QBTSHIGH SIGNALFINANCIAL10-K

QBTS shows severely deteriorating cash burn with operating cash flow substantially worsening while increasing R&D investments and capital expenditures.

The company's cash consumption has accelerated dramatically, creating potential liquidity concerns despite a reduction in total liabilities. The substantial increase in R&D spending suggests aggressive investment in quantum computing development, but this comes at the cost of significantly higher cash burn rates that could pressure the balance sheet.

Comparing 2026-02-26 vs 2025-03-14View on EDGAR →
FINANCIAL ANALYSIS

QBTS demonstrates a concerning financial trajectory with operating cash flow substantially deteriorating while the company meaningfully expanded both R&D expenses and capital expenditures. The company did reduce its total liabilities by over half and modestly decreased debt levels, which partially offsets the cash burn concerns. However, the dramatic acceleration in cash consumption combined with increased operational spending suggests the company is in a critical investment phase that requires careful monitoring of liquidity position.

FINANCIAL STATEMENT CHANGES
Capital Expenditure
Cash Flow
+83.4%
$2.1M$3.9M

Capital expenditure jumped 83.4% — major investment cycle underway; assess returns on deployment.

Operating Cash Flow
Cash Flow
-68.8%
-$42.6M-$72.0M

Operating cash flow fell 68.8% — earnings quality concerns; investigate working capital changes and non-cash items.

Inventory
Balance Sheet
+64.7%
$1.7M$2.8M

Inventory surged 64.7% — growing significantly faster than typical sales pace; potential demand softening or supply chain overcorrection.

Total Liabilities
Balance Sheet
-53.7%
$137.2M$63.6M

Liabilities reduced 53.7% — deleveraging improves balance sheet strength and financial flexibility.

R&D Expense
P&L
+43.7%
$35.3M$50.7M

R&D investment increased 43.7% — signals commitment to future product development, though near-term margin impact.

Operating Income
P&L
-30%
-$77.2M-$100.4M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Current Liabilities
Balance Sheet
-29.8%
$30.1M$21.1M

Current liabilities reduced — improved short-term financial position and working capital health.

Total Debt
Balance Sheet
-23.9%
$12.5M$9.5M

Debt reduced 23.9% — deleveraging strengthens balance sheet and reduces financial risk.

Accounts Receivable
Balance Sheet
+11.8%
$1.4M$1.6M

Receivables grew 11.8% — monitor days sales outstanding for collection efficiency.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-03-14
ADDED
As of February 25, 2026, there were outstanding 366,737,601 shares of the registrant s common stock, par value $0.0001 per share.
In addition, there were 3,176,096 exchangeable shares outstanding as of February 25, 2026, which are convertible into shares of common stock on a one for one basis at any time for no consideration.
Management's Discussion and Analysis of Financial Condition and Results of Operations 56 Item 7A.
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 64 Item 9A.
Security Ownership of Certain Beneficial Owner s and Management and Related Stockholder Matters 85 Item 13.
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REMOVED
As of March 12, 2025, there were outstanding 287,797,149 shares of the registrant s common stock, par value $0.0001 per share.
In addition, there were 3,551,175 exchangeable shares outstanding as of March 12, 2025, which are convertible into shares of common stock on a one for one basis at any time for no consideration.
Management's Discussion and Analysis of Financial Condition and Results of Operations 57 Item 7A.
Changes in and Disagreements With Accountants on Accounting and Financial Disclosures 66 Item 9A.
Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters 86 Item 13.
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