How QBTS (D-Wave Quantum) Makes Money in 2026: A Deep-Dive With Income Statement

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Understanding how a quantum computing company like D-Wave Quantum (QBTS) makes money is essential for investors and anyone interested in the business of quantum technology. In this post, we break down D-Wave Quantum's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick D-Wave Quantum Overview

D-Wave Quantum operates as a leader in quantum computing, providing annealing-based quantum systems, cloud access, and professional services for optimization problems in industries like logistics, finance, and drug discovery. Revenue comes primarily from sales of quantum processing units (QPUs), cloud subscriptions via Leap platform, and related support services. As an early-stage quantum tech firm, the company focuses on commercializing hybrid quantum-classical solvers amid rapid sector growth.

Revenue Breakdown

• Total Revenue (Q3 2025): $3.7M (+99.9% YoY)
  • Core quantum systems and cloud services: $3.7M (100% of total)
  • Growth is powered by surging demand for quantum annealing solutions and expanded Leap platform adoption.

Gross Profit and Margins

• Gross Profit: $2.7M (71.4% gross margin)
  • Cost of Revenue: $1.1M (+29.4% YoY)
  • D-Wave Quantum maintains robust margins due to scalable software-driven cloud access and high-value hardware sales with favorable pricing power in a niche market.
• Most costs come from quantum hardware production, cloud infrastructure, and direct support services.

Operating Income and Expenses

• Operating Income: -$30.4M (+40.3% YoY increase in expenses, N/A margin due to losses)
• Operating Expenses: $30.4M (+40.3% YoY)
  • R&D: $14.1M (+62.4% YoY, 376.4% of revenue) — focused on advancing quantum annealer hardware, hybrid solvers, and error mitigation for commercial scalability
  • SG&A: $16.3M (+25.5% YoY, 436.7% of revenue) — covers sales expansion, administrative scaling, and marketing to enterprise clients
  • D-Wave Quantum continues to prioritize innovation while expanding operations in a capital-intensive R&D phase.

Net Income

• Pre-Tax Income: N/A (inferred negative from flows)
• Income Tax: N/A
• Net Income: $0.1M (+516.4% YoY, 3743.9% net margin)
• D-Wave Quantum converts a significant portion of sales into profit due to non-operating items offsetting heavy R&D investments.

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What Drives D-Wave Quantum's Money Machine?

• Leap Quantum Cloud Platform: 100%+ of revenue / provides on-demand access to quantum processors, driving recurring subscriptions
• Quantum Hardware Sales: Key metric with high gross margins; Q3 revenue doubled YoY from systems deliveries
• R&D Investments: Heavy focus on next-gen QPUs and software to solve complex optimization problems
• Future growth areas: Hybrid quantum applications in AI and logistics, though not yet profitable at scale

Visualizing D-Wave Quantum's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially R&D and SG&A) taking the largest chunk.
• Even after large investments, a small positive net flow emerges from other items.

Key Takeaways

• D-Wave Quantum's money comes overwhelmingly from quantum cloud and hardware
• High gross and net margins illustrate the power of D-Wave Quantum's asset-light cloud model
• Heavy investment in R&D, balanced by efficiency in cost of revenue
• Ongoing growth is driven by quantum adoption in enterprise

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FAQ About D-Wave Quantum's Income Statement

1. What is the main source of D-Wave Quantum's revenue in 2025?

D-Wave Quantum generates over 100% of its revenue from quantum computing systems, cloud services via the Leap platform, and professional services. No significant secondary streams reported in Q3.

2. How profitable is D-Wave Quantum in Q3 2025?

D-Wave Quantum reported net income of $0.1M in Q3 2025, with a net margin of approximately 3743.9%, reflecting strong profitability driven by non-operating other items despite operating losses.

3. What are the largest expense categories for D-Wave Quantum?

The biggest expenses on D-Wave Quantum's income statement are operating expenses, particularly Research & Development (R&D) and Sales, General & Administrative (SG&A) costs. R&D investment reached $14.1M in Q3 2025, as D-Wave Quantum prioritizes next-gen quantum hardware and software.

4. Why does the core business operate at a loss?

The core quantum operations, despite generating $3.7M in revenue, posted operating losses exceeding $30M in Q3 2025. This is because D-Wave Quantum aggressively invests in R&D and sales expansion, believing these will drive long-term growth—even if unprofitable today.

5. How does D-Wave Quantum's effective tax rate compare to previous years?

D-Wave Quantum's effective tax rate in Q3 2025 was N/A (no tax provision reported), consistent with previous years. This low rate is primarily due to net operating loss carryforwards and R&D tax credits in the quantum sector.