QBTS Stock Forecast & Price Target

D-Wave Quantum Inc. has demonstrated strong revenue growth potential, projecting approximately $10 million in revenue for 1Q25, primarily driven by its first system sale. The company is successfully expanding its technology offerings and customer adoption, evidenced by a sevenfold increase in bookings ahead of revenue recognition from its inaugural hardware customer, the Julich Supercomputing Centre. With a healthy gross margin of 73% and improved performance metrics from its new Advantage2 processors, D-Wave is positioned to capitalize on its leadership in commercial quantum computing, further enhancing its strategic partnerships and application development.

D-Wave Quantum reported a fourth-quarter revenue of $2.3 million, reflecting a quarter-over-quarter increase of 23.5%, but exhibiting a year-over-year decline of 21%, highlighting challenges in sustaining growth in an evolving market. The company is faced with significant risks related to delayed quantum adoption, which could hinder user acceptance and result in slower scaling and reduced sales. Additionally, projected losses for the upcoming fiscal years, including an expected Non-GAAP EBITDA loss of $53.3 million for FY25, raise concerns over potential shareholder dilution and the viability of meeting revenue expectations, further contributing to a negative outlook on the stock.