In April 2020, the Board of Directors of D-Wave Systems approved the 2020 Equity Incentive Plan (the “2020 Plan”) which provides for the grant of qualified incentive stock options (“ISO”) and non-qualified stock options (“NSO”), restricted stock, RSUs or other awards to the Company’s employees, officers, directors, advisors, and outside consultants. Following the Merger, awards outstanding under the 2020 Plan continued to be governed by the 2020 Plan; however, the Company will not grant any further awards under the 2020 Plan.

On August 5, 2022, the shareholders approved the D-Wave Quantum Inc. 2022 Equity Incentive Plan (the “2022 Plan”), which became effective immediately upon the closing of the Merger. While the 2022 Plan allows for the issuance of awards with a service condition, a performance condition, a market condition, or some combination of the three, to date, the Company has only issued awards subject to a service condition. Awards issued under the 2022 Plan have vesting periods ranging from under 1 year to 4 years from the original grant date, and all awards issued to date under the 2022 Plan will expire 10 years from the original grant date.

The following table summarizes the Company’s stock option activity during the periods presented (in thousands except share and per share data):


	Number of options	Weighted average exercise price ($)	Weighted average remaining contractual term (years)	Aggregate intrinsic value ($)
Outstanding as of December 31, 2025	3,608,170	1.90	6.36	87,511
Granted	592,392	2.64
Exercised	(1,331,936)	1.21
Forfeited and expired	(16,748)	2.31
Outstanding as of June 30, 2026	2,851,878	2.37	6.52	61,653
Options exercisable as of June 30, 2026	1,884,345	2.43	5.81	40,623
Options unvested as of June 30, 2026	967,533	2.25	7.90	21,030


	Number of RSUs	Weighted average Grant Date Fair Value ($)
Unvested as of December 31, 2025	8,215,915	6.56
Granted	3,293,489	21.56
Forfeited and expired	(151,630)	18.80
Vested	(1,951,810)	6.14
Unvested as of June 30, 2026	9,405,964	11.71

The following table summarizes the stock-based compensation expense classified in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Cost of revenue	$	279	$	231	$	464	$	373
Research and development	5,092		2,329		9,665		3,783
General and administrative	4,100		3,083		6,090		4,900
Sales and marketing	1,642		1,028		2,913		1,608
Total stock-based compensation	$	11,113	$	6,671	$	19,132	$	10,664

During the three months ended June 30, 2026 and 2025, total compensation cost capitalized as part of property and equipment and intangible assets was $0.3 million and $0.1 million, respectively. During the six months ended June 30, 2026 and 2025, total compensation cost capitalized as part of property and equipment, intangible assets and contract assets was $0.4 million and $0.1 million, respectively.

As of June 30, 2026, total unrecognized stock-based compensation cost, net of estimated forfeitures, related to our unvested stock awards was $115.8 million. This amount is based on an estimated future forfeiture rate of 2.34% per year and will be recognized over a weighted-average period of approximately 2.5 years.