A d-wave earnings call summary for Q3 2025, featuring a listen-only format with question-and-answer session, compliance reminders, and non-GAAP financial measures discussion. Participants include an investor relations director, CEO, and CFO, focusing on earnings, financial performance, and investor relations.

D-Wave's Q3 2025 financials underscore momentum across key metrics. The company's quantum solutions, including Advantage I, are gaining global traction, with engagements from major airlines, chemical companies, and banks. D-Wave's technology, notably in hybrid quantum applications, is demonstrating real-world efficiency gains, such as optimizing manufacturing workflows and enhancing drug discovery processes. The firm is also expanding its presence through initiatives like the Q Alliance in Italy and hosting its first CBIT Japan User Conference, signaling a robust path toward profitability and industry leadership.

The dialogue discusses superconducting technology's dominance in quantum computing, emphasizing gate speed and scalability advantages. D-Wave's commitment to superconducting for both annealing and gate model systems is outlined, along with the company's progress in product development, including Gate Auto program advancements.

D-Wave emphasizes its competitive edge in quantum computing by developing both annealing and gate model systems. The company highlights the operational Advantage Two system, showcasing quantum supremacy and real-world problem-solving capabilities. It also discusses advancements in gate model technology, strategic partnerships, and financial stability, positioning D-Wave as a leader in quantum computing with immediate commercial applications.

Revenue increased by 100% to $3.7 million in Q3 2025, driven by higher-margin systems upgrades. Bookings grew by 3% to $2.4 million, with a significant $10 million European agreement. Gross margins improved to 77.7% non-GAAP, reflecting enhanced profitability and operational efficiency.

Company reports increased net and adjusted net losses, primarily due to non-cash charges from warrant liability remeasurement. Revenue and gross profits rise significantly, mainly from a high-margin system sale. Adjusted EBITDA loss increases, reflecting higher operating expenses offset by improved gross profits.

D-Wave's revenue model stands apart with its focus on quantum computing as a service, professional services, and system sales, offering commercial-grade, scalable solutions. Unlike competitors reliant on government-funded R&D for low-margin, experimental systems, D-Wave emphasizes accessible, real-world problem-solving capabilities, aiming for sustainable growth through production applications and direct system sales.

Dwa's third-quarter cash balance soared to $836.2 million, a 2700% year-over-year increase, fueled by $40.3 million from warrant exercises. The company redeemed outstanding warrants, potentially adding $21.3 million in cash post-quarter. This financial momentum positions Dwa to become the first independent, publicly held quantum computing company to achieve sustained profitability with less funding than peers.

A quantum computing company highlights its unique approach by focusing on practical, scalable solutions for government problems, distinguishing itself from peers seeking R&D funding. The dialogue emphasizes growing recognition of the company's quantum computers' capabilities in delivering tangible benefits, particularly in areas like military logistics, resource placement, and equipment maintenance, marking a shift in US government interest towards leveraging quantum technology for real-world applications.

A discussion on the development of a superconducting gate model quantum computer, highlighting the use of fluxon qubits, cryogenic control, and plans for scalable logical qubit structures, with a timeline extending several years for error-corrected systems.

A discussion on leveraging quantum computing for national security, highlighting the collaboration with Davidson and the advancement towards a certified quantum computer for classified government applications.

The dialogue revolves around the purchase option held by a party for a system, with inquiries on the financial implications of exercising this option mid-contract. The speaker indicates that specific details on the purchase process and financial adjustments have not been disclosed, leaving the exact terms and credit for expenditures under the €10 million contract unclear.

The dialogue explores an innovative procurement model where alliances and governments can secure 50% capacity of a system for five years with an option to fully purchase it, potentially setting a precedent for global expansion and strategic partnerships. This model, similar to past implementations, allows for gradual system acquisition and could serve as a blueprint for future deals, enabling companies to establish a presence worldwide while offering flexible purchasing options to customers.

The dialogue discusses the company's strategy to moderately increase investments, focusing on R&D and sales/marketing, with a goal to accelerate technology and market capabilities. It highlights plans for a gate model program, enhancing system sales, and exploring enterprise licensing deals for multiple applications. The conversation also touches on expected operational expense increases for the remainder of the year, without providing specific guidance for the first half of the following year.

The dialogue highlights the company's decision to concentrate solely on quantum computing, dismissing ancillary quantum opportunities such as quantum networking, sensing, and quantum key distribution as non-central to their core objectives. The speaker asserts that these additional technologies are not critical for their systems, emphasizing a laser-like focus on advancing quantum computing capabilities.

Discussion covered Skywater's use of quantum processing unit (QPU) for operational optimization, undisclosed applications with a major airline, and BASF's engagement with quantum technology, highlighting industry-specific problem-solving strategies.

The dialogue highlights the growing interest from large companies in quantum optimization, marking an inflection point towards more aggressive market penetration. Successes in proofs of concept and advancements in technology, particularly the Advantage two platform and NL hybrid solver, are driving this momentum. The conversation concludes with optimism about the company's position and future updates, underscoring its leadership in quantum computing.