RGTI Q3 2025 Earnings Call Summary

Revenue: $1.9 million for Q3 2025, down from $2.4 million in Q3 2024, primarily due to the expiration of the National Quantum Initiative.
Gross Margin: 21%, significantly lower than 51% in Q3 2024, attributed to lower-margin contracts.
Operating Expenses: Increased to $21 million from $18.6 million year-over-year, driven by salary increases, new hires, and higher stock-based compensation.
Operating Loss: $20.5 million, compared to $17.3 million in the prior year.
Net Loss: GAAP net loss was higher than the previous year due to noncash changes in derivative liabilities; non-GAAP net loss was $10.7 million ($0.03 per share), an improvement from $13.4 million ($0.07 per share) in Q3 2024.
Cash Position: Approximately $558.9 million in cash and equivalents as of September 30, 2025, increasing to $600 million after warrant exercises in November.

Technology Development: On track to deliver a 100+ qubit chiplet-based quantum system with 99.5% median 2-qubit gate fidelity by the end of 2025. Plans for a 150+ qubit system by the end of 2026 and a 1,000+ qubit system by the end of 2027, with anticipated fidelities of 99.7% and 99.8%, respectively.
New Contracts: Announced $5.7 million in purchase orders for two 9-qubit Novera systems and a $5.8 million contract with the Air Force Research Laboratory (AFRL) to advance superconducting quantum networking.
Collaborations: Engaged with academic institutions and organizations like Montana State University and C-DAC in India to enhance quantum computing capabilities.
NVIDIA Partnership: Supporting NVIDIA’s NVQLink platform for AI supercomputer integration, aiming to accelerate hybrid computation development.

Revenue Expectations: Anticipated revenue growth in Q4 2025 from recent contracts and system sales.
Long-Term Goals: Aiming for quantum advantage by 2029, requiring 99.9% fidelity and error correction capabilities.

Revenue Decline: Year-over-year revenue decreased due to the expiration of the National Quantum Initiative and pending reauthorization.
Lower Gross Margins: Significant drop in gross margins due to the nature of contracts, particularly with lower-margin agreements.
DARPA Phase B Participation: Not selected for Phase B of the DARPA quantum benchmarking initiative, although constructive feedback was received. The focus on long-term goals may delay immediate advancements.
Operational Risks: Potential need for significant capital expenditures in the future for upgrading or building new fabrication facilities to meet fidelity and qubit density goals.

DARPA Feedback: Management received constructive criticism on error correction and long-range coupling, which are crucial for future milestones.
Chiplet Strategy: Plans to use 9-qubit chiplets for the 150-qubit system and potentially 36-qubit chiplets for the 1,000-qubit system, with confidence in achieving fidelity targets.
Foundry Exploration: Open to exploring partnerships with foundries for chip production, though current capabilities may not meet Rigetti's specific needs.
Customer Insights: Customers purchasing 9-qubit systems are focused on understanding quantum computing fundamentals before upgrading to larger systems.

The call concluded with optimism about future developments and a commitment to update stakeholders in the next quarter.

RGTI — Rigetti Computing, Inc.