Is QBTS undervalued?

Roth Capital analyst Suji Desilva maintained a “Buy” rating on D-Wave Quantum (D-Wave Quantum Stock Quote, Chart, News, Analysts, Financials NYSE:QBTS) in a May 13 sales analysis, citing stronger bookings and traction in both quantum computing-as-a-service and hardware sales.

D-Wave reported Q1 revenue of $2.9-million, up 3.9% sequentially but down 81% year-over-year because the prior-year period included a large hardware sale. Adjusting for that item, QCaaS revenue rose 20% year-over-year.

Bookings rose 149% sequentially to $33.4-million, with Desilva pointing to large multi-year QCaaS enterprise deals and additional annealing hardware system sales. Gross margin remained strong at 70.6%.

D-Wave has about $590-million in cash, leaving it well funded to execute its operating plan. Backlog has grown to $42-million, with the next-12-month portion covering more than 50% of Roth’s 2026 revenue forecast.

“We believe QBTS continues to make progress on the roadmap for its acquired gate model quantum computer and remains on track for initial availability of 8-bit and 17-bit versions in the next few quarters, boosting the hardware sales opportunity for the company,” Desilva said.

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