D-Wave Quantum (QBTS 4.91%) is one of the most popular quantum computing stocks, with a stunning 4,900% gain over the past three years. As one of only a handful of publicly traded quantum computing pure plays, D-Wave may seem like a sure-fire way to gain exposure to a market that McKinsey & Co. thinks could be worth $2.7 trillion by 2035.
But there are three critical things investors should know before they buy D-Wave stock.
Image source: Getty Images.
1. D-Wave's business is inherently lumpy
D-Wave specializes in selling quantum computers to its customers and quantum computing cloud services. The latter is a fairly consistent revenue stream, but when D-Wave sells a quantum computer to a big client, the revenue from that sale isn't as consistent as the cloud sales.
For example, D-Wave had $15 million in sales in the first quarter of 2025 and a loss of $0.02 per share. Part of that revenue came from the company selling its first Advantage quantum computer system to a research center.
Large sales like this are great when they happen, but they don't happen in every quarter. In Q1 2026, consensus estimates for D-Wave's sales are just $4.1 million, and the company is expected to post a loss of $0.08 per share.
For most companies, that decline would be a big red flag. But for D-Wave, it's less of a warning and more of a sign of a company betting on an early-stage technology. Not many companies need quantum computers right now, and building them is time-consuming. So, at least for now, some quarters will have much higher revenue than others.
For reference, here's how the company's revenue breakdown looked in 2025:
|
Category |
2025 Revenue |
Percent of Total Sales |
|---|---|---|
|
Hardware (quantum computers) |
$16.2 million |
~66% |
|
Software |
$5.5 million |
~23% |
|
Professional services (training) |
$2.7 million |
~11% |
Data source: D-Wave Q4 2025 earnings call.
2. D-Wave has commercial sales, but losses are significant
Some quantum computing companies are developing impressive technologies, but don't have any customers yet. That's not D-Wave. The company may have inconsistent revenue from quantum computing, but it's actually selling its products to customers.
And it's been fairly consistent lately in gaining new software customers. D-Wave recently signed a $10 million deal with an undisclosed Fortune 100 company to use its Leap quantum-computing-as-a-service (QCaaS) for the next two years.
What's more, Florida Atlantic University recently signed a $20 million deal with D-Wave for its quantum-classical hybrid service and Advantage system, a massive win for the company that will show up in its top line later this year. In addition to those notable deals, the company has about 135 individual customers.
That's the good news, but the not-so-great news is that the company still has significant losses that could last a while. D-Wave finished 2025 with $884 million in liquidity but posted a $355 million loss.
Even some of the impressive customer wins it's made lately aren't enough to offset its losses. Quantum computing is expensive, and there's no clear consensus on when the company might be profitable.
NYSE: QBTS
Key Data Points
3. Its shares are very volatile and expensive
Anyone interested in riding D-Wave's stock had better strap in fast. It's easy to get excited about a stock when you see that it's up more than 4,900% over the past three years. That's extremely impressive, but also consider that over the past six months, its share price has plummeted 36% -- and that's after a 40% increase in April alone.
Would you have been able to stomach that 36% drop and still hold onto your shares? Many investors can't handle volatility like that, but you'll have to if you own D-Wave.
You also have to be willing to pay a very high premium. D-Wave's stock has a price-to-sales (P/S) ratio of about 268 right now, which is far above the average P/S ratio for tech stocks of just 9.
Of course, if quantum computing takes off in the coming years, D-Wave may already have a head start. But investors should know there's significant risk with this stock right now, even with a bright future in quantum computing.
