D-Wave Locks CHIPS Deal as Remaining Obligations Hit $38.3 Million

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter revenue was $4.5 million, up 21%, as remaining performance obligations reached $38.3 million and a Commerce agreement opened access to up to $100 million of CHIPS funding.

D-Wave Quantum Inc. (QBTS), the dual-platform quantum computing company, reported third-quarter revenue of $4.5 million, up 21% from the year-earlier period, and remaining performance obligations of $38.3 million as of September 30, 2026, up 1,221% from $2.9 million a year earlier.

The company said it executed a definitive agreement with the U.S. Department of Commerce, following a previously announced letter of intent, providing access to up to $100 million of CHIPS and Science Act funding in installments upon specified milestones. The funding is intended to support a 100,000-qubit annealing computer and a 10,000-qubit gate-model system designed to enable 100 logical qubits.

Bookings in the quarter were $1.9 million, down about 19% from a year earlier. The company said bookings in any single quarter can vary with the timing of larger transactions. For the nine months ended September 30, 2026, bookings were $37.4 million, up 611% from the same period in 2025. Year-to-date 2026 bookings included $2.3 million of Quantum Circuits orders closed just before the January 2026 acquisition.

About 59% of the September 30 remaining performance obligations is expected to be recognized as revenue within the following 12 months, and about 71% within 24 months. The company said it recognized revenue from more than 100 customers, 48% of them commercial enterprises.

Professional services revenue increased $1.5 million and quantum computing as a service revenue increased $0.8 million, partially offset by a $1.5 million decrease in system sales. GAAP gross profit was $2.4 million, down 11% from a year earlier, and GAAP gross margin was 52.9%, down 18.5 percentage points. The company attributed the decline primarily to a higher share of lower-margin professional services and an increase in non-cash stock-based compensation of $0.2 million. Non-GAAP gross profit was $2.9 million, essentially flat, and non-GAAP gross margin was 63.6%, down 14.1 percentage points.

GAAP operating expenses were $55.9 million, up 84% from a year earlier. The company said the increase was driven primarily by $12.3 million in personnel costs, $4.1 million in non-cash stock-based compensation, $4.6 million in non-cash depreciation and amortization, $1.1 million in third-party professional services, and $1.1 million in marketing. Non-GAAP adjusted operating expenses were $40.5 million, up 72%.

Net loss was $48.2 million, or $0.13 a share, a year-over-year decrease of $91.8 million, or $0.28 a share. The company said the decrease was primarily due to a $121.9 million decline in non-cash, non-operating charges related to remeasurement of its warrant liability. All remaining publicly traded warrants were redeemed in November 2025. Adjusted EBITDA loss was $37.7 million, up 83%, which the company said was due primarily to increased operating expenses to support accelerated product development and go-to-market initiatives.

Cash and marketable investment securities totaled $503.4 million as of September 30, 2026. The company said it delivered Italy’s first annealing quantum computer, a 4,400-plus-qubit Advantage2 system, for installation in Como, funded by Swiss Quantum Technology SA. It announced that NTT DOCOMO deployed a second production application using D-Wave’s hybrid quantum technology, said to reduce daily peak location registration signals by 65.3% and paging signals by 7.0% in a representative 333-base-station problem. D-Wave also launched a gate-model simulator beta, extended a multi-year SkyWater semiconductor partnership, formed a CGI partnership, and signed a memorandum of understanding with LG CNS. Chief Executive Officer Dr. Alan Baratz said the company is expanding commercial reach and executing on both annealing and gate-model roadmaps.