D-Wave Quantum (NASDAQ: QBTS) shares fell about 8% to $10.59 in Tuesday’s morning trading after the quantum computing company reported third-quarter results showing weaker bookings and a wider adjusted EBITDA loss, despite revenue exceeding Wall Street estimates.
D-Wave recorded third-quarter bookings of $1.9 million, down 19% from a year earlier and below the $2.1 million reported in the second quarter.
Revenue increased 21% year over year to $4.5 million, exceeding estimates of $4.37 million. It also rose from $3.1 million in the second quarter.
Adjusted EBITDA loss, a non-GAAP measure of operating performance, widened 83% to $37.7 million from approximately $20.6 million a year earlier.
According to Zacks, D-Wave recorded an adjusted loss of $0.11 per share, compared with its consensus estimate of a $0.10 loss.
Bookings and Contracted Revenue
For the first nine months of 2026, D-Wave recorded bookings of $37.4 million, up 611% from the corresponding period last year. The total included $2.3 million in Quantum Circuits bookings secured immediately before D-Wave completed its acquisition of the company in January 2026.
Bookings represent customer orders expected to generate future revenue. D-Wave said quarterly bookings can fluctuate significantly depending on when larger customer transactions occur.
The nine-month total also included $20 million from the sale of a quantum computing system to Florida Atlantic University. During the earnings call, D-Wave said it expects to deliver the system and recognize a substantial portion of the related revenue in the fourth quarter, with additional installation-related revenue likely to be recognized in early 2027.
D-Wave also reported that its sales pipeline grew by more than 75% in dollar terms during the third quarter compared with the end of June. The pipeline represents potential future sales rather than confirmed bookings.
Meanwhile, remaining performance obligations, which represent contracted revenue not yet recognized, declined to $38.3 million at September 30 from $40.7 million at June 30.
Despite the sequential decline, the balance was 1,221% higher than a year earlier. D-Wave expects to recognize approximately 59% of its September 30 remaining performance obligations as revenue over the following 12 months.
Gross Margins, Operating Expenses and Net Loss
D-Wave’s GAAP gross margin fell to 52.9% from 71.4% a year earlier and 55.4% in the preceding quarter.
The company attributed the year-over-year decline primarily to a greater share of revenue from lower-margin professional services, along with higher noncash stock-based compensation.
GAAP operating expenses climbed 84% year over year to $55.9 million, driven primarily by higher personnel costs, stock-based compensation, and depreciation and amortization.
D-Wave reported a smaller GAAP net loss of $48.2 million, or $0.13 per share, for the quarter ended September 30, compared with a loss of $140 million, or $0.41 per share, a year earlier.
The improvement in reported net loss primarily reflected a $121.9 million reduction in noncash charges related to the remeasurement of warrant liabilities.
The company ended September with $503.4 million in consolidated cash and marketable investment securities, compared with $546.2 million at the end of June.
Before Tuesday’s earnings release, D-Wave shares had gained 18% on Friday and another 7.4% on Monday, closing the latter session at $11.47. Despite that rebound, the stock remained down about 56% year to date as of Monday’s close.
Separately, D-Wave Quantum Tokenized Stock (QBTSon) was trading at $10.57, down 5.49% over the preceding 24 hours, according to CoinMarketCap. The tokenized instrument is separate from Nasdaq-listed QBTS, and its 24-hour price change does not reflect the listed stock’s regular market performance.