D-Wave Quantum's Stock Hinges on Forthcoming Earnings Report

D-Wave Quantum reports Q4 earnings Feb 26. Stock fell 8% last week, lags sector. Analysts forecast loss on ~$3.7M revenue. Insider selling, high valuation noted.

All eyes are on D-Wave Quantum Inc. as it prepares to release its fourth-quarter and full-year 2025 financial results this Thursday, February 26, before the market opens. This announcement arrives during a pivotal period for the quantum computing firm, following a week where its shares experienced the most significant decline among major sector peers.

A Sector Under Pressure

In the trading week spanning February 17 to 20, D-Wave's stock fell 8.19 percent, closing at $18.06. This performance lagged behind other key players in the quantum computing space: IonQ declined 6.48 percent, Quantum Computing Inc. dropped 6.73 percent, and IBM saw a more modest 1.99 percent decrease. Rigetti Computing demonstrated relative resilience with a loss of just 1.06 percent. This sector-wide weakness contrasted with the broader market, as the S&P 500 index advanced 1.13 percent over the same period.

The current share price sits approximately 60 percent below its 52-week high of $46.75, reached in October 2025. Since the start of the year, the equity has registered a loss of roughly 31 percent.

Financial Expectations and Comparative Performance

CEO Dr. Alan Baratz and CFO John Markovich are scheduled to discuss the quarterly figures on a conference call at 8:00 a.m. Eastern Time. Analyst forecasts present a range of expectations. MarketBeat anticipates a per-share loss of $0.05 on revenue of $3.74 million. Investing.com projects a slightly wider loss of $0.062 per share with sales of $3.72 million. Meanwhile, Zacks predicts higher revenue of $4.14 million alongside a loss of $0.05 per share.

For context, the company's third-quarter 2025 revenue came in at $3.7 million, representing a year-over-year doubling. Over the first nine months of 2025, total revenue surged 235 percent to $21.8 million. D-Wave reported a liquidity position of $836.2 million at the end of Q3.

Insider Selling and Market Sentiment

Market sentiment has been influenced by notable insider selling activity. Over the past 90 days, corporate insiders have disposed of 1,074,466 shares worth $31.56 million. This trend is not isolated to D-Wave; when viewed annually, insiders at IonQ, Rigetti, and D-Wave collectively sold shares valued at approximately $615 million, with purchasing activity remaining minimal.

The company's valuation metrics remain ambitious, with shares trading at nearly 299 times revenue amid ongoing operational losses. Furthermore, the short interest stood at 15.95 percent of the free float by the end of January, an increase from the 12.47 percent recorded in mid-November.

Strategic Deals and Business Momentum

Counterbalancing these concerns are several significant commercial announcements from D-Wave in recent weeks. In late January, the firm secured a two-year, $10 million contract with a Fortune 100 corporation. Separately, Florida Atlantic University placed a $20 million order for an Advantage2 system. The company also entered into a multi-year agreement worth 10 million euros with the Italian government and the Q-Alliance.

Most recently, D-Wave disclosed the acquisition of Quantum Circuits Inc. for $550 million, a move that expands its portfolio into gate-model quantum computing. Furthermore, on February 19, the company joined the Southeastern Quantum Collaborative as a founding member.

A Volatile Industry Awaits Key Updates

The broader quantum computing sector continues to exhibit high volatility, with investor attention divided. IonQ is set to report its own earnings on February 25, just one day before D-Wave, potentially setting the tone for sector sentiment.

When D-Wave presents on Thursday, the investment community will scrutinize whether the firm sustained its revenue growth trajectory in the fourth quarter. Management's guidance for 2026 will be equally critical, as will details regarding the integration of Quantum Circuits Inc. and ongoing customer adoption of its technology platforms.