The quantum computing sector has been under heavy selling pressure in 2025, with prominent names like Rigetti Computing (RGTI), Quantum Computing (QUBT), and IonQ (IONQ) plunging by as much as 50% year-to-date. However, one standout performer has defied the downward trend—D-Wave Quantum Inc. (QBTS).
D-Wave Outshines Its Peers
Founded in 1999, D-Wave Quantum is the first company to commercially supply quantum computers. Unlike its competitors, D-Wave specializes in both annealing and gate-model quantum computers, giving it a unique edge in the rapidly evolving industry.
While most quantum stocks are bleeding, QBTS stock has surged by 38% YTD, outperforming its peers and the broader tech sector. Despite this rally, shares are still 7% below their 52-week high, making it an intriguing pick for investors seeking exposure to quantum computing.
Wall Street Backs D-Wave
Bullish sentiment around D-Wave is growing. Needham recently reiterated its “Buy” rating on the stock with a price target of $8.50, which the company has already surpassed. Other firms, including Craig Hallum and Roth Capital, have also issued positive coverage, highlighting D-Wave’s potential.
Strong Q4 Results Drive Optimism
D-Wave’s recent Q4 earnings report bolstered investor confidence. While the company is not yet profitable, it posted a narrower adjusted net loss and improved financial metrics:
- Revenue: $2.3 billion, down 20.5% year-over-year but still above Wall Street estimates.
- Gross Margin: A healthy 63.8%, indicating efficient operations.
- Net Loss Per Share: $0.08, beating the prior year’s $0.10 loss, though slightly missing analysts’ estimates of a $0.06 loss.
- Bookings: Surged 502% year-over-year to $18.3 million, reflecting strong customer demand.
- Customer Base: Increased to 135 clients in 2024 from 133 in 2023.
Cash Flow and Financial Strength
D-Wave also made significant strides in improving its cash position.
- Cash Outflow: Reduced its net cash outflow from operating activities to $42.6 million in 2024, down from $60.6 million in 2023.
- Cash Balance: Ended 2024 with $178 million in cash, a substantial increase from $41.3 million in the prior year.
Why Investors Are Flocking to D-Wave
The sharp increase in bookings, coupled with better-than-expected revenue, highlights D-Wave’s growing demand. Moreover, its expanding customer base and efficient cost management position it favorably in the quantum computing race.
With the quantum sector still in its early stages, D-Wave’s robust performance and improving fundamentals make it a rare bright spot in the market-wide selloff.
