Advantage quantum computers, the world's largest, are available on-premises or via the cloud, supported by 99.9% availability and uptime. More than 100 organizations trust D-Wave with their toughest computational challenges. With over 200 million problems submitted to our Advantage systems and Advantage2 prototypes to date, our customers apply our technology to address use cases spanning optimization, artificial intelligence, research and more. Learn more about realizing the value of quantum computing today and how we're shaping the quantum-driven industrial and societal advancements of tomorrow: www.dwavequantum.com.
Non-GAAP Financial Measures
To supplement the financial information presented in accordance with GAAP, we use non-GAAP measures of certain components of financial performance. Each of Non-GAAP Gross Profit, Non-GAAP Gross Margin, Adjusted EBITDA Loss and Non-GAAP Adjusted Operating Expenses is a financial measure that is not required by or presented in accordance with GAAP. Management believes that each measure provides investors an additional meaningful method to evaluate certain aspects of such results period over period. The Company defines each of its non-GAAP financial measures as follows:
The presentation of non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the financial results prepared in accordance with GAAP, and our presentation of non-GAAP measures may be different from non-GAAP measures used by other companies. For a reconciliation of Non-GAAP Gross Profit, Non-GAAP Gross Margin, Adjusted EBITDA Loss and Non-GAAP Adjusted Operating Expenses to its most directly comparable GAAP measure, please refer to the reconciliations below.
Forward Looking Statements
Certain statements in this press release are forward-looking, as defined in the Private Securities Litigation Reform Act of 1995. These statements involve risks, uncertainties, and other factors that may cause actual results to differ materially from the information expressed or implied by these forward-looking statements and may not be indicative of future results. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, various factors beyond management's control, including the risks set forth under the heading "Risk Factors" discussed under the caption "Item 1A. Risk Factors" in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption "Item 1A. Risk Factors" in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC. Undue reliance should not be placed on the forward-looking statements in this press release in making an investment decision, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.
D-Wave Quantum Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
March 31,
December 31,
(In thousands, except share and per share data)
2025
2024
Assets
Current assets:
Cash and cash equivalents
$
304,321
$
177,980
Trade accounts receivable, net of allowance for doubtful accounts of $94 and $176
1,047
1,420
Inventories
1,702
1,686
Prepaid expenses and other current assets
3,795
3,954
Total current assets
310,865
185,040
Property and equipment, net
3,999
4,133
Operating lease right-of-use assets
7,084
7,261
Intangible assets, net
531
490
Other non-current assets, net
3,121
2,929
Total assets
$
325,600
$
199,853
Liabilities and stockholders' equity
Current liabilities:
Trade accounts payable
$
1,021
$
815
Accrued expenses and other current liabilities
6,556
8,784
Current portion of operating lease liabilities
1,525
1,512
Loans payable, net, current
348
348
Deferred revenue, current
5,549
18,686
Total current liabilities
14,999
30,145
Warrant liabilities
65,932
69,875
Operating lease liabilities, net of current portion
6,213
6,389
Loans payable, net, non-current
30,367
30,128
Deferred revenue, non-current
700
670
Total liabilities
$
118,211
$
137,207
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.0001 per share; 675,000,000 shares authorized at both March 31, 2025 and December 31, 2024; 291,351,403 shares and 266,595,867 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively.
29
27
Additional paid-in capital
849,733
700,069
Accumulated deficit
(632,361
)
(626,940
)
Accumulated other comprehensive loss
(10,012
)
(10,510
)
Total stockholders' equity
207,389
62,646
Total liabilities and stockholders' equity
$
325,600
$
199,853
D-Wave Quantum Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
Three Months Ended March 31,
(In thousands, except share and per share data)
2025
2024
Revenue
$
15,001
$
2,465
Cost of revenue
1,124
806
Total gross profit
13,877
1,659
Operating expenses:
Research and development
10,288
8,525
General and administrative
7,957
7,566
Sales and marketing
6,923
3,084
Total operating expenses
25,168
19,175
Loss from operations
(11,291
)
(17,516
)
Other income (expense), net:
Interest expense
(226
)
(1,140
)
Change in fair value of Term Loan
-
1,199
Gain on investment in marketable securities
-
1,660
Change in fair value of warrant liabilities
3,943
(2,652
)
Other income (expense), net
2,153
1,137
Total other income (expense), net
5,870
204
Net loss
$
(5,421
)
$
(17,312
)
Net loss per share, basic and diluted
$
(0.02
)
$
(0.11
)
Weighted-average shares used in computing net loss per share, basic and diluted
286,420,374
161,308,490
Comprehensive loss:
Net loss
$
(5,421
)
$
(17,312
)
Foreign currency translation adjustment
498
47
Net comprehensive loss
$
(4,923
)
$
(17,265
)
D-Wave Quantum Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended March 31,
(in thousands)
2025
2024
Cash flows from operating activities:
Net loss
$
(5,421
)
$
(17,312
)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization
376
229
Stock-based compensation
3,993
3,509
Amortization of operating right-of-use assets
177
199
Non-cash interest expense
188
1,093
Change in fair value of Warrant liabilities
(3,943
)
2,652
Change in fair value of Term Loan
-
(1,199
)
Gain on marketable securities
-
(1,660
)
Unrealized foreign exchange loss (gain)
95
(994
)
Other noncash items
267
-
Change in operating assets and liabilities:
Trade accounts receivable
360
(42
)
Inventories
(16
)
(19
)
Prepaid expenses and other current assets
172
(559
)
Trade accounts payable
229
(538
)
Accrued expenses and other current liabilities
(2,285
)
2,597
Deferred revenue
(13,107
)
(350
)
Operating lease liability
(173
)
343
Other non-current assets, net
(191
)
(68
)
Net cash used in operating activities
(19,279
)
(12,119
)
Cash flows from investing activities:
Purchase of property and equipment
(438
)
(305
)
Purchase of convertible note
-
(1,000
)
Sales of marketable equity securities
-
254
Expenditures for internal-use software
(60
)
(67
)
Net cash used in investing activities
(498
)
(1,205
)
Cash flows from financing activities:
Proceeds from the issuance of common stock in at-the-market offerings, net of issuance costs of $140
146,108
-
Proceeds from the issuance of common stock upon exercise of stock options
23
8
Proceeds from the issuance of common stock upon exercise of warrants
6
-
Payment of tax withheld pursuant to stock-based compensation settlements
(517
)
(734
)
Net cash provided by (used in) financing activities
145,620
(726
)
Effect of exchange rate changes on cash and cash equivalents
498
47
Net increase (decrease) in cash and cash equivalents
126,341
(14,003
)
Cash and cash equivalents at beginning of period
177,980
41,307
Cash and cash equivalents at end of period
$
304,321
$
27,304
D-Wave Quantum Inc.
Reconciliation of Gross Profit to Non-GAAP Gross Profit
Three Months Ended March 31,
(in thousands of U.S. dollars)
2025
2024
Gross Profit
$
13,877
$
1,659
Gross Margin
92.5
%
67.3
%
Excluding:
Depreciation and Amortization (1)
28
54
Stock-based compensation (2)
142
175
Non-GAAP Gross Profit
$
14,047
$
1,888
Non-GAAP Gross Margin
93.6
%
76.6
%
(1)
Depreciation and Amortization reflects the Depreciation and Amortization recorded in Cost of Revenue only, which differs from the total Depreciation and Amortization set forth in the Condensed Consolidated Statement of Cash Flows that also includes Depreciation and Amortization recorded in Operating Expenses.
(2)
Stock-based compensation reflects the stock-based compensation recorded in Cost of Revenue only, which differs from the total stock-based compensation set forth in the Condensed Consolidated Statement of Cash flows that also includes stock-based compensation recorded in Operating Expenses.
D-Wave Quantum Inc.
Reconciliation of Operating Expenses to Non-GAAP Operating Expenses
Three Months Ended March 31,
(in thousands of U.S. dollars)
2025
2024
Operating expenses
$
25,168
$
19,175
Excluding:
Depreciation and Amortization (1)
(349
)
(175
)
Stock-based compensation (2)
(3,851
)
(3,334
)
Other non-operating or non-recurring expenses (3)
(810
)
(882
)
Non-GAAP Adjusted Operating Expenses
$
20,158
$
14,784
(1)
Depreciation and Amortization reflects the Depreciation and Amortization recorded in the Operating Expenses only, which differs from the total Depreciation and Amortization set forth in the Condensed Consolidated Statement of Cash Flows that also includes Depreciation and Amortization recorded in Cost of Revenue.
(2)
Stock-based compensation reflects the stock-based compensation recorded in Operating Expenses only, which differs from the total stock-based compensation set forth in the Condensed Consolidated Statement of Cash flows that also includes stock-based compensation recorded in Cost of Revenue.
(3)
Includes legal, consulting, and accounting fees arising from capital markets activities that are unrelated to the Company's core business operations, as well as non-recurring professional fees and credit loss expenses.
D-Wave Quantum Inc.
Reconciliation of Net Loss to Adjusted EBITDA Loss
Three Months Ended March 31,
(in thousands of U.S. dollars)
2025
2024
Net loss
$
(5,421
)
$
(17,312
)
Excluding:
Depreciation and Amortization
376
229
Stock-based compensation
3,993
3,509
Interest expense (1)
226
1,140
Change in fair value of warrant liabilities
(3,943
)
2,652
Change in fair value of Term Loan
-
(1,199
)
Gain on investment in marketable securities
-
(1,660
)
Other (income) expense, net (2)
(2,153
)
(1,137
)
Other non-operating or non-recurring expenses (3)
810
882
Adjusted EBITDA Loss
$
(6,112
)
$
(12,896
)
(1)
Interest expense primarily reflects the paid-in-kind interest associated with the term loan agreement with PSPIB Unitas Investments II Inc. entered into on April 13, 2023 and fully repaid on October 22, 2024, and interest and adjustments to accrued interest on the SIF Loan.
(2)
Other income (expense), net consists primarily of foreign exchange gains and losses and interest income earned from cash and cash equivalents.
(3)
Includes legal, consulting, and accounting fees arising from capital markets activities that are unrelated to the Company's core business operations, as well as non-recurring professional fees and credit loss expenses.
Investor Contact: Kevin Hunt [email protected]
Media Contact: Alex Daigle [email protected]
Disclaimer
D-Wave Quantum Inc. published this content on May 08, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2025 at 11:24 UTC.