D-Wave Quantum Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue was $4.5 million, a 21% increase year-over-year from $3.7 million in Q3 2025.
• Professional services revenue increased by $1.5 million, and QCaaS revenue increased by $0.8 million, offset by a $1.5 million decrease in system sales revenue.
• Bookings for the nine months ended September 30, 2026, were $37.4 million, a 611% increase from the prior year period; Q3 bookings were $1.9 million, a 19% decrease year-over-year.
• Remaining Performance Obligations (RPO) totaled $38.3 million as of September 30, 2026, up 1,221% from $2.9 million in the prior year period.
• Approximately 59% of the September 30, 2026 RPO balance is expected to be recognized as revenue within the next 12 months, and 71% within the next 24 months.
• GAAP gross profit was $2.4 million, down 11% year-over-year, with a gross margin of 52.9%, down 18.5 percentage points.
• Non-GAAP gross profit was $2.9 million, essentially flat year-over-year, with a Non-GAAP gross margin of 63.6%, down 14.1 percentage points.
• GAAP operating expenses were $55.9 million, up 84% year-over-year, driven by $12.3 million in increased personnel costs, $4.1 million in stock-based compensation, and $4.6 million in depreciation and amortization.
• Non-GAAP Adjusted Operating Expenses were $40.5 million, up 72% year-over-year.
• Net loss was $48.2 million ($0.13 per share), a $91.8 million improvement year-over-year, primarily due to a $121.9 million decrease in non-cash warrant liability remeasurement charges.
• Adjusted EBITDA loss was $37.7 million, an 83% increase year-over-year.
• Consolidated cash and marketable investment securities totaled $503.4 million as of September 30, 2026.

Guidance and Future Outlook:

• Management expressed confidence in the opportunity ahead, citing a triple-digit increase in year-to-date bookings and a robust pipeline.
• The company aims to lead the industry in technical innovation, measurable customer value, and growth.
• Development is ongoing for a 100,000-qubit annealing quantum computer targeting optimization, materials simulation, blockchain, and AI applications.
• Development is ongoing for a 10,000-qubit gate-model quantum computer designed to enable 100 logical qubits capable of executing over one million operations for quantum chemistry and AI.
• The gate-model quantum computing simulator beta program is advancing error-aware programming capabilities in preparation for forthcoming gate-model systems.

Business Segments and Product Lines:

• Executed a definitive agreement with the U.S. Department of Commerce for access to up to $100 million in CHIPS and Science Act funding to support next-generation quantum computer development.
• NTT DOCOMO deployed a second production application using D-Wave's hybrid quantum technology, reducing daily peak location registration signals by 65.3% and paging signals by 7.0%.
• Delivered Italy's first annealing quantum computer, a 4,400+ qubit Advantage2™ system, to Villa Saporiti in Como, Italy.
• Launched a gate-model quantum computing simulator beta program with participants including BBVA, FirstQFM, Florida Atlantic University, and the Jülich Supercomputing Centre.
• Extended a multi-year partnership with SkyWater for specialized semiconductor process development and manufacturing.
• Formed a strategic partnership with CGI to integrate D-Wave's platforms into advanced technology services for logistics, transportation, and retail.
• Signed a memorandum of understanding with LG CNS to advance quantum computing adoption for enterprise optimization in South Korea.

Market and Competitive Landscape:

• Recognized as a Market Shaper in the Gartner® Emerging Market Quadrant for Quantum Computing - Established Vendors as of November 2026.
• Among six quantum computing vendors placed in the upper right quadrant of the Gartner Emerging Market Quadrant.
• Revenue recognized from more than 100 customers, 48% of which were commercial enterprises.

Risks and Challenges:

• GAAP gross margin decreased due to a revenue mix shift toward lower-margin professional services and increased non-cash stock-based compensation.
• Adjusted EBITDA loss increased due to higher operating expenses supporting accelerated product development and go-to-market initiatives.
• Bookings in any single quarter can vary significantly based on the timing of larger transactions.
• Forward-looking statements involve risks and uncertainties, including the ability to realize benefits from U.S. CHIPS and Science Act funding and the successful development of gate-model systems.

Management Commentary and Tone:

• CEO Dr. Alan Baratz highlighted growing interest in D-Wave's dual-platform approach and a determination to deploy quantum technology commercially.
• Management emphasized expanding commercial reach and executing on both annealing and gate-model roadmaps.
• The tone reflected confidence in the company's technical roadmap and market opportunity despite the current net loss position.

Other Key Points:

• Strengthened the Board of Directors with the appointments of Bernard Gavgani (former Group CIO of BNP Paribas) and Kevan Krysler (veteran technology finance executive).
• Completed a successful proof-of-technology project with SkyWater reducing lot delays by up to 30%.
• All remaining publicly traded warrants were redeemed in November 2025.
• The company acquired Quantum Circuits in January 2026, with $2.3 million in bookings from that acquisition included in year-to-date 2026 bookings.
• The company operates as the only dual-platform quantum computing company, offering both annealing and gate-model systems, software, and services.