D-Wave (QBTS) is burning cash at record speed, but its CEO is cashing out
Quantum systems developer D-Wave Quantum (QBTS) is losing more money than ever as its financial performance continues to deteriorate, raising questions about how long investors will focus on the company’s future potential rather than its present-day operations.
In its most recent quarter, D-Wave posted the largest operating loss in its history: $27.7 million. Operating loss is the most accurate measure of business performance because it excludes accounting adjustments and mark-to-market fluctuations.
The trend has been getting worse for years. D-Wave reported losses of approximately $20 million in 2024 and $16 million in 2023, with the losses deepening each quarter. The latest result marks the company’s steepest decline yet.
Meanwhile, quarterly revenue totaled only $3.7 million, underscoring the growing gap between income and expenses. To keep the lights on, D-Wave has continued issuing new shares.
Massive insider sales raise questions about D-Wave’s business
Adding to the disconnect between the company’s fundamentals and investor enthusiasm, CEO Alan Baratz has executed millions of dollars’ worth of planned insider stock sales this year.
His transactions included $14.38 million sold in May and $23.2 million sold in November — amounts larger than what D-Wave generates in an entire year of revenue.
While planned insider sales aren’t inherently problematic, the scale of the disposals highlights the contrast between insider behavior and the company’s worsening financial performance.
QBTS stock performance
D-Wave’s stock has fallen roughly 35% over the past month, a decline that reflects both company-specific concerns and a broader selloff across the quantum computing industry.
As InvestorsObserver reported, the sector’s latest downturn stems from investors reassessing the near-term commercial viability of quantum technologies.
The slump has not been limited to D-Wave. Other quantum names, including Rigetti Computing (RGTI) and Quantum Computing Inc. (QUBT), have also posted sharp losses over the same period, underscoring a sector-wide pullback driven by doubts about revenue timelines, rising cash burn, and tightening financial conditions.
Despite this recent reversal, QBTS remains one of the most explosive performers in the quantum category over the past year. The stock has surged roughly 625% over the last 12 months, a run fueled by a potent mix of speculative enthusiasm and renewed optimism surrounding D-Wave’s technology roadmap.
At current prices, D-Wave commands a market capitalization of roughly $7.5 billion, placing it among the largest and most speculative bets in the quantum computing sector.