Quantum computing is in its early stages, with two promising companies in the field being D-WAVE and IONQ.
D-Wave’s first-quarter sales fell by as much as 509%, reaching $15 million.
IONQ is building a quantum computer network, and for this purpose, it announced a $1 billion equity product.
Our 10 Better Stocks than Ionq›
Just as the Internet has changed society, quantum computers have similar promises. These groundbreaking machines use quantum physics to perform complex calculations in minutes, which will make today’s supercomputers for centuries.
However, today’s quantum computers are prone to errors and are difficult to scale. The first companies to build equipment that can be widely used could revolutionize the industry. Therefore, quantum computer companies D-wave quantum(NYSE: QBTS) and ionq(NYSE: IONQ) There are interesting investment opportunities right now.
But is D-Wave or IONQ an outstanding investment in this freshman sector? A check on both can help you get the answer.
Image source: Getty Images.
D-Wave’s stock has achieved an impressive run in 2025. Stocks have risen more than 90% this year, reaching a 52-week high of $19.77. Its stock stood out to $15 million as first-quarter revenue rose 509% year-on-year. From a perspective, the total of Q1 alone far exceeds D-Wave’s total sales of $8.8 million in 2024.
The huge revenue growth is due to D-Wave’s first sale of its proprietary advantage quantum machine. Over the past few years, much of its revenue has been generated by selling quantum computing as a service (QCAAS), where customers pay for remote access to the company’s quantum capabilities in remotely in the cloud.
D-Wave’s first-quarter operating losses increased from $17.5 million in 2024 to $11.3 million, thanks to its outstanding revenue. The company also has a solid balance sheet. Total assets in the first quarter were $325.6 million, of which $304.3 million were cash. The liabilities totaled $118.2 million in the first quarter.
D-Wave Management said its first-quarter cash balance was sufficient to maintain the business until it was profitable. Since then, the company has further increased its cash reserves to about $815 million through equity. Some of this funds are dedicated to acquisitions.
IONQ’s 2025 stock performance is softer than D-Wave’s stock. Its shares rose 9% as of July 9. One contributing factor is the inadequate Q1 results for IONQ.
Revenue reached US$7.6 million, the same as in 2024. Worse, despite the fact that revenues have not increased, the expenses certainly do. The company’s first-quarter operating losses were $75.7 million, a significant increase from the previous year’s $52.9 million loss.
That said, the company has a strong balance sheet. The total assets in the first quarter were US$850.1 million, and the total liabilities were only US$85 million. On top of that, IONQ announced a $1 billion equity product on July 7, which will further improve its financial position. Over the past year, IONQ has been acquiring business while trying to build a quantum computing network.
Given the internet that exists due to computer networks, the IONQ approach could be a game-changer. But the strategy is expensive because it has to assemble many functions that can build viable quantum networks. For example, these networks cannot scale today, so Lightsynq Technologies obtained by IONQ is working on technologies to extend the range of quantum devices that can be connected to the network.
Despite IONQ’s attempt to build a quantum network, D-Wave claims to be the only provider of prevailing quantum gate technology and quantum annealing, a technology to find the best solution among a wide range of possibilities.
It’s too early to tell if the IONQ or D-Wave approach will win in the long run, and it’s a challenge to choose between the two. Any company can become a leader in the field or be a bigger competitor, e.g. Microsoftit developed its own quantum technology called topology Qubit.
Additionally, the D-Wave’s considerable Q1 result may be a feat and it won’t be repeated anytime soon. The sale of its advantage system is contrary to the usual QCAA and professional services revenues, which has provided nearly all of its revenue over the past two years.
As for IONQ, it may have experienced a huge first quarter, but it exited 2024, up 95% year-on-year to $43.1 million. It also expects sales to reach between $75 million and $95 million in 2025, which will increase from 2024.
Another consideration is the valuation of the stock price of these companies, which can be evaluated by price-to-sale ratio. The figure below shows that the P/S multiples of D-Wave and IONQ are not only higher than a year ago, but are also larger than Microsoft’s P/S multiples. This shows that D-Wave and IONQ stock prices are too high.
YCHARTS data.
Given their high valuation and uncertainty that quantum computing technology will eventually dominate, the best strategy is to wait for second-quarter earnings before deciding to buy stocks at any company. This allows you to see if D-Wave’s Q1 results are one-off and if IONQ can rebound from TEPID Q1 sales to achieve projected year-on-year growth in 2025.
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Robert Izquierdo has positions in IONQ and Microsoft. Motley Fool has a place and recommends Microsoft. Motley Fools suggest the following options: January 1, 2026, Microsoft $395 Phone, Short January 2026, Microsoft $405 Phone. Motley Fool has a disclosure policy.
Better quantum computing stocks: D-Wave Quantum vs. Ionq Originally published by Motley Fool
