D-Wave’s Slide Deepens Amid Investor Disillusion on Q3 Loss, QBTS Stock Tests the Support
Due to increasing selling pressure, poor profits, and dwindling investor confidence in D-Wave Quantum's ambitious quantum computing claims..
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.
Due to increasing selling pressure, poor profits, and dwindling investor confidence in D-Wave Quantum’s ambitious quantum computing claims, the stock’s spectacular climb has swiftly turned negative.
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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