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, influenced by the timing of system deliveries and government contracts.
• Gross Margin: 35% in Q4 2025, down from 44% in Q4 2024, primarily due to a mix of lower-margin government contracts.
• Operating Expenses: Increased to $23.2 million from $19.5 million year-over-year, with R&D spending driving the increase.
• Operating Loss: Q4 operating loss was $22.6 million, compared to $18.5 million in the prior year.
• Net Loss: GAAP net loss was lower than the previous year, with a non-GAAP net loss of $11.3 million ($0.03 per share), improved from $14 million ($0.06 per share) in Q4 2024.
• Cash Position: Ended the year with approximately $590 million in cash, providing significant runway for future operations.

2. Strategic Updates and Business Highlights

• Technical Milestones: Achieved a 2-qubit gate fidelity of 99.9% at 28 nanoseconds on the ProDrive platform, with ongoing improvements in system stability and control.
• Product Deployment: Successfully deployed multiple systems to the cloud, including an 84-qubit system and a 36-qubit chiplet-based system.
• Customer Engagement: Secured an $8.4 million order from India's C-DAC for a 108-qubit on-premises quantum computer, scheduled for deployment in late 2026. Also received $5.7 million in orders for 9-qubit systems.
• Partnerships: Collaborating with Riverlane for error correction and with NVIDIA for NVQLink to integrate quantum systems with AI supercomputing.

3. Forward Guidance and Outlook

• 2026 Focus: Aiming to complete the deployment of the 108-qubit system by the end of March 2026 and to develop a system with over 150 qubits by the end of December 2026.
• Long-Term Goals: Targeting a system with over 1,000 qubits and 99.8% median 2-qubit gate fidelity by the end of 2027.
• Market Expectations: Anticipating continued demand for on-premises systems, particularly from government and research institutions.

4. Bad News, Challenges, or Points of Concern

• Revenue Variability: Continued fluctuations in quarterly revenue due to the early-stage nature of the quantum computing market and reliance on government contracts.
• Operating Losses: Persistent operating losses indicate ongoing challenges in achieving profitability amidst high R&D expenditures.
• Competitive Landscape: The company faces competition from other modalities and firms, particularly in achieving higher qubit counts and fidelity metrics.

5. Notable Q&A Insights

• 108-Qubit System Readiness: The deployment of the 108-qubit system is on track for the end of March, with fidelity metrics being closely monitored.
• Manufacturing Capacity: Rigetti's Fab 1 is a competitive advantage, but there are considerations regarding future fab expansions based on market demands.
• Government Funding: Awaiting potential funding from U.S. government initiatives, which could significantly benefit the company.
• Error Correction: The partnership with Riverlane is critical for future scalability and achieving quantum advantage, but practical benefits will only be realized as fidelity improves.

Overall, Rigetti Computing's Q4 2025 results reflect both progress in technological advancements and ongoing financial challenges, with a clear focus on long-term goals in the evolving quantum computing landscape.