D-Wave Quantum Inc. (QBTS) stock fell in premarket trading Tuesday after the quantum computing company reported mixed third-quarter 2026 results. The numbers were a bit of a Rorschach test: revenue came in ahead of expectations, but the bottom line missed, and the market focused on the latter.

The company reported a quarterly loss of 13 cents per share, missing the analyst estimate of a 10-cent loss. The silver lining? That loss narrowed 68.29% from 41 cents per share a year earlier. Revenue rose 20.7% year over year to $4.513 million, beating the analyst estimate of $4.333 million by 4.15%.

Revenue Grows, But the Mix Shifts

Professional services revenue increased by $1.5 million, while quantum computing-as-a-service revenue grew by $800,000. However, system sales revenue declined by $1.5 million. That shift matters because services tend to carry lower margins than hardware, and the gross margin numbers reflect it.

Quarterly bookings fell 19% to $1.9 million. Still, bookings for the first nine months of 2026 surged 611% to $37.4 million. Remaining performance obligations jumped 1,221% to $38.3 million from $2.9 million a year earlier. D-Wave expects to recognize about 59% of that amount as revenue within 12 months.

Margins Shrink as Spending Ramps Up

GAAP gross margin narrowed to 52.9% from 71.4% a year earlier. The decline reflected a greater contribution from lower-margin professional services. Operating expenses jumped 84% to $55.9 million, driven by higher personnel costs, stock-based compensation and depreciation.

D-Wave reported a net loss of $48.2 million, compared with $140 million a year earlier. That improvement largely reflected a $121.9 million reduction in noncash charges tied to warrant liabilities. However, its adjusted EBITDA loss widened to $37.7 million from $20.6 million. In other words, the headline net loss looks better, but the underlying cash burn got worse.

A $100 Million Federal Vote of Confidence

During the quarter, D-Wave signed an agreement with the U.S. Department of Commerce for access to up to $100 million under the CHIPS and Science Act. The funding remains subject to specified milestones and conditions. It will support next-generation quantum computers, including a planned 100,000-qubit annealing system.

The company also delivered Italy's first annealing quantum computer and expanded partnerships with SkyWater and CGI. Japan's NTT DOCOMO deployed a second production application using D-Wave's hybrid quantum technology.

CEO Alan Baratz said, "Our triple-digit increase in year-to-date bookings and robust pipeline reinforce our confidence in the opportunity ahead."

Cash Position: Plenty of Runway, But Burning Faster

D-Wave ended September with $503.4 million in cash and marketable investment securities. Cash and cash equivalents fell to $279.4 million from $635.3 million at the end of December. Net cash used in operating activities reached $109 million during the first nine months of 2026, compared with $53.6 million a year earlier.

QBTS Price Action: D-Wave Quantum shares were down 5.41% at $10.85 during premarket trading on Tuesday, according to market data.