D-Wave Quantum reported third-quarter revenue of $4.51 million on Tuesday, 10 November, up 21% from a year earlier and above Wall Street forecasts, but its shares fell sharply as quarterly bookings dropped and losses widened on an adjusted basis.

The quantum computing company said revenue from more than 100 customers rose from $3.73 million in the same quarter last year, driven by growth in its quantum computing as a service business and professional services. The figure topped the consensus estimate of about $3.95 million, according to Zacks, and other estimates of around $4.33 million to $4.37 million.

Bookings fall while nine-month orders surge

The weak spot in the report was bookings. New orders in the quarter totalled $1.9 million, down 19% from a year earlier, as the timing of larger deals weighed on the figure. D-Wave said bookings can vary sharply from quarter to quarter because single large system sales dominate the total.

Over the first nine months of 2026, bookings reached $37.4 million, up 611% from the same period last year. That total included a $20 million system sale to Florida Atlantic University, which the company expects to deliver in the fourth quarter and which management said should lift revenue in the final three months of the year.

Subscription revenue from its Leap cloud service rose 56% to $2.2 million, while professional services revenue jumped 318% to $2 million, helped by a large engagement with a Fortune 100 customer and paid research work on gate-model quantum systems. System sales fell to about $360,000 as deliveries were pushed into later quarters.

Margins narrow as spending climbs

Gross profit fell 11% to $2.4 million, and gross margin narrowed to 52.9% from 71.4% a year earlier, because lower-margin professional services made up a larger share of sales. Operating expenses rose 84% to $55.9 million as the company invested in product development and commercial expansion.

The net loss narrowed to $48.2 million, or $0.13 per share, from $139.9 million a year earlier, although the improvement largely reflected a $121.9 million non-cash warrant charge in the prior-year quarter. On an adjusted basis, the loss was $0.11 per share, against expectations of a $0.10 loss.

Cash and marketable securities stood at $503.4 million at the end of September, down 40% from a year earlier, while contracted revenue yet to be recognised totalled $38.3 million. Shares in D-Wave fell by about 11% during Tuesday's session, according to FinanceFeeds, after dipping in pre-market trading. Read the Zacks report on the results and the earnings call highlights from Ticker Report.