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D-Wave or Rigetti: Which Quantum Hardware Stock Should You Choose?
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D-Wave Quantum (QBTS - Free Report) and Rigetti Computing (RGTI - Free Report) , both with their "hardware-first" approach in quantum computing, have been in the spotlight in recent times. Both companies recently shared their first-quarter 2025 updates.
D-Wave Quantum posted a 61% jump in first-quarter commercial revenues and demonstrated its 360-qubit Advantage2 prototype, signaling momentum in hybrid quantum-classical systems.
Rigetti Computing, on the other hand, has been gaining from research and government-backed projects. The company advanced to Stage A of DARPA’s Quantum Benchmarking Initiative, secured a $5.48M AFOSR grant to improve chip fabrication, and is part of several UK Quantum Mission awards to enhance error correction.
As these two companies pursue different paths, one commercial and one research-driven, it’s an ideal time for investors to take a closer look at long-term positioning in the quantum space.
D-Wave Quantum’s Sharp Path to Profitability
Growing Hardware Sales Drive Margins for QBTS: D-Wave Quantum reported first-quarter 2025 revenues of $15 million, a staggering 509% increase from $2.5 million in the year-ago period. This leap was primarily driven by the sale of the Advantage2 annealing quantum system to Julich Supercomputing Center, which contributed approximately $12.6 million to the top line. The company also demonstrated strong operational leverage. GAAP gross profit soared to $13.9 million from just $1.7 million a year earlier, while non-GAAP gross profit reached $14 million compared to $1.9 million in the prior-year quarter. These gains elevated D-Wave Quantum’s GAAP gross margin to 92.5%, up from 67.3%, and non-GAAP gross margin to 93.6%, up from 76.6%.
Net Loss and Adjusted EBITDA Loss Significantly Narrow: D-Wave Quantum posted a first-quarter 2025 net loss of $5.4 million, or 2 cents per share, its lowest since going public in 2022 and a sharp improvement from a loss of $17.3 million (11 cents per share) in the year-ago quarter. Adjusted EBITDA loss narrowed by 53% year over year to $6.1 million in the last-reported quarter. These improvements reflect greater operational efficiency and position D-Wave on a clear path toward profitability with less capital than many of its quantum computing peers.
Robust Cash Position With No Short-term Debt: At the end of March 2025, D-Wave had $304.3 million in cash and also repaid its secured term loan in the first quarter of 2024. The company’s debt-to-capital ratio dropped to 12.9%, down from 32.7% in the fourth quarter of 2024, highlighting a significantly improved capital structure. The company also raised $146.2 million through equity in the first quarter and retained $37.8 million in issuance capacity under its equity line of credit. This strong liquidity position provides strategic flexibility and supports ongoing investments in R&D and go-to-market initiatives.
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What’s Driving Rigetti Computing?
Selection for DARPA's Quantum Benchmarking Initiative: Rigetti was selected for Phase A of DARPA’s Quantum Benchmarking Initiative, standing out among over 100 applicants as one of only three superconducting quantum companies chosen, alongside International Business Machines (IBM - Free Report) and Hewlett Packard (HPE - Free Report) . The six-month, $1 million award will support Rigetti’s work on a scalable quantum computing concept that combines its multi-chip architecture with error correction codes. Success in this phase could lead to larger future funding and greater industry recognition, reinforcing Rigetti’s role in building next-generation, fault-tolerant quantum systems.
$5.48M AFOSR Award to Advance Chip Fabrication: Rigetti secured a $5.48 million award from the Air Force Office of Scientific Research (AFOSR) to develop its Alternating-Bias Assisted Annealing (ABAA) chip fabrication technology. Leading a consortium with top universities and labs, Rigetti aims to reduce defects in superconducting qubits and improve chip performance. This work is key to building more reliable and scalable quantum processors, strengthening Rigetti’s position in next-generation quantum hardware.
$35M Strategic Investment by Quanta Computer Boosts Liquidity: Quanta Computer’s $35 million equity investment at $11.59 per share boosts Rigetti’s cash position to $237.7 million as of April 30, 2025. This funding strengthens Rigetti’s balance sheet, extends its operating runway, and enables accelerated R&D without near-term dilution.
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YTD, QBTS Outperforms RGTI, Industry, Benchmark
Year to date, shares of D-Wave Quantum have surged 123.8%, handily outperforming the broader Internet Software industry’s 4.9% gain and the S&P 500’s 1.3% dip. Contrastingly, Rigetti Computing underperformed all three with an 8.2% decline in its stock price during the same period. Rigetti has underperformed year to date due to a steep 51% year-over-year decline in first-quarter revenues, which were also below expectations, highlighting weak demand for its quantum solutions despite a headline profit.
Image Source: Zacks Investment Research
QBTS: A Sure Shot Pick at This Moment
D-Wave Quantum, a Zacks Rank #2 (Buy) stock, presents a stronger investment case at this moment than Rigetti Computing, a Zacks Rank #4 (Sell) stock. D-Wave recorded a 56% year-over-year revenue jump in the first quarter, record bookings and rising enterprise adoption, driven by its hybrid solver services and momentum toward breakeven. In contrast, Rigetti reported a 51% year-over-year revenue decline and projected flat-to-lower revenues for the full year, reflecting ongoing customer transition and slower-than-expected uptake of its quantum hardware. While RGTI has secured significant government and strategic funding, including DARPA and AFOSR grants and a $35M investment from Quanta Computer, its current financial performance lags materially. As such, QBTS’ superior growth trajectory, commercialization pace and strong customer adoption position it as the better buy right now. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
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D-Wave or Rigetti: Which Quantum Hardware Stock Should You Choose?
D-Wave Quantum (QBTS - Free Report) and Rigetti Computing (RGTI - Free Report) , both with their "hardware-first" approach in quantum computing, have been in the spotlight in recent times. Both companies recently shared their first-quarter 2025 updates.
D-Wave Quantum posted a 61% jump in first-quarter commercial revenues and demonstrated its 360-qubit Advantage2 prototype, signaling momentum in hybrid quantum-classical systems.
Rigetti Computing, on the other hand, has been gaining from research and government-backed projects. The company advanced to Stage A of DARPA’s Quantum Benchmarking Initiative, secured a $5.48M AFOSR grant to improve chip fabrication, and is part of several UK Quantum Mission awards to enhance error correction.
As these two companies pursue different paths, one commercial and one research-driven, it’s an ideal time for investors to take a closer look at long-term positioning in the quantum space.
D-Wave Quantum’s Sharp Path to Profitability
Growing Hardware Sales Drive Margins for QBTS: D-Wave Quantum reported first-quarter 2025 revenues of $15 million, a staggering 509% increase from $2.5 million in the year-ago period. This leap was primarily driven by the sale of the Advantage2 annealing quantum system to Julich Supercomputing Center, which contributed approximately $12.6 million to the top line. The company also demonstrated strong operational leverage. GAAP gross profit soared to $13.9 million from just $1.7 million a year earlier, while non-GAAP gross profit reached $14 million compared to $1.9 million in the prior-year quarter. These gains elevated D-Wave Quantum’s GAAP gross margin to 92.5%, up from 67.3%, and non-GAAP gross margin to 93.6%, up from 76.6%.
Net Loss and Adjusted EBITDA Loss Significantly Narrow: D-Wave Quantum posted a first-quarter 2025 net loss of $5.4 million, or 2 cents per share, its lowest since going public in 2022 and a sharp improvement from a loss of $17.3 million (11 cents per share) in the year-ago quarter. Adjusted EBITDA loss narrowed by 53% year over year to $6.1 million in the last-reported quarter. These improvements reflect greater operational efficiency and position D-Wave on a clear path toward profitability with less capital than many of its quantum computing peers.
Robust Cash Position With No Short-term Debt: At the end of March 2025, D-Wave had $304.3 million in cash and also repaid its secured term loan in the first quarter of 2024. The company’s debt-to-capital ratio dropped to 12.9%, down from 32.7% in the fourth quarter of 2024, highlighting a significantly improved capital structure. The company also raised $146.2 million through equity in the first quarter and retained $37.8 million in issuance capacity under its equity line of credit. This strong liquidity position provides strategic flexibility and supports ongoing investments in R&D and go-to-market initiatives.
Image Source: Zacks Investment Research
What’s Driving Rigetti Computing?
Selection for DARPA's Quantum Benchmarking Initiative: Rigetti was selected for Phase A of DARPA’s Quantum Benchmarking Initiative, standing out among over 100 applicants as one of only three superconducting quantum companies chosen, alongside International Business Machines (IBM - Free Report) and Hewlett Packard (HPE - Free Report) . The six-month, $1 million award will support Rigetti’s work on a scalable quantum computing concept that combines its multi-chip architecture with error correction codes. Success in this phase could lead to larger future funding and greater industry recognition, reinforcing Rigetti’s role in building next-generation, fault-tolerant quantum systems.
$5.48M AFOSR Award to Advance Chip Fabrication: Rigetti secured a $5.48 million award from the Air Force Office of Scientific Research (AFOSR) to develop its Alternating-Bias Assisted Annealing (ABAA) chip fabrication technology. Leading a consortium with top universities and labs, Rigetti aims to reduce defects in superconducting qubits and improve chip performance. This work is key to building more reliable and scalable quantum processors, strengthening Rigetti’s position in next-generation quantum hardware.
$35M Strategic Investment by Quanta Computer Boosts Liquidity: Quanta Computer’s $35 million equity investment at $11.59 per share boosts Rigetti’s cash position to $237.7 million as of April 30, 2025. This funding strengthens Rigetti’s balance sheet, extends its operating runway, and enables accelerated R&D without near-term dilution.
Image Source: Zacks Investment Research
YTD, QBTS Outperforms RGTI, Industry, Benchmark
Year to date, shares of D-Wave Quantum have surged 123.8%, handily outperforming the broader Internet Software industry’s 4.9% gain and the S&P 500’s 1.3% dip. Contrastingly, Rigetti Computing underperformed all three with an 8.2% decline in its stock price during the same period. Rigetti has underperformed year to date due to a steep 51% year-over-year decline in first-quarter revenues, which were also below expectations, highlighting weak demand for its quantum solutions despite a headline profit.
Image Source: Zacks Investment Research
QBTS: A Sure Shot Pick at This Moment
D-Wave Quantum, a Zacks Rank #2 (Buy) stock, presents a stronger investment case at this moment than Rigetti Computing, a Zacks Rank #4 (Sell) stock. D-Wave recorded a 56% year-over-year revenue jump in the first quarter, record bookings and rising enterprise adoption, driven by its hybrid solver services and momentum toward breakeven. In contrast, Rigetti reported a 51% year-over-year revenue decline and projected flat-to-lower revenues for the full year, reflecting ongoing customer transition and slower-than-expected uptake of its quantum hardware. While RGTI has secured significant government and strategic funding, including DARPA and AFOSR grants and a $35M investment from Quanta Computer, its current financial performance lags materially. As such, QBTS’ superior growth trajectory, commercialization pace and strong customer adoption position it as the better buy right now. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.