D-Wave Quantum surges on $20M FAU deal, Florida HQ move
$20 million order represents 83% of trailing revenue as company relocates headquarters to Boca Raton
D-Wave Quantum shares jumped more than 7% in premarket trading Tuesday after the quantum computing company announced a $20 million agreement with Florida Atlantic University to purchase its Advantage2 annealing quantum computer, a deal representing 83% of the company's trailing 12-month revenue.
The agreement, announced on January 27, includes the installation of the quantum system at FAU's Boca Raton campus later in 2026, positioning the university as a regional hub for quantum computing research and workforce development. The collaboration also calls for the establishment of a D-Wave Quantum Applications Academy at FAU to support research, training, and workforce development initiatives.
Simultaneously, D-Wave disclosed plans to relocate its corporate headquarters from Palo Alto, California, to Boca Raton, establishing a key U.S. research and development facility at the Boca Raton Innovation Center. The transition is expected to be completed before the end of 2026.
The FAU deal provides immediate commercial momentum for D-Wave, which reported trailing 12-month revenue of $24.1 million. The $20 million commitment underscores growing institutional demand for quantum computing capabilities in academic and research settings, particularly as the sector approaches what analysts describe as an "inflection point" in 2026. The quantum computing market is projected to reach $1.08 billion this year, up from $800 million in 2025.
The FAU announcement comes just one week after D-Wave completed its $550 million acquisition of Quantum Circuits Inc., a move that transforms the company into the world's only public quantum computing company with both annealing and gate-model systems. The acquisition, comprised of $300 million in common stock and $250 million in cash, adds Quantum Circuits' dual-rail qubit technology to D-Wave's portfolio.
"The acquisition of Quantum Circuits marks a watershed moment that firmly establishes D-Wave as the world's leading quantum computing company," said Dr. Alan Baratz, CEO of D-Wave. "By uniquely delivering both best-in-class annealing and gate-model technologies, we are setting the pace for the entire industry. This dual-platform approach will significantly expand the addressable use cases for our customers, with the potential to deliver profound impact across businesses, the scientific community, and governments worldwide."
Dr. Rob Schoelkopf, co-founder of Quantum Circuits and now chief scientist at D-Wave, added that the combination "gives us a decisive advantage in gate-model quantum computing, by leveraging D-Wave's experience with scaling and cryogenic control with our hardware-efficient approach to quantum error correction."
The dual-platform strategy positions D-Wave to address a broader range of computational problems than competitors focused on a single quantum approach. The company's Advantage2 annealing systems are already in commercial production and have demonstrated quantum supremacy in materials simulation applications. Quantum Circuits' technology is expected to accelerate D-Wave's path to a scaled, error-corrected gate-model quantum computer, with an initial system planned for availability in 2026.
Despite the recent positive catalysts, D-Wave's stock has experienced volatility. Shares closed down 7.34% on January 26 at $23.74 and are down 6% year-to-date, though the stock remains well above its 52-week low of $4.45. The company's market capitalization stands at approximately $9.5 billion.
Analyst sentiment remains broadly supportive, with a consensus rating of "Moderate Buy" to "Buy" and an average price target of $37.86, according to recent analyst data. Of 17 analysts covering the stock, 14 rate it Buy or Strong Buy, while one recommends Sell. The stock trades above its 200-day moving average of $20.77 but below its 50-day average of $26.24.
The company's financial metrics reflect its early-stage position in a high-growth sector. D-Wave reported a 99.9% year-over-year increase in quarterly revenue in its most recent period, though it remains unprofitable with an operating margin of negative 7.42% and trailing earnings per share of negative $1.44. The stock's price-to-sales ratio of 395.5 reflects high investor expectations for future growth.
Key competitors in the quantum computing space include established technology giants IBM, Google, Microsoft, and Amazon, as well as dedicated quantum companies IonQ and Rigetti Computing. However, D-Wave's dual-platform approach following the Quantum Circuits acquisition differentiates it from rivals focused exclusively on either gate-model or annealing quantum technologies.
Looking ahead, investors will be watching for execution on the FAU deployment, progress on the headquarters relocation, and the commercialization timeline for D-Wave's gate-model quantum systems. The company's ability to convert its technological positioning into recurring revenue will be critical as it competes for market share in a sector projected to see significant investment throughout 2026.