D-Wave Quantum’s $42 Million Backlog and $588 Million War Chest Set the Stage for a Pivotal June

The first quarter produced two opposing realities for D-Wave Quantum. Reported revenue tumbled 81 percent to $2.9 million, undershooting analyst estimates and triggering a selloff that erased roughly 7 percent on Friday alone. Yet beneath that top-line disappointment, new bookings surged nearly 2,000 percent year-over-year to $33.4 million, pushing the company’s backlog of performance obligations past $42 million — a figure that already exceeds the total revenue expected for all of 2025.

The result is a stock torn between near-term pain and long-term promise. D-Wave’s shares last changed hands in New York at $20.35, while European trading saw them slip further to €17.48 — below the 200-day moving average and with a relative strength index of roughly 35, sitting in oversold territory. Year to date, the position has fallen about 27 percent.

Operating costs were the primary drag on the bottom line, jumping 125 percent to $56.5 million. The acquisition of Quantum Circuits was the main culprit, though a $28.5 million tax benefit from that deal partially offset the impact. Even so, the net loss widened to $18.4 million from $5.4 million in the year-ago period. Subscription revenue still managed to grow 15 percent and professional services rose 26 percent, signaling that the underlying demand story remains intact.

That demand is concentrated in two large contracts. Florida Atlantic University ordered a system worth $20 million, and an undisclosed Fortune 100 company signed a two-year cloud agreement valued at $10 million. Together, they helped propel the bookings explosion that has become the central focus for bulls.

Should investors sell immediately? Or is it worth buying D-Wave Quantum?

Analysts have responded by trimming price targets but holding firm on their ratings. Mizuho lowered its target to $29 while keeping an outperform call. Canaccord cut to $41 but maintained a buy. Jefferies’ Kevin Garrigan held his $45 target unchanged, citing “clearly identifiable demand.” Among the 13 analysts covering D-Wave, the consensus price objective stands at $34.77 — implying roughly 70 percent upside from the last New York close. Not one analyst currently recommends selling.

The balance sheet provides another layer of comfort. D-Wave ended the quarter with $588.4 million in cash and marketable securities, a 93 percent increase year-over-year. That war chest gives management the financial flexibility to pursue an ambitious technology roadmap: a system with roughly 175 dual-rail qubits, a design for a 1,000-qubit machine by 2028, and a target of 100 logical qubits — widely viewed as the threshold for genuine quantum utility — by 2032.

Investors will get a deeper look at that strategy on June 1, when D-Wave holds its first-ever investor day at the New York Stock Exchange under the banner “The D-Wave Difference.” Executives are also scheduled to appear at conferences hosted by J.P. Morgan, TD Cowen and Baird through early June, and a user conference in London on June 18 will showcase real-world applications.

For the second and third quarters, management forecasts per-share losses of $0.08 in each period, with revenue expected to climb from $6.26 million to $12.85 million. The pivotal question heading into June: whether the record order surge can convert into recognizable revenue at that pace — and whether the market’s patience will hold until it does.