Now it owes $550 million to buy quantum computing stock

Quantum computing stocks are back in the game to start 2026, and once again D-Wave Quantum (QBTS) is at the center of it all. This time, the focus is on a deal to buy Quantum Circuits for a total of $550 million through a mix of both stock and cash. As far as QBTS stock investors are concerned, this is a game that is about much more than size.

Governments, companies and research facilities have bought into the experimental stages of quantum computing while focusing on implementation. D-Wave is trying to do something that few other companies in the same league can claim: stay relevant in the current era and have something in the pipeline for the future. D-Wave’s Quantum Cloud platform is already generating revenue with production-level technology that is expanding into gate-model systems.

Even this ambition did not escape the attention of the market. The share price of QBTS stock has risen significantly over the past year, showing renewed confidence in the belief that quantum computing adoption is finally crossing over from theory to practice.

D-Wave Quantum is a quantum computing company headquartered in Palo Alto, California, specializing in the development, operation, and management of commercial quantum computing systems, software, and cloud-based services. D-Wave is primarily recognized as a manufacturer of annealing-based quantum computing systems, which are already in use by various firms, governments, and research bodies around the world. D-Wave is currently valued at a market capitalization of $10.6 billion.

Shares of QBTS stock have been very volatile. Currently, following a multi-week rally, the stock trades around the $30 mark, and is above the 52-week low of $3.74 (although QBTS remains below the 52-week high of $46.75). QBTS has outperformed the overall market over the past year.

However the valuation is still aggressive. D-Wave remains unprofitable with negative margins and returns, and its price-to-sales ratio has grown to 364 times. This is not unusual for early-stage leaders in the quantum space; Valuations are generally less dependent on earnings and more dependent on balance sheet strength, customer adoption and technology. At these dimensions, having $836 million in cash is an extremely important factor for D-Wave.

Quantum circuit acquisition is important for the management of D-Wave. This is because it includes gate-model superconducting quantum technology and error correction capability. This technology will now sit alongside D-Wave’s solution platform, allowing customers to solve a variety of computational problems.

However, it is equally important to consider human capital in the context of this contract. The agreement brings top quantum experts, such as Drs. Rob Scholkopf, and will help open a new R&D center in New Haven, Connecticut. The deal improves D-Wave’s reputation in gate model development – ​​an area in which competition has traditionally had the upper hand.

The company is making positive progress in operations. In the third quarter, revenue doubled from a year ago to $3.7 million. Gross margin increased materially as a result of additional system sales. In the first nine months of fiscal 2025, revenue grew 235% from a year earlier, while GAAP gross margin reached nearly 85%. Although the company has a huge loss, the loss has decreased.

Analysts covering QBTS stock view the company as a high-risk/high-reward play on potential quantum technology adoption, assigning a “strong buy” consensus rating to the stock. Current price targets range from a low of $22 to a high of $48, with an average price target of $38.71. At current prices, this means the target implies a potential gain of around 29%. This positivity stems from D-Wave’s strong cash position, growing customer base, and early monetization gains in the field of quantum computing.

As of the date of publication, Yiannis Zourmpanos had no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com