RGTIW Q4 2025 Earnings Call Summary

Revenue: $1.9 million in Q4 2025, down from $2.3 million in Q4 2024.
Gross Margin: 35% in Q4 2025, compared to 44% in Q4 2024, primarily affected by 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 Q4 2024.
Net Loss: Non-GAAP net loss of $11.3 million ($0.03 per share), improved from $14 million ($0.06 per share) in the prior year.
Cash Position: Ended 2025 with approximately $590 million in cash, providing substantial runway for future operations.

Rigetti achieved significant technical milestones, including a 2-qubit gate fidelity of 99.9% and a gate speed of 28 nanoseconds using their proprietary Adiabatic CZ scheme.
Successfully deployed multiple quantum systems to the cloud, including an 84-qubit monolithic chip and a 36-qubit chiplet-based system.
Announced an $8.4 million order from India's C-DAC for a 108-qubit on-premises quantum computer, scheduled for deployment in 2026.
Secured $5.7 million in orders for two 9-qubit Novera systems, which are upgradeable for future needs.
Continued partnerships with key players like NVIDIA for hybrid computing integration and Riverlane for real-time quantum error correction.

Rigetti aims to deploy the 108-qubit system with 99.5% median 2-qubit gate fidelity by the end of March 2026.
Plans to deliver a system with over 150 qubits and 99.7% median 2-qubit gate fidelity by the end of 2026, followed by a 1,000-qubit system with 99.8% fidelity by the end of 2027.
The focus for 2026 will be on executing and scaling operations, particularly in government and academic sectors, with expectations of increased demand for on-premises quantum systems.

Revenue decline in Q4 2025 reflects the volatility in system deliveries and government contract activities, which may continue to impact quarterly results.
Gross margin pressure due to lower-margin government contracts, which could affect profitability.
The company has faced delays in achieving customer-ready status for the 108-qubit system due to technical challenges with tunable couplers, which could impact timelines.
Competitive pressures from other quantum computing companies, particularly those making bold claims about achieving higher qubit counts, may pose risks to Rigetti's market position.

CEO Subodh Kulkarni confirmed that the 108-qubit system is on track for deployment but acknowledged the complexity of achieving consistent fidelity across all qubits.
Discussion on the competitive landscape revealed that Rigetti's chiplet architecture and modular approach are key differentiators in attracting customers.
The company is open to M&A opportunities if they align with their roadmap but currently emphasizes organic growth and execution.
Kulkarni expressed confidence in the existing fab's capability to meet future demands without immediate need for additional manufacturing capacity.
The company is closely monitoring government funding initiatives, particularly in the U.S. and U.K., which could provide additional opportunities for growth.

RGTIW — Rigetti Computing, Inc.