D-Wave’s Quantum Leap Shocks Wall Street

D-Wave Quantum is taking quantum leaps as it delivered a jaw-dropping Q1 2025 earnings report. 

The stock closed at an all-time weekly high as Wall Street welcomes the quantum future. Let’s get into the numbers.

The Numbers

D-Wave’s revenue crushed expectations, while narrowing losses and achieving record gross margins. 

Revenue: $15.0M (+509% YoY)
Gross Profit: $13.9M (92.5% margin)
Net Loss: $5.4M (down from $17.3M in Q1 2024)
Earnings Per Share: -$0.02 (beat expectations of -$0.06)
Cash Position: $304.3M (an all-time high)

The +500% YoY revenue growth is attributed to the sale of its Advantage quantum computing system to the Jülich Supercomputing Centre in Germany. The sale accounted for ~$12.6M of D-Wave’s quarterly revenue and was its first direct sale of a quantum computer to a 3rd party.

The company’s CEO, Dr. Alan Baratz, touted the impressive achievements of the quarter with this quote, 

The first quarter of 2025 was arguably the most significant in D-Wave’s history.

Here are the highlights of the historic quarter:

Quantum Simulation Saves 1M Years

In March, D-Wave published a peer-reviewed paper in Science demonstrating its ability to perform a magnetic materials simulation – saving more than 1M years compared to the world’s most powerful supercomputer. 

D-Wave’s quantum computer solves problems once believed to be unsolvable. 

Quantum Cuts In Production Time

Ford Otosan reduced the scheduling time for 1,000 vehicles from 30 minutes to under five – more than a 6x improvement by deploying a hybrid-quantum application. The Turkish automaker plans to extend quantum scheduling across additional manufacturing processes.

Quantum + AI Unlocks Drug Discovery Possibilities

D-Wave and Japan Tobacco’s successful proof-of-concept integrates a hybrid quantum-classical workflow to train large language models in the world’s first quantum + AI drug discovery. 

Quantum Boosts Blockchain Security and Efficiency

D-Wave’s “proof-of-quantum work” algorithm showed that using quantum computation for blockchain hashing and validation enhances security while reducing electricity costs by up to 1,000x.

Quantum Interest Is Increasing…

At D-Wave’s annual user conference, Qubits 2025, in-person attendance was up 23% YoY. Virtual attendance was up nearly 100% YoY. 

This growth signals the rapid rise of interest in quantum computing. 

My Thoughts

Quantum computing is in its infancy, but something is afoot. 

$QBTS soared +60% in the two sessions following its earnings report as investors make sense of the potential quantum may provide.

D-Wave’s net loss improvement is a sign that the company is actively moving towards profitability while developing a breakthrough technology. 

$QBTS closed at its highest weekly price of all time on heavy volume. If the stock holds above $10, we want to be long for the quantum ride. 

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Godspeed – Rosebee

_{Disclosure: The author of this newsletter holds $ACHR/W.}