D-Wave Quantum Inc.

The filings show a company with rising revenue, very large cash balances after 2025 financing, and accounting results dominated by non-cash warrant swings. The Beneish M-Score is -5.044, which is below -1.78 and labeled not in the elevated manipulation-risk zone; this is a screening output and does not confirm that the reported figures are accurate. The Altman Z-Score is -7.26, in the distress zone; this score is built from 2024 year-end balance sheet and profitability inputs, and it does not yet reflect the large 2025 cash position. The Piotroski F-Score is 5 of 8 computable signals, a middle reading that mixes improving and weak measures. The Fog Index is 20.03, labeled very hard to read, so the MD&A requires patience. The operating cash flow to net income ratio of 0.30 for 2024 indicates that most of the reported loss was not cash spending. Management's Rule 10b5-1 trading arrangements disclosed in this 10-Q cover up to 1,600,000 shares for the CEO, up to 500,000 for the CFO, and up to 122,785 for the General Counsel. The Equipment Financing Agreement carries a $13.8 million conditional commitment and a warrant for 21,563 shares issued August 1, 2025, and the filing reports no material pending legal proceedings. Readers may want to look at the warrant liability note and the 2024 10-K risk factors to understand how these items could affect future results.

Catalyst.Revenue is growing from a small base. Nine-month revenue through September 30, 2025 was $21.8 million, against $6.5 million a year earlier, and third-quarter revenue was $3.7 million versus $1.9 million. The filings say upgrade-project revenue is recognized over time using costs incurred relative to estimated total costs, so reported results depend heavily on cost estimates that are revised during a project. Cash and cash equivalents rose to $836.2 million at September 30, 2025 from $178.0 million at December 31, 2024, and the equity statements show share issuances and warrant exercises over the period. Full-year 2024 revenue was $8.83 million, up 0.8% from $8.76 million in 2023.

Hidden risk.The largest driver of the reported loss is not day-to-day operations. For the nine months ended September 30, 2025, net loss was $312.7 million, while the change in fair value of warrant liabilities was a charge of $260.0 million; operating loss was $65.5 million. Warrant liabilities rose to $141.0 million from $69.9 million at year-end 2024, and they are remeasured each period, so reported losses can swing with that revaluation. Cash flow also tells a different story than net income: 2024 operating cash flow was negative $42.6 million against a net loss of $143.9 million. The risk-factor excerpt provided does not list specific risks and refers readers to the 2024 Form 10-K, which may be worth reviewing.