D-Wave Quantum Inc. (QBTS) saw its stock price climb significantly ahead of and following the release of its fourth-quarter and full-year fiscal 2025 earnings, driven by explosive revenue growth and a record cash position.
The stock rose 5.6% on Wednesday, February 25, to around $19.70 on volume of 25.1 million shares, in anticipation of the earnings report. Following the release, the stock advanced further in pre-market trading to $20.66. The company reported a 179% year-over-year increase in full-year revenue, reaching $24.6 million. For Q4 specifically, analysts had expected a loss of 6 cents per share on revenue of $3.72 million, which would represent a 61.74% revenue increase from the year-ago quarter.
Financial strength was a key highlight, with the company achieving a record liquidity position exceeding $884 million. Gross margins remained robust, with the full-year GAAP gross margin reaching 82.6%, bolstered by a high-margin quantum system sale. The company also reported strong forward momentum with year-to-date bookings surpassing $32.8 million, strengthening the outlook for early 2026.
Wall Street sentiment appears bullish, with 15 out of 16 analysts rating QBTS a 'buy' and a consensus price target of $39.24, implying over 110% upside from recent prices. Recent commercial wins include a $10 million, two-year quantum computing service agreement with a Fortune 100 company and a $20 million deal to sell an Advantage2 system to Florida Atlantic University.
On the technology front, D-Wave continues to advance its dual-platform strategy in quantum annealing and gate-model systems. The company completed the acquisition of Quantum Circuits, integrating error-corrected superconducting qubit technology. It also announced plans to relocate its headquarters to Boca Raton, Florida, by late 2026 to support further expansion.
Despite the positive financial and operational news, insider selling activity has been notable. In the past 90 days, insiders sold over 1.07 million shares worth roughly $31.5 million, including CFO John M. Markovich selling 100,000 shares at $30.03 each.
