TL;DR
D-Wave reported third-quarter 2026 revenue of $4.5 million, up 21% from a year earlier, while nine-month bookings rose to $37.4 million. Quarterly bookings fell, nine-month revenue was lower than a year earlier, and the company reported higher expenses and narrower gross margins. D-Wave also highlighted customer deployments and a Commerce Department agreement providing access to up to $100 million in conditional CHIPS Act funding.
D-Wave Quantum reported third-quarter revenue of $4.5 million, up 21% from a year earlier, as professional services and cloud access sales grew and the company cited new customer deployments. The quantum-computing company also said a definitive Commerce Department agreement gives it access to up to $100 million in CHIPS and Science Act funding, subject to the agreement’s conditions, as it develops future systems.
The company’s results were mixed across periods and measures. Nine-month bookings increased 611% to $37.4 million, according to D-Wave, but third-quarter bookings fell 19% year over year to $1.9 million. D-Wave said large transactions can cause substantial changes in quarterly bookings. Bookings represent orders expected to generate future revenue; they are not the same as revenue already recognized for delivered products or services.
D-Wave reported $38.3 million in remaining performance obligations, or contracted revenue that has yet to be recognized. The company expects approximately 59% of that amount to become revenue within 12 months. Despite the quarterly revenue gain, revenue for the first nine months fell to $10.4 million from $21.8 million a year earlier. The comparison includes the timing of system sales: the first half of 2025 included $13.7 million from the company’s first sale of an annealing quantum computer.
Revenue composition also shifted. Compared with a year earlier, professional services revenue rose by $1.5 million and quantum computing-as-a-service revenue increased by $800,000, while system sales revenue declined by $1.5 million. D-Wave also reported higher operating expenses and lower gross margin as it expanded development and commercial activities. The supplied results do not give enough detail to determine how those cost trends will develop in future quarters.
Bookings, Revenue and Spending
The figures show why quarterly revenue alone does not capture D-Wave’s commercial position. The rise in year-to-date bookings and the contracted revenue still to be recognized point to orders and work that could support future revenue, while the quarterly bookings decline and lower nine-month revenue underline the uneven timing of large system transactions. The company’s own warning about quarter-to-quarter variation is relevant when interpreting the 611% increase.
Customer deployments provide evidence that some organizations are putting the company’s technology into operational settings, rather than limiting activity to research or trials. But reported use does not by itself establish broad commercial adoption or prove that the deployments will produce material recurring revenue. At the same time, higher spending and narrower margins mean that growth in customer activity and bookings must be weighed against the costs of developing systems and expanding sales.
The federal agreement could help fund development, but up to $100 million is a maximum, not a statement that the full amount has already been paid. Its value to D-Wave depends on the terms and conditions governing access to the funds, as well as the company’s ability to advance its development plans.
Customer Projects and System Plans
D-Wave sells annealing quantum computers and offers access to quantum computing through its cloud service. It is also developing gate-model systems. The company describes its business as a dual-platform approach; its chief executive cited activity in customer deployments and development of both technology roadmaps in the earnings statement. The report’s financial results distinguish revenue recognized during the period from bookings and contracted obligations that may translate into revenue later.
One customer example is NTT DOCOMO’s second production application using D-Wave hybrid quantum technology for mobile-network operations. The companies said the application optimizes how tracking areas are grouped. They reported a 65.3% reduction in daily peak location-registration signals and a 7% reduction in paging signals for the use case. For a representative problem involving 333 base stations, they said optimization took about five minutes. Those performance figures are company-reported results for the described application, not independently established results across other networks.
After the quarter ended, D-Wave said an Advantage2 system with more than 4,400 qubits had arrived in Como, Italy, for installation at Villa Saporiti. Swiss Quantum Technology is financing the deployment under a previously announced €10 million agreement covering half the system’s capacity for five years, with an option to purchase the full system. D-Wave also extended its manufacturing partnership with SkyWater under a multiyear agreement and reported a beta program for its gate-model simulator, launched in October.
“From Seoul to Como to Washington, we are seeing growing interest in D-Wave’s differentiated dual-platform approach and a determination to put our quantum computing technology to work today.”
— Dr. Alan Baratz, D-Wave chief executive
Funding Terms and Revenue Timing
The supplied report does not specify how much CHIPS funding D-Wave has received to date, the payment schedule, or what milestones and conditions apply to the maximum award. The agreement provides access to up to $100 million; it should not be read as confirmation that the entire amount has been disbursed.
It is also unclear how much of the $38.3 million in remaining performance obligations will be recognized on schedule, or whether the company’s bookings will continue at the pace reported for the first nine months. D-Wave noted that large transactions can make quarterly bookings volatile. The provided figures do not state the precise gross-margin change or break out all operating expenses, limiting assessment of the scale and persistence of cost pressures.
The customer deployment metrics and factory-scheduling results are reported by D-Wave and its partners. The material does not describe independent verification or establish whether these outcomes will be repeated across other customers and operating conditions.
Upcoming Funding and Deployment Milestones
Investors and customers will be watching for D-Wave’s next quarterly results to see whether bookings convert into recognized revenue and whether service growth can offset changes in system sales. The company’s filings and future earnings releases should also provide updates on expenses, gross margins and remaining performance obligations.
Further developments include progress under the Commerce Department agreement, continued work with SkyWater on semiconductor processes, and installation and use of the Advantage2 system in Italy. D-Wave’s gate-model simulator beta will give participating organizations a chance to explore applications before the company’s planned gate-model systems become available; the supplied information does not give a launch date for those systems.
Key Questions
How much revenue did D-Wave report for the third quarter?
D-Wave reported $4.5 million in revenue for the quarter ended September 30, 2026, up 21% from the same quarter a year earlier.
Why did bookings rise while third-quarter bookings fell?
The 611% increase applies to the first nine months, when bookings totaled $37.4 million. In the third quarter alone, bookings were $1.9 million, down 19% year over year. D-Wave said large transactions can make quarterly bookings vary substantially.
Has D-Wave received the full $100 million in CHIPS funding?
The report says a Commerce Department agreement provides access to up to $100 million. It does not say the full amount has been paid, and the supplied material does not detail disbursements or all conditions.
What is D-Wave’s remaining contracted revenue?
D-Wave reported $38.3 million in remaining performance obligations, meaning contracted revenue not yet recognized. The company expects about 59% to become revenue within 12 months.
What customer deployment did D-Wave highlight?
NTT DOCOMO deployed a second production application using D-Wave hybrid quantum technology to optimize mobile-network tracking areas. The companies reported reductions in location-registration and paging signals for the application; those figures are company-reported results for that use case.
Source: thequantuminsider.com