AI-generated · cited to primary sources · not investment advice
D-Wave Quantum Inc. Common Shares (QBTS) Sep 2025 Filing Analysis
Does management do what it says?
The company successfully completed the redemption of all remaining Public Warrants on the specified date. (1 met across 1 tracked commitment)
“the Company caused a Notice of Redemption to be delivered to the holders of the Warrants, providing that (i) the Company will redeem, at 5:00 p.m. New York City Time on November 19, 2025 (the "Redemption Time"), all of the outstanding Warrants, for a redemption price of $0.01 per Warrant”
Cost of revenue increased in absolute dollars for the nine-month period, but decreased significantly as a percentage of total revenue due to high-margin system sales. (1 met, 1 missed across 2 tracked commitments)
“In the near term, we expect our gross margin to be higher through the end of 2025, primarily due to system sales recognized since the first quarter of 2025, which carry higher margins.”
QCaaS revenue actually decreased both in absolute dollars and as a percentage of total revenue for the nine-month period, as system sales dominated the revenue mix. (1 missed across 1 tracked commitment)
“QCaaS 4,158 [2025] 5,071 [2024] ... Total revenue 21,835 [2025] 6,518 [2024]”
Management expects long-term gross margin improvement as QCaaS becomes a larger portion of the revenue mix. — target: improve
“Over the longer term, as QCaaS becomes a larger component of our revenue mix, we expect gross margin to improve, reflecting the lower delivery costs of QCaaS relative to professional services.”
See the full cited Management analysis of D-Wave Quantum Inc. Common Shares
What could break the thesis?
Operating expenses continue to trend upward, increasing 38% for the nine-month period to $84.1 million. Net loss for the nine months widened to $312.7 million, though this was heavily impacted by non-cash warrant liability fair value changes. (2 intensifying, 1 stable)
“Total operating expenses 84,051 61,081”
Revenue has reaccelerated significantly, growing 235% for the nine-month period, driven by $15.5 million in system sales compared to zero in the prior year period. (2 easing, 1 intensifying)
“Revenue increased by $15.3 million, or 235%, to $21.8 million for the nine months ended September 30, 2025... primarily driven by system sales of $15.5 million”
See the full cited Risk analysis of D-Wave Quantum Inc. Common Shares
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