D-Wave Quantum Inc

D-Wave Quantum Inc. (NYSE: QBTS) is a quantum computing company, which is engaged in the development and delivery of quantum computing systems, software, and services. The Company builds and delivers systems, cloud services, application development tools, and professional services to support the end-to-end quantum computing journey for enterprises and developers. The Company's products include Cloud Platform, Systems, Professional Services, and others.

Recent Business and Financial Updates

• Overview of D-Wave Quantum Inc.’s Q4 and Full-Year 2024 Performance: D-Wave Quantum Inc. (NYSE: QBTS), a leader in quantum computing systems, software, and services, announced its financial results for the fourth quarter and fiscal year ended December 31, 2024, on March 13, 2025, showcasing significant growth in bookings with a 128% year-over-year increase to USD 23.9 million for the full year and a 502% surge to USD 18.3 million in Q4 alone. Despite flat revenue at USD 8.8 million for the year, the company improved its GAAP gross margin to 63.0%, up 10.2% from 2023, driven by higher-margin quantum computing as a service (QCaaS) revenue and reduced stock-based compensation costs. D-Wave’s cash position strengthened significantly, exceeding USD 300 million as of the earnings release, bolstered by USD 307.5 million raised through equity programs, enabling the company to pay off a USD 50 million secured term loan and support ongoing innovation.
• Technological Advancements and Market Leadership: D-Wave achieved a milestone by demonstrating quantum computational supremacy over classical computation on a real-world materials simulation problem, as published in the journal Science, solving the problem faster and with less power using its Advantage2™ annealing quantum computer prototype. The company also calibrated a third 4,400-qubit Advantage2 processor, which offers doubled qubit coherence time, a 40% increase in energy scale, and enhanced 20-way qubit connectivity, enabling faster and higher-quality solutions for larger, more complex problems. Additionally, D-Wave introduced an on-premises systems offering, with the Julich Supercomputing Centre becoming the first high-performance computing center to purchase a D-Wave Advantage system, expected to integrate with the JUPITER exascale supercomputer to advance AI and quantum optimization applications.
• Strategic Customer Engagement and Application Development: D-Wave expanded its customer base to 135 in 2024, including 28 Forbes Global 2000 clients, and collaborated on diverse quantum and hybrid-quantum applications, such as drug discovery with Japan Tobacco, insurance portfolio optimization with Unipol’s Leithà, and police vehicle deployment optimization with North Wales Police. The company also developed a commercial hybrid-quantum application with Staque to optimize autonomous agriculture vehicle movements, highlighting quantum computing’s potential to enhance agricultural efficiency. Furthermore, D-Wave launched the “Quantum Uplift” program to attract customers dissatisfied with competitors’ systems, offering incentives for adopting the Advantage system, and initiated the Leap Quantum LaunchPad program, a free 3-month trial providing access to its quantum computers and expert support to foster application development.
• Partnerships and Public Sector Outreach: D-Wave strengthened its market reach through a partnership with Carahsoft Technology Corp., enabling co-marketing of its quantum solutions to the public sector via Carahsoft’s reseller network, including access to the Advantage™ system through the Leap™ quantum cloud service, workforce training, and specialized application support. The company also launched the “Quantum Realized” brand campaign to highlight the practical benefits of quantum computing, aligning with its sponsorship of the International Year of Quantum Science and Technology to raise public awareness. These initiatives, alongside the announcement of the Qubits 2025 user conference themed “Quantum Realized,” scheduled for March 31 to April 1, 2025, in Scottsdale, Arizona, underscore D-Wave’s commitment to showcasing real-world value and fostering industry collaboration.
• Financial Position and Liquidity Enhancements: D-Wave significantly bolstered its financial position, with a consolidated cash balance of USD 178.0 million as of December 31, 2024, growing to over USD 300 million by the earnings release date, driven by USD 307.5 million in equity raises through At-The-Market (ATM) and Equity Line of Credit (ELOC) programs, with USD 295.4 million raised at an average price of USD 4.30 per share. The company paid off its USD 50 million secured term loan in Q4 2024 and retains USD 37.8 million in available issuance capacity under the ELOC with Lincoln Park Capital Fund, LLC, through October 2025, subject to certain conditions. However, a net loss of USD 143.9 million for the year, up from USD 82.7 million in 2023, was largely due to a USD 68.3 million non-cash charge from warrant liability remeasurement, though adjusted net loss improved to USD 75.6 million, reflecting operational progress.
• Outlook for Q1 Fiscal Year 2025: D-Wave projects Q1 FY 2025 revenue to exceed USD 10 million, a significant increase from the USD 8.8 million annual revenue in 2024, with a substantial portion attributed to the sale of an Advantage annealing quantum computer. This outlook reflects the company’s growing commercial traction and ability to monetize its advanced quantum systems, positioning D-Wave to continue delivering value through quantum computing applications and further solidifying its leadership in the industry.

Technical Observation (on the daily chart):

The 14-day Relative Strength Index (RSI) is currently at 51.47, currently consolidating near mid-levels, with the expectations of consolidation or upward momentum if the USD 6.50-USD 7.00 support holds. In addition, the current price crossing above both the 50-day Simple Moving Averages (SMAs) and 200-day SMA, which may work as medium to long term support levels.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘WATCH’ rating has been given D-Wave Quantum Inc. (NYSE: QBTS) at the closing price of USD 7.28, as of May 05, 2025. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is May 05, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.