D-Wave (QBTS) CEO on Earnings, Quantum Computing Profits & Acquisitions

0:00We want to welcome in our next special guest, Dr. Allen Barrett's president, CEO, D-Wave, Quantum So Glad. You are back with us. Thank you so much for being here. Obviously an incredible run over one year. Tell us about the latest journey season and what you feel really is going right for the company and can continue. So first of all, Nicole, thank you for taking the time to speak with me again today. 2025 was a great year for D-Wave. We closed the year with 24.6 million in revenue. That was a 179% increase over 2024. EBITDA came in consistent with analyst expectations and we closed the year with over $850 million in cash. But as good as 2025 was, 2026 is off to an amazing start. In just the first two months of the year, we've already closed over 32 million in new sales bookings. That's more than all of last year. That included a sale of another system for $20 million and a two year,

1:06$10 million enterprise cloud service agreement with a Fortune 100 company. And all of this is due to some amazing products that we brought to market over the course of the last year. So we've got a lot of momentum right now. I think about the bookings and sales that you just talked about with 32 million. Was it what you expected? Were you even surprised? Well, as I said, we did bring some very strong products to market over the course of the last year. We brought out our latest generation annealing quantum computer. Advantage to this is the only quantum computer that has been able to solve an important real world problem that cannot be solved classically. We brought out some new software in support of that system. And as a result, we started to be able to solve hard computational problems for our customers, delivering much better results much faster than with their classical systems.

2:06And what really sets D-wave apart from the other quantum names? You always tell me about the dual capabilities that the company has. Tell us more about that. Yeah, so we've always been the world leader in annealing quantum computing. And everything that I just talked about was related to our annealing quantum computers. However, at the beginning of this year, we announced that we had closed the acquisition of quantum circuits. This is a spin-out from Yale University that has some very revolutionary gate model technology. With this technology, we've essentially catapulted the company to the forefront of gate model quantum computing as well. So we're now the only company in a leadership position in both annealing, quantum computing, and gate model quantum computing. We call that our dual platform strategy. And as a result, the only company that can address the full set of customer use cases. One stop shot for quantum

3:07computing. And I think about, you know, some of the analysts actually say that, you know, you're in a better position than some of the competition because you don't need to shore up cash as fast, you know, in that you have the edge in that department. Do you feel like that's a correct statement? Absolutely. Because of the fact that our annealing quantum computers are commercial today, driving business like what I just described, system sales, business, cloud service, business, helping customers to solve their hard computational problems, we're not relying entirely on the public markets to raise money. Now, we're not profitable yet, but, you know, we're on a good path to get there. What is general use quantum computing happening? When can we say that happens? How many years? Well, we are solving problems today or commercial customers. So in some sense,

4:10general use has already arrived relative to business optimization problems, which is the class of problems that we can solve today. But if you're asking me when will quantum computing be able to address all possible use cases? In other words, when will we have both commercial and gate model quantum computers? I think we're on the order of five to seven years away from truly commercial gate model systems. But I do think that DeWave will get there as fast as or faster than anyone else in large part due to this revolutionary technology that we just acquired from quantum circuits. And better than the 10 or 20 years that I have read. So yours is more optimistic. Dr. Alan Farrett, thank you. Nice to see you, President and CEO of DeWave. Quantum, thank you. And come back soon and give us some updates. Appreciate it.