By Priya Raman

D-Wave Quantum’s third-quarter operating loss widened to $53.5 million from $27.7 million a year earlier, a near doubling that outpaced a 21% rise in revenue.

Shares fell 8.6% to $10.48 on Tuesday, ending a two-day winning streak. The stock had already declined 56% this year entering the session.

What does the widening loss show?

D-Wave reported revenue of $4.5 million, up 21%, above analyst expectations of $4.4 million, according to Barron’s. The headline beat did not settle the spending question.

Growth came from services. Professional services revenue increased by $1.5 million, and quantum computing as a service revenue rose by $0.8 million. System sales revenue fell by $1.5 million, shifting the company’s revenue mix away from equipment.

Operating expenses climbed 84% to $55.9 million. D-Wave attributed the increase to higher personnel costs, stock-based compensation, depreciation and amortization, professional services and marketing.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, with company adjustments) also deteriorated. Its loss widened to $37.7 million, up 83% from a year earlier, as D-Wave increased spending on product development and go-to-market initiatives.

Why did the margins contract?

Gross margin under GAAP (generally accepted accounting principles) fell to 52.9% from 71.4%. D-Wave said revenue included a higher share of professional services, which carries a lower margin.

The net loss improved for an accounting reason rather than an operating gain. Net loss narrowed to $48.2 million, or $0.13 a share, from $140.0 million, or $0.41 a share, a year earlier.

D-Wave said: “The decrease came from a $121.9 million drop in non-cash charges tied to remeasurement of its warrant liability.” D-Wave redeemed all of its remaining publicly traded warrants in November 2025.

The numbers separate two signals: revenue growth and heavier investment on one side, a wider operating loss and thinner gross margin on the other. The lower net loss does not erase the operating deterioration.

How uneven is the order book?

Bookings, the company’s measure of newly signed business, totaled $1.9 million, down 19% from a year earlier. D-Wave said: “The timing of larger deals can cause its bookings to swing considerably from one quarter to the next.”

The first nine months of 2026 tell a different story. Bookings reached $37.4 million, up 611% from the same period last year. The two figures cover different periods, and the company’s warning about deal timing gives the quarterly decline a more qualified reading.

Remaining performance obligations (non-cancellable orders for which service has not yet been performed) totaled $38.3 million as of Sept. 30, up from $2.9 million a year earlier. D-Wave expects about 59% of that balance to become revenue within 12 months and about 71% within 24 months.

What does the Commerce agreement add?

Cash and marketable investment securities totaled $503.4 million as of Sept. 30. During the quarter, D-Wave signed a definitive agreement with the U.S. Department of Commerce for access to up to $100 million of CHIPS and Science Act funding, subject to specified milestones.

The agreement supports spending capacity, not immediate recognition of the full amount. Access depends on milestones, leaving execution conditions between the company and the department.

What is the strategic test?

D-Wave has delivered revenue growth, a much larger contracted balance and substantial liquidity. It has also widened its operating loss, lifted operating expenses faster than sales and recorded fewer quarterly bookings than a year earlier.

The test is whether services growth and the $38.3 million order book convert into revenue quickly enough to absorb a $55.9 million quarterly expense base. The Commerce agreement can add up to $100 million, but the milestone conditions and 83% rise in the adjusted EBITDA loss make cost discipline the nearer-term issue.