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01/10 23:48
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights a strong financial position with $571.6 million in cash, optimistic guidance on achieving high fidelity in quantum computing, and potential revenue from Novera system sales. The Q&A section reveals confidence in reaching technical milestones and integrating with NVIDIA's NVQLink, despite some uncertainties about DARPA selection and external foundry capabilities. The positive sentiment from analysts and management's forward-looking strategies suggest a likely positive impact on stock price.
Revenue $1.9 million in Q3 2025, compared to $2.4 million in Q3 2024, a decrease due to the expiration of the National Quantum Initiative and its pending reauthorization in the U.S. Congress.
Gross Margins 21% in Q3 2025, compared to 51% in Q3 2024, a decrease due to the composition of revenue and variability in pricing and terms of contracts, including lower-margin contracts with the U.K.'s National Quantum Computing Center.
Operating Expenses (OpEx) $21 million in Q3 2025, compared to $18.6 million in Q3 2024, an increase due to annual salary increases, new hires, higher stock-based compensation, and consulting costs primarily in R&D.
Stock Compensation Expense $4.3 million in Q3 2025, compared to $3.4 million in Q3 2024, an increase due to higher stock-based compensation.
Operating Loss $20.5 million in Q3 2025, compared to $17.3 million in Q3 2024, an increase due to higher operating expenses.
GAAP Net Loss Higher in Q3 2025 compared to Q3 2024, primarily due to the noncash change in the fair value of derivative warrant and earn-out liabilities.
Non-GAAP Net Loss $10.7 million or $0.03 per share in Q3 2025, compared to $13.4 million or $0.07 per share in Q3 2024, an improvement.
Cash, Cash Equivalents, and Investments $558.9 million as of September 30, 2025, with an additional $46.5 million received from public warrant exercises, totaling approximately $600 million as of November 6, 2025.
100-plus qubit chiplet-based quantum system: On track to deliver by the end of 2025 with 99.5% median 2-qubit gate fidelity.
150-plus qubit system: Expected deployment by the end of 2026 with 99.7% median 2-qubit gate fidelity.
1,000-plus qubit system: Expected deployment by the end of 2027 with 99.8% median 2-qubit gate fidelity.
9-qubit Novera quantum computing systems: Two systems sold for $5.7 million in September 2025 to an Asian technology manufacturing company and a California-based startup for quantum computing expertise and research.
Italian subsidiary: Plans to open a subsidiary in Italy to pursue business opportunities and talent as the region increases quantum initiatives.
Memorandum of Understanding with C-DAC: Collaboration with India's premier R&D organization to design and develop hybrid quantum computing systems.
AFRL contract: Secured a 3-year $5.8 million contract to advance superconducting quantum networking in collaboration with QphoX.
Montana State University partnership: First academic institution with on-premises Rigetti quantum computer for advancing quantum R&D.
NVIDIA NVQLink collaboration: Supporting NVIDIA's platform for AI supercomputer quantum integration to accelerate hybrid computation development.
DARPA Quantum Benchmarking Initiative: Engaged in Stage A; not selected for Phase B but optimistic for future participation.
Revenue Decline: Revenues in Q3 2025 were $1.9 million, down from $2.4 million in Q3 2024, impacted by the expiration of the National Quantum Initiative and its pending reauthorization in the U.S. Congress.
Gross Margin Decline: Gross margins dropped to 21% in Q3 2025 from 51% in Q3 2024 due to revenue composition and variability in contract pricing, including lower-margin contracts with the U.K.'s National Quantum Computing Center.
Increased Operating Expenses: Total operating expenses rose to $21 million in Q3 2025 from $18.6 million in Q3 2024, driven by salary increases, new hires, higher stock-based compensation, and consulting costs, primarily in R&D.
Operating Loss: Operating loss increased to $20.5 million in Q3 2025 from $17.3 million in Q3 2024, reflecting higher expenses and lower gross margins.
DARPA Phase B Exclusion: Rigetti was not selected for Phase B of DARPA's quantum benchmarking initiative, which could delay potential opportunities and funding from this program.
Dependence on Government Initiatives: Future sales are tied to the renewal of the U.S. National Quantum Initiative and sales to government entities, creating uncertainty in revenue streams.
Lower Gross Margin Contracts: Recent contracts, such as those with the U.K.'s National Quantum Computing Center, have lower gross margin profiles, impacting overall profitability.
100-plus qubit chiplet-based quantum system: Expected to be delivered by the end of 2025 with an anticipated 99.5% median 2-qubit gate fidelity.
150-plus qubit system: Planned deployment by or around the end of 2026 with an anticipated 99.7% median 2-qubit gate fidelity.
1,000-plus qubit system: Planned deployment by or around the end of 2027 with an anticipated 99.8% median 2-qubit gate fidelity.
Revenue impact from recent sales: The sales of two 9-qubit Novera systems and the AFRL contract are expected to benefit revenue in Q4 2025 and into 2026.
Collaboration with C-DAC: Plans to design and develop hybrid quantum computing systems and related technologies for market introduction.
Italian subsidiary: Rigetti plans to open an Italian subsidiary in the coming months to pursue business opportunities and talent in the region.
The selected topic was not discussed during the call.
The earnings call highlights a strong financial position with $571.6 million in cash, optimistic guidance on achieving high fidelity in quantum computing, and potential revenue from Novera system sales. The Q&A section reveals confidence in reaching technical milestones and integrating with NVIDIA's NVQLink, despite some uncertainties about DARPA selection and external foundry capabilities. The positive sentiment from analysts and management's forward-looking strategies suggest a likely positive impact on stock price.
The earnings call reveals several concerning financial metrics: a significant revenue drop, decreased gross margins, and increased operating losses. Despite optimistic future guidance and strategic partnerships, the immediate financial health is weak. The Q&A section highlights uncertainties in achieving technological milestones and government funding. The lack of clear timelines for critical advancements adds to the uncertainty. Although there are positive strategic developments, the negative financial performance and uncertainties are likely to weigh on investor sentiment, leading to a negative stock price reaction over the next two weeks.
The earnings call summary reveals concerning financial performance with declining revenue, gross margins, and increased operating losses. While there are strategic developments, such as the Quanta investment and Ankaa-3 launch, competitive pressures, supply chain challenges, and operational risks remain significant. The Q&A section highlights uncertainties around funding and project timelines. Despite some positive aspects, the overall sentiment is negative due to financial struggles and external risks, suggesting a potential stock price decline of -2% to -8%.
The earnings call reveals several negative financial aspects: declining revenues, reduced gross margins, and a widening operating loss. Despite some promising developments, such as strategic collaborations and new projects, the financial performance is concerning. The Q&A section also highlights uncertainties in funding timelines and lack of clarity in management responses. These factors, combined with the negative financial metrics, suggest a negative market sentiment and potential stock price decline in the short term.
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