D-Wave Quantum Inc. (QBTS) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the period ended June 30, 2026. D-Wave Quantum Inc. is the world's first commercial supplier of quantum computers, offering dual-platform products spanning annealing and gate-model technologies. The company operates four facilities in North America and provides access via its Leap quantum cloud service. A significant corporate event during the period was the voluntary transfer of its stock listing from the NYSE to Nasdaq in July 2026.
Key Financial Metrics
| Metric (in thousands) | Q2 2026 | Q2 2025 | 6 Months 2026 | 6 Months 2025 |
|---|---|---|---|---|
| Revenue | $3,076 | $3,095 | $5,934 | $18,096 |
| Gross Profit | $1,704 | $1,976 | $3,522 | $15,853 |
| Gross Margin | 55.4% | 63.8% | 59.4% | 87.6% |
| Operating Loss | $(53,278) | $(26,502) | $(108,005) | $(37,793) |
| Net Loss | $(48,028) | $(167,329) | $(66,385) | $(172,750) |
| Cash & Equivalents | $296,642 | $819,312 | $296,642 | $819,312 |
| Total Debt (Loans Payable) | $35,032 | $35,959 | $35,032 | $35,959 |
Note: Debt figures include current and non-current portions of the SIF Loan and Equipment Financing Term Loan.
Material Changes vs. Prior Period
- Revenue Decline: Revenue for the six months ended June 30, 2026, dropped 67% to $5.9 million compared to $18.1 million in the prior year. This was primarily driven by a $13.3 million decrease in system sales due to the timing of installation progress recognition, partially offset by growth in QCaaS and professional services.
- Expense Surge: Operating expenses increased significantly. Research and Development (R&D) expenses rose 135% year-over-year for the six-month period to $54.0 million, driven by personnel costs, depreciation, and amortization related to the Quantum Circuits acquisition. General and Administrative (G&A) expenses increased 108% to $35.7 million, largely due to transaction expenses from the acquisition.
- Acquisition Impact: On January 20, 2026, D-Wave acquired Quantum Circuits, Inc. for approximately $538.5 million (cash and equity). This resulted in the recognition of $217.2 million in intangible assets and $342.6 million in goodwill. The acquisition also triggered a $28.4 million deferred tax benefit in the current period.
- Warrant Liability Elimination: The company redeemed all remaining public warrants in November 2025. Consequently, the massive non-cash loss associated with the change in fair value of warrant liabilities ($138.1 million in the prior six months) was eliminated in the current period, significantly reducing the reported net loss.
- Cash Position: Cash and cash equivalents decreased by $338.7 million to $296.6 million, primarily due to $252.8 million in cash consideration paid for the Quantum Circuits acquisition and $73.5 million used in operating activities.
Guidance, Outlook, and Risks
- Outlook: Management expects to continue incurring significant operating losses as it invests in R&D for annealing and gate-model systems and expands go-to-market initiatives. The company plans to transition its corporate headquarters from Palo Alto to Boca Raton, Florida, before the end of 2026.
- Listing Risk: Following the transfer to Nasdaq, the company faces continued listing requirements. The filing notes a history of non-compliance with NYSE minimum bid price requirements prior to the transfer. Failure to maintain Nasdaq compliance could result in delisting.
- Revenue Recognition: System sales revenue remains irregular and intermittent, dependent on the timing of installation and upgrade projects. The company expects QCaaS to become a larger component of revenue over time.
- Debt Obligations: The company holds a conditionally repayable loan from the Canada Strategic Innovation Fund (SIF) of up to C$40.0 million, repayable based on a revenue formula once annual revenue exceeds $70.0 million. As of June 30, 2026, the company has not reached this benchmark.
Investor Verification Checklist
- Acquisition Integration: Verify the progress of integrating Quantum Circuits' gate-model technology and the realization of projected synergies.
- Revenue Mix Shift: Monitor the transition from irregular system sales to recurring QCaaS revenue to assess margin stability.
- Liquidity Runway: Assess the burn rate against the $296.6 million cash balance, considering the high R&D spend and lack of near-term profitability.
- Listing Compliance: Confirm ongoing compliance with Nasdaq minimum bid price and other listing standards to avoid delisting risks.
- SIF Loan Trigger: Track annual revenue projections to determine if the $70 million threshold for SIF Loan repayment will be met in the near future.