# D-Wave Quantum: the annealing specialist that bought its way into gate-model machines

> D-Wave sells quantum annealing computers and cloud time on them. Nine-month 2026 revenue was $10.4 million, down from $21.8 million a year earlier.

- Published: 2026-11-12
- Updated: 2026-11-12
- Publisher: Many Worlds, published by Many Worlds Capital (https://news.manyworlds.vc/)
- Canonical: https://news.manyworlds.vc/companies/d-wave/
- Company: D-Wave Quantum
- Ticker: QBTS, Nasdaq
- Status: public
- Modality: Annealing
- Headquarters: Palo Alto, California
- Founded: 1999
- Topics: public-markets, annealing, hardware, government

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## Main takeaways

- D-Wave Quantum (QBTS) sells quantum annealing computers and cloud time on them. It paid $538.5 million in January 2026 for a gate-model developer.
- It was valued at about $3.9 billion at the November 11, 2026 close, against 2025 revenue of $24.6 million.
- Revenue in the first nine months of 2026 was $10.4 million, down from $21.8 million. Orders signed in the period were $37.4 million.
- Main risk: the operating loss was $161.5 million in those nine months, and revenue depends on a few large system orders.
- Next: installation of a $20 million system at Florida Atlantic University is due to start before the end of 2026.

D-Wave Quantum (QBTS) builds quantum annealing computers, machines made for one kind of problem: picking the best option among a very large number of combinations. It sells the machines and rents time on them over the cloud to companies, universities and governments. Its [annual report](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000026/qbts-20251231.htm) names Mastercard, BASF, Pfizer and NTT DOCOMO among its customers. At the November 11, 2026 Nasdaq close of $10.65 (price from Yahoo Finance), the company was valued at about $3.9 billion, on the 369.3 million shares in its [quarterly filing of August 2026](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000129/qbts-20260630.htm).

## Key numbers

| Metric | Value | As of |
|---|---|---|
| Market value | About $3.9 billion, at $10.65 a share | November 11, 2026 close |
| Revenue | [$24.6 million](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000026/qbts-20251231.htm) | Full year 2025 |
| Net loss | [$355.1 million](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000026/qbts-20251231.htm) | Full year 2025 |
| Cash and marketable securities | [$503.4 million](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000180/qbts-20261110xexx991.htm) | September 30, 2026 |
| Newest system | [More than 4,400 qubits, Advantage2 (annealing)](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000026/qbts-20251231.htm) | Released May 2025 |
| Employees | [About 388](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000026/qbts-20251231.htm) | February 5, 2026 |
| Founded | [1999](https://www.dwavequantum.com/company/about-d-wave/) | |
| Headquarters | [Palo Alto, California](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000026/qbts-20251231.htm) | |

## What the company does

The annual report lists three sources of revenue.

- Cloud access. Customers rent time on D-Wave's machines through its Leap service, launched in 2018 and offered in 42 countries.
- Complete machines installed at the customer's site. Florida Atlantic University signed a [$20 million agreement](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000016/a991fausystemdeal.htm) in January 2026 to buy an Advantage2 system. In the third quarter of 2026 D-Wave delivered one for installation in Como, Italy, funded by Swiss Quantum Technology SA, according to its [results release](https://www.dwavequantum.com/company/newsroom/press-release/d-wave-reports-third-quarter-2026-results/).
- Professional services, sold under the name D-Wave Launch, to help customers adopt the technology.

Annealing machines are what D-Wave sells today. What it promises is a second product line: the annual report says the company "expects to offer customers the ability to purchase superconducting gate-model systems in 2026", after it bought Quantum Circuits, a gate-model developer, in January 2026. A U.S. government award of up to $100 million, signed in September 2026, is meant to support a 100,000-qubit annealing machine and a 10,000-qubit gate-model machine, D-Wave [said](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000141/chipsactpressrelease.htm). It gave no date for either.

## The technology in plain words

A [qubit](https://news.manyworlds.vc/learn/qubit/) is the basic unit a quantum computer computes with. [IonQ](https://news.manyworlds.vc/companies/ionq/), [Rigetti](https://news.manyworlds.vc/companies/rigetti/) and [Quantinuum](https://news.manyworlds.vc/companies/quantinuum/) build gate-model machines: a program is a sequence of operations applied to qubits, step by step. D-Wave's annual report names all three among its gate-model competitors.

An annealer works differently. The problem is written as a map of hills and valleys, where the lowest valley is the best answer. The qubits start in a [superposition](https://news.manyworlds.vc/learn/superposition/), a blend of 0 and 1, and the machine lets them settle toward a low point, then reads them. "Quantum annealing simply uses quantum physics to find low-energy states of a problem", D-Wave's [documentation](https://docs.dwavequantum.com/en/latest/quantum_research/quantum_annealing_intro.html) says. That suits optimization, such as scheduling and routing.

The known strength is that the machines are in commercial use now, according to D-Wave's [own primer](https://www.dwavequantum.com/learn/quantum-computing/). The known weakness is range. D-Wave's annual report says annealing is "best for optimization problems" and that gate-model systems are the better fit for other work, such as quantum chemistry. Because the two kinds of machine work differently, an Advantage2's 4,400 qubits are not a like-for-like comparison with a gate-model qubit count.

In March 2025 D-Wave [said](https://www.dwavequantum.com/company/newsroom/press-release/beyond-classical-d-wave-first-to-demonstrate-quantum-supremacy-on-useful-real-world-problem/) it was the first to show "quantum supremacy" on a useful problem. What was measured: a prototype Advantage2 simulated magnetic materials in minutes, a job D-Wave estimated would take the Frontier supercomputer nearly one million years. The paper was peer reviewed and published in the journal Science. A [second paper](https://arxiv.org/abs/2503.05693), published in Science in 2026 by researchers D-Wave places at the Flatiron Institute, reported that ordinary computers reach "state-of-the-art accuracies" on such simulations "with modest computational resources". D-Wave [answered in May 2026](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000071/exh_991xresponse.htm) that this work "does not reproduce the full scope" of its result. The paper it cited in support is a preprint on the arXiv site, and D-Wave's release does not call it peer reviewed. The annual report itself says: "No current quantum computers, including the D-Wave quantum hardware, have reached a broad quantum advantage".

The gate-model line comes from Quantum Circuits, co-founded by Yale professor Rob Schoelkopf, whom D-Wave credits with inventing the transmon, a type of superconducting qubit. D-Wave [says](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000010/d-waveannouncesagreementto.htm) its "dual-rail" qubits detect their own errors, which would cut the number of physical qubits needed for one logical qubit, a group of qubits that corrects its own mistakes. That is the company's claim.

| Date | Target | Status |
|---|---|---|
| 2020 | Advantage, an annealer of more than 5,000 qubits | [Released](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000026/qbts-20251231.htm) |
| May 2025 | Advantage2, an annealer of more than 4,400 qubits | [Released](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000026/qbts-20251231.htm) |
| 2026 | A first gate-model system that customers can buy | [Target](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000026/qbts-20251231.htm). A simulator of it entered a test program in the third quarter of 2026 |
| No date given | A 100,000-qubit annealer | [Target](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000141/chipsactpressrelease.htm) |
| No date given | A 10,000-qubit gate-model machine, designed for 100 logical qubits | [Target](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000141/chipsactpressrelease.htm) |

## The business

Revenue was flat near $9 million for two years, then almost tripled in 2025. The annual report says the increase was "primarily driven by system sales of $16.2 million".

```chart
{"type": "bar", "title": "Revenue by year", "unit": "$ million", "labels": ["2022", "2023", "2024", "2025"], "series": [{"name": "Revenue", "values": [7.2, 8.8, 8.8, 24.6]}], "source": "D-Wave Quantum, Form 10-K filings for 2023 and 2025", "source_url": "https://www.sec.gov/Archives/edgar/data/1907982/000190798226000026/qbts-20251231.htm"}
```

In the first nine months of 2026 revenue was $10.4 million, down from $21.8 million a year earlier, according to the [third-quarter results](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000180/qbts-20261110xexx991.htm) of November 10, 2026. The first half of 2025 held $13.7 million of system sales and the first half of 2026 held $0.3 million, the [second-quarter filing](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000129/qbts-20260630.htm) shows.

Bookings, D-Wave's word for orders expected to produce revenue later, were $37.4 million in the nine months. Of that, [$33.4 million came in the first quarter](https://www.dwavequantum.com/company/newsroom/press-release/d-wave-reports-first-quarter-2026-results/), including the Florida Atlantic system and a $10 million, two-year cloud agreement with an unnamed Fortune 100 company. Orders signed but not yet recorded as revenue stood at $38.3 million on September 30, and D-Wave expects about 59% of that to become revenue within 12 months. The release gives no revenue outlook.

Costs grew faster. The loss from operations was $161.5 million in the nine months, against $65.5 million a year earlier. Of the $355.1 million net loss of 2025, $270.5 million was a non-cash charge for revaluing warrants.

```chart
{"type": "bar", "title": "Loss from operations by year", "unit": "$ million", "labels": ["2022", "2023", "2024", "2025"], "series": [{"name": "Loss from operations", "values": [59.5, 80.5, 77.2, 100.4]}], "source": "D-Wave Quantum, Form 10-K filings for 2023 and 2025", "source_url": "https://www.sec.gov/Archives/edgar/data/1907982/000190798226000026/qbts-20251231.htm"}
```

Cash and marketable securities were $503.4 million on September 30, 2026, down from $884.5 million at the end of 2025. Buying Quantum Circuits took [$256.0 million in cash](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000129/qbts-20260630.htm), part of a total price of $538.5 million, and operations used $109.0 million, about twice the $53.6 million of a year earlier. Loans payable were $42.0 million.

## Funding and ownership

D-Wave [listed on August 5, 2022](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000026/qbts-20251231.htm) by merging with DPCM Capital, a blank-check company, and moved its shares from the New York Stock Exchange to Nasdaq on [July 27, 2026](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000099/qbts-20260714.htm). Its cash came from selling stock in 2024 and 2025.

| Date | Round or offering | Amount | Lead or terms |
|---|---|---|---|
| Program of May 24, 2024 | Shares sold into the market (at-the-market program) | [$97.2 million net](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000026/qbts-20251231.htm) | 49.8 million shares |
| Program of December 9, 2024 | Shares sold into the market | [$72.9 million net](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000026/qbts-20251231.htm) | 15.6 million shares |
| First quarter of 2025 | Shares sold into the market | [$146.1 million net](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000026/qbts-20251231.htm) | 24.6 million shares |
| Second quarter of 2025 | Shares sold into the market | [$390.6 million net](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000026/qbts-20251231.htm) | 26.3 million shares |
| 2025 | Shares sold to Lincoln Park under a purchase agreement | [$37.8 million net](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000026/qbts-20251231.htm) | 3.9 million shares |
| 2025 | Public warrants exercised | [$202.9 million](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000026/qbts-20251231.htm) | 25.7 million shares. The rest were redeemed on November 19, 2025 |
| September 2026 | Research award from the U.S. Department of Commerce | [Up to $100 million](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000141/qbts-20260904.htm) | [7.1 million shares](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000144/qbts-20260904.htm) issued to the Department at $14.093 each |

The six stock sales add up to about 145.9 million shares, or 39.5% of the 369.3 million outstanding on August 5, 2026, for about $947.5 million.

Two blocks of shares were issued in 2026. Quantum Circuits' owners [received 10.4 million shares](https://www.sec.gov/Archives/edgar/data/1907982/000162828026002507/qbts-20260120.htm) on January 20. The Commerce Department received 7,095,721 shares on September 8, about 1.9% of the August count. Its money comes in parts: $53.6 million shortly after signing, then the rest as D-Wave meets milestones, the first worth $9.1 million.

The [2026 proxy statement](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000040/qbts-20260422.htm) lists BlackRock with 6.0% of the voting power on April 15, 2026, and all directors and executive officers together with 1.3%.

## People

D-Wave says it was founded in 1999. Dr. Alan Baratz has been chief executive of D-Wave Systems, the operating company, since January 2020, according to the [proxy statement](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000040/qbts-20260422.htm). John Markovich, chief financial officer since the listing, [retired on September 2, 2026](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000138/qbts-20260819.htm). Greg Golkov, senior vice president of finance since May 2023, is acting chief financial officer.

## Risks

- Losses far above sales. The operating loss was $161.5 million in the first nine months of 2026, on $10.4 million of revenue.
- A few large orders. One customer was [76% of revenue](https://www.sec.gov/Archives/edgar/data/1907982/000190798226000129/qbts-20260630.htm) in the first half of 2025 and another 35% in the first half of 2026.
- A contested claim. The "quantum supremacy" result of 2025 is disputed in a peer-reviewed paper, and D-Wave's own annual report says no quantum computer has reached a broad advantage.
- An expensive second bet. D-Wave paid $538.5 million for Quantum Circuits. Goodwill and intangible assets were $551.0 million of its $1,123.2 million in total assets on September 30, 2026.
- Conditional government money. The Commerce Department holds its shares, the cash arrives on milestones, and the Department may end the award on 60 days' notice.

## What to watch

- Before the end of 2026: the start of installation at Florida Atlantic University, and whether a gate-model system goes on sale, as the annual report said it would in 2026.
- The fourth-quarter report and how much of the $38.3 million of signed orders became revenue. No date is announced. The 2025 annual report came on February 26, 2026.
- The first Commerce Department milestone, worth $9.1 million.

Our read: D-Wave is making two bets at once. The first is that annealing has paying uses now, while gate-model rivals wait for machines that correct their own errors. The second, bought in January 2026, is that it can build those machines too. The stock sales of 2025 pay for both.

Last checked 2026-11-12

## Sources

- D-Wave Quantum, Form 10-K for 2025, filed February 26, 2026: https://www.sec.gov/Archives/edgar/data/1907982/000190798226000026/qbts-20251231.htm
- D-Wave Quantum, Form 10-K for 2023, filed March 29, 2024: https://www.sec.gov/Archives/edgar/data/1907982/000190798224000049/qbts-20231231.htm
- D-Wave Quantum, Form 10-Q for the quarter ended June 30, 2026, filed August 6, 2026: https://www.sec.gov/Archives/edgar/data/1907982/000190798226000129/qbts-20260630.htm
- D-Wave Quantum, third-quarter 2026 results release with financial statements, Exhibit 99.1 to a Form 8-K filed November 10, 2026: https://www.sec.gov/Archives/edgar/data/1907982/000190798226000180/qbts-20261110xexx991.htm
- D-Wave Quantum, the same release on its site: https://www.dwavequantum.com/company/newsroom/press-release/d-wave-reports-third-quarter-2026-results/
- D-Wave Quantum, first-quarter 2026 results release, May 12, 2026: https://www.dwavequantum.com/company/newsroom/press-release/d-wave-reports-first-quarter-2026-results/
- D-Wave Quantum, Form 8-K on the Commerce Department award, filed September 8, 2026: https://www.sec.gov/Archives/edgar/data/1907982/000190798226000141/qbts-20260904.htm
- D-Wave Quantum, release on the Commerce Department award, September 8, 2026: https://www.sec.gov/Archives/edgar/data/1907982/000190798226000141/chipsactpressrelease.htm
- D-Wave Quantum, Form 8-K/A on the shares issued to the Commerce Department, filed September 9, 2026: https://www.sec.gov/Archives/edgar/data/1907982/000190798226000144/qbts-20260904.htm
- D-Wave Quantum, release on the agreement to buy Quantum Circuits, January 7, 2026: https://www.sec.gov/Archives/edgar/data/1907982/000190798226000010/d-waveannouncesagreementto.htm
- D-Wave Quantum, Form 8-K on the closing of the Quantum Circuits purchase, filed January 20, 2026: https://www.sec.gov/Archives/edgar/data/1907982/000162828026002507/qbts-20260120.htm
- D-Wave Quantum, release on the Florida Atlantic University agreement, January 27, 2026: https://www.sec.gov/Archives/edgar/data/1907982/000190798226000016/a991fausystemdeal.htm
- D-Wave Quantum, Form 8-K on the move to Nasdaq, filed July 14, 2026: https://www.sec.gov/Archives/edgar/data/1907982/000190798226000099/qbts-20260714.htm
- D-Wave Quantum, Form 8-K on the chief financial officer, filed August 25, 2026: https://www.sec.gov/Archives/edgar/data/1907982/000190798226000138/qbts-20260819.htm
- D-Wave Quantum, 2026 proxy statement, filed April 23, 2026: https://www.sec.gov/Archives/edgar/data/1907982/000190798226000040/qbts-20260422.htm
- D-Wave Quantum, release on its "quantum supremacy" result, March 12, 2025: https://www.dwavequantum.com/company/newsroom/press-release/beyond-classical-d-wave-first-to-demonstrate-quantum-supremacy-on-useful-real-world-problem/
- D-Wave Quantum, "D-Wave's Quantum Supremacy Result Stands", Exhibit 99.1 to a Form 8-K filed May 26, 2026: https://www.sec.gov/Archives/edgar/data/1907982/000190798226000071/exh_991xresponse.htm
- Tindall, Mello, Fishman, Stoudenmire and Sels, "Dynamics of disordered quantum systems with two- and three-dimensional tensor networks", Science 392, 868 (2026): https://arxiv.org/abs/2503.05693
- D-Wave Quantum, documentation, introduction to quantum annealing: https://docs.dwavequantum.com/en/latest/quantum_research/quantum_annealing_intro.html
- D-Wave Quantum, "What is quantum computing?": https://www.dwavequantum.com/learn/quantum-computing/
- D-Wave Quantum, company page: https://www.dwavequantum.com/company/about-d-wave/

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Many Worlds Capital invests in quantum companies and may hold positions in companies mentioned here. This is information, not investment advice. Prices can be delayed. Methodology: https://news.manyworlds.vc/methodology/