D-Wave Quantum Inc. (QBTS +0.93%) stock tumbled 10.3% through 10:45 a.m. ET Friday, one day after the self-proclaimed "world's first commercial supplier of quantum computers" reported fiscal 2025 earnings.
In that report, D-Wave boasted that it grew annual revenue 179% year over year, gross profit 265% year over year, and "ended 2025 with highest liquidity position in company's history at over $884 million."
Sound impressive?
At least two prominent Wall Street analysts were not impressed. Evercore ISI and Mizuho both cut price targets on D-Wave Quantum stock after the report, probably sparking today's sell-off.
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D-Wave Quantum 2025 earnings
While D-Wave's percentage gains were big, the actual numbers D-Wave reported were objectively small for a quantum stock valued at nearly $6.7 billion.
In all of 2025, D-Wave generated only $24.6 million in sales, giving the stock a price-to-sales ratio of more than 260x. Bookings for the year, which foreshadow future revenue, fell 22% year over year to just $18.7 million. On the bottom line, D-Wave reported a $1.11 per share loss -- up 48% year over year.
Rounding out the bad news, D-Wave suffered $75.8 million in negative free cash flow, burning 69% more cash in 2025 than it did in 2024.
NYSE: QBTS
Key Data Points
Is D-Wave stock a sell?
The good news is that D-Wave ended 2025 with $635.3 million in cash and equivalents, with a further $249.1 million in marketable securities -- more than $884 million total, and enough to permit D-Wave to keep burning cash for the next dozen years if it needs to.
The better news is that it may not need to. At last report, most analysts polled by S&P Global Market Intelligence still believe D-Wave Quantum could begin generating positive free cash flow by 2028.
We shall see.
