TLDR
- D-Wave Quantum (QBTS) rose 5.6% on Wednesday to around $19.70, on volume of 25.1 million.
- Q4 fiscal 2025 earnings are due Thursday before market open; analysts expect a 6-cent loss on $3.72M revenue.
- 15 of 16 analysts rate QBTS a buy, with a consensus price target of $39.24 — over 110% implied upside.
- Recent deals include a $10M two-year contract with a Fortune 100 company and a $20M Advantage2 system sale to Florida Atlantic University.
- Insiders sold over 1 million units of stock in the past 90 days, including the CFO offloading 100,000 at $30.03.
D-Wave Quantum (QBTS) climbed 5.6% on Wednesday, trading as high as $19.81 before settling around $19.70. The previous close was $18.66.
Volume came in at 25.1 million — about 24% below the stock’s average session volume of 33 million.
The move comes one day before D-Wave reports its fourth-quarter fiscal 2025 results, due Thursday morning before the market opens.
Analysts expect the company to post a loss of 6 cents per share on revenue of $3.72 million. That would represent a 61.74% year-over-year revenue increase and a 38.1% improvement in its per-share loss compared to a year ago.
The expected loss is a slight step back from the prior quarter’s 5-cent loss. Revenue would be marginally higher than the $3.7 million reported in Q3.
D-Wave beat expectations last quarter, posting a 5-cent loss versus the 7-cent estimate, and revenue of $3.7 million that came in 22% above forecasts.
Wall Street is broadly bullish going into the print. Fifteen of 16 analysts currently rate QBTS a buy, with a consensus price target of $39.24. That implies more than 110% upside from Wednesday’s price.
EPS estimates have risen 4.46% over the past 60 days, pointing to improving sentiment heading into the report.
TD Cowen analyst Krish Sankar initiated coverage this month with a buy rating. He noted that “leadership in quantum annealing is driving growth via high-margin, Advantage system sales and cloud services.”
Recent Contract Wins
D-Wave recently announced a $10 million, two-year quantum computing service agreement with a Fortune 100 company. Florida Atlantic University also signed a $20 million deal to purchase an Advantage2 system.
Investors will be watching closely to see if management can explain how these deals translate into recurring, predictable revenue.
The company positions itself as the only dual-platform quantum computing provider, offering both annealing and gate-model systems. Its gate-model technology carries what D-Wave describes as 99.9%-plus qubit fidelity rates.
Gross margins are above 82%, but operating losses continue. The path to positive cash flow relies on revenue growing faster than operating costs — a tough ask for a company investing heavily in two technology platforms at once.
Insider Activity
On the insider front, the picture is less optimistic. CFO John M. Markovich sold 100,000 units of stock on December 22nd at an average price of $30.03, totalling $3 million. That represented a 6.36% reduction in his position.
Director Rohit Ghai sold 10,000 units at $24.28 on December 15th, cutting his position by 20.93%.
In total, insiders sold over 1.07 million units of stock in the past 90 days, valued at roughly $31.5 million.
The stock’s 50-day moving average sits at $24.58, and its 200-day moving average is $24.96. QBTS has a market cap of $7.29 billion and a beta of 1.56.
Institutional investors currently own 42.47% of the stock.
The 52-week low for QBTS is $4.45.
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