D-Wave Quantum Inc.

Based on a comprehensive review, QBTS presents a highly speculative and high-risk investment profile that is currently not suitable for most investors. A strong SELL recommendation is advised.

Technical Analysis: QBTS exhibits severe negative momentum, significantly underperforming the market with deep losses and high volatility. While the price sits mid-way between its 52-week high and low, this reflects a steep decline rather than a stabilizing base, indicating persistent weakness and selling pressure.

Fundamentals & Valuation: The company's fundamentals are a primary concern, characterized by minimal revenue, significant operational losses, and negative cash flow. Despite a strong cash position and low debt, the extremely poor operational efficiency and lack of profitability make standard valuation metrics negative and unreliable, placing its value entirely on future speculative growth.

Risk & Conclusion: The exceptionally high volatility and substantial downside risk, combined with the absence of a clear path to profitability, make QBTS an unsuitable investment for those seeking capital preservation or stable returns. Investors should wait for concrete evidence of improved operational performance and sustained revenue growth before considering a position.

RockFlow Model Forecast: Three Scenarios for 2026

Based on the provided analysis, the 12-month outlook for QBTS is highly pessimistic. The primary catalyst for any potential recovery would be concrete, sustained evidence of improved operational performance and a credible path to profitability, though this is not currently in sight. The major risks are overwhelming and include persistent burning of its cash reserves, failure to generate meaningful revenue, and continuation of the severe negative price momentum. Given the complete lack of profitability and the "Strong SELL" recommendation, a target price cannot be reasonably established, and further significant downside from the current price of $18.44 is a substantial risk.

Wall Street Consensus

Most Wall Street analysts are optimistic about D-Wave Quantum Inc.'s 12-month outlook, with consensus target around $19.38, indicating expected upside potential.

Overall, QBTS has investment potential but also faces challenges. Here are key factors to weigh before investing.

QBTS has delivered deeply negative returns across all measured timeframes, significantly underperforming its market benchmark. The stock has experienced substantial volatility and a severe maximum drawdown over the past year, reflecting a period of intense selling pressure and poor investor sentiment.

The stock's performance has been exceptionally weak in the short term, with nearly identical and severe declines of over 35% over both the past one and three months. This decline is approximately 36 percentage points worse than the broader market over the same three-month period, a significant underperformance that is amplified by the stock's high beta, indicating it fell much more sharply than the market.

Despite the recent sharp downturn, the current price of $18.44 is positioned almost exactly midway between its 52-week high and low. This suggests the stock is not in a technically oversold or overbought condition on this long-term metric, but resides in a neutral area that reflects the dramatic peak-to-trough decline it has already endured.

Revenue & Profitability: QBTS demonstrates concerning revenue levels at $3.7 million in Q3 2025, with significant operating losses despite a healthy gross profit margin exceeding 70%. The company shows substantial negative operating and net income margins, indicating that high R&D and SG&A expenses are consuming all gross profits and then some. Profitability metrics remain deeply negative across all measures with no improvement quarter-over-quarter.

Financial Health: The company maintains an exceptionally strong liquidity position with current and cash ratios above 50, suggesting substantial cash reserves relative to current obligations. Debt levels appear minimal with a debt ratio of just 4.6%, indicating low financial leverage. However, cash flow metrics are deeply negative, with operating cash flow per share at -$0.06, reflecting substantial cash burn despite the strong balance sheet position.

Operational Efficiency: QBTS shows severe operational challenges with negative returns on assets (-16.2%) and equity (-20.9%), indicating inefficient use of capital. Asset turnover is extremely low at 0.0043, suggesting poor utilization of the company's asset base to generate revenue. The extended cash conversion cycle of 261 days highlights working capital inefficiencies, particularly with high days inventory outstanding exceeding 238 days.

Valuation Level: The company currently presents negative trailing and forward PE ratios, indicating it is not profitable on a net income basis. This makes the standard PE ratio valuation metric unusable for determining over- or undervaluation. The negative EV/EBITDA further confirms significant operational losses before accounting for non-cash expenses, placing the stock in a speculative valuation category dependent on future profitability projections rather than current earnings.

Peer Comparison: A direct peer comparison using industry averages is not feasible as the necessary benchmark data is unavailable. However, the combination of negative earnings multiples and a Price-to-Book ratio of 10.17 suggests the market is valuing the company's assets and future growth potential highly, despite its current lack of profitability. The PEG ratio well below 1.0, derived from a negative PE, should be interpreted with caution as it may not be a reliable indicator of value in this context.

Volatility risk is elevated, as evidenced by a beta of 1.569, which indicates the stock is approximately 57% more volatile than the broader market. This heightened sensitivity is further corroborated by a substantial one-year maximum drawdown of -61.57%, highlighting significant downside volatility and potential for sharp price declines during market downturns.

Regarding other risks, the absence of reported short interest suggests a lack of significant speculative betting against the stock, temporarily mitigating that specific pressure. However, this does not eliminate other fundamental or liquidity risks, which remain contingent on the company's underlying financial performance and trading volume.