D-Wave Quantum reported third-quarter 2026 results on November 10. Revenue was $4.5 million, up 21% from $3.7 million a year earlier. GAAP operating expenses were $55.9 million, up 84%. Operating costs ran more than twelve times revenue. The stock fell about 10% on the day.
What drove revenue
Professional services carried the quarter. That line rose $1.5 million, or 318%, to about $2 million, mainly from a large engagement with a Fortune 100 customer and paid gate-model research projects. Quantum computing as a service revenue rose $0.8 million. System sales fell $1.5 million, leaving systems and other revenue at about $360,000.
The shift toward services cost margin. GAAP gross margin fell to 52.9%, down 18.5 points, because services carry lower margins than cloud access.
More than 100 customers paid D-Wave in the quarter. Commercial enterprises made up 52% of revenue, against 31% a year earlier.
Bookings tell a different story
Quarterly bookings fell 19% to $1.9 million. Year-to-date bookings are $37.4 million, up 611%, but that figure leans on a $20 million system sale to Florida Atlantic University and $2.3 million of bookings from Quantum Circuits, acquired in January. D-Wave expects to deliver the FAU system and recognize a substantial portion of its revenue in the fourth quarter, so the next report should look much bigger.
Remaining performance obligations were $38.3 million, against $2.9 million a year ago. About 59% should be recognized within twelve months. Management says the sales pipeline grew more than 75% from the end of the second quarter and has more than tripled since the end of 2025. The company also signed an agreement giving access to up to $100 million in federal funding.
Balance sheet and comparison
Cash and marketable securities were $503.4 million at quarter end, enough to fund years of losses at the current rate. That runway is what the company is really selling to investors.
The contrast with IonQ is stark. IonQ reported $173.8 million of third-quarter revenue a week earlier, as covered in our IonQ analysis. D-Wave’s annealing systems have the longer commercial history, but on revenue it is now a much smaller business. The fourth quarter, with the FAU delivery, is the first real test of whether system sales can close that gap.