D-Wave Quantum Inc. (NYSE: QBTS) inventory tumbled 10.3% by 10:45 a.m. ET Friday, at some point after the self-proclaimed “world’s first business provider of quantum computer systems” reported fiscal 2025 earnings.
In that report, D-Wave boasted that it grew annual income 179% 12 months over 12 months, gross revenue 265% 12 months over 12 months, and “ended 2025 with highest liquidity place in firm’s historical past at over $884 million.”
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Sound spectacular?
At the least two distinguished Wall Avenue analysts have been not impressed. Evercore ISI and Mizuho each discount targets on D-Wave Quantum inventory after the report, in all probability sparking at this time’s sell-off.
Whereas D-Wave’s share beneficial properties have been huge, the precise numbers D-Wave reported have been objectively small for a quantum inventory valued at almost $6.7 billion.
In all of 2025, D-Wave generated solely $24.6 million in gross sales, giving the inventory a price-to-sales ratio of greater than 260x. Bookings for the 12 months, which foreshadow future income, fell 22% 12 months over 12 months to only $18.7 million. On the underside line, D-Wave reported a $1.11 per share loss — up 48% 12 months over 12 months.
Rounding out the dangerous information, D-Wave suffered $75.8 million in destructive free money move, burning 69% extra cash in 2025 than it did in 2024.
The excellent news is that D-Wave ended 2025 with $635.3 million in money and equivalents, with an additional $249.1 million in marketable securities — greater than $884 million whole, and sufficient to allow D-Wave to maintain burning money for the subsequent dozen years if it must.
The higher information is that it might not must. Eventually report, most analysts polled by S&P World Market Intelligence nonetheless consider D-Wave Quantum might start producing optimistic free money move by 2028.
We will see.
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