Overview
D-Wave Quantum Inc. said its second-quarter results fell short of market expectations on both the top and bottom lines. The company reported earnings per share of ($0.13), missing the analyst consensus of ($0.09) by $0.04. Quarterly revenue totaled $3.07 million, below the consensus forecast of $4.03 million. Following the release, the company's shares declined 10.5% in pre-market trading on Thursday.
Profitability and margins
The quantum computing systems provider recorded a net loss of $48.0 million, or $0.13 per share, in the quarter. That compares with a net loss of $167.3 million, or $0.55 per share, in the second quarter of 2025. D-Wave attributed much of the narrower loss to a $142.0 million reduction in non-cash, non-operating charges tied to warrant liability remeasurement.
Gross margin declined to 55.4% from 63.8% in the year-ago period. Management cited higher personnel costs and the absence of a high-margin annealing quantum computer system sale that had supported margins in the second quarter of 2025.
Expenses and cash
Operating expenses rose to $55.0 million from $28.5 million in the comparable quarter a year earlier. The increase was driven by investments in product development, go-to-market initiatives, and expenses related to the Quantum Circuits acquisition.
On the balance sheet, the company held $546.2 million in cash and marketable investment securities as of June 30, 2026, down 33% from $819.3 million a year earlier. D-Wave said that more than 90% of the decline in cash and marketable securities was due to cash used for the Quantum Circuits acquisition in January 2026.
Bookings and backlog
Bookings for the second quarter were $2.1 million, up 59% from $1.3 million in the year-ago quarter. For the first six months of 2026, bookings reached $35.5 million, a 1,120% increase from $2.9 million in the first half of 2025. The company noted that first-half bookings included a $20 million system sale, with revenue to be recognized in future quarters.
D-Wave reported remaining performance obligations of $40.7 million as of June 30, 2026, and expects 57% of that amount to be recognized as revenue over the next 12 months.
Product roadmap
The company reiterated its multi-year hardware targets: a 20,000 qubit annealing system planned for 2029 and a 100,000 qubit annealing system targeted for 2031. On the gate-model track, D-Wave aims to deliver a 17-qubit system in 2026 and a 49-qubit system in 2027.
Implications
The quarter shows a mix of accelerating commercial commitments in bookings and a tightening near-term margin and cash position driven by personnel costs, the timing of high-margin system sales, and acquisition-related cash outflows. Share reaction in pre-market trading reflected investor disappointment over the missed revenue and EPS targets.
Key metrics
- EPS: ($0.13) vs. estimate ($0.09)
- Revenue: $3.07 million vs. estimate $4.03 million
- Net loss: $48.0 million, or $0.13 per share (Q2 2026)
- Net loss: $167.3 million, or $0.55 per share (Q2 2025)
- Gross margin: 55.4% (Q2 2026) vs. 63.8% (Q2 2025)
- Operating expenses: $55.0 million vs. $28.5 million (year-ago quarter)
- Cash and marketable securities: $546.2 million as of June 30, 2026 (down 33% from $819.3 million)
- Second-quarter bookings: $2.1 million (up 59% year-over-year)
- First-half 2026 bookings: $35.5 million (up 1,120% vs. first half 2025), including a $20 million system sale
- Remaining performance obligations: $40.7 million (57% expected to be recognized in next 12 months)