D-Wave Beats Q3 Revenue at $4.51M, Yet QBTS Falls 11% on Weak Bookings

D-Wave Quantum reported third-quarter revenue of $4.51 million, roughly 3.3% above the $4.37 million consensus, and its stock still fell almost 11%. The company booked only $1.9 million in new orders for the quarter, down 19% year over year, while operating expenses reached nearly twelve times its revenue. The market, it seems, has learned to read the small print.

QBTS shares traded at $10.21 by early afternoon on Tuesday, down 10.99% from Monday's $11.47 close, according to StockAnalysis. The stock had gained 7.40% on Monday and 18.01% on Friday, so the decline reversed a two-session rebound that had lifted the shares from a November 5 intraday low of $8.48.

What did the numbers actually show?

Revenue for the quarter ended September 30, 2026 came in at $4.513 million, up 21% year over year and about 46.5% sequentially from $3.08 million. The result exceeded management's own cautious guidance: then-CFO John Markovich had said in August that third-quarter revenue would rise only modestly from roughly $3.1 million, because two anticipated system deliveries were expected in the fourth quarter. The sequential jump, in absolute terms, amounted to roughly $1.43 million.

The loss per share was $0.13, wider than the approximately $0.10 analysts expected. The revenue mix explains much of the pressure on profitability:

• Professional services revenue rose about $1.5 million year over year; QCaaS grew $800,000; system sales fell $1.5 million.
• GAAP gross profit declined 11% to $2.4 million, with gross margin at 52.9%, down from 71.4%.
• GAAP operating expenses rose 84% to $55.9 million.
• Adjusted EBITDA loss widened 83% to $37.7 million.

The net loss of $48.2 million compares with $140 million a year earlier, though the improvement mostly reflects the absence of prior-year noncash warrant charges rather than stronger operations.

Why did bookings matter more than the beat?

Bookings measure future revenue; quarterly revenue reflects performance obligations already satisfied. Third-quarter bookings of $1.9 million fell from approximately $2.3 million a year earlier. Nine-month bookings tell a different story: $37.4 million, up 611% year over year, driven largely by a $20 million quantum computer agreement with Florida Atlantic University.

Remaining performance obligations stood at $38.3 million on September 30, up 1,221% from $2.9 million a year earlier, though down from $40.7 million at the end of June. Management expects about 59% of that balance to convert to revenue within 12 months and 71% within 24 months. On the earnings call, Acting CFO Greg Golkov said the sales pipeline had expanded more than 75% since the end of June and more than tripled since the end of 2025.

The balance sheet also tightened. Cash and marketable securities fell to $503.4 million from $546.2 million at June 30, a drop of about $42.8 million. D-Wave disclosed a definitive agreement with the US Department of Commerce for access to up to $100 million under the CHIPS and Science Act, conditional on milestones; no funds had been received as of September 30.

How does IonQ compare?

Rival IonQ reported third-quarter revenue of $173.83 million on November 5, beating an expected $141.63 million, and raised full-year guidance to $505 million to $515 million. The gap needs qualification: $83.5 million of IonQ's total came from SkyWater Foundry Services, with the IonQ Platform segment contributing $90.3 million. The two companies also differ in architecture — D-Wave sells quantum annealing systems and is developing gate-model technology, while IonQ uses trapped-ion computing.

What happens in the fourth quarter?

Golkov said D-Wave still expects to deliver the Florida Atlantic University system and recognize a substantial portion of that revenue in the fourth quarter, with installation and calibration income following in early 2027. Because system transactions dwarf recurring QCaaS contracts, delivery dates can swing quarterly revenue sharply.

Management also maintains long-term plans for a 100,000-qubit annealing computer and a 10,000-qubit gate-model system, initiatives that demand continued investment while the core business remains loss-making. Operational highlights included another NTT DOCOMO production application, an Advantage2 system delivered to Como, Italy, and a beta gate-model simulator.

The verdict rests on December 31. If D-Wave ships its systems on schedule, the backlog converts into revenue; if not, investors face another quarter of explaining why bookings are not sales.