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Can D-Wave's Liquidity Position Mitigate Rising Cash Burn?
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Key Takeaways
QBTS held $503.4M in cash and securities in Q3, down 40% Y/Y following its Quantum Circuits deal.
QBTS' operating expenses surged 84% to $55.9M, while adjusted EBITDA losses widened to $37.7M in Q3.
QUBT secured access to up to $100M in govt. funding, subject to milestones, to advance quantum systems.
D-Wave Quantum (QBTS - Free Report) maintains a sizable liquidity position to support its product development, technology investments and commercial expansion, despite a decline in cash following the Quantum Circuits acquisition. At the end of the third quarter, cash and marketable securities totaled $503.4 million, down 40% year over year, primarily due to the approximately $253 million cash outlay for the acquisition in January 2026.
Operating expenses increased 84% year over year to $55.9 million in the third quarter, reflecting higher personnel costs, stock-based compensation, depreciation and amortization and marketing expenses. The adjusted EBITDA loss widened to $37.7 million from $20.7 million a year ago, primarily due to investments supporting accelerated product development and go-to-market initiatives.
D-Wave also secured access to up to $100 million in U.S. CHIPS and Science Act funding, subject to specified milestones, to advance its next-generation annealing and gate-model systems. Although the company had not received any funding by quarter-end, its substantial cash reserves and potential government support could provide financial flexibility to advance its technology roadmaps and commercial expansion while managing elevated operating costs.
Peer Update
As of Sept. 30, 2026, Rigetti’s (RGTI - Free Report) cash, cash equivalents and available-for-sale investments totaled $497.1 million. The company continued to maintain a debt-free balance sheet, providing financial flexibility to fund its technology development and infrastructure investments. During the first nine months of 2026, net cash used in operating activities totaled $49.1 million, while capital expenditures amounted to $42.6 million. These investments were primarily directed toward expanding dilution refrigeration capacity and acquiring Fab-1 equipment and infrastructure to support the development of higher-qubit-count quantum systems.
IonQ (IONQ - Free Report) held approximately $1.7 billion in cash, cash equivalents and investments as of Sept. 30, 2026. Following its October capital raise, management reported pro forma liquidity of $3.7 billion. This enlarged capital base supports continued investment in research, semiconductor manufacturing and customer deployments despite elevated operating cash requirements.
QBTS’ Price Performance
Over the past year, QBTS’ shares have lost 57.9% compared with the broader Internet Software industry’s 0.1% decline. The S&P 500 composite has risen 12.9% over the same time frame.
Image Source: Zacks Investment Research
QBTS’ Expensive Valuation
QBTS currently trades at a forward 12-month Price-to-Sales (P/S) of 48.10X compared with the industry average of 3.80X.
Image Source: Zacks Investment Research
QBTS Stock Estimate Trend
In the past 30 days, the company’s loss per share estimate for 2026 has moved south 1 cent.
View the Zacks #1 Rank List
Image: Bigstock
Can D-Wave's Liquidity Position Mitigate Rising Cash Burn?
Key Takeaways
D-Wave Quantum (QBTS - Free Report) maintains a sizable liquidity position to support its product development, technology investments and commercial expansion, despite a decline in cash following the Quantum Circuits acquisition. At the end of the third quarter, cash and marketable securities totaled $503.4 million, down 40% year over year, primarily due to the approximately $253 million cash outlay for the acquisition in January 2026.
Operating expenses increased 84% year over year to $55.9 million in the third quarter, reflecting higher personnel costs, stock-based compensation, depreciation and amortization and marketing expenses. The adjusted EBITDA loss widened to $37.7 million from $20.7 million a year ago, primarily due to investments supporting accelerated product development and go-to-market initiatives.
D-Wave also secured access to up to $100 million in U.S. CHIPS and Science Act funding, subject to specified milestones, to advance its next-generation annealing and gate-model systems. Although the company had not received any funding by quarter-end, its substantial cash reserves and potential government support could provide financial flexibility to advance its technology roadmaps and commercial expansion while managing elevated operating costs.
Peer Update
As of Sept. 30, 2026, Rigetti’s (RGTI - Free Report) cash, cash equivalents and available-for-sale investments totaled $497.1 million. The company continued to maintain a debt-free balance sheet, providing financial flexibility to fund its technology development and infrastructure investments. During the first nine months of 2026, net cash used in operating activities totaled $49.1 million, while capital expenditures amounted to $42.6 million. These investments were primarily directed toward expanding dilution refrigeration capacity and acquiring Fab-1 equipment and infrastructure to support the development of higher-qubit-count quantum systems.
IonQ (IONQ - Free Report) held approximately $1.7 billion in cash, cash equivalents and investments as of Sept. 30, 2026. Following its October capital raise, management reported pro forma liquidity of $3.7 billion. This enlarged capital base supports continued investment in research, semiconductor manufacturing and customer deployments despite elevated operating cash requirements.
QBTS’ Price Performance
Over the past year, QBTS’ shares have lost 57.9% compared with the broader Internet Software industry’s 0.1% decline. The S&P 500 composite has risen 12.9% over the same time frame.
Image Source: Zacks Investment Research
QBTS’ Expensive Valuation
QBTS currently trades at a forward 12-month Price-to-Sales (P/S) of 48.10X compared with the industry average of 3.80X.
Image Source: Zacks Investment Research
QBTS Stock Estimate Trend
In the past 30 days, the company’s loss per share estimate for 2026 has moved south 1 cent.
Image Source: Zacks Investment Research
QBTS stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.