D-Wave Quantum’s Record $33.4 Million in Bookings Provides Cover as Quarterly Revenue Drops 81%

Investors in D-Wave Quantum got a textbook reminder of why growth stocks can be so volatile on Wednesday, as the company delivered two starkly conflicting signals in its first-quarter earnings report. Revenue cratered to just $2.9 million, missing analyst estimates by a wide margin, but new orders exploded to a record $33.4 million — a nearly 2,000% jump that underscored surging demand for the company’s quantum computing technology.

The revenue figure for the quarter ended March 31, 2026, represented an 81% decline from the prior year, when a large system sale had inflated the comparison. Analysts had been looking for about $4.1 million in sales. The miss was partly cushioned by a narrower-than-expected adjusted loss per share of $0.05, better than the $0.08 analysts had penciled in. On a GAAP basis, the net loss came in at $18.4 million.

Operating expenses climbed to $56.5 million, including $9.1 million in one-time acquisition costs tied to the purchase of Quantum Circuits, a deal valued at roughly $250 million. Personnel costs also rose by $8.6 million, and a lower gross margin weighed on the bottom line, though a tax benefit from the acquisition provided some relief.

The real headline, however, was the bookings surge. D-Wave closed $33.4 million in new business during the quarter, compared with just $1.6 million a year earlier — a leap of approximately 1,994%. Two major contracts drove the jump: a $20 million system sale to Florida Atlantic University and a $10 million QCaaS deal with a Fortune 100 company. The resulting backlog of unsatisfied performance obligations hit $42.4 million, up from $6.4 million a year ago. Management expects 71% of that backlog to convert into revenue over the next two years.

Should investors sell immediately? Or is it worth buying D-Wave Quantum?

That conversion timeline explains the tension in the stock. On Wednesday, D-Wave’s shares traded at €17.95 in Europe, down 5.53% on the session, after sliding as much as 7.1% on Tuesday when the numbers landed. The broader tech sector fell 1.82% that same day. The month-to-date gain still stands at roughly 44% (or 52.67% by Tuesday’s close), but year-to-date the stock is down nearly 21%.

“The short-term revenue dip is disappointing, but the order momentum is undeniable,” wrote Jefferies analyst Kevin Garrigan, who maintained a Buy rating and $45 price target. Most other Wall Street firms kept positive stances while trimming their targets to reflect the near-term softness. Mizuho lowered its target from $31 to $29 (Outperform), Evercore ISI cut from $42 to $37, and Canaccord reduced from $43 to $41. Needham and Cantor Fitzgerald held at $40. The consensus target sits near $34.80.

Strategically, the Quantum Circuits acquisition is D-Wave’s most consequential move in years. It gives the company a dual-platform portfolio, combining its traditional annealing systems with gate-model technology built on Quantum Circuits’ dual-rail qubit architecture. The roadmap released alongside the earnings calls for a system with roughly 175 physical qubits by the end of 2028, scaling to 1,000 physical qubits and 10 logical qubits by 2030, and ultimately 100 logical qubits by 2032.

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Closer in, D-Wave plans to deliver a 17-qubit system before the end of this year and expects at least two system shipments in fiscal 2026. Most of the year’s revenue is expected in the second half. On June 1, the company will hold an investor day at the New York Stock Exchange to detail its commercialization strategy and the integration of gate-model technology, followed by a European user conference in London on June 18.

Financially, D-Wave enters this period with ample runway. It held $588.4 million in cash and marketable securities at quarter-end, a cushion that will be critical as the company scales both technology pathways simultaneously. A minor reporting correction also drew attention: the company adjusted its outstanding share count to 367,269,074 as of May 11, a net increase of 531,473 shares from the earlier quarterly filing. For now, the market is watchfully waiting to see when the record bookings finally translate into visible revenue — and whether D-Wave’s dual-technology bet can pay off.

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