D-Wave Quantum Stock Cools After Stellar Rally as Fundamentals Come Into Focus

D-Wave's quantum computing stock (QBTS) has seen a meteoric rise of 1,920% over the past year, driven by investor enthusiasm for the quantum revolution. However, the euphoria has waned recently, with shares retreating 34% from their peak as the market shifts its attention to the company's financial fundamentals.

The latest quarterly report highlights both progress and challenges. Revenue doubled year-over-year to $3.7 million, while bookings reached $2.4 million, signaling growing customer adoption. Gross margins improved significantly, with GAAP and non-GAAP figures at 71.4% and 77.7%, respectively, fueled by a stronger mix of cloud services and quantum solutions.

Yet, profitability remains elusive. Operating expenses surged 40% to $30.4 million as the company continues heavy investments in research and development. The GAAP net loss ballooned to $140 million, largely due to non-cash charges, underscoring the gap between innovation and sustainable earnings.