D-Wave Quantum has had an eventful quarter with the filing for a $400 million follow-on equity offering on June 10, 2025, and the general availability announcement of its Advantage2 quantum computing system on May 20, 2025. The company's share price increased by 49% over the last quarter. Although the broader market remained flat over the past week and rose 11% over the past year, D-Wave's new product launch and financing initiatives likely added significant weight to its impressive price movement, countering overall market trends.

D-Wave Quantum has 4 warning signs (and 1 which shouldn't be ignored) we think you should know about.

Uncover the next big thing with financially sound penny stocks that balance risk and reward.

Over the past year, D-Wave Quantum saw a very large total return of 1,230.70%—a striking contrast to the US Software industry's 19.1% return and the broader market's 10.6% gain. The company's recent performance gains were bolstered by steps like the Advantage2 quantum computing system launch and the $400 million equity offering announcement. These initiatives are likely to influence D-Wave's revenue, which is forecasted to grow 35.8% annually, significantly outpacing the US market's expected growth. Despite these positive developments, the company remains unprofitable, with a net loss of US$5.42 million reported for Q1 2025.

D-Wave's share price has increased by 49% in the last quarter, overshadowing the market's growth. However, the company's current share price stands below the analyst consensus target of US$13.83, indicating potential market skepticism about its immediate valuation. Given D-Wave's high Price-To-Book Ratio compared to the industry average, investors may question if the stock is appropriately valued. These details suggest a need to watch both the company's progress in turning revenue growth into profitability and the market's response to its ongoing innovations.

Explore historical data to track D-Wave Quantum's performance over time in our past results report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.