Rigetti Computing Inc. ((RGTI)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call of Rigetti Computing Inc. painted a picture of mixed sentiment, reflecting both optimism and challenges. While the company showcased promising technological advancements and strategic collaborations, financial hurdles such as declining revenues and gross margins tempered the overall outlook. The exclusion from a key DARPA initiative further added to the cautious sentiment, despite a robust future roadmap.
Strong Momentum in Quantum Computing Demand
Rigetti Computing reported a strong demand for its on-premises quantum computers, highlighted by significant purchase orders totaling approximately $5.7 million for two 9-qubit Novera quantum computing systems. This demand underscores the growing interest and potential in quantum computing technologies, positioning Rigetti as a key player in the field.
Technological Roadmap and Achievements
The company remains committed to its ambitious technological roadmap, aiming to deliver a 100-plus qubit chiplet-based quantum system with 99.5% median 2-qubit gate fidelity by the end of 2025. Future plans include the development of a 150-plus qubit system by 2026 and a 1,000-plus qubit system by 2027, showcasing Rigetti’s dedication to advancing quantum computing capabilities.
New Collaborations and Contracts
Rigetti announced a notable 3-year $5.8 million contract with the Air Force Research Laboratory to enhance superconducting quantum networking. Additionally, new collaborations with the Center for Development of Advanced Computing and Montana State University highlight Rigetti’s strategic efforts to expand its research and development partnerships.
Financial Strength
As of November 6, 2025, Rigetti reported a strong financial position with approximately $600 million in cash, cash equivalents, and available-for-sale investments, and no debt. This financial strength provides a solid foundation for the company’s future growth and development initiatives.
Revenue Decline
The earnings call revealed a decline in revenues, with the third quarter of 2025 bringing in $1.9 million, down from $2.4 million in the same period of 2024. This decrease was attributed to the expiration of the National Quantum Initiative and its pending reauthorization, impacting the company’s financial performance.
Decreased Gross Margins
Rigetti’s gross margins fell to 21% in the third quarter of 2025, a significant drop from 51% in the previous year. This decline was due to the composition of revenue and variability in pricing and contract terms, posing a challenge to the company’s profitability.
Increased Operating Expenses
Operating expenses rose to $21 million in the third quarter of 2025, up from $18.6 million in the same period of the prior year. This increase was driven by salary hikes, new hires, and higher stock-based compensation and consulting costs, reflecting Rigetti’s investment in talent and expertise.
Exclusion from DARPA Phase B
Rigetti faced a setback as it was not selected for Phase B of the DARPA quantum benchmarking initiative. Despite this exclusion, the company remains optimistic about future participation, indicating a continued focus on advancing its quantum computing capabilities.
Forward-Looking Guidance
Looking ahead, Rigetti Computing is focused on significant advancements in its quantum computing roadmap. The company plans to deploy a 100-plus qubit system by the end of 2025, with further developments leading to a 150-plus qubit system by 2026 and a 1,000-plus qubit system by 2027. Despite current financial challenges, Rigetti’s strong cash position and strategic contracts provide a foundation for future growth.
In summary, Rigetti Computing’s earnings call highlighted a blend of technological promise and financial challenges. While the company is making strides in quantum computing demand and collaborations, financial setbacks such as revenue decline and decreased gross margins present hurdles. Nevertheless, Rigetti’s robust technological roadmap and financial strength offer a hopeful outlook for the future.