Where Will D-Wave Quantum Stock Be in 3 Years?
Key Takeaways
This little quantum computing company could have a lot of room to grow.
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5 min read
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investment
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July 27, 2025
08:40 AM
The Motley Fool
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What caught my attention is D-Wave Quantum (QBTS -4. 45%), a vider of quantum annealing services, has taken its investors on a wild ride since going public, nearly three years ago, by merging with a special purpose acquisition company (SPAC), in this volatile climate
It opened at $10, sank below $1 in 2023, but now trades at $17
The bulls expect the market's demand for its quantum services to soar in the future, but the bears argue that it's overvalued relative to its growth potential, amid market uncertainty
Let's review D-Wave's recent growth trajectory and see where it might be headed over the next three years
Image source: Getty Images
What happened to D-Wave over the past three years
Quantum computers can cess data faster than classical computers, but they're larger and more expensive, and they consume much more power
On the other hand, That's why they're still mainly used for niche re jects at universities and government agencies
But as quantum cessing units (QPUs) get smaller, more power-efficient, and more accurate, they can be used in a wider range of main computing applications
Nevertheless, D-Wave aims to capitalize on that transition with its quantum annealing tools, which help companies line their workflows, supply chains, and logistics networks, in light of current trends
Furthermore, It runs those cesses through different scenarios and identifies those that consume the least power as the most efficient ones (noteworthy indeed)
Moreover, D-Wave designs its own QPUs and quantum systems, and it vides its services through its cloud-based Leap platform, which is compatible with leading cloud infrastructure platforms Amazon (NASDAQ: AMZN) Web Services and Microsoft (NASDAQ: MSFT) Azure, amid market uncertainty
D-Wave's practical apach to quantum computing attracted the attention of more than 100 major customers, including Deloitte, Mastercard, Volkswagen, Lockheed Martin, and Accenture
In contrast, But over the past three years, it hasn't generated much revenue, its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) remains negative, and its net losses significantly widened
Metric 2022 2023 2024 Revenue $7. 2 million $8, given current economic conditions. 8 million $8. 8 million Adjusted EBITDA ($48
Conversely, 0 million) ($54. 3 million) ($56
On the other hand, 0 million) Net income ($51. 5 million) ($82. 7 million) ($143. 9 million) Data source: creener
Nevertheless, That's because most of D-Wave's customers are still running low-revenue pilot and re grams on its Leap platform instead of using it to overhaul their entire es
Additionally, D-Wave's revenue occasionally spikes when it sells one of its Advantage quantum systems, but those sales are infrequent and unpredictable and have lengthy upgrade cycles, in this volatile climate
In the absence of those lumpy system sales, D-Wave must rely on Leap's cloud revenues to drive its growth
However, its cloud margins won't imve unless its customers commit to bigger contracts and actually replace their older analytics services with its quantum annealing tools (something worth watching)
To stay solvent until that happens, D-Wave has constantly issued more s (quite telling)
It's increased its number of s by 184% since its SPAC-backed debut, and that dilution should continue as it covers its stock-based compensation expenses, convertible debt, and upcoming warrant redemptions (noteworthy indeed)
On the other hand, What will happen to D-Wave over the next three years (an important development), in today's market environment
From 2024 to 2027, analysts expect D-Wave's revenue to grow at a compound annual growth rate (CAGR) of 103% to $74, in this volatile climate
Additionally, 1 million as it gradually narrows its net losses
Metric (Estimated) 2025 2026 2027 Revenue $24, in today's market environment. 4 million $38. 0 million $74. 1 million Adjusted EBITDA ($56
Moreover, 7 million) ($58. 8 million) ($29 (which is quite significant). 6 million) Net income ($72
Furthermore, 9 million) ($79. 3 million) ($62. 6 million) Data source: creener (noteworthy indeed)
At the same time, The main catalyst for that growth would be rising sales of higher-value hardware systems
This leads to the conclusion that recent launch of D-Wave's Advantage2 quantum system, which runs on a 4,400-qubit QPU and can solve 3D lattice blems apximately 25,000 faster than its first-gen Advantage system while consuming less power, should attract more customers
Furthermore, Sales of those systems, each of which costs an estimated $20 million to $40 million, should drive top-line growth and overshadow cloud revenues
However, the Advantage2 should also strengthen the Leap cloud platform and convert more of its lower-value pilot customers to higher-value ones
Where will D-Wave Quantum's stock be in three years
Moreover, D-Wave has a lot of growth potential, but a lot of that growth is already baked into its valuations
Additionally, With a market cap of $5
Furthermore, 8 billion, it's valued at nearly 79 times its jected sales for 2027, in this volatile climate
Nevertheless, That makes it seem more a meme stock than a hypergrowth stock, given the current landscape
According to and, the quantum annealing market could grow at a CAGR of 32
On the other hand, 7% from 2024 to 2029
Assuming D-Wave matches analysts' expectations through 2027 and continues to grow its revenue at a CAGR of 30% over the ing two years, it could generate $125 million in revenue in 2029
On the other hand, If it still trades at 79 times its forward sales by then, its market cap could swell to $9
Nevertheless, 9 billion by the beginning of 2028
Furthermore, But with a more realistic (but still generous) forward price-to-sales ratio of 30, D-Wave's market cap would decline to $3. 75 billion by 2028
So while D-Wave still has a lot of growth potential, it seems more ly that its stock will stagnate or decline over the next three years instead of soaring even higher.
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