D-Wave Quantum Down 60% Despite 235% Revenue Growth, 108% Price Target Upside

QBTSQBTS

D-Wave Quantum’s stock has slumped 60% since its October 2025 peak despite a 235% YoY revenue jump to $21.8 million and a robust $836.2 million cash balance. Analysts assign a Hold rating with an average price target implying 108.26% upside from its $19.38 close, ahead of February 26 earnings.

1. Stock Performance and Analyst Targets

D-Wave’s share price has fallen 60% since its October 2025 peak, trading around $19.38 at the last close. Analysts maintain a Hold rating with an average price target implying 108.26% upside, reflecting expectations for key technological milestones and contract wins.

2. Revenue Growth and Cash Position

The company reported $21.8 million in revenue for the first nine months of 2025, marking a 235% year-over-year increase driven by major new contracts. D-Wave also holds $836.2 million in cash and equivalents, supporting continued R&D and operational needs.

3. Valuation Multiples and Acquisition Risks

Trading at approximately 299 times forward sales, D-Wave’s valuation is among the highest in its peer group. The $550 million acquisition of Quantum Circuits adds execution risk, while ongoing shareholder dilution concerns may pressure future share counts.

4. Upcoming Earnings and Outlook

D-Wave is set to report Q4 results on February 26, with investors watching revenue guidance, margin trends and contract pipelines. Positive earnings surprises or new partnership announcements could catalyze a rebound, while missed targets may deepen selling pressure.

Sources

FF