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1. Like Amazon Web Services (AWS), but specializing in quantum computing infrastructure.

2. Like an Intel, but building the fundamental processors for the quantum computing era.

3. Like an Nvidia, but for specialized quantum processing units (QPUs).

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• Quantum Computers: D-Wave designs and builds annealing quantum computers for solving complex optimization and sampling problems.
• Leap™ Quantum Cloud Service: This platform provides on-demand access to D-Wave's quantum computers, development tools, and an integrated development environment.
• Ocean SDK: A suite of open-source Python tools for developing quantum applications that run on D-Wave's quantum computers.
• Professional Services: Offers expertise in quantum application development, training, and strategic consulting to help customers leverage quantum computing.

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Major Customers of D-Wave Quantum (QBTS)

D-Wave Quantum primarily sells its quantum computing systems, software, and cloud services (Leap) to other companies, government agencies, and research institutions. As such, its major customers are B2B (business-to-business) or B2G (business-to-government) entities.

Major customer companies include:

• Volkswagen AG (FWB: VOW3 / OTC: VWAGY)
• Denso Corporation (TYO: 6902 / OTC: DNZOY)
• NEC Corporation (TYO: 6701 / OTC: NIPNY)
• Lockheed Martin Corporation (NYSE: LMT)

D-Wave also serves various government research laboratories (e.g., Los Alamos National Laboratory) and academic institutions, which are significant users of their technology for advanced research and development.

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Alan Baratz, Chief Executive Officer

Dr. Alan Baratz became the CEO of D-Wave in 2020, having previously served as Executive Vice President of R&D and Chief Product Officer. He possesses over 25 years of experience in product development and bringing new products to market at various technology companies and software startups. Prior to D-Wave, he was the first president of JavaSoft at Sun Microsystems, overseeing the growth and adoption of the Java platform. Dr. Baratz has held executive positions at Symphony, Avaya, Cisco, and IBM. He has also served as CEO and president of three companies—Versata, Zaplet, and NeoPath Networks—leading each to successful acquisitions. Furthermore, he was a managing director at Warburg Pincus LLC, a prominent global private equity firm. He holds a doctorate in computer science from the Massachusetts Institute of Technology.

John Markovich, Chief Financial Officer

John Markovich was appointed Chief Financial Officer of D-Wave Systems in September 2021. He brings over three decades of financial leadership experience, working with rapidly growing private and public technology companies across all stages of development. His career includes directing finance, accounting, tax, treasury, M&A, legal, operations, customer service, investor relations, human resources, and IT functions. Mr. Markovich has negotiated and closed over 150 debt, equity, M&A, and joint venture transactions exceeding $2.5 billion in value. Prior to D-Wave, he held CFO positions at several companies, including Xant, OmniGuide, Veritone, NanoH2O, EMCORE, Optical Coating Laboratories, and Tickets.com.

Trevor Lanting, Chief Development Officer

Trevor Lanting was promoted to Chief Development Officer in March 2024. He leads D-Wave's product development organization, which encompasses teams responsible for software, systems, and cloud services. With over 15 years of experience in technology development, he joined D-Wave in 2008 and has been instrumental in the development and deployment of five generations of annealing quantum computing systems. He previously served as Senior Vice President of Software, Algorithms, and Cloud Services and as Vice President of Science at the company.

Lorenzo Martinelli, Chief Revenue Officer

Lorenzo Martinelli was appointed D-Wave's first Chief Revenue Officer in March 2024. An experienced cloud entrepreneur and IT industry veteran, he has a track record of over 30 years guiding startups from inception to IPO. Mr. Martinelli has held leadership roles at companies such as QAD DynaSys, E2open, AristaSoft, Baan (now Infor), Digital Equipment (now HPE), and IBM. He is tasked with spearheading D-Wave's commercial expansion into key vertical markets.

Sophie Ames, Chief Human Resources Officer

Sophie Ames serves as D-Wave Quantum's Chief Human Resources Officer.

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The key risks to D-Wave Quantum's (QBTS) business are primarily centered around its financial sustainability, the highly competitive and evolving quantum computing landscape, and the inherent uncertainties of a nascent technology sector.

1. Financial Challenges and Cash Burn: D-Wave Quantum faces significant financial hurdles, marked by ongoing operating losses and negative net margins. The company exhibits a negative operating margin of -355.21% and a net margin of -1651.81% for the trailing twelve months, indicating substantial profitability challenges despite a strong gross margin. The company is often described as a "cash-burning machine" due to its high research and development intensity, infrastructure costs, and market development expenses, which result in considerable negative operating cash flow. While D-Wave's revenue is growing, it remains relatively low compared to its operating expenses. This reliance on external financing introduces a significant dilution risk for existing shareholders as the company may need to raise additional capital to fund its operations and growth strategies. The company is considered years away from achieving meaningful commercialization and profitability.
2. Intense Competition and Market Adoption Risks: The quantum computing industry is highly competitive and subject to rapid technological changes. D-Wave Quantum faces competition from both established tech giants like IBM, Google, and Amazon, which are investing heavily in gate-based quantum computers, and other pure-play quantum computing firms such as IonQ and Rigetti Computing. While D-Wave has historically focused on quantum annealing technology, and is expanding into gate-model technology, there is a risk that market demand for cloud-based quantum computing solutions (QCaaS) may not grow as anticipated. Customers might be hesitant to adopt quantum computing for certain applications, and the substantial gap between "interesting research" and a "billion-dollar business" remains a significant challenge for the entire industry.
3. Technological Uncertainty and Industry Volatility: The quantum computing industry is in its early stages, characterized by rapid innovation, evolving industry standards, and inherent uncertainties regarding the pace of technological advancements and broad market adoption. D-Wave's stock has experienced significant volatility due to these uncertainties and the speculative nature of the sector. Investing in D-Wave is considered a high-risk endeavor, with potential for catastrophic losses if the technology does not progress as expected or if market sentiment shifts negatively. The company's future viability is tied to converting technical capabilities into sustainable business models and accelerating commercial quantum application adoption across various industries.

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D-Wave Quantum faces emerging threats primarily from the accelerating development and market penetration of universal gate-model quantum computing platforms offered by major technology companies and well-funded startups.

• Competition from Universal Gate-Model Quantum Computers: D-Wave's historical strength and significant market presence have been in quantum annealing. However, the broader quantum computing industry is heavily focused on universal gate-model quantum computers, which are generally perceived as more versatile and capable of addressing a wider array of computational problems. Companies like IBM, Google, Microsoft, Amazon (via AWS Braket), IonQ, and Quantinuum are investing massive resources into developing and deploying increasingly powerful gate-model systems. As these platforms mature and become more accessible, they could significantly reduce the perceived value and market demand for D-Wave's specialized annealing solutions, and challenge D-Wave's efforts to compete in the gate-model space. This mirrors how a more versatile and broadly applicable technology can threaten a more specialized one.
• Market Dominance and Ecosystems of Cloud Hyperscalers: Major cloud providers are integrating quantum computing as a service (QaaS) into their vast existing cloud ecosystems. By offering access to multiple quantum hardware modalities (including some D-Wave machines, but also IBM's, IonQ's, Quantinuum's, etc.) alongside their extensive classical computing resources, software development kits, and enterprise customer bases, these hyperscalers could commoditize quantum computing access. This presents a threat to pure-play quantum hardware providers like D-Wave, who might find it challenging to compete against the bundled offerings, marketing reach, and deep pockets of companies that can treat QaaS as an add-on or a loss leader within their broader cloud services. This parallels Netflix's disruption of Blockbuster by offering a more convenient, integrated, and scalable delivery model.

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• Global Quantum Annealing Equipment Market: This market, which directly relates to D-Wave's core quantum annealing systems, was estimated at USD 1.22 billion in 2025. It is projected to grow to approximately USD 4.39 billion by 2035, with a compound annual growth rate (CAGR) of 13.65% from 2026 to 2035. Another estimate places the global quantum annealing market at approximately USD 1.2 billion in 2023, anticipated to reach USD 4.5 billion by 2032, at a CAGR of 15.7%.
• Global Quantum Computing Market: Given D-Wave's expansion into gate-model quantum computing and its cloud services, the broader quantum computing market is a relevant addressable market. This market was valued at USD 1.53 billion in 2025 and is projected to reach USD 18.33 billion by 2034, demonstrating a robust CAGR of 31.60%. Other forecasts estimate the global quantum computing market to grow from USD 1.2 billion in 2024 to USD 27.6 billion by 2035, with a CAGR of 32.2% from 2025 to 2035. McKinsey projects the global quantum computing market could be worth between $28 billion and $72 billion by 2035.

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Here are 3-5 expected drivers of future revenue growth for D-Wave Quantum (symbol: QBTS) over the next 2-3 years:

1. Advanced Quantum Hardware Sales: D-Wave Quantum anticipates revenue growth through the continued sales and upgrades of its advanced annealing quantum computing systems, such as the Advantage2 system and future iterations like Advantage3. These systems offer increased qubit counts, improved connectivity, and enhanced performance, attracting new customers and prompting existing ones to upgrade. For example, a significant revenue component in Q3 2025 was attributed to the upgrade of the HULIC Advantage system to an Advantage II system, and Florida Atlantic University made a $20 million agreement to purchase an Advantage2 system.
2. Growth in Quantum Computing-as-a-Service (QCaaS) Subscriptions: The company expects to drive revenue growth through the expansion of its cloud-based Leap quantum cloud service and its associated Quantum Computing-as-a-Service (QCaaS) subscriptions. D-Wave has seen increasing QCaaS revenue, and securing multi-year enterprise agreements, such as a $10 million, two-year enterprise QCaaS deal with a Fortune 100 company, indicates growing commercial adoption of its subscription offerings.
3. Expansion into Gate-Model Quantum Computing: A significant driver is D-Wave's strategic entry into the gate-model quantum computing market, facilitated by its acquisition of Quantum Circuits Inc. This move allows D-Wave to become a dual-platform provider, offering both annealing and gate-model systems. The company plans to make an initial dual-rail gate-model system generally available as early as 2026, which is expected to broaden its addressable market and unlock new revenue streams from applications like quantum chemistry and simulation.
4. Increasing Commercial and Enterprise Customer Adoption: D-Wave is focused on accelerating commercial traction by expanding its customer base, particularly within enterprise and government sectors. The company reported a significant year-over-year expansion in its sales opportunity pipeline and an increase in revenue from Forbes Global 2000 customers. New agreements, such as working with Davidson Technologies and Anduril Industries for U.S. air and missile defense systems, highlight this growing adoption.
5. Development of Enhanced Hybrid Solvers and Software Tools: Continuous innovation in hybrid solvers, such as the constrained quadratic model (CQM), and the development of cross-platform, open-source developer tools are expected to drive revenue growth. These advancements enable customers to solve larger and more complex problems more efficiently and easily integrate quantum solutions into their existing workflows, thereby increasing the value and adoption of D-Wave's offerings.

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Share Issuance

• D-Wave Quantum reported $779.1 million of net cash from financing activities in 2025, which included equity offerings and warrant exercises.
• The number of shares outstanding for D-Wave Quantum increased significantly over the last three years, with 321 million shares outstanding in 2025 (a 67.18% increase from 2024), 192 million shares in 2024 (a 39.23% increase from 2023), and 138 million shares in 2023 (a 15.33% increase from 2022).
• As of March 2026, the company had 342,204,831 shares outstanding.

Outbound Investments

• D-Wave Quantum completed the acquisition of Quantum Circuits, Inc. in 2025 as a strategic move to establish dual-platform leadership in both annealing and gate-model quantum computing.
• This acquisition was valued at $550 million and aimed to expand D-Wave's capabilities into gate-model quantum computing.

Capital Expenditures

• D-Wave Quantum invested $1.7 million in capital expenditures during Q4 2025, primarily for funding long-term assets and infrastructure, marking a 63.3% increase from the prior quarter.
• For the fiscal year 2025, capital expenditures were approximately $3.9 million.
• In the most recent quarter, capital expenditures totaled -1.659 million USD.