D-Wave Quantum Inc.QBTS
D-Wave Quantum Inc. Revenue Disclosure
3. REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of revenue
Nature of Products and Services
The following table depicts the disaggregation of revenue by type of products or services and timing of transfer of products or services (in thousands):
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Type of products or services | |||||||||||
| System sales | $ | 16,182 | $ | — | |||||||
| QCaaS | 5,517 | 6,745 | |||||||||
| Professional services | 2,720 | 1,938 | |||||||||
| Other revenue* | 168 | 144 | |||||||||
| Total revenue | $ | 24,587 | $ | 8,827 | |||||||
| Timing of revenue recognition | |||||||||||
| Revenue recognized over time | $ | 11,598 | $ | 8,773 | |||||||
| Revenue recognized at a point in time | 12,989 | 54 | |||||||||
| Total revenue | $ | 24,587 | $ | 8,827 | |||||||
*Other revenue includes support and maintenance and printed circuit board sales.
During the year ended December 31, 2025, the Company recognized revenue of $3.5 million from a system upgrade project, which was classified under system sales.
Geographic Information
The following table presents a summary of revenue by geography for the years ended December 31, 2025 and 2024, based on customer location (in thousands):
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Germany | $ | 16,765 | $ | 1,894 | |||||||
| United States | 2,654 | 2,151 | |||||||||
| Japan | 1,316 | 1,133 | |||||||||
| Switzerland | 960 | 778 | |||||||||
| Canada | 878 | 1,101 | |||||||||
| Other | 2,014 | 1,770 | |||||||||
| Total revenue | $ | 24,587 | $ | 8,827 | |||||||
"Other" includes the rest of Europe, the Middle East, the rest of Asia and Australia where the revenue from a single country is not greater than 10% of total consolidated revenue. In accordance with Company policy, the Company has not had any sales in China, Russia or Ukraine.
Significant customers
A significant customer is defined as one that comprises up to ten percent or more of total revenues in a particular year or ten percent of outstanding accounts receivable balance as of the period end.
The tables below present the significant customers on a percentage of total revenue basis for the years ended December 31, 2025 and 2024.
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Customer A | 67 | % | 17 | % | |||||||
As of each of December 31, 2025 and 2024, there were five and three significant customers, respectively, that comprised ten percent or more of outstanding accounts receivable balances.
Contract balances
The following table provides information about accounts receivable, contract assets and liabilities as of December 31, 2025 and 2024 (in thousands):
| As of December 31, 2025 | As of December 31, 2024 | ||||||||||
| Trade accounts receivable and contract assets, net: | |||||||||||
| Trade accounts receivable, net of allowance for credit losses and excluding unbilled receivables | $ | 1,021 | $ | 867 | |||||||
| Unbilled receivable contract asset | 566 | 553 | |||||||||
| Contract acquisition costs | 940 | 174 | |||||||||
| Total contract assets | $ | 2,527 | $ | 1,594 | |||||||
| Contract liabilities: | |||||||||||
| Deferred revenue, current | $ | 2,778 | $ | 18,686 | |||||||
| Deferred revenue, non-current | 560 | 670 | |||||||||
Customer deposit1 | — | 48 | |||||||||
| Total contract liabilities | $ | 3,338 | $ | 19,404 | |||||||
1Customer deposit is included in accrued expenses and other current liabilities on the consolidated balance sheets.
The allowance for credit losses related to trade accounts receivable was nominal and $0.2 million as of December 31, 2025 and 2024. During the years ended December 31, 2025 and 2024, the Company recorded $0.2 million and $0.1 million write-offs of accounts receivable deemed uncollectible, respectively.
The revenue recognized in the consolidated statements of operations and comprehensive loss that was included in the contract liability balance at the beginning of each period was $18.9 million and $2.7 million for the years ended December 31, 2025 and 2024, respectively.
Changes in deferred revenue from contracts with customers were as follows (in thousands):
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Balance at beginning of period | $ | 19,356 | $ | 2,748 | |||||||
| Deferral of revenue | 8,582 | 25,435 | |||||||||
| Recognition of deferred revenue | (24,600) | (8,827) | |||||||||
| Balance at end of period | $ | 3,338 | $ | 19,356 | |||||||
Remaining performance obligations
A significant number of the Company’s product and service sales are short-term in nature with a contract term of one year or less. For those contracts, the Company has utilized the practical expedient in ASC 606-10-50-14, exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less.
As of December 31, 2025, the aggregate amount of remaining performance obligations that were unsatisfied or partially unsatisfied related to customer contracts was $13.4 million, of which approximately 14% is expected to be recognized to revenue in the next 12 months, 33% is expected to be recognized to revenue in the next two years, and 52% is expected to be recognized within three years. Revenues allocated to remaining performance obligations represents the transaction price of noncancellable orders for which service has not been performed, which include deferred revenue and the amounts that will be invoiced and recognized as revenues in future periods from open contracts and excludes unexercised renewals.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2023 | Mar 29, 2024 | |
| 2022 | Apr 18, 2023 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.