RGTI — Rigetti Computing, Inc.

Summary of Rigetti Computing Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Revenue: Q4 2025 revenue was $1.9 million, down from $2.3 million in Q4 2024, primarily influenced by the timing of system deliveries and government contracts.
• Gross Margin: 35%, down from 44% year-over-year, attributed to a mix of lower-margin strategic contracts.
• Operating Expenses: Increased to $23.2 million from $19.5 million in the prior year, driven by R&D spending and stock-based compensation of $5.6 million (up from $3.4 million).
• Operating Loss: $22.6 million, compared to $18.5 million in Q4 2024.
• Net Loss: Non-GAAP net loss was $11.3 million ($0.03 per share), an improvement from a loss of $14 million ($0.06 per share) in Q4 2024.
• Cash Position: Ended the year with approximately $590 million in cash, providing a strong runway for future operations.

2. Strategic Updates and Business Highlights

• Rigetti achieved significant technical milestones, including a 2-qubit gate fidelity of 99.9% and a 28-nanosecond gate speed using a proprietary Adiabatic CZ scheme.
• Successfully deployed multiple systems to the cloud, including an 84-qubit system and a 36-qubit chiplet-based system.
• Announced an $8.4 million order from India's C-DAC for a 108-qubit on-premises quantum computer, scheduled for deployment in H2 2026.
• Secured purchase orders totaling approximately $5.7 million for two 9-qubit Novera systems, which are upgradeable for future needs.
• Collaborations with key partners like NVIDIA for hybrid computing integration and Riverlane for real-time quantum error correction were highlighted as strategic advantages.

3. Forward Guidance and Outlook

• Rigetti aims to deploy the 108-qubit system with 99.5% median 2-qubit gate fidelity by the end of March 2026.
• Plans to deliver a system with over 150 qubits and 99.7% median 2-qubit gate fidelity by the end of 2026.
• Targeting a 1,000-qubit system with 99.8% median 2-qubit gate fidelity by the end of 2027.
• The company expects continued focus on on-premises systems for government and research institutions, anticipating significant year-over-year revenue growth.

4. Bad News, Challenges, or Points of Concern

• Revenue decline in Q4 2025 reflects the early-stage nature of the quantum computing market and variability in contract timing.
• Gross margins are under pressure due to a mix of lower-margin contracts, particularly with government customers.
• The company faces competitive pressures from other quantum computing modalities, particularly in achieving scalability and fidelity.
• The timeline for achieving quantum advantage is projected at roughly three years, which may be perceived as conservative.

5. Notable Q&A Insights

• 108-Qubit System: The deployment is on track for March, with challenges related to tunable coupler interactions being addressed.
• Manufacturing Capacity: Rigetti currently operates its own foundry (Fab 1) and has no immediate plans for a new fab, believing existing capacity is sufficient for upcoming milestones.
• Government Funding: Rigetti is monitoring U.S. government funding initiatives, including the NQI Reauthorization Act, which could provide future support.
• Competitive Landscape: The company emphasizes its unique chiplet architecture and open modular approach as key differentiators in a competitive market.
• Error Correction: Collaborations with Riverlane are focused on integrating error correction capabilities, which are critical as the company approaches quantum advantage.

Overall, Rigetti Computing's Q4 2025 earnings call highlighted both progress in technical capabilities and ongoing challenges in revenue generation and competitive positioning within the quantum computing landscape.