RGTIW — Rigetti Computing, Inc.

Summary of Rigetti Computing Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Revenue: $1.9 million in Q4 2025, down from $2.3 million in Q4 2024, influenced by timing of system deliveries and government contracts.
• Gross Margin: 35% in Q4 2025, a decline from 44% in Q4 2024, primarily due to a lower-margin contract mix.
• Operating Expenses: Increased to $23.2 million from $19.5 million year-over-year, with R&D spending driving the increase.
• Operating Loss: $22.6 million in Q4 2025, compared to $18.5 million in the same period last year.
• Net Loss (Non-GAAP): $11.3 million or $0.03 per share, an improvement from a loss of $14 million or $0.06 per share in Q4 2024.
• Cash Position: Approximately $590 million in cash and equivalents at year-end, up from $217 million at the end of 2024, providing a solid runway for operations.

2. Strategic Updates and Business Highlights:

• Rigetti achieved significant technical milestones, including a 2-qubit gate fidelity of 99.9% at a gate speed of 28 nanoseconds, and maintained high fidelity across various qubit systems.
• The company successfully deployed multiple systems to the cloud, including an 84-qubit system and a 36-qubit chiplet-based system.
• An $8.4 million order was secured from India's C-DAC for a 108-qubit on-premises quantum computer, scheduled for deployment in 2026.
• Rigetti's modular architecture and chiplet approach are seen as key differentiators, allowing for scalability and integration with existing technologies.
• Partnerships with companies like NVIDIA and Riverlane are aimed at enhancing quantum error correction and integrating quantum systems with AI supercomputing.

3. Forward Guidance and Outlook:

• Rigetti aims to deploy the 108-qubit system by the end of March 2026, targeting a median 2-qubit gate fidelity of 99.5%.
• Plans to deliver a system with over 150 qubits and 99.7% median 2-qubit gate fidelity by the end of 2026, with a long-term goal of achieving over 1,000 qubits by the end of 2027.
• The company expects continued revenue growth driven by on-premises systems for government and research institutions, with a focus on long-term value creation rather than short-term revenue optimization.

4. Bad News, Challenges, or Points of Concern:

• Revenue decline in Q4 2025 raises concerns about the timing and execution of contracts, particularly in a volatile market.
• Gross margins are under pressure due to lower-margin government contracts, which may affect profitability.
• The company has faced challenges with tunable coupler interactions at higher qubit scales, leading to delays in system availability.
• Competitive pressures from other quantum computing companies, particularly those claiming advancements in qubit counts and fidelity, remain a concern.

5. Notable Q&A Insights:

• The CEO confirmed that the 108-qubit system is on track for deployment, addressing previous issues with tunable couplers.
• Rigetti is already offering its Fab-1 as a foundry to select government customers, indicating a strategic move to leverage its manufacturing capabilities.
• The company remains open to M&A opportunities that could accelerate its roadmap but emphasizes that its current strategy is primarily organic.
• Discussions around government funding initiatives, particularly in the U.S. and U.K., indicate potential future support for quantum computing advancements, though no concrete funding has been secured yet.

This summary encapsulates the key aspects of Rigetti Computing's Q4 2025 earnings call, highlighting financial performance, strategic initiatives, future outlook, and challenges faced by the company.