D-Wave Quantum’s third-quarter 2026 report, released yesterday, sketches a company pulling in two directions at once. Revenue came in at $4.5 million, up 21% year over year and ahead of expectations. Yet bookings — the forward-looking measure of new orders — fell 19% to $1.9 million. Shares added 2.5% today as investors weighed the top-line beat against the softer pipeline.
The bookings swing is nothing new for D-Wave’s model, which pairs large one-off system sales with quantum-computing subscriptions and services. That mix produces lumpy order flow, and it puts the quality of growth front and center. For the quarter, the company posted a net loss of $48.2 million, or $0.13 per share, while the adjusted EBITDA loss reached $37.7 million.
Recurring Revenue Becomes the Yardstick
The clearest counterweight to volatile system sales sits in the subscription line. QCaaS revenue, as D-Wave labels it, hit $2.2 million, a 56.4% jump from a year earlier. Services contributed another $2 million, up 317.8%. Together the two streams suggest that revenue sources beyond full-system sales are gaining traction.
Commercial customers accounted for 52% of revenue in the latest quarter, compared with 31% in the year-ago period — a shift that points to broader economic use of the technology, provided those engagements turn into lasting relationships. The bull case rests on two things happening in tandem: D-Wave converting its existing obligations on schedule while expanding recurring customer business.
Contractual backlog offers part of that foundation. Remaining performance obligations stood at $38.3 million at the end of September, with 59% of that amount slated for recognition as revenue within twelve months. Concrete production deployments add another data point. A Fortune 100 contract worth $10 million over two years already has its first application in production, and NTT DOCOMO reported 65% fewer daily peak registration signals and 7% fewer paging signals in a live use case.
Margins and Cash Burn Tell the Other Side
Economics, though, complicate any quick re-rating. Gross margin came in at 52.9%, down from 71.4% a year earlier. Operating cash outflow for the first nine months of 2026 reached $109 million, more than double the $53.6 million burned in the same period of 2025. If personnel, development and operating expenses outpace the contributions of new customers, even a growing subscription book would only partly offset the funding need.
Should investors sell immediately? Or is it worth buying D-Wave Quantum?
A liquidity cushion remains in place, and its durability depends on how fast added revenue can absorb the ongoing cash draw. A milestone-linked award could reinforce that buffer: an arrangement with the US Department of Commerce provides for up to $100 million in CHIPS funding, in exchange for a non-controlling minority stake held by the government.
A Faster Solver and a Lower Price Target
On the technology front, D-Wave announced on November 4 performance gains for its Stride hybrid solver. By the company’s account, the improved version found better solutions within 15 seconds in benchmark tests than the prior version managed in 120 seconds — results tied to benchmarks the company itself described.
Analysts adjusted their models accordingly. B. Riley Securities cut its price target on Monday to $22 from $27 while keeping its buy rating on the stock.
The Fourth Quarter Is the Next Test
Management expects the delivery of a system to Florida Atlantic University in the fourth quarter of 2026, with a substantial share of that $20 million contract recognized as revenue. Installation and calibration revenue is expected partly in early 2027.
That makes the year-end delivery and the trajectory of subscription revenue the two figures to watch. Only if large orders and recurring usage start covering costs together would the underlying economics improve in a lasting way. Should the recurring business lose momentum while expenses stay elevated, reliance on big-ticket system sales would weigh that much more heavily on the story.
Ad
D-Wave Quantum Stock: Buy or Sell?! New D-Wave Quantum Analysis from November 11 delivers the answer:
The latest D-Wave Quantum figures speak for themselves: Urgent action needed for D-Wave Quantum investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from November 11.
D-Wave Quantum: Buy or sell? Read more here...
