Rigetti Computing, Inc. (RGTI) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call shows promising developments, including strategic partnerships with NVIDIA and Riverlane, and government funding. The 108-qubit system deployment by March with high fidelity is a positive catalyst. Although management was vague on some financial details, the overall sentiment from new partnerships and product milestones suggests a positive outlook for the stock.
Key Financial Performance
Revenue $1.9 million for Q4 2025, compared to $2.3 million in Q4 2024, a decrease due to timing of system deliveries and government contract activity.
Gross Margins 35% for Q4 2025, compared to 44% in Q4 2024, a decrease driven by contract mix, particularly lower-margin government and national lab contracts.
Operating Expenses $23.2 million for Q4 2025, compared to $19.5 million in Q4 2024, an increase due to higher R&D spending, including engineering headcount, fabrication, and system integration.
Stock-Based Compensation $5.6 million for Q4 2025, compared to $3.4 million in Q4 2024, an increase reflecting higher compensation expenses.
Operating Loss $22.6 million for Q4 2025, compared to $18.5 million in Q4 2024, an increase due to higher operating expenses.
Non-GAAP Net Loss $11.3 million or $0.03 per share for Q4 2025, compared to $14 million or $0.06 per share in Q4 2024, a decrease due to noncash changes in derivative warrant and earn-out liabilities.
Cash Position Approximately $590 million at the end of 2025, compared to $217 million at the end of 2024, an increase providing flexibility for future operations.
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Operating Highlights
2-qubit gate fidelity: Achieved as high as 99.9% at 28 nanosecond gate speed on a ProDrive platform using the new proprietary Adiabatic CZ scheme.
System deployment: Deployed multiple systems to the cloud, including an 84-qubit monolithic chip system and a 36-qubit chiplet-based system.
108-qubit system: Identified tunable coupler interactions and made architectural refinements to improve system stability and control.
India's C-DAC order: Received an $8.4 million order for a 108-qubit on-premises quantum computer, scheduled for deployment in the second half of 2026.
Japanese expansion: Secured a purchase order for a Novera QPU from a Japanese research organization, marking Rigetti's first QPU in Japan.
Fab 1 facility: Operates the industry's first dedicated and integrated quantum device manufacturing facility, enabling faster innovation cycles.
Revenue recognition: Revenue from $5.7 million Novera sales and $8.4 million C-DAC order expected to be recognized in 2026.
Chiplet architecture: Central to scaling strategy, aiming for systems with more than 1,000 qubits by 2027.
Collaborations: Partnering with Riverlane for error correction, NVIDIA for hybrid computing, and QphoX for optical readout of qubits.
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Risk or Challenges
Revenue Variability: Quarterly revenue is influenced by the timing of system deliveries and government contract activity, leading to fluctuations. This variability is expected at this stage of the market but poses challenges for consistent financial performance.
Gross Margins: Gross margins decreased from 44% to 35% year-over-year, driven by contract mix. Lower-margin government and national lab contracts, while strategically important, impact profitability.
Operating Expenses: Operating expenses increased from $19.5 million to $23.2 million year-over-year, primarily due to higher R&D spending, engineering headcount, and stock-based compensation. This rise in expenses could pressure financial sustainability.
System Scaling Challenges: Scaling quantum systems beyond 100 qubits revealed tunable coupler interactions that required architectural refinements, delaying general availability of the 108-qubit system. This reflects technical hurdles in scaling quantum systems.
Market Maturity: The quantum computing market remains research-driven, with most systems deployed to government labs and academic institutions. This limits immediate commercial scalability and revenue growth.
Capital Allocation: The company is focused on long-term R&D investments rather than short-term revenue optimization. While this aligns with strategic goals, it may delay profitability.
Supply Chain and Infrastructure: Future scaling to higher qubit counts may require additional investments in dilution refrigeration and fab infrastructure, posing potential capital expenditure risks.
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Guidance & Outlook
Revenue Recognition Timeline: Revenue from the $5.7 million Novera sales is expected to be recognized in two parts: less than half in Q1 2026 and the balance in Q2 2026. Revenue from the $8.4 million C-DAC order is expected to be recognized in the second half of 2026 after system testing.
Deployment of 108-Qubit System: The deployment of the 108-qubit system with 99.5% median 2-qubit gate fidelity is expected to be completed by the end of March 2026.
Development of 150-Qubit System: A system with more than 150 qubits and 99.7% median 2-qubit gate fidelity is anticipated to be deployed by the end of December 2026.
Scaling to 1,000-Qubit System: The company aims to scale to a system with more than 1,000 qubits and 99.8% median 2-qubit gate fidelity by the end of 2027.
Market Focus for 2026: The company expects to focus on delivering on-premise systems to government, national labs, and academic institutions, with select commercial customers engaged in quantum research.
Capital Position: The company ended 2025 with approximately $590 million in cash, providing sufficient runway to execute its roadmap through the quantum advantage timeframe.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:What are the key remaining gating items to deliver the 108-qubit system as a customer-ready system?
A:The key remaining gating items include addressing interactions between tunable couplers at the 108-qubit scale. The company has redesigned the chip to address these issues and is collecting data to ensure consistency before deployment. The system is expected to be deployed around the end of March with 99.5% 2-qubit gate fidelity and 99.9% 1-qubit gate fidelity.
Q:Would the company consider offering foundry or manufacturing capacity to others in the quantum computing industry?
A:The company already offers its Fab-1 as a foundry to select customers, including the DOE, DoD, and the U.K. National Government. These arrangements are part of technology partnership packages, allowing customers to run experiments and develop their own chip architectures.
Q:What are the expected fidelity levels for the 108-qubit system when launched?
A:The 108-qubit system is expected to have a 1-qubit gate fidelity of 99.9% and a 2-qubit gate fidelity of 99.5% median when deployed by the end of March.
Q:What is the significance of the 28-nanosecond gate speed?
A:The 28-nanosecond gate speed, achieved with the proprietary Adiabatic CZ gate, is a significant milestone. It demonstrates the potential to achieve 99.9% 2-qubit gate fidelity and supports the roadmap to deliver a 1,000+ qubit system with high fidelity in a couple of years.
Q:What is the status of the DARPA program?
A:The company is confident about progressing to Phase B of the DARPA program by the end of the year. They are addressing milestones related to error corrections and other requirements.
Q:Are the 99.5% 2-qubit gate fidelity levels already achieved in the lab for the 108-qubit system?
A:The company has achieved 99.5% 2-qubit gate fidelity in multiple areas of the grid but not across the entire system. They are verifying data consistency and addressing coupling issues before deployment.
Q:What are the gross margin expectations for the $5.7 million Novera sales and the C-DAC 108-qubit system?
A:The gross margins for the $5.7 million Novera sales are lower due to the inclusion of dilution refrigerators, which are resold items. The company did not disclose specific gross margin details for the C-DAC 108-qubit system but mentioned it is a strategic account.
Q:What is the revenue recognition timeline for the $8.4 million C-DAC order?
A:The $8.4 million C-DAC order will be recognized as revenue all at once upon installation and validation testing, not spread over multiple quarters.
Q:What is the progress with NVIDIA on NVLink?
A:The company is collaborating with NVIDIA on NVQLink to enable hybrid computing with superconducting gate-based quantum computing. The partnership focuses on achieving gate speeds commensurate with CPU and GPU speeds, enabling a practical hybrid quantum ecosystem.
Q:What is the company's approach to M&A or acquisitions?
A:The company is open to M&A if it accelerates their roadmap to deliver a 1,000+ qubit system with high fidelity. However, they currently believe their roadmap can be achieved organically without acquisitions.
Q:What is the status of the decision to build another fab or outsource manufacturing?
A:The company believes their existing fab in Fremont is sufficient to achieve quantum advantage within the next three years. They are evaluating foundry options and other initiatives for the longer term.
Q:What is the company's involvement in government funding initiatives?
A:The company is engaged with U.S., U.K., and Indian government initiatives. They are awaiting the U.S. NQI Reauthorization Act and are already receiving funding from entities like the Air Force Research Lab. They are also the first company chosen by the Indian government to install a quantum computer.
Q:What is the significance of the Novera QPU sale to a Japanese research entity?
A:The sale represents growing international interest in on-premises quantum computing. The Japanese organization chose the Novera QPU for its performance and scalability, and the system is expected to ship in April with revenue recognition in Q2.
Q:What is the company's partnership with Riverlane?
A:The company is collaborating with Riverlane on error correction software, which will be a critical part of their stack as they approach quantum advantage. The partnership focuses on scalability and integration with the company's hardware.
Q:What is the roadmap for the 150+ qubit system and the 1,000+ qubit system?
A:The 150+ qubit system with 99.7% 2-qubit gate fidelity is planned for deployment around the end of the year. The 1,000+ qubit system with 99.8% fidelity and sub-50 nanosecond gate speed is targeted for deployment in about two years.
Q:What is the evaluation process for customers in Japan and India?
A:Customers typically evaluate different quantum computing modalities and choose superconducting gate-based systems for scalability and gate speed. The company's open modular architecture and chiplet approach are key differentiators.
Q:Review of Unclear Management Responses
A:Management avoided providing specific gross margin details for the $5.7 million Novera sales and the C-DAC 108-qubit system, citing competitive reasons. Additionally, they did not disclose the name of the Japanese research entity that purchased the Novera QPU due to confidentiality.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
CPUs
Center
Chiplets
DAC
Fab
Full
GPUs
Instructions
SEC
advantage road
advantage scale
chiplet architecture
complexity
correction capability
cycle
decision
deployment
discipline
environment
error mitigation
fabrication
fidelity end
fidelity qubit
flexibility
government lab
industry quantum
measure
path scale
perspective
platform
premise system
problem
purchase order
qubit premise
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scale fidelity
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speed scalability
supercomputing
system government
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RGTI Transcript
Rigetti Computing, Inc. (RGTI) Q4 2025 Earnings Call Transcript
Positive3-5
The earnings call shows promising developments, including strategic partnerships with NVIDIA and Riverlane, and government funding. The 108-qubit system deployment by March with high fidelity is a positive catalyst. Although management was vague on some financial details, the overall sentiment from new partnerships and product milestones suggests a positive outlook for the stock.
Rigetti Computing, Inc. (RGTI) Q3 2025 Earnings Call Transcript
Positive11-11
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.
Rigetti Computing, Inc. (RGTI) Q2 2025 Earnings Call Transcript
Unknown8-12
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.
Earnings call transcript: Rigetti Computing’s Q1 2025 earnings beat expectations
Unknown5-12
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%.
RGTI Report
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