AI Takeaway
QBTS reported a sharp revenue decline of 80.9% YoY to $2.9M in Q1 2026, with operating losses widening dramatically to -$54.7M, while the company significantly bolstered its balance sheet through equity raises, ending the quarter with $338M in cash and $1.12B in stockholders' equity.
Revenue
$2.86M
-80.95% YoY
EPS (Basic)
$-0.05
-150.00% YoY
Gross Margin
63.6%
-28.90% YoY
Operating Income
$-54.73M
-384.70% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue fell 80.9% YoY from $15.0M to $2.9M in Q1 2026, suggesting a significant loss of contract revenue or a one-time prior-year item that did not recur, placing substantial pressure on the company's near-term financial performance.
Source: Source: 10-Q Income Statement
R&D expenses more than doubled, rising 150.7% YoY from $10.3M to $25.8M, reflecting QBTS's aggressive investment in quantum computing technology development, which is the primary driver of the widening operating loss.
Source: Source: 10-Q Income Statement
Operating loss widened by 384.7% YoY to -$54.7M from -$11.3M, driven by the combination of collapsing revenue and surging R&D and operating expenses, resulting in an operating margin of approximately -1,915%.
Source: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockRevenue dropped 80.9% YoY to just $2.9M, indicating QBTS may be highly dependent on a small number of contracts or customers. The loss or non-renewal of even a single major contract could materially impair near-term revenues. This concentration risk is particularly acute for an early-stage quantum computing company.
Source: Source: 10-Q Income Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $-0.01 versus the $-0.08 analyst consensus — a +87.2% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $2.86M | $15M | -80.95% |
Cost of Revenue | $1.04M | $1.12M | -7.47% |
Gross Profit | $1.82M | $13.88M | -86.90% |
Operating Income | $-54.73M | $-11.29M | -384.70% |
Net Income | $-18.36M | $-5.42M | -238.63% |
EPS (Basic) | $-0.05 | $-0.02 | -150.00% |
EPS (Diluted) | $-0.05 | $-0.02 | -150.00% |
R&D Expense | $25.79M | $10.29M | +150.71% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $1.2B | $325.6M | +268.49% |
Current Assets | $607.11M | $310.87M | +95.30% |
Total Liabilities | $75.56M | $118.21M | -36.08% |
Current Liabilities | $28.36M | $15M | +89.05% |
Stockholders' Equity | $1.12B | $207.39M | +442.10% |
Cash & Equivalents | $338.2M | $304.32M | +11.13% |
Long-Term Debt | $35.42M | $30.37M | +16.65% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $-44.96M | $-19.28M | -133.21% |
Investing Cash Flow | $-252.06M | $-498,000 | -50515.46% |
Financing Cash Flow | $-143,000 | $145.62M | -100.10% |
D&A | $3.8M | $376,000 | +911.44% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 63.6% | 92.5% | -28.90% |
Operating Margin | -1914.9% | -75.3% | -1839.60% |
Net Margin | -642.3% | — | — |
ROE | -1.6% | — | — |
ROA | -1.5% | — | — |
Current Ratio | $21.41 | — | — |
Debt to Equity | $0.067 | — | — |
QBTS revenue dropped 80.9% year-over-year to just $2.86M in Q1 2026, compared to $15.0M in Q1 2025. This sharp decline suggests the company may have lost a major contract or recognized a large one-time payment in the prior year that did not repeat.
The key takeaways are a dramatic revenue decline of 80.9% to $2.9M, an operating loss that widened to -$54.7M driven by R&D spending more than doubling to $25.8M, and a significantly strengthened balance sheet with $338M in cash and $1.12B in stockholders' equity following a major equity raise. The company is clearly in an aggressive investment phase prioritizing quantum technology development over near-term profitability.
QBTS ended Q1 2026 with $338.2M in cash and equivalents, up 11.1% from $304.3M a year ago. The company's total stockholders' equity stands at $1.12B, reflecting a major equity capital raise, though the operating cash burn rate of -$45M per quarter means this runway is finite.
Based on the financial data, the most significant risks include the severe revenue concentration and volatility (revenue down 80.9%), a high cash burn rate of approximately -$45M per quarter in operating outflows, and gross margin compression from 92.5% to 63.6%. Additionally, the company deployed $252M in investing activities in a single quarter, raising questions about the return profile of those investments.
No, QBTS is not profitable. The company reported a net loss of -$18.4M and an operating loss of -$54.7M in Q1 2026, with an operating margin of approximately -1,915%. The company is in an early-stage, heavy investment phase with R&D spending of $25.8M far exceeding its $2.9M in revenue.