D-Wave Quantum (NYSE:QBTS) Shares Gap Down on Disappointing Earnings

D-Wave Quantum Inc. (NYSE:QBTS)’s share price gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $21.39, but opened at $18.44. D-Wave Quantum shares last traded at $19.9090, with a volume of 8,062,664 shares traded.

The company reported ($0.13) EPS for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.05). D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The firm had revenue of $3.08 million during the quarter, compared to analysts’ expectations of $4.03 million.

Key Headlines Impacting D-Wave Quantum

Here are the key news stories impacting D-Wave Quantum this week:

• Positive Sentiment: Bookings surged 1,120% year over year, and D-Wave reported a $40.7 million backlog, suggesting stronger customer demand and potential future revenue growth. Why D-Wave Quantum Stock Is Sliding After Earnings Reveal a 1,120% Surge in Bookings
• Positive Sentiment: A Nature-published study demonstrated a high-fidelity, two-qubit entangling gate—reported at approximately 99.9% fidelity—supporting D-Wave’s effort to develop practical, fault-tolerant gate-model quantum computing. The advance could strengthen its technology roadmap and commercial positioning. D-Wave Demonstrates Major Hardware Breakthrough
• Neutral Sentiment: Wedbush began coverage of D-Wave, potentially increasing institutional attention, although the available report did not provide a detailed rating or price target. Wedbush Begins Coverage on D-Wave Quantum
• Negative Sentiment: Second-quarter revenue was $3.08 million, below the $4.03 million analyst consensus, while adjusted earnings of negative $0.13 per share missed expectations of negative $0.08. The wider-than-expected loss overshadowed the backlog and bookings growth. D-Wave Stock Sinks as Wider Losses Overshadow Backlog
• Negative Sentiment: D-Wave remains deeply unprofitable, with a reported negative net margin of 2,957.23%, and investors may be concerned that commercialization is not yet translating into meaningful revenue or earnings. The broader quantum-computing group has also retreated from recent highs, adding to sector volatility.

Analyst Ratings Changes

Several equities analysts have commented on QBTS shares. Stifel Nicolaus set a $35.00 price objective on D-Wave Quantum in a research report on Tuesday, June 2nd. Mizuho increased their price target on shares of D-Wave Quantum from $29.00 to $35.00 and gave the stock an “outperform” rating in a research note on Monday, June 15th. Jefferies Financial Group reissued a “buy” rating on shares of D-Wave Quantum in a research report on Tuesday, May 12th. Benchmark began coverage on shares of D-Wave Quantum in a research note on Monday, July 27th. They set a “buy” rating and a $30.00 price objective on the stock. Finally, Roth Capital upped their price objective on shares of D-Wave Quantum from $30.00 to $40.00 and gave the stock a “buy” rating in a report on Tuesday, June 2nd. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $36.80.

Insider Transactions at D-Wave Quantum

In related news, VP Sophie C. Ames sold 23,025 shares of the stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $18.98, for a total transaction of $437,014.50. Following the sale, the vice president directly owned 596,803 shares of the company’s stock, valued at approximately $11,327,320.94. This represents a 3.71% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John D. Dilullo sold 7,850 shares of the stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $24.43, for a total transaction of $191,775.50. Following the sale, the director directly owned 21,310 shares in the company, valued at $520,603.30. This trade represents a 26.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,363,842 shares of company stock worth $35,789,148 over the last quarter. Corporate insiders own 1.30% of the company’s stock.

Institutional Investors Weigh In On D-Wave Quantum

Several institutional investors and hedge funds have recently made changes to their positions in QBTS. Handelsbanken Fonder AB raised its holdings in D-Wave Quantum by 23.6% in the 2nd quarter. Handelsbanken Fonder AB now owns 133,200 shares of the company’s stock worth $3,195,000 after acquiring an additional 25,400 shares during the last quarter. Bay Rivers Group increased its holdings in shares of D-Wave Quantum by 62.2% in the 2nd quarter. Bay Rivers Group now owns 17,357 shares of the company’s stock worth $416,000 after purchasing an additional 6,657 shares in the last quarter. Thurston Springer Miller Herd & Titak Inc. increased its holdings in shares of D-Wave Quantum by 428.6% in the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 1,850 shares of the company’s stock worth $44,000 after purchasing an additional 1,500 shares in the last quarter. Castle Rock Wealth Management LLC purchased a new position in shares of D-Wave Quantum in the second quarter worth $213,000. Finally, Evanson Financial LLC bought a new position in shares of D-Wave Quantum during the second quarter valued at $214,000. Institutional investors own 42.47% of the company’s stock.

D-Wave Quantum Price Performance

The company has a debt-to-equity ratio of 0.03, a current ratio of 21.41 and a quick ratio of 21.31. The company has a market capitalization of $7.50 billion, a PE ratio of -18.00 and a beta of 2.15. The firm has a 50-day moving average of $22.13 and a 200 day moving average of $20.65.

D-Wave Quantum Company Profile

D-Wave Quantum Inc (NYSE: QBTS) develops and provides quantum computing systems, software and services focused on quantum annealing technology. Headquartered in Burnaby, British Columbia, D-Wave designs specialized processors that leverage quantum mechanics to solve complex optimization and sampling problems. Since its founding in 1999 by physicists including Geordie Rose, the company has pursued the development of commercially viable quantum hardware and accompanying software tools.

The company’s product portfolio centers on its quantum annealers, which are complemented by hybrid solvers that integrate classical and quantum computing resources.