D-Wave Q3 Results Show Revenue Beat, Wider Loss

D-Wave Quantum reported third-quarter 2026 revenue of $4.5 million, a 21% increase year over year, in a Nov. 10, 2026 release. Despite the revenue growth, the company faced a wider GAAP loss and rising costs, pressuring near-term profitability and shifting focus to bookings and contract timing for fourth-quarter revenue.

Quarter Results and Profitability

GAAP gross profit declined 11% year over year to $2.4 million, with gross margin falling to 52.9% from 71.4%. Professional-services revenue rose by $1.5 million, and quantum-computing-as-a-service revenue increased by $0.8 million, while system-sales revenue dropped $1.5 million.

Operating expenses surged 84% to $55.9 million, driven by $12.3 million higher personnel costs, $4.1 million more in stock-based compensation, $4.6 million in depreciation and amortization, and $1.1 million each in third-party professional services and marketing expenses. Adjusted EBITDA loss widened 83% to $37.7 million, mainly due to accelerated spending on product development and go-to-market initiatives.

GAAP net loss was $48.2 million, or $0.13 per share. The year-over-year reduction in reported net loss primarily reflected a $121.9 million decline in noncash warrant-liability remeasurement charges.

Bookings and Revenue Timing

Quarterly bookings fell 19% year over year to $1.9 million, with the company noting that quarterly bookings can vary significantly based on the timing of larger transactions. However, nine-month bookings surged 611% to $37.4 million, boosted by a $20 million system sale to Florida Atlantic University. Management expects to deliver that system and recognize a substantial portion of the related revenue in the fourth quarter.

Remaining performance obligations, or contracted revenue not yet recognized, totaled $38.3 million at September 30, 2026, compared with $2.9 million a year earlier. Approximately 59% of that amount is expected to convert to revenue within 12 months and 71% within 24 months.

Cash and marketable securities stood at $503.4 million at quarter-end, down about 40% year over year, primarily reflecting cash used in the Quantum Circuits transaction. The company has a definitive agreement for up to $100 million in U.S. CHIPS Act funding, structured as milestone-based payments, with no disbursements received as of September 30.

With revenue growth offset by sharply higher costs and a wider adjusted loss, investor attention will focus on fourth-quarter revenue recognition for the large system sale, the pace of converting contracted obligations to revenue, and the timing of milestone-based CHIPS funding as key factors for revenue and cash-flow improvement.