{ "docId": "019dd923-622c-750b-8b98-38d705def13a", "docSlug": "f848e5b949be", "documentTitle": "D-Wave Quantum Inc (QBTS)", "authorId": "53_Kerrisdale_Capital", "authorName": "Kerrisdale Capital", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2025-04-01 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 1, "pageCount": 19, "prevPage": null, "nextPage": 2, "slideType": "executive_summary", "function": "frame_problem", "density": "overcrowded", "nDataPoints": 2, "notes": "This is a classic short-seller research note cover/summary page.", "elementsJson": [ "paragraph", "callout_box" ], "metadataConfidence": 1, "imagePath": "https://imgproxy.kitesheet.com/q1r847l9tlVDJScSwzldsawz1aCZfER3vMoq_8ZadcQ/rs:fit:1200:1200:0/q:82/f:webp/czM6Ly9raXRlc2hlZXQvY29ycHVzL3NsaWRlcy9mODQ4ZTViOTQ5YmUvcDAwMS5wbmc", "slideHref": "/slides/019dd923-622c-750b-8b98-38d705def13a/1", "deckHref": "/decks/019dd923-622c-750b-8b98-38d705def13a", "deckJsonHref": "/decks/019dd923-622c-750b-8b98-38d705def13a.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-38d705def13a#slide-1", "components": [ { "bbox": null, "kind": "callout", "text": "D-Wave is riding quantum hype, but with a core technology that cannot stay afloat.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-78b5-7512-b5bc-c061fe954fcc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.764, "x": 0.118, "y": 0.895 }, "kind": "disclaimer", "text": "Disclaimer: As of the publication date of this report, Kerrisdale Capital Management, LLC and its affiliates (collectively, \"Kerrisdale\"), have short positions in shares of D-Wave Quantum Inc. (\"QBTS\") or \"the Company\").", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c2993448-c587-4166-b84c-42fea0921962", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "valuation multiple: 57x", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd953-78b5-7512-b5bc-c84df4411cec", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.055, "w": 0.764, "x": 0.118, "y": 0.168 }, "kind": "paragraph", "text": "We are short shares of D-Wave, a $2 billion quantum annealing company whose stock has surged more than 600% since investors began chasing anything remotely associated with next-gen computing last year.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2028eca2-0617-4dd8-9e33-b5e9c41523b3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.764, "x": 0.118, "y": 0.305 }, "kind": "paragraph", "text": "D-Wave's business is built around quantum annealing, a niche offshoot of quantum computing developed decades ago and largely abandoned by the industry.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2aa60b34-fc63-49d5-95fb-11e7015f4c12", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.025, "w": 0.764, "x": 0.118, "y": 0.735 }, "kind": "paragraph", "text": "Even D-Wave's most recent highly publicized research lacks commercial relevance.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "355ccab7-bfee-4131-ba79-01c82960be46", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.025, "w": 0.764, "x": 0.118, "y": 0.635 }, "kind": "paragraph", "text": "Meanwhile, D-Wave's gate-model pivot appears both reactionary and stalled.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "35f8194d-217e-494d-9cc5-1de09ae9cac8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.055, "w": 0.764, "x": 0.118, "y": 0.515 }, "kind": "paragraph", "text": "To compensate for the shortcomings of its quantum technology, D-Wave leans heavily on so-called \"hybrid\" solutions which combine its annealer with classical hardware and algorithms to tackle industrial-scale problems.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3d4480e7-1ea8-47c5-b4ba-5b8486a2702b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.055, "w": 0.764, "x": 0.118, "y": 0.225 }, "kind": "paragraph", "text": "Shares currently trade at over 57x consensus 2026E revenue - a ridiculous multiple for a company that has never generated more than $9 million in annual recurring revenue.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "42a373e6-61d2-4e5d-b770-eb81dcae4413", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "there is no proof that any optimization problem is solved faster — former D-Wave engineer", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-78b5-7512-b5bc-c79012f4634a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.025, "w": 0.394, "x": 0.303, "y": 0.103 }, "kind": "title", "text": "D-Wave Quantum Inc (QBTS)", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5f05e62a-b6d5-448d-a197-226891f44b90", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.018, "w": 0.17, "x": 0.415, "y": 0.13 }, "kind": "title", "text": "Past-Gen Computing", "attrs": null, "subkind": "subtitle", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5a9eb619-216f-426f-b605-3ba4e457acc7", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Audience Definition", "slug": "audience-definition", "agent": "Storyteller", "layer": "slide", "matchId": "310e2742-fadb-4657-8c8e-3654f3415eab", "evidence": "As of the publication date of this report, Kerrisdale Capital Management LLC and its affiliates (collectively \"Kerrisdale\") have short positions in and own put options on the stock of Riot Platforms, Inc. 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