D-Wave reports a 611% year-over-year increase in bookings for the first nine months of 2026, reaching $37.4 million as demand for its quantum computing systems grows. The company also secured a $100 million funding agreement with the U.S. Department of Commerce, contingent on achieving specified milestones, to advance development of both annealing and gate-model quantum computers. This investment will support a 100,000-qubit annealing computer and a 10,000-qubit gate-model system.
21% Revenue Increase & $38.3M Performance Obligations in Q3 2026
This substantial growth in contracted future revenue signals a rapidly expanding customer base and increasing demand for the company’s quantum computing systems and related services. Revenue for the third quarter was $4.5 million, up 21% year over year. While the company’s gross margin experienced a year-over-year decrease to 52.9%, this was attributed primarily to a shift in revenue mix towards professional services, which carry a lower margin.
The company attributes its positive momentum to expanding commercial reach and progress on its technology roadmap. “Our triple-digit increase in year-to-date bookings and robust pipeline reinforce our confidence in the opportunity ahead,” said Dr. Alan Baratz, CEO of D-Wave. Interest in D-Wave’s dual-platform approach is growing from Seoul to Como to Washington, and the company is determined to put its quantum computing technology to work for current applications.
From Seoul to Como to Washington, we are seeing growing interest in D-Wave’s differentiated dual-platform approach and a determination to put our quantum computing technology to work today.
Dr. Alan Baratz, CEO of D-Wave
$100 Million CHIPS Act Funding Agreement with U.S. Department of Commerce
D-Wave secured up to $100 million in funding from the U.S. Department of Commerce, contingent on meeting pre-defined milestones, to accelerate development of its quantum computing platforms. The agreement, formalized in the third quarter of 2026, builds on a previously announced letter of intent and aims to bolster domestic quantum technology leadership. This growth coincides with a surge in bookings, totaling $37.4 million.
The company’s tracking area application reduced daily peak location registration signals by 65.3% and paging signals by 7.0%, lessening network load and improving operational performance, D-Wave says. Remaining Performance Obligations, a metric reflecting contracted future revenue, reached $38.3 million as of September 30, 2026, representing a 1,221% increase from the previous year.
The company defines “Bookings” as customer orders expected to generate future net revenues, and year-to-date 2026 bookings include $2.3 million, closed prior to its January 2026 acquisition. The funding agreement with the U.S. Department of Commerce is structured in installments, tied to the successful completion of specific, undisclosed milestones. “We are expanding our commercial reach and executing on both our annealing and gate-model roadmaps with a clear objective: to lead this industry in technical and scientific innovation, measurable customer value and growth.”
Shift in Revenue Mix Impacts Gross Profit & Operating Expenses
A shift in revenue composition impacted D-Wave’s gross profit during the reporting period, with professional services contributing a larger proportion than in the prior year. GAAP gross profit decreased to $2.4 million, a year-over-year reduction of $0.3 million, or 11%, despite overall revenue gains. Adjusting for certain items, Non-GAAP Gross Profit remained essentially flat year over year at $2.9 million, while the Non-GAAP Gross Margin experienced a decrease of 14.1% to 63.6%.
This margin compression stemmed from the revenue mix favoring professional services. D-Wave clarified that it presents the operating metric of Bookings because it reflects customer demand and assists in analyzing potential future performance. Operating expenses increased significantly, reaching $55.9 million, an 84% year-over-year increase.
This rise was driven by increases in personnel costs of $12.3 million, stock-based compensation of $4.1 million, depreciation and amortization of $4.6 million, third-party professional services of $1.1 million, and marketing expenses of $1.1 million. Non-GAAP Adjusted Operating Expenses also rose, increasing by 72% to $40.5 million. Approximately 59% of the $38.3 million in Remaining Performance Obligations as of September 30, 2026, is expected to translate into revenue within the next 12 months, with 71% recognized within 24 months.
Revenue allocated to these obligations represents the transaction price of non-cancellable orders, including deferred revenue and amounts to be invoiced from open contracts, excluding unexercised renewals. D-Wave defines “Non-GAAP Gross Profit”, “Non-GAAP Gross Margin”, “Non-GAAP Adjusted Operating Expenses” and “Adjusted EBITDA Loss” as non-GAAP financial measures and provides reconciliations in the accompanying press release.
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