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QBTS Fortifies Its Balance Sheet Amid Competition With IONQ, RGTI
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Key Takeaways
QBTS posts sharp Q3 margin gains driven by high-margin systems and platform revenues.
Revenues for the first nine months hit $21.8M as efficiency improved ahead of Advantage2.
The company ends Q3 with $836.2M in cash, supporting expansion and continued investment.
D-Wave Quantum’s (QBTS - Free Report) third-quarter 2025 results show an improvement in the company’s operations. The company reported gross profit of $2.7 million, up 156% year over year. Meanwhile, GAAP gross margin expanded 1560 basis points (bps) year over year to 71.4%. On an adjusted basis, which excludes non-cash stock-based compensation and depreciation and amortization, gross profit came in at $2.9 million, up 131% year over year. Adjusted gross margin was 77.7%, a 1050-bps expansion from the prior-year comparable quarter. The trend is even stronger when looking at the first nine months of 2025. Revenues grew to $21.8 million, up 235% year over year, and GAAP gross margin climbed to 84.8%.
This strong margin growth comes from several changes in D-Wave’s business. The company is selling more high-margin systems and capacity agreements, especially in Europe and Japan. It is also becoming more efficient in building and deploying its systems, helped by preparations for the Advantage2 system. In addition, recurring platform revenues are growing faster than traditional service revenues, raising overall margins.
What makes this even more impressive is that D-Wave is doing it from a position of financial strength. The company ended the third quarter with $836.2 million in cash. This gives D-Wave plenty of runway to continue investing in research and development, expand into new regions, build more infrastructure, or even consider acquisitions. In a quantum market where many competitors rely on raising new capital, D-Wave’s mix of rising margins and a strong cash position gives it a major competitive edge.
IonQ (IONQ - Free Report) : Its third-quarter results highlight rapid momentum, with revenues surging 222% year over year. The company also achieved a major technical milestone with a world-record 99.99% two-qubit gate fidelity and the #AQ 64 benchmark on its Tempo system ahead of schedule, signaling strong progress toward fault-tolerant gate-model quantum computing. Combined with a pro-forma cash position of $3.5 billion after a recent equity raise, IonQ has one of the strongest balance sheets in the sector.
Rigetti Computing (RGTI - Free Report) : Till the third quarter of 2025, Rigetti was in an early, R&D-heavy stage. The company reported only $1.9 million in third-quarter 2025 revenues and continued to post significant losses. On the positive side, Rigetti still maintains a sizable liquidity cushion. As of Sept. 30, 2025, it had approximately $558.9 million in cash, cash equivalents, and short-term investments and after some warrant exercises by early November 2025, that total rose to roughly $600 million.
Over the past 30 days, shares of D-Wave have gained 1.2%.
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 48.3% from the last closing price of $25.08.
Image: Bigstock
QBTS Fortifies Its Balance Sheet Amid Competition With IONQ, RGTI
Key Takeaways
D-Wave Quantum’s (QBTS - Free Report) third-quarter 2025 results show an improvement in the company’s operations. The company reported gross profit of $2.7 million, up 156% year over year. Meanwhile, GAAP gross margin expanded 1560 basis points (bps) year over year to 71.4%. On an adjusted basis, which excludes non-cash stock-based compensation and depreciation and amortization, gross profit came in at $2.9 million, up 131% year over year. Adjusted gross margin was 77.7%, a 1050-bps expansion from the prior-year comparable quarter. The trend is even stronger when looking at the first nine months of 2025. Revenues grew to $21.8 million, up 235% year over year, and GAAP gross margin climbed to 84.8%.
This strong margin growth comes from several changes in D-Wave’s business. The company is selling more high-margin systems and capacity agreements, especially in Europe and Japan. It is also becoming more efficient in building and deploying its systems, helped by preparations for the Advantage2 system. In addition, recurring platform revenues are growing faster than traditional service revenues, raising overall margins.
What makes this even more impressive is that D-Wave is doing it from a position of financial strength. The company ended the third quarter with $836.2 million in cash. This gives D-Wave plenty of runway to continue investing in research and development, expand into new regions, build more infrastructure, or even consider acquisitions. In a quantum market where many competitors rely on raising new capital, D-Wave’s mix of rising margins and a strong cash position gives it a major competitive edge.
(Read more: QBTS Soars 168% in 2025: Should You Buy for 2026 or Wait for Pullback?)
Competitive Landscape
IonQ (IONQ - Free Report) : Its third-quarter results highlight rapid momentum, with revenues surging 222% year over year. The company also achieved a major technical milestone with a world-record 99.99% two-qubit gate fidelity and the #AQ 64 benchmark on its Tempo system ahead of schedule, signaling strong progress toward fault-tolerant gate-model quantum computing. Combined with a pro-forma cash position of $3.5 billion after a recent equity raise, IonQ has one of the strongest balance sheets in the sector.
(Read More: IonQ's 12% Pullback in a Month: Simply a Correction or Time to Sell?)
Rigetti Computing (RGTI - Free Report) : Till the third quarter of 2025, Rigetti was in an early, R&D-heavy stage. The company reported only $1.9 million in third-quarter 2025 revenues and continued to post significant losses. On the positive side, Rigetti still maintains a sizable liquidity cushion. As of Sept. 30, 2025, it had approximately $558.9 million in cash, cash equivalents, and short-term investments and after some warrant exercises by early November 2025, that total rose to roughly $600 million.
Over the past 30 days, shares of D-Wave have gained 1.2%.
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 48.3% from the last closing price of $25.08.
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.