D-Wave: Revenue Down, Bookings Up – What Now?

D-Wave Quantum (QBTS) reported trailing twelve-month revenue of $12.4 million, a 44% drop from the prior year. Yet, its market value climbed 38% to $7.5 billion. This divergence stems from a one-time $13.7 million system sale in the year-ago period, which inflated the comparison.

Meanwhile, the company's bookings for the first half of 2026 soared to $35.5 million, up over 1,100% from $2.9 million a year earlier. This includes a $20 million system sale that will be recognized as revenue in future quarters.

Second-quarter bookings rose 59% year over year to $2.1 million, and remaining performance obligations (RPO) hit $40.7 million, up 668%. About 57% of RPO is expected to convert to revenue within 12 months.

These are D-Wave's strongest demand figures to date, indicating growing customer interest in its quantum computing solutions.

However, the company's net loss for Q2 2026 was $48 million, and adjusted operating expenses increased 76% year over year as it invests heavily in product development.

D-Wave's market value of $7.5 billion is about 600 times its trailing revenue. Even when considering total RPO of $40.7 million, the price-to-bookings ratio is still around 190 times.

To justify such a valuation, D-Wave would need to grow bookings from tens of millions to billions of dollars annually, while maintaining its ~65% adjusted gross margin. That's a monumental task.

The company's spending is outpacing sales, with a net loss of $48 million in Q2 alone. This means it will likely need to raise more capital, potentially diluting existing shareholders.

While the bookings growth is impressive, the absolute numbers remain small. A 59% increase in Q2 bookings translates to just $800,000, which is minuscule relative to the $7.5 billion market cap.

Investors are betting on future potential, but the path to profitability is long and uncertain. The stock's valuation leaves little room for error.