Rigetti Computing Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

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

Gross Margin: 43%, an increase from 31% year-over-year, influenced by contract mix and pricing.

Operating Expenses: $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, compared to $39.7 million in the prior year, affected 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 $569 million at the end of Q1 2026.

2Strategic Updates and Business Highlights

Technology Leadership: Continued progress on the Cepheus-1-108Q platform, which operates with high qubit fidelity (99.9% single qubit, 99.1% two-qubit) and speed (around 60 nanoseconds).

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

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

Market Engagement: Increased customer engagement across public cloud and on-premises systems, with notable orders from national labs and universities.

3Forward Guidance and Outlook

Near-term Goals: Aim to improve the median two-qubit gate fidelity of Cepheus-1-108Q to approximately 99.5% by year-end 2026.

Long-term Roadmap: Targeting to scale to approximately 1,000 qubits with improved fidelity and speed within three years.

Funding Utilization: Potential CHIPS Act funding will focus on addressing scaling bottlenecks and enhancing technology.

4Challenges and Points of Concern

Operating Losses: Continued significant operating and net losses raise concerns about profitability in the near future.

Market Volatility: Revenue variability due to the timing of system deliveries and government-funded projects is inherent in the current quantum computing market.

Coherence Time Limitations: Current coherence times (25-30 microseconds) are a primary constraint on fidelity, and improvements are necessary to enhance performance.

Dependency on Government Funding: Reliance on potential funding from the Department of Commerce and other government initiatives introduces uncertainty until definitive agreements are reached.

5Notable Q&A Insights

Coherence Time Improvements: Management is optimistic about doubling or tripling coherence times in the near term, which is critical for enhancing fidelity.

DARPA Phase B: Rigetti remains hopeful about progressing to DARPA Phase B despite leadership changes, emphasizing ongoing collaboration.

Customer Engagement: Positive feedback from users of the 108-qubit system indicates high reliability and ease of use, though current applications remain research-focused.

Optical Interconnect Discussions: Exploration of partnerships for optical interconnect technology is ongoing, which could facilitate scaling beyond 1,000 qubits in the future.

Increased Interest: There is a notable increase in interest from commercial organizations, governments, and universities in quantum computing compared to previous years, indicating a growing market. Overall, Rigetti Computing is making significant strides in technology and partnerships, but faces challenges related to financial performance and market volatility. The company remains focused on executing its long-term roadmap while navigating the complexities of the evolving quantum computing landscape.