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    QBTS
    Earnings call· Jun 2026(Q2 FY26)

    D-Wave Quantum Q2 FY26 earnings call QBTS

    Aug 6, 2026 Source

    Executive summary

    D-Wave Quantum Inc. Q2 FY26 — Commercial Momentum and Gate-Model Validation

    D-Wave Quantum Inc. reported Q2 FY26 results highlighting significant commercial traction with growing QCaaS revenue and substantial bookings growth, driven by large enterprise adoption and a strong RPO balance. The company also achieved key technical milestones, including peer-reviewed validation of its dual-rail gate-model architecture, reinforcing its dual-platform strategy and path to commercial fault tolerance. Management anticipates continued revenue growth in the latter half of the year.

    Highlights

    5

    • QCaaS subscription revenue increased 50% year-over-year to $1.9 million in Q2 FY26.

    • Bookings for Q2 FY26 increased 59% year-over-year to $2.1 million, with first half bookings up 1,120% to $35.5 million.

    • Remaining Performance Obligations (RPO) grew 668% year-over-year to $40.7 million as of June 30, 2026.

    • IDC named D-Wave a leader in its Worldwide Quantum Computing 2026 Vendor Assessment.

    • Peer-reviewed research in Nature validated the dual-rail gate-model architecture with 99.9% fidelity and 500 nanosecond gate times.

    Concerns

    3

    • GAAP gross profit decreased 14% year-over-year to $1.7 million, with GAAP gross margin declining 8.4% to 55.4% due to increased personnel costs.

    • Adjusted EBITDA loss increased 85% year-over-year to $37.1 million, driven by investments in product development and go-to-market initiatives.

    • Cash and marketable investment securities decreased 33% year-over-year to $546.2 million, primarily due to the $250 million acquisition of Quantum Circuits.

    Guidance & targets

    12
    CategoryTargetConfidence
    Gate-model system delivery
    17 physical qubit system
    medium materiality
    High
    Gate-model system delivery
    49 physical qubit system
    medium materiality
    High
    Gate-model system delivery
    181 physical qubit system
    medium materiality
    High
    Gate-model logical qubits
    10 logical qubits
    high materiality
    High
    Gate-model logical qubits and operations
    100 logical qubits and more than 1 million reliable operations
    high materiality
    High
    Annealing system capacity
    20,000 qubit Advantage3 system
    medium materiality
    High
    Annealing system capacity
    100,000 qubits
    medium materiality
    High
    System delivery
    1 system to Florida Atlantic University
    medium materiality
    High
    Annual system deals
    2 to 3 systems deals annually
    medium materiality
    High
    System deliveries
    2 system deliveries
    medium materiality
    High
    Q3 Revenue
    up modestly from the second quarter revenue
    medium materiality
    High
    Q4 Revenue
    up significantly over the third quarter revenue
    high materiality
    High

    Operational metrics

    36
    Revenue
    $3.1Mflat YoY
    Q2 FY26

    Essentially flat with revenue in the second quarter of 2025.

    QCaaS subscription revenue
    $1.9Mup 50% YoY
    Q2 FY26

    Part of Q2 revenue composition.

    Professional services revenue
    $900,000up 18% YoY
    Q2 FY26

    Part of Q2 revenue composition.

    Systems and other revenue
    $300,000
    Q2 FY26

    Primarily from installation and site prep activities associated with the $20 million system sale to Florida Atlantic University.

    Commercial enterprises revenue share
    62.4%vs 45.1% in Q2 FY25
    Q2 FY26

    Further evidencing D-Wave's progression in providing commercial quantum solutions.

    Forbes Global 2000 revenue share
    47.7%vs 20.4% in Q2 FY25
    Q2 FY26

    Demonstrating the evolution of the customer base to global enterprises.

    GAAP gross profit
    $1.7Mdown 14% YoY
    Q2 FY26

    Decrease due primarily to increased personnel costs.

    GAAP gross margin
    55.4%down 8.4% from 63.8% in Q2 FY25
    Q2 FY26

    Decline also driven by increased personnel costs.

    Net loss
    $48Mvs $167.3M in Q2 FY25
    Q2 FY26

    Decrease due primarily to a $142 million year-over-year decrease in non-cash non-operating charges related to warrant liability remeasurement, partially offset by increased personnel costs and non-cash expenses.

    Diluted EPS
    -$0.13vs -$0.55 in Q2 FY25
    Q2 FY26

    Reflects the decrease in net loss.

    Adjusted EBITDA loss
    $37.1Mup 85% YoY from $20M in Q2 FY25
    Q2 FY26

    Higher loss due primarily to increased investments to support product development and go-to-market initiatives, primarily personnel-related expenses.

    Revenue
    $5.9Mdown 67% YoY from $18.1M in H1 FY25
    H1 FY26

    Reflects the absence of a large system sale in the current period compared to the prior year.

    Commercial customers revenue share
    67.7%vs 16% in H1 FY25
    H1 FY26

    Significant progress in demonstrating traction with commercial enterprises.

    Forbes Global 2000 revenue share
    48.5%vs 7.5% in H1 FY25
    H1 FY26

    Further demonstrating the evolution of the customer base.

    QCaaS revenue from production applications
    $1.3Mvs $300,000 in H1 FY25
    H1 FY26

    Underscores progress in transitioning customers to production applications.

    QCaaS subscription revenue
    $3.6Mup 30% YoY
    H1 FY26

    Part of H1 revenue composition.

    Professional services revenue
    $1.9Mup 22% YoY
    H1 FY26

    Part of H1 revenue composition.

    Systems and other revenue
    $400,000
    H1 FY26

    Part of H1 revenue composition.

    GAAP gross profit
    $3.5Mdown 78% YoY from $15.9M in H1 FY25
    H1 FY26

    Decrease due primarily to higher gross margins associated with a system sale in the year earlier period.

    GAAP gross margin
    59.4%down from 87.6% in H1 FY25
    H1 FY26

    Decline also due to the high gross margin associated with a system sale in H1 FY25.

    Net loss
    $66.4Mvs $172.8M in H1 FY25
    H1 FY26

    Decrease primarily due to a $138.1 million decrease in non-cash non-operating charges related to warrant liability remeasurement, partially offset by a $28.4 million non-cash tax benefit related to the Quantum Circuits acquisition.

    Diluted EPS
    -$0.18vs -$0.59 in H1 FY25
    H1 FY26

    Reflects the decrease in net loss.

    Adjusted EBITDA loss
    $69.9Mup from $26.1M in H1 FY25
    H1 FY26

    Increased loss due primarily to increased investments to support product development and go-to-market initiatives, primarily personnel related.

    Cash and marketable investment securities balance
    $546.2Mdown 33% from $819.3M as of Q2 FY25
    as of June 30, 2026

    Reflects the impact of the Quantum Circuits acquisition.

    Sales opportunity pipeline
    >120%increase from Dec 31, 2025 to June 30, 2026
    H1 FY26

    Dollar value of the sales opportunity pipeline.

    Dual-rail architecture fidelity
    99.9%
    Current

    Demonstrated in peer-reviewed research published in Nature.

    Gate times
    500 nanoseconds
    Current

    Achieved with native hardware-level error detection and no additional error correction.

    Lambda target
    10
    Target

    Target grounded in inherent error detection characteristics of dual-rail architecture.

    Physical qubits for one reliable logical qubit
    100 to 200
    Target

    Enabled by a Lambda of 10, significantly more efficient than other approaches.

    AT&T processing time reduction
    from 1 hour to <15 seconds
    Initial application

    Achieved by integrating D-Wave's annealing quantum computing capabilities with Agentic AI tools.

    NTT DOCOMO paging signal reduction
    15%
    Initial application

    Contributed to meaningful infrastructure efficiencies.

    NTT DOCOMO location registration signal reduction
    65%
    Second application

    Achieved while also reducing paging signals during peak periods.

    NTT DOCOMO paging signal reduction (peak)
    7%
    Second application

    Achieved alongside location registration signal reduction.

    US National Science Foundation funding
    $1.57M
    Current

    Supports D-Wave's participation in the ERASE project.

    Annealing system pricing range
    $20M-$40M
    Current

    Outlined pricing for annealing systems.

    QCaaS discussions with line of business
    25% to 30%
    Current

    Represents the proportion of discussions directly with line of business or where innovation teams bring LOBs in upfront.

    Industry KPIs

    9
    MetricValueDetails
    Capacity CAPEX—
    Revenue growth$3.1MUSD
    Arr net new arr—
    Rpo current rpo$40.7MUSD
    Bookings billings$2.1MUSD
    Customer account count~100customers
    Large deal new logo metrics>87%%
    Operating FCF margin rule of 4055.4%%
    Ai product adoption monetization—

    Orderbook & backlog

    4
    Bookings$2.1MQ2 FY26

    up 59% YoY (+$800,000)

    Average booking sizeup >87%Q2 FY26

    YoY

    Bookings$35.5MH1 FY26

    up 1,120% YoY (+$32.6M)

    Included a $20M annealing quantum computer system for Florida Atlantic University.

    Remaining Performance Obligations (RPO)$40.7MJune 30, 2026

    up 668% YoY (+$35.4M) from $5.3M as of June 30, 2025

    57% expected to be recognized as revenue within the next 12 months; 72% within the next two years.

    Product announcements

    9
    ProductTypeDetails
    Gate-model simulatorlaunch
    17 physical qubit systemmilestone
    49 physical qubit systemmilestone
    181 physical qubit systemmilestone
    10 logical qubit systemmilestone
    100 logical qubit systemmilestone
    Advantage3 systemroadmap
    Annealing systemroadmap
    Scalable I/O prototype designmilestone

    Deals & partnerships

    4
    AT&TExpanded agreement focused on applying D-Wave's technology to complex optimization challenges across its network operations.

    Integrates D-Wave's annealing quantum computing capabilities with Agentic AI tools used by AT&T.

    Optum (UnitedHealth Group)Applying D-Wave's Quantum hybrid technology to difficult optimization problems involving thousands of variables and constraints.

    Team is now evaluating additional opportunities within Optum and across the broader UnitedHealth organization.

    NTT DOCOMOExpanded production use of D-Wave technology for network optimization.

    Intends to continue identifying additional areas for quantum optimization.

    Quantum CircuitsAcquisition of Quantum Circuits.$250M

    Acquisition closed in January of this year. Integration has gone extremely well, with technology sharing between annealing and gate-model programs.

    Capital programs

    1
    Florida Atlantic University annealing quantum computer systemunderway$20M

    Revenue from this system sale will be recognized in subsequent quarters, with installation and calibration carrying into 2027.

    Risks & headwinds

    3
    Increased personnel costsQ2 FY26

    GAAP gross profit decreased 14% YoY to $1.7M; GAAP gross margin decreased 8.4% to 55.4%; Adjusted EBITDA loss increased 85% YoY to $37.1M.

    Investments in product development and go-to-market initiativesQ2 FY26

    Adjusted EBITDA loss increased 85% YoY to $37.1M.

    Cash outflow for acquisitionQ2 FY26

    Cash and marketable investment securities balance decreased $273.1M (33%) YoY to $546.2M.

    Mitigation: Over 90% of the decrease was related to the $250M cash consideration for the Quantum Circuits acquisition.

    What to watch in Q3 FY26

    5

    Q3 FY26 Revenue Growth

    next quarter
    Current$3.1M (Q2 FY26)
    Targetup modestly QoQ

    Why it matters

    Indicates sequential revenue growth and progress towards full-year targets, especially before the anticipated Q4 ramp.

    Given this timing, we are expecting the third quarter revenue is likely to be up modestly from the second quarter revenue

    Q&A highlights

    8

    Inquired about the pipeline for QCaaS annealing customers, especially for Fortune 500 companies, given the AT&T announcement.

    The pipeline is expanding rapidly, and D-Wave is closing larger deals with major corporations like AT&T and Optum, often starting with one application and then growing to multiple. The company does not provide pipeline details but notes strong interest for both QCaaS and systems.

    “what I can say is that we have a very strong pipeline for both QCaaS and systems, but it's especially interesting for QCaaS because it is very large corporations that are coming to us with interest from the outset in multiple applications.”

    asked by Troy Jensen · answered by Alan Baratz

    2 min read5 chapters

    Detailed Narrative

    01

    IDC Recognition and Platform Maturity

    D-Wave was named a leader in the IDC MarketScape: Worldwide Quantum Computing 2026 Vendor Assessment, one of only two companies to achieve this. IDC highlighted D-Wave's production deployment footprint, mature framework for enterprise access, and hybrid adoption. This recognition emphasizes the industry's shift towards evaluating complete, usable quantum platforms rather than just raw qubit counts or ambitious roadmaps, playing directly to D-Wave's strengths in hardware, software, cloud infrastructure, and professional services.

    02

    Gate-Model Architecture Validation and Roadmap

    New peer-reviewed research published in Nature validates D-Wave's dual-rail architecture, demonstrating 99.9% fidelity during two-qubit operations with fast gate times of approximately 500 nanoseconds. This combines superconducting speed with high fidelity, addressing a critical challenge for scalable fault-tolerant systems. The architecture targets a Lambda of 10, which could enable one reliable logical qubit with 100 to 200 physical qubits, significantly reducing hardware overhead. The gate-model roadmap includes a 17-qubit system by end of 2026, a 49-qubit system in 2027, a 181-qubit system in 2028, and aims for 100 logical qubits by 2032.

    03

    Expanding Commercial Momentum with Key Customers

    D-Wave highlighted expanded agreements and production deployments with major customers. AT&T is applying D-Wave's annealing technology to network optimization, reducing processing time from one hour to under 15 seconds in an early application. Optum (UnitedHealth Group) moved directly to a production application, bypassing the proof-of-concept stage, running approximately 30,000 jobs by mid-June. NTT DOCOMO expanded its production use, reducing location registration signals by 65% and paging signals by 7% during peak periods, exceeding expectations. These examples demonstrate a clear path from individual use cases to broader enterprise adoption.

    04

    Government Engagements and Funding

    D-Wave secured approximately $1.57 million from the U.S. National Science Foundation for its participation in the ERASE project, focused on foundational technologies for fault-tolerant quantum computing. The company also received second-year funding for the SQ Fab project through NORDTECH, which is developing improved materials for superconducting qubits. These programs underscore growing government confidence in D-Wave's technical expertise and strategic relevance in strengthening domestic quantum leadership.

    05

    Developer Ecosystem and Annealing Roadmap

    To support adoption, D-Wave plans to release a gate-model simulator in its Leap Quantum Cloud platform later this year, designed for error-aware quantum programming. This will allow developers to prototype and validate applications based on realistic dual-rail system behavior. For annealing systems, the roadmap targets a 20,000-qubit Advantage3 system in 2029 and a 100,000-qubit system by 2031, utilizing advanced packaging and superconducting interconnect technologies to scale QPUs.

    AI-generated summary of the company’s earnings call. Not investment advice.