- The company posted record quarterly revenue of $15 million, up over 500% from Q1 2024.
- Gross profit surged to $13.9 million, driven by a high-margin Advantage™ quantum system sale.
- The company ended Q1 with $304.3 million in cash, its highest quarter-end balance in the company’s history.
- Customer count grew to 133, with 69 commercial users including 25 Forbes Global 2000 firms.
D-Wave Quantum Inc. (NYSE: QBTS) (“D-Wave”), a leader in quantum computing systems, software, and services, reported a significant increase in revenue, gross profit, and cash reserves for the first quarter of fiscal 2025, enabled by the sale of a high-margin annealing quantum computing system. The results, detailed in a conference call hosted by CEO Dr. Alan Baratz and CFO John Markovich on May 8, signal the company’s continuing momentum in driving commercial adoption of quantum computing (https://ibn.fm/UoZWf).
Quarterly revenue came in at $15 million, a 509% increase from the same period last year, when the company reported $2.5 million. The growth was primarily attributed to a system sale recognized in the quarter, underscoring an additional revenue stream for the company beyond its traditional cloud-based quantum computing as a service and professional services revenue.
Gross profit rose to $13.9 million, up 736% from $1.7 million in Q1 2024. The gross margin for the quarter reached 92.5%, compared to 67.3% a year earlier. D-Wave’s non-GAAP gross profit, which excludes stock-based compensation and depreciation, came in at $14 million, or 93.6% margin.
The company’s cash position also reached a new high. As of March 31, 2025, D-Wave reported $304.3 million in consolidated cash, bolstered by $146.2 million raised through its third at-the-market equity program during the quarter. Management believes this provides sufficient runway to reach profitability.
D-Wave also reported a total of 133 customers over the last four quarters, compared to 128 in the prior four-quarter period. Among them were 69 commercial customers, including 25 from the Forbes Global 2000 list, as well as 52 research institutions and 12 government clients.
Operating expenses rose to $25.2 million, up 31% year-over-year, driven by increases in personnel, marketing, and R&D costs. On a non-GAAP basis, adjusted operating expenses were $20.2 million.
Q1 also included a number of technical and commercial milestones. A highlight was the company’s demonstration of quantum supremacy on a real-world magnetic materials simulation problem, as detailed in the peer-reviewed paper “Beyond-Classical Computation in Quantum Simulation” published in Science. The problem, solved using D-Wave’s annealing quantum computer, would have taken one of the world’s most powerful classical supercomputers, the Frontier supercomputer located at Los Alamos National Laboratory, nearly one million years to complete.
The company also deployed a hybrid-quantum application for Ford Otosan, which reduced vehicle production scheduling time from 30 minutes to under five minutes. In a pilot project, Japan Tobacco’s pharma unit applied D-Wave’s quantum computer in drug discovery, yielding improved molecular structures compared to classical-only approaches.
In Europe, D-Wave sold its first Advantage system to the Jülich Supercomputing Centre, where it is expected to connect with the continent’s first exascale computer, JUPITER. In the U.S., the Advantage2™ system is nearing installation completion at Davidson Technologies’ headquarters in Alabama, where it is planned to support national defense-related applications.
The quarter also saw the introduction of new hybrid solver capabilities for applications like budget allocation and maintenance optimization, expanding the practical use cases for D-Wave’s offering.
Lastly, Qubits 2025, D-Wave’s annual user conference, drew record attendance both in-person and online. Customer presentations featured deployments across industries and geographies, reflecting increased engagement and real-world implementation.
“The first quarter of 2025 was arguably the most significant in D-Wave’s history, especially in terms of our unique ability to deliver quantum value today to our customers and the scientific community,” said CEO Dr. Alan Baratz in the earnings release. He pointed to revenue recognition from the Advantage system sale, customer deployment progress, and the company’s recent scientific milestone as evidence of growing market traction. “We recognized revenue on our first Advantage system sale to a major research institution, moved an additional customer application into commercial production, and became the first to demonstrate quantum supremacy over classical computing on a useful real-world problem. The end result was a record revenue and gross profit quarter,” he explained.
About D-Wave Quantum Inc.
D-Wave is a leader in the development and delivery of quantum computing systems, software, and services. We are the world’s first commercial supplier of quantum computers, and the only company building both annealing and gate-model quantum computers. Our mission is to help customers realize the value of quantum, today. Our 5,000+ qubit Advantage quantum computers, the world’s largest, are available on-premises or via the cloud, supported by 99.9% availability and uptime. More than 100 organizations trust D-Wave with their toughest computational challenges. With over 200 million problems submitted to our Advantage and Advantage2 systems to date, our customers apply our technology to address use cases spanning optimization, artificial intelligence, research and more. Learn more about realizing the value of quantum computing today and how we’re shaping the quantum-driven industrial and societal advancements of tomorrow: www.dwavequantum.com.
NOTE TO INVESTORS: The latest news and updates relating to QBTS are available in the company’s newsroom at https://ibn.fm/QBTS
Forward Looking Statements
Certain statements in this press release are forward-looking, as defined in the Private Securities Litigation Reform Act of 1995. These statements involve risks, uncertainties, and other factors that may cause actual results to differ materially from the information expressed or implied by these forward-looking statements and may not be indicative of future results. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, various factors beyond management’s control, including the risks set forth under the heading “Risk Factors” discussed under the caption “Item 1A. Risk Factors” in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption “Item 1A. Risk Factors” in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC. Undue reliance should not be placed on the forward-looking statements in this press release in making an investment decision, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.
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