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QBTS vs. QNT: Buy, Hold or Sell as Quantum Valuations Reset?
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Key Takeaways
D-Wave's bookings surged despite flat Q2 revenues, while its adjusted EBITDA loss widened 85%.
Quantinuum's Q2 revenues jumped 279%, but its $68 million adjusted EBITDA loss remains substantial.
QBTS trades at 94.15X forward P/S versus 255.84X for QNT, highlighting lofty valuations.
Speculative quantum-computing stocks like D-Wave Quantum (QBTS - Free Report) and Quantinuum (QNT - Free Report) are facing a sharp reality check as investors become less willing to pay a premium for long-dated growth stories. The broader market backdrop has also become more challenging. The Federal Reserve raised its benchmark federal funds target range by 25 basis points to 3.75%-4.00% on Sept. 16, its first-rate hike since July 2023, as the central bank said inflation remains elevated and emphasized the need to support a timely return to its 2% goal.
At the same time, Brent crude has moved back above $100 a barrel and the 10-year Treasury yield has approached 5%, increasing pressure on high-duration, speculative technology stocks. Reuters notes that the combination of higher oil prices, elevated bond yields and a more hawkish Fed is keeping investors focused on the risk of further rate increases.
For investors, the key issue now is whether these stocks adequately reflect the risks and the time required to convert technological progress into recurring revenues and eventual profitability. Let’s get into more detail.
Image Source: Zacks Investment Research
QBTS and QNT Stocks Under Pressure
Over the past three months, QBTS has declined 27.7%, while QNT has fallen 25.1%, indicating how quickly investor sentiment can change when speculative growth stocks confront higher rates, elevated expectations and questions about commercialization.
QBTS, QNT Execution Challenges
The weakness in pure-play quantum stocks is not solely a macro story. These companies have commanded substantial valuations relative to their still-small revenue bases after a powerful speculative rally over the past 18-24 months, leaving little room for execution disappointments.
D-Wave's second-quarter 2026 revenues were $3.1 million, flat year over year, although bookings rose 59% and first-half bookings surged 1,120%. QBTS pipeline is expanding, with larger QCaaS and systems opportunities, while 62.4% of second-quarter revenues came from commercial customers. However, its second-quarter adjusted EBITDA loss widened 85% as the company increased spending on product development and go-to-market initiatives.
Quantinuum is growing revenues faster but remains deeply loss-making. Second-quarter revenues jumped 279%. The company expects 2026 revenues of $28-$32 million and said year-to-date bookings had reached about $81 million. It is also investing heavily in its technology roadmap, developer ecosystem and manufacturing capacity. Second-quarter adjusted EBITDA loss was $68 million, while cash used in operations was $66.2 million. Its $2.1 billion cash position provides a much larger funding cushion, but management does not expect meaningful revenue scale and positive free cash flow until later in the decade.
QBTS and QNT have come under pressure as investors have become more cautious about the high valuations attached to quantum-computing stocks.
Lofty Valuation: QBTS and QNT
D-Wave currently trades at a forward one-year price-to-sales (P/S) of 94.15X, below its historical median but significantly lower than Quantinuum’s 255.84X. Both stocks trade at substantial premiums to the S&P 500’s 4.21X forward one-year P/S ratio, showing the elevated valuation expectations embedded in their shares even after recent share-price declines.
Image Source: Zacks Investment Research
What Should Investors Do Now?
Although both QBTS and QNT carry a Zacks Rank #4 (Sell), their risk profiles differ. D-Wave has stronger bookings momentum and a higher commercial revenue mix, while Quantinuum delivers faster revenue growth and has a substantially larger cash cushion. However, Quantinuum’s much higher valuation leaves less room for execution disappointments. Given elevated valuations, ongoing losses and uncertain commercialization timelines, investors should remain cautious on both stocks until sustainable revenue growth and a clearer path to profitability emerge.
View the Zacks #1 Rank List
Image: Bigstock
QBTS vs. QNT: Buy, Hold or Sell as Quantum Valuations Reset?
Key Takeaways
Speculative quantum-computing stocks like D-Wave Quantum (QBTS - Free Report) and Quantinuum (QNT - Free Report) are facing a sharp reality check as investors become less willing to pay a premium for long-dated growth stories. The broader market backdrop has also become more challenging. The Federal Reserve raised its benchmark federal funds target range by 25 basis points to 3.75%-4.00% on Sept. 16, its first-rate hike since July 2023, as the central bank said inflation remains elevated and emphasized the need to support a timely return to its 2% goal.
At the same time, Brent crude has moved back above $100 a barrel and the 10-year Treasury yield has approached 5%, increasing pressure on high-duration, speculative technology stocks. Reuters notes that the combination of higher oil prices, elevated bond yields and a more hawkish Fed is keeping investors focused on the risk of further rate increases.
For investors, the key issue now is whether these stocks adequately reflect the risks and the time required to convert technological progress into recurring revenues and eventual profitability. Let’s get into more detail.
Image Source: Zacks Investment Research
QBTS and QNT Stocks Under Pressure
Over the past three months, QBTS has declined 27.7%, while QNT has fallen 25.1%, indicating how quickly investor sentiment can change when speculative growth stocks confront higher rates, elevated expectations and questions about commercialization.
QBTS, QNT Execution Challenges
The weakness in pure-play quantum stocks is not solely a macro story. These companies have commanded substantial valuations relative to their still-small revenue bases after a powerful speculative rally over the past 18-24 months, leaving little room for execution disappointments.
D-Wave's second-quarter 2026 revenues were $3.1 million, flat year over year, although bookings rose 59% and first-half bookings surged 1,120%. QBTS pipeline is expanding, with larger QCaaS and systems opportunities, while 62.4% of second-quarter revenues came from commercial customers. However, its second-quarter adjusted EBITDA loss widened 85% as the company increased spending on product development and go-to-market initiatives.
Quantinuum is growing revenues faster but remains deeply loss-making. Second-quarter revenues jumped 279%. The company expects 2026 revenues of $28-$32 million and said year-to-date bookings had reached about $81 million. It is also investing heavily in its technology roadmap, developer ecosystem and manufacturing capacity. Second-quarter adjusted EBITDA loss was $68 million, while cash used in operations was $66.2 million. Its $2.1 billion cash position provides a much larger funding cushion, but management does not expect meaningful revenue scale and positive free cash flow until later in the decade.
QBTS and QNT have come under pressure as investors have become more cautious about the high valuations attached to quantum-computing stocks.
Lofty Valuation: QBTS and QNT
D-Wave currently trades at a forward one-year price-to-sales (P/S) of 94.15X, below its historical median but significantly lower than Quantinuum’s 255.84X. Both stocks trade at substantial premiums to the S&P 500’s 4.21X forward one-year P/S ratio, showing the elevated valuation expectations embedded in their shares even after recent share-price declines.
Image Source: Zacks Investment Research
What Should Investors Do Now?
Although both QBTS and QNT carry a Zacks Rank #4 (Sell), their risk profiles differ. D-Wave has stronger bookings momentum and a higher commercial revenue mix, while Quantinuum delivers faster revenue growth and has a substantially larger cash cushion. However, Quantinuum’s much higher valuation leaves less room for execution disappointments. Given elevated valuations, ongoing losses and uncertain commercialization timelines, investors should remain cautious on both stocks until sustainable revenue growth and a clearer path to profitability emerge.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.