Quantum computing shares rallied in the US after D-Wave Quantum released Q1 results and sparked a wave of optimism that the sector could be on the verge of generating meaningful revenues.
D-Wave reported hugely improved financial results for the first quarter of fiscal 2025, achieving record revenue of $15.0 million, representing a substantial 509% increase from the $2.5 million recorded in the same period of fiscal 2024.
The results validate quantum computing’s investment case and demonstrate real-world demand for quantum computing systems at scale.
“The first quarter of 2025 was arguably the most significant in D-Wave’s history, especially in terms of our unique ability to deliver quantum value today to our customers and the scientific community,” said Dr. Alan Baratz, CEO of D-Wave.
“We recognized revenue on our first Advantage™ system sale to a major research institution, moved an additional customer application into commercial production, and became the first to demonstrate quantum supremacy over classical computing on a useful real-world problem. The end result was a record revenue and gross profit quarter.”
The revenue growth was primarily driven by the sale of a quantum computing system, resulting in a record gross profit of $13.9 million and an improved gross margin of 92.5%.
D-Wave has made significant technological strides, including demonstrating quantum computational supremacy on a real-world magnetic materials simulation problem. D-Wave’s annealing quantum computer solved a problem in minutes that would have otherwise taken a million years.
The company highlighted a range of commercial applications of the tech, including Ford Otosan deploying a hybrid-quantum solution that reduced vehicle scheduling time from 30 minutes to under five minutes, and Japan Tobacco successfully employing D-Wave’s quantum computing in drug discovery processes.
D-Wave Quantum shares were 38% higher at the time of writing, helping peers Rigetti Computing and Quantum Computing Inc. higher by 8% and 10%, respectively.