Shares of D-Wave Quantum Inc. (NYSE: QBTS) plummeted 5.28% in Thursday's pre-market trading session, despite the quantum computing systems firm reporting robust revenue growth for its third quarter. The stock's decline reflects investor concerns over widening losses and potential dilution, overshadowing the company's strong top-line performance.

D-Wave reported third-quarter revenue of $3.739 million, marking a impressive 100% year-over-year increase and surpassing analyst estimates of $3.03 million. The company's CEO, Dr. Alan Baratz, attributed this growth to "momentum building across every aspect of our business" and accelerating global quantum computing adoption. Additionally, D-Wave highlighted its highest-ever cash balance of over $836 million and a customer base exceeding 100 revenue-generating clients, including nearly two dozen Forbes Global 2000 companies.

However, investors seemed more focused on the company's expanding losses. D-Wave reported a net loss of $139.986 million for Q3, a substantial increase from the $22.712 million loss in the same period last year. This widening loss was primarily due to $121.9 million in non-cash charges related to the remeasurement of the company's warrant liability. The market's negative reaction suggests growing concerns about the company's path to profitability and potential dilution from warrant exercises. Despite positive developments such as an €10 million booking for a quantum computing facility in Italy and strong bookings growth, these financial concerns appear to be outweighing the company's operational progress in the eyes of investors.