D-Wave Quantum falls 9% on earnings as rising bookings fail to offset deep losses
D-Wave Quantum reported a surge in forward bookings but saw its stock slide nine percent as widening losses and stagnant revenue highlight the growing investor skepticism toward high-flying quantum computing equities.
D-Wave Quantum Inc. (QBTS) closed 9% lower on August 6 following the release of its second quarter earnings. The drop reflects a broader shift in market sentiment toward speculative technology stocks, as investors begin prioritizing concrete financial results over future potential.
Market commentator Jim Cramer highlighted this changing dynamic, noting a newfound focus on fundamentals. "What's incredible is that we never cared about earnings before, for this, for NuScale. And suddenly we care, I don't get it," Cramer said, adding that "there's kind of a realism sinking in" across the sector.
This pragmatic mindset is forcing a reckoning for quantum computing firms that have rallied without underlying sales growth. While the stock has gained 24% over the past twelve months, it has surrendered those exact gains year-to-date, illustrating the extreme volatility in the sector.
The company did report several bullish metrics in its latest filing that support the long-term thesis. First half bookings for 2026 surged 1,120% to $35.5 million, driven by new enterprise agreements with a Fortune 100 company and Florida University.
Commercial customers accounted for 62% of the company's second quarter revenue. Remaining performance obligations also jumped 668%, signaling a strong pipeline of future contracted work.
However, these forward-looking indicators have not yet translated into current sales. Second quarter revenue dipped 0.6% annually to $3.1 million, following an 81% drop in the first quarter caused by revenue recognition procedures.
Meanwhile, the cost of scaling the business is accelerating rapidly and generating severe headwinds. Operating expenses for the first half surged to $111.5 million from $53.6 million a year earlier, widening the EBITDA loss to $37 million from $20 million.
This disconnect between bookings and actual revenue leaves little margin for error given the stock's extreme valuation. D-Wave trades at a price-to-sales ratio of 610.97, a premium shared by peers like Rigetti, which trades at a multiple of 465.
The high valuation has attracted significant bearish bets from market participants. Short sellers have targeted 19.98% of the company's float, a level of bearishness closely matching the 19% short interest in rival firm Rigetti. Despite this skepticism, institutional ownership is rising, with hedge funds holding the stock increasing from 22 in late 2025 to 26 in early 2026.
