Rigetti Computing Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenue: $5.1 million, up from $1.8 million in Q2 2025, driven by on-premises Novera QPU sales.

Gross Margin: Approximately 43%, an increase from 31% year-over-year.

Operating Expenses: Totaled $30.3 million, up from $20.4 million in the prior year, primarily due to R&D investments.

Operating Loss: $28.1 million, compared to $19.9 million in Q2 2025.

Net Loss (GAAP): $52.6 million, up from $39.7 million in the previous year, impacted by noncash fair value adjustments.

Net Loss (Non-GAAP): Approximately $16 million or $0.05 per diluted share, compared to $13.3 million or $0.04 per diluted share in Q2 2025.

Cash Position: $541.3 million at the end of Q2 2026, down from $589.8 million at the end of 2025.

2Strategic Updates and Business Highlights

Technical Leadership: Continued progress on the Cepheus-1-108Q platform, maintaining high qubit fidelity (99.9% for single qubit and 99.1% for two qubit).

Department of Commerce LOI: Signed a letter of intent for up to $100 million in funding over three years, aimed at accelerating R&D in superconducting quantum computing.

Collaborations: Expanded partnership with HPE and the Pittsburgh Supercomputing Center to develop a hybrid quantum-classical supercomputer.

Customer Engagement: Increased interest from researchers and enterprises, with ongoing deployments and collaborations across various sectors, including national labs and universities.

3Forward Guidance and Outlook

Rigetti aims to improve the median 2-qubit gate fidelity of the Cepheus-1-108Q to approximately 99.5% by the end of 2026.

Plans to scale to approximately 1,000 qubits with improved fidelity and gate speeds below 40 nanoseconds within three years.

Anticipates continued revenue growth driven by system deliveries and government-funded projects, with a focus on long-term capital discipline.

4Challenges and Points of Concern

Operating Losses: Despite revenue growth, operating losses increased, highlighting the ongoing financial strain as the company invests heavily in R&D.

Market Volatility: Revenue remains influenced by the timing of system deliveries and government contracts, which could lead to fluctuations in financial performance.

Coherence Time Limitations: Coherence time remains a challenge for improving fidelity, with current times at 25-30 microseconds. The company is focused on addressing this but acknowledges it as a key constraint.

Competitive Landscape: Rigetti competes with major players like IBM and Google, and the market for quantum computing is still in its early stages, which may impact growth and adoption rates.

5Notable Q&A Insights

Coherence Time Improvements: CEO Subodh Kulkarni indicated that improvements in coherence time are expected to enhance fidelity by the end of 2026, with ongoing R&D efforts focused on this area.

DARPA Engagement: Despite leadership changes at DARPA, Rigetti remains optimistic about progressing to Phase B of the QBI initiative, continuing to engage with them on necessary improvements.

HPE Collaboration: The partnership with HPE aims to demonstrate hybrid computing capabilities, with Rigetti contributing a full 9-qubit system, including refrigeration and control systems, expected to be delivered in 2027.

Increasing Interest: There is a notable increase in interest from commercial organizations in quantum computing, which is a new development compared to previous years, indicating a potential shift in market dynamics. Overall, Rigetti is making significant strides in technology and customer engagement while navigating the challenges of early-stage market dynamics and financial performance.