D-Wave’s Slide Deepens Amid Investor Disillusion on Q3 Loss, QBTS Stock Tests Support
D-Wave Quantum’s meteoric rise has quickly turned sour as the stock faces renewed selling pressure, weak earnings, and fading investor faith
Quick overview
- D-Wave Quantum's stock has dropped over 40% since mid-October, reflecting renewed selling pressure and investor skepticism.
- The company reported a Q3 2025 loss of $0.41 per share, significantly worse than expected, despite a 100% year-over-year revenue increase.
- Investor confidence is shaken by a forced warrant redemption seen as a desperate cash-raising tactic, raising concerns about management's priorities.
- D-Wave's ongoing cash burn and lack of profitability have made it a target for short sellers, as the quantum computing sector faces increasing scrutiny.
D-Wave Quantum’s meteoric rise has quickly turned sour as the stock faces renewed selling pressure, weak earnings, and fading investor faith in its lofty quantum computing promises.
Earnings Miss Rekindles Doubt
D-Wave Quantum Inc. (NYSE: QBTS) delivered a steeper-than-expected loss for Q3 2025, reporting –$0.41 per share versus Wall Street’s estimate of a –$0.07 loss.
The result also compared unfavorably with last year’s –$0.11, marking another setback in the company’s struggle to achieve profitability.
Even after excluding one-time non-cash warrant adjustments, D-Wave still posted an adjusted loss of $0.05, underscoring persistent cost pressures and weak operating leverage. The disappointing numbers drove the stock down 6% today, sending it below $30 once again.
QBTS Q3 2025 Financial Highlights
- Revenue: $3.7 million — up 100% year-over-year, reflecting strong demand and business expansion.
- Earnings per Share (EPS): Loss of $0.05, an improvement from the expected loss of $0.07, signaling better cost control and operational efficiency.
- Gross Margin: 77.7% (non-GAAP) — steady profitability despite higher R&D spending.
- Cash Balance: $836.2 million, up a remarkable 2,700% year-over-year, underscoring stronger liquidity and fundraising success.
Earnings vs. Forecast
- Revenue Surprise: +22.11% above expectations, highlighting stronger-than-anticipated sales performance.
- EPS Surprise: +28.57% improvement, showing tighter expense management and efficient execution.
- The smaller EPS loss marks a clear improvement from previous quarters and demonstrates progress toward profitability.
Outlook & Forward Guidance
- Strategic Focus: Continued investment in the Gate Model program to accelerate technological innovation.
- Global Expansion: Plans to grow through shared system capacity models, extending market reach and user access.
- Growth Prospects: Management expects continued revenue gains and advancements in product development through 2026.
- Investor Sentiment: Optimism remains high as D-Wave reinforces its position in the emerging quantum computing ecosystem.
From Euphoria to Collapse
After peaking near $46.70 in mid-October, D-Wave’s stock has plunged over 40%, wiping out billions in market value and erasing nearly all gains from its speculative rally.
QBTS Chart Weekly – The 20 SMA Held As Support
A short-lived rebound failed to hold as momentum evaporated and technical indicators flipped bearish. The stock now flirts with the 20-week SMA near $23, which has been its only reliable floor so far.
Warrant Redemption Sparks Panic
The company’s forced warrant redemption, requiring holders to exercise by November 19 or forfeit at $0.01, was viewed as an aggressive liquidity move.
Though dilution will be limited, investors saw the decision as a desperate cash-raising tactic, reigniting distrust in management’s handling of shareholder value. Roughly 5 million warrants are affected, intensifying the perception that D-Wave is prioritizing short-term cash over investor confidence.
Quantum Hype Meets Harsh Reality
The quantum computing sector’s speculative boom is showing cracks. Once celebrated as a futuristic revolution, it now faces skepticism from institutional investors demanding real revenue growth, not just scientific milestones.
D-Wave’s continued cash burn and lack of profitability have made it a prime target for short sellers, who see the company’s lofty valuation as unsustainable.
Technical Breakdown Deepens the Bear Case
Chart signals confirm growing weakness. The Price dropped below the 20-day SMA, turning previous support into resistance. Momentum indicators show exhaustion, suggesting the uptrend has reversed. If the stock fails to hold $23, analysts warn of a potential slide toward the low-$20s range.
QBTS Chart Daily – The 50 SMA Is Under Attack from Sellers
Expansion Efforts Struggle Against Cash Drain
While D-Wave touts growth in Asia, with bookings up 83% year-over-year, those numbers have done little to offset the mounting financial strain.
The company’s new Advantage2 system — boasting 4,400 qubits — is a technical milestone but not a commercial one yet. With cash burn still accelerating, investors remain unconvinced that global expansion will translate into profitability anytime soon.
Conclusion: D-Wave is now grappling with investor fatigue. Unless management can prove its technology can produce tangible, recurring revenue, the stock’s fall from grace may be far from over.
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