D-Wave CFO Exits After Insiders Sold $24M Near Peak
D-Wave Quantum's CEO and CFO liquidated more than $24 million in stock near $26 in June, eight weeks before the company reported a 43.7% Q2 EPS miss, with the stock now at $17.52. CFO John Markovich r
D-Wave CFO Exits After Insiders Sold $24M Near Peak
NEW YORK, August 26 —
D-Wave Quantum Inc. (QBTS) raises a question management would prefer investors not ask: why did the CEO and CFO collectively sell more than $24 million in stock near $26 in June, just weeks before reporting a 43.7% EPS miss, and why is the CFO now retiring with no named successor? The stock trades at $17.52.
- CEO Alan Baratz sold 687,627 shares at $26.13 on June 8, generating $17.97 million, the largest single insider transaction in the period.
- Q2 2026 EPS came in at $-0.13 against a $-0.09 consensus, a 43.7% miss, per the August 6 8-K.
- CFO John Markovich retires September 2; an acting finance chief fills the role with no permanent hire named.
The Trades Came First
CEO Alan E. Baratz sold 687,627 shares at $26.13 on June 8 for $17.97 million. CFO John M. Markovich followed with 246,113 shares sold between June 9 and June 15 at $24.01 to $26.54, adding roughly $6.25 million. D-Wave Quantum Inc. (QBTS), a Palo Alto-based provider of quantum computing hardware, cloud subscriptions, and professional services for enterprise customers tackling logistics, vehicle routing, and financial crime detection, saw both its most senior officers sell near what proved a local peak. Eight weeks later, the company reported Q2 EPS of $-0.13 against a $-0.09143 consensus, a miss of 43.7%, filed as an 8-K on August 6.
$10 Million in Revenue, $6.5 Billion in Market Cap
The financials make the insider timing hard to dismiss. Trailing twelve-month revenue runs at approximately $10 million with growth near zero, and the company burned $111 million in operating cash flow over the same period. A 64.2% gross margin shows the Leap cloud subscription and professional-services model is structurally efficient: the business earns well on what it sells; the constraint is how little it sells. A discounted cash flow model on this revenue base requires heroic growth assumptions to justify a $6.52 billion market cap. The $550 million cash balance against $50 million in debt provides runway; the question is what that runway buys.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| QBTS | $6.5B | n/a | +27.1% |
| RGTI | $5.3B | n/a | +10.1% |
| IONQ | $16.2B | n/a | +1.5% |
| QUBT | $1.9B | n/a | -42.9% |
| SOUN | $3.1B | n/a | -40.8% |
| CRWV | $48.5B | n/a | -9.2% |
Two Numbers That Would Shift the Thesis
CFO John Markovich's September 2 retirement, with an acting finance chief and no permanent successor named, adds governance uncertainty at an already difficult moment, per the August 25 8-K. The analyst consensus price target of $35.24 doubles the current price, a bet on bookings converting to reported revenue that the most recent quarter did not validate. A credible CFO hire and Q3 revenue that breaks the near-zero trajectory are the two data points that would shift the bear case. Until then, $24 million sold at roughly $8.61 above today's price is the clearest signal management has sent. Run the free D-Wave Quantum Inc. deep-dive →
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Frequently Asked Questions
Why did D-Wave insiders sell $24 million in stock?
The article does not state a reason for the sales. CEO Alan Baratz sold 687,627 shares at $26.13 on June 8 for $17.97 million, and CFO John Markovich sold 246,113 shares between June 9 and June 15 at prices from $24.01 to $26.54, adding roughly $6.25 million. Those trades preceded a 43.7% Q2 EPS miss by eight weeks.
What was D-Wave's Q2 2026 EPS miss?
D-Wave reported Q2 2026 EPS of $-0.13 against a consensus of $-0.09143, a miss of 43.7%, filed as an 8-K on August 6. The result followed insider sales at prices roughly $8.61 above the current $17.52 stock price.
Why is D-Wave's CFO retiring?
The article does not give a stated reason for CFO John Markovich's September 2 retirement, which was disclosed in an August 25 8-K. An acting finance chief will fill the role with no permanent hire named, adding what the article calls governance friction at an already fraught moment.
How does D-Wave's revenue compare to its market cap?
Trailing twelve-month revenue runs at approximately $10 million with growth near zero, against a $6.52 billion market cap. The company also burned $111 million in operating cash flow over the same period, though a $550 million cash balance against $50 million in debt provides runway.
What would change the bear case for D-Wave stock?
The article identifies two specific data points: a credible CFO hire and Q3 revenue that breaks the near-zero growth trajectory. The analyst consensus price target of $35.24 roughly doubles the current price, a bet on bookings converting to reported revenue that the most recent quarter did not validate.
D-Wave Quantum's CFO is retiring September 2 — weeks after the CEO and CFO collectively sold more than $24 million in stock at prices near $26 — and the company's most recent quarter missed EPS estimates by 43.7%, with the stock now trading at $17.52.