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D-Wave Quantum Inc. (QBTS) Stock Analysis

Technology

D-Wave Quantum Inc.

$27.82

$-1.58 (-5.37%)

Last Updated: May 26, 2026

Price History

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News provided by third-party sources. Not financial advice.

Analysis

Company Overview

D-Wave Quantum Inc. is a specialized technology firm dedicated to the development, delivery, and integration of quantum computing systems, proprietary software, and global services. Operating within the technology sector and specifically in the computer hardware industry, the company leverages advanced quantum processing to solve complex computational problems that are intractable for classical supercomputers. The organization employs a workforce of 382 individuals and holds a market capitalization of $5.96B, while reporting annual revenue of $24.59M. These financial figures indicate that the company is a high-profile entity with significant market valuation relative to its current revenue generation, a characteristic often found in early-stage or capital-intensive technology ventures where future potential is priced in ahead of current earnings.

Financial Health

The company reports a trailing twelve-month revenue of $24.59M, yet this figure is contrasted sharply by a net income of $-355,062,016 and an EBITDA of $-98,805,000, revealing a substantial gap between top-line sales and bottom-line profitability. This disparity highlights a cost structure dominated by heavy research and development expenses or operational scaling costs that have not yet been offset by profitable operations. Free cash flow stands at $-57,992,124, indicating that the company is currently burning cash to fund its growth initiatives and quantum system deployments rather than generating liquidity from operations. Profitability metrics further illustrate this dynamic, with a gross margin of 82.6% suggesting efficient production of quantum hardware, but an operating margin of -1266.0% and a profit margin of 0.0% that underscore significant overhead burdens relative to sales volume. Despite these operational losses, the balance sheet contains $884.48M in cash against $43.46M in debt, resulting in a debt-to-equity ratio of 5.10 that classifies the balance sheet as highly leveraged rather than conservative. Liquidity is exceptionally strong with a current ratio of 42.38, implying the firm possesses more than forty times the current assets needed to cover its short-term liabilities. Return on equity is -77.6% and return on assets is -11.2%, metrics that mathematically reflect the dilution of shareholder value and asset utility due to the absence of net income in the recent period.

Valuation Assessment

Valuation multiples for D-Wave Quantum Inc. reflect its lack of profitability, with a trailing P/E ratio of N/A and a forward P/E of -43.60, implying that earnings-based valuation is currently inapplicable until positive earnings are realized. The price-to-book ratio stands at 6.78, indicating that the market values the company at a significant premium of nearly seven times its net asset value, a common phenomenon in speculative technology stocks where intangible assets and future potential outweigh book value. Alternative metrics such as a price-to-sales ratio of 242.23 and an EV/EBITDA of -51.76 suggest that investors are pricing the stock based on future growth expectations rather than historical financial performance or current earnings power. Price volatility is evident in the 52-week range, which spans from a low of $5.77 to a high of $46.75; without a specific current price provided in the source data, the stock's position relative to this wide range highlights the extreme price swings typical of high-beta assets. The beta value of 1.66 quantifies this sensitivity, indicating that the stock price tends to fluctuate 1.66 times as much as the broader market, exposing investors to significantly higher systematic risk.

Growth & Income

Revenue growth for the trailing twelve months is recorded at 19.2%, while earnings growth is listed as N/A due to the company's persistent net losses, illustrating that top-line expansion is occurring in the absence of profitability. Since the company does not pay a dividend, the dividend yield is N/A and the payout ratio is 0.0%, meaning that all available earnings are theoretically available for reinvestment rather than distribution to shareholders. Consequently, the firm reinvests its limited cash flow and equity proceeds into scaling its quantum computing infrastructure and expanding its cloud service offerings rather than providing income to capital providers. The overall growth and income profile is characterized by double-digit revenue expansion coupled with deep structural losses and no dividend distribution, presenting a high-risk, high-reward scenario dependent on future commercialization milestones.

Peer Comparison

D-Wave Quantum Inc. (QBTS) operates in the Computer Hardware industry. Here is how it compares to its closest peers by market capitalization:

Company Ticker Market Cap P/E Ratio
D-Wave Quantum Inc. QBTS $10.89B N/A
Sandisk Corporation SNDK $235.40B 54.3
Arista Networks, Inc. ANET $198.96B 54.3
Dell Technologies Inc. DELL $198.17B 35.1

The Computer Hardware industry average P/E ratio is 57.5x. D-Wave Quantum Inc. trades at a P/E of N/A.

This analysis is AI-generated for informational purposes only and should not be considered financial advice. Data may be delayed or inaccurate. Always do your own research and consult a qualified financial advisor before making investment decisions.

About D-Wave Quantum Inc.

D-Wave Quantum Inc. engages in the development and delivery of quantum computing systems, software, and services worldwide. It provides Advantage and Advantage 2 quantum computers; Ocean, a suite of open-source tools; and Leap quantum cloud service, a cloud-based service that provides real-time access to quantum computers and quantum hybrid solvers; and secure access and data protection services, as well as Ocean software development kit (SDK), a Python-based SDK for developers to learn and build applications on company's server. The company also provides Leap hybrid solver service that offers a combination of quantum and classical computation resources and advanced algorithms to solve problems of enterprise scale; and D-Wave Launch, a phased approach to identify and build in-production quantum hybrid applications, including training sessions and quantum computing access. In addition, the company offers D-Wave Advantage annealing quantum computing systems; and Ocean developer tools. Its quantum solutions are used in allocation, resource scheduling, factory scheduling, vehicle routing, logistics optimization, drug discovery, industrial construction design, portfolio optimization and maintenance, repair, and overhaul optimization. D-Wave Quantum Inc. was founded in 1999 and is based in Palo Alto, California.

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Key Statistics

Market Cap
$10.89B
P/E Ratio
N/A
52-Week High
$46.75
52-Week Low
$12.75
Avg Volume
30.49M
Beta
1.95

Data provided by Yahoo Finance via yfinance. Updated daily.

Company Info

Exchange
NYSE
Country
United States
Employees
382