We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
QBTS Secures $819M Cash War Chest for Future R&D: Upside Ahead?
Read MoreHide Full Article
Key Takeaways
QBTS ended the second quarter with $819M in cash, up 169% sequentially and over 1,900% year over year.
Its capital will fund R&D, expand fabrication, boost sales and support potential strategic acquisitions.
D-Wave advanced Advantage2 and quantum AI, adding clients like GE Vernova, Nikon and Japan Tobacco.
While D-Wave Quantum’s (QBTS - Free Report) top line is advancing steadily, the real focus of investors is on its balance sheet. D-Wave closed the second quarter with a record $819 million in cash, up more than 1,900% from a year ago and 169% sequentially. More than $500 million was raised during the quarter, primarily from an at-the-market equity offering and warrant exercises, giving the company its strongest liquidity position ever.
D-Wave management emphasized that this capital will not only accelerate R&D, advancing systems like Advantage2 and the 100,000-qubit roadmap with NASA Jet Propulsion Laboratory (JPL) but also expand fabrication capacity, support global sales growth and provide flexibility for strategic acquisitions. In effect, the strengthened balance sheet positions D-Wave to scale both technologically and commercially, while also pursuing inorganic growth opportunities.
On the innovation front, D-Wave advanced its Advantage2 quantum computer with higher connectivity, coherence and energy scale, enabling the first real-world quantum supremacy demo in materials simulation. It also expanded into quantum AI with a PyTorch toolkit, already adopted by Japan Tobacco and Triumph.
Commercial traction continues to grow, with new contracts and renewals from E.ON, GE Vernova, Nikon, NTT Data, NTT DOCOMO and Sharp, alongside partnerships with Oxford, UK’s National Quantum Computing Centre and a new South Korea MOU with Yonsei University and Incheon City.
Competitors Too Creating War Chest
IonQ (IONQ - Free Report) is optimistic about strategic acquisitions, including Oxford Ionics, Lightsynq and Capella, which are expected to strengthen its roadmap. Despite the company incurring a net loss from higher expenses, a $1 billion equity raise boosted cash, giving IonQ the resources to accelerate R&D, expand and push into quantum networking and sensing.
Rigetti Computing (RGTI - Free Report) , on the technology front, hit a key milestone by unveiling the industry’s largest multi-chip quantum computer and achieving 99.5% two-qubit gate fidelity, paving the way for a 100+ qubit system by 2025-end. A $350 million at-the-market equity raise in the second quarter lifted liquidity to $571.6 million with no debt, providing a solid base for continued development and strategic moves.
In August so far, shares of D-Wave have underperformed Rigetti and IonQ.
Month-to-Date QBTS Share Comparison
Image Source: Zacks Investment Research
Average Target Price for QBTS Suggests Near-Term Upside
Based on short-term price targets offered by 10 analysts, D-Wave Quantum’s average price target represents an increase of 24.6% from the last closing price of $17.01.
Image: Bigstock
QBTS Secures $819M Cash War Chest for Future R&D: Upside Ahead?
Key Takeaways
While D-Wave Quantum’s (QBTS - Free Report) top line is advancing steadily, the real focus of investors is on its balance sheet. D-Wave closed the second quarter with a record $819 million in cash, up more than 1,900% from a year ago and 169% sequentially. More than $500 million was raised during the quarter, primarily from an at-the-market equity offering and warrant exercises, giving the company its strongest liquidity position ever.
D-Wave management emphasized that this capital will not only accelerate R&D, advancing systems like Advantage2 and the 100,000-qubit roadmap with NASA Jet Propulsion Laboratory (JPL) but also expand fabrication capacity, support global sales growth and provide flexibility for strategic acquisitions. In effect, the strengthened balance sheet positions D-Wave to scale both technologically and commercially, while also pursuing inorganic growth opportunities.
On the innovation front, D-Wave advanced its Advantage2 quantum computer with higher connectivity, coherence and energy scale, enabling the first real-world quantum supremacy demo in materials simulation. It also expanded into quantum AI with a PyTorch toolkit, already adopted by Japan Tobacco and Triumph.
Commercial traction continues to grow, with new contracts and renewals from E.ON, GE Vernova, Nikon, NTT Data, NTT DOCOMO and Sharp, alongside partnerships with Oxford, UK’s National Quantum Computing Centre and a new South Korea MOU with Yonsei University and Incheon City.
Competitors Too Creating War Chest
IonQ (IONQ - Free Report) is optimistic about strategic acquisitions, including Oxford Ionics, Lightsynq and Capella, which are expected to strengthen its roadmap. Despite the company incurring a net loss from higher expenses, a $1 billion equity raise boosted cash, giving IonQ the resources to accelerate R&D, expand and push into quantum networking and sensing.
Rigetti Computing (RGTI - Free Report) , on the technology front, hit a key milestone by unveiling the industry’s largest multi-chip quantum computer and achieving 99.5% two-qubit gate fidelity, paving the way for a 100+ qubit system by 2025-end. A $350 million at-the-market equity raise in the second quarter lifted liquidity to $571.6 million with no debt, providing a solid base for continued development and strategic moves.
In August so far, shares of D-Wave have underperformed Rigetti and IonQ.
Month-to-Date QBTS Share Comparison
Image Source: Zacks Investment Research
Average Target Price for QBTS Suggests Near-Term Upside
Based on short-term price targets offered by 10 analysts, D-Wave Quantum’s average price target represents an increase of 24.6% from the last closing price of $17.01.
Image Source: Zacks Investment Research
D-Wave Quantum currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.