Insider Brief
- D-Wave reported 42% year-over-year revenue growth in Q2 2025, while posting a steep net loss and record-high operating expenses as it expanded product offerings and customer reach.
- The company launched its sixth-generation Advantage2 system, introduced quantum AI developer tools and ended the quarter with $819 million in cash—up over 1900% from the same period last year.
- Net loss widened to $167.3 million due largely to warrant-related charges, while adjusted EBITDA loss rose to $20 million amid increased spending on personnel, R&D and infrastructure.
D-Wave Quantum Growth
D-Wave Quantum Inc. reported a 42% year-over-year jump in revenue for the second quarter of 2025, driven by new customer engagements and the commercial launch of its next-generation quantum system, according to a statement from the company. But the Canadian-American company also posted a steep net loss and highlighted rising operating expenses as it pursues an aggressive expansion strategy.
“Our second quarter results show consistently strong performance across a multitude of technical and business metrics,” said Dr. Alan Baratz, CEO of D-Wave, in the release. “During the quarter, we brought to market our sixth-generation quantum computer, signed a memorandum of understanding related to the acquisition of an on-premises system in South Korea, completed physical assembly of the previously announced system at Davidson Technologies, introduced a collection of developer tools to advance quantum AI and machine learning innovation, and ended the quarter with a record $819 million in cash. We’re confident in our ability to continue delivering long-term value for our customers, partners and shareholders.”
The company ended the quarter with $819 million in cash — the highest in its history — following a $400 million equity offering and additional capital raised through warrants and a standing credit line. D-Wave said the influx of capital will support product development, acquisitions, and scaling efforts across both its annealing and gate-model quantum technologies.
Q2 2025 Financial Results for D-Wave
Total revenue for the quarter came in at $3.1 million, up from $2.2 million a year earlier. Gross profit also rose 42% to $2.0 million, while gross margin held steady at roughly 64% under generally accepted accounting principles (GAAP).
Advantage2 Release Marks Sixth-Generation D-Wave Quantum System
The increase in top-line performance coincided with the commercial release of the company’s Advantage2 system, its sixth-generation quantum annealer, which D-Wave says is designed to tackle complex optimization and simulation problems beyond the reach of classical computers. According to the statement, the new system features improved coherence, energy scale and connectivity, contributing to faster, higher-quality results in domains such as logistics, materials science and artificial intelligence (AI).
Alongside its product launch, D-Wave introduced a new suite of developer tools targeting quantum machine learning. The open-source toolkit allows AI developers to experiment with image generation using D-Wave processors, offering what the company described as an early look into the potential of quantum AI.
Net Loss and Rising Expenses
Still, the results show that D-Wave’s challenging financial picture, including higher losses. The company reported a net loss of $167.3 million for the quarter, compared to $17.8 million in the same period last year. Most of the loss — about $142 million — was tied to non-cash charges related to warrant revaluation. Adjusted for these charges, the company’s net loss was $25.3 million, up from $20 million in Q2 of 2024.
Operating expenses rose to $28.5 million, up 41% from a year ago, reflecting increases in personnel, fabrication activity, and professional services. Adjusted EBITDA loss widened to $20 million, compared to $13.9 million a year earlier. EBITDA — Earnings Before Interest, Taxes, Depreciation, and Amortization — is a measure of a company’s operating performance that excludes costs unrelated to its core business, making it useful for unfiltered comparisons.
Customer Momentum
On the positive side, the figures indicate that customer traction is picking up momentum. D-Wave cited new and renewed agreements with companies including E.ON, GE Vernova, Nikon, NTT Data, NTT DOCOMO, Sharp, and the University of Oxford. The company also extended its global reach through a partnership with Yonsei University and Incheon Metropolitan City in South Korea, part of a broader effort to deploy its quantum systems internationally.
As part of that initiative, D-Wave signed a memorandum of understanding that outlines a potential acquisition of an Advantage2 system by Yonsei University. A similar project in the U.S. reached a milestone in Q2, as the company completed physical assembly of an on-premises quantum system for defense contractor Davidson Technologies.
On the infrastructure side, D-Wave announced a strategic initiative to improve cryogenic packaging technology for both annealing and gate-model processors. The company said the effort supports its long-term roadmap, which includes scaling toward 100,000 qubits.
First Half 2025 Financial Overview
For the first half of 2025, D-Wave reported revenue of $18.1 million — an increase of 289% compared to the same period in 2024 — largely attributed to a high-margin quantum computer sale earlier in the year. However, bookings for the first half declined by 13%, signaling potential volatility in future revenue recognition.
Gross margins for the first six months reached 87.6% under GAAP and 89.9% on a non-GAAP basis, both significantly higher than the prior year. The company attributed this gain to improved hardware efficiency and the one-time system sale. Still, total operating expenses climbed to $53.6 million over the same period, up 36% year-over-year.
‘Cash Position Up Over 1900% From 2Q 2024’
Despite the net loss, D-Wave closed Q2 with a strong balance sheet. Its equity offering, coupled with cash from warrants and a credit line, lifted its total cash position by over 1900% compared to the year-ago quarter. Stockholders’ equity rose to $694.3 million.
Long-Term Outlook for D-Wave Quantum
While some financial indicators deteriorated — especially bottom-line profitability — the company emphasized the long-term opportunity in building scalable quantum systems for commercial use. Its recent investments in systems engineering, AI integration, and international partnerships reflect a strategy focused more on platform maturity than short-term profitability.
The results seem inline with other public quantum computing companies, signaling that the sector remains early in its commercialization phase. D-Wave’s path diverges from many competitors by emphasizing annealing systems over gate-model qubits. The company has also continues to position itself as a platform for real-world use cases, especially in industries with complex optimization needs.
D-Wave’s management acknowledged that scaling will require sustained capital and execution, but pointed to its record cash reserves as a buffer against near-term volatility.
The company has not yet issued full-year guidance for 2025.
