Rigetti Computing Reports Q3 Results, Beats Expectations Despite Widening Losses
Berkeley, California-based quantum computing company Rigetti Computing (NASDAQ: RGTI) released its third-quarter earnings, posting an adjusted loss of 3 cents per share on revenue of $1.9 million. This performance beat Wall Street forecasts, which had projected a loss of 5 cents per share on $2.2 million in sales. However, the company’s operating losses widened, raising questions about its financial trajectory.
### Financial Performance Highlights
– **Adjusted EPS:** Loss of 3 cents per share vs. expected 5 cents loss
– **Revenue:** $1.9 million, slightly below analyst projection of $2.2 million
– **Operating Losses:** Increased to $20.5 million in Q3, compared to $19.9 million in Q2 and $17.3 million in the same quarter last year
– **GAAP Net Loss:** $201.0 million for Q3
– **Non-GAAP Net Loss:** $10.7 million
For the full year, Rigetti expects a loss of 29 cents per share on revenue of $8.1 million, improved from a 36 cents per share loss on $10.8 million in sales projected for 2024.
### Stock Performance
Despite the widening losses, Rigetti’s stock remains a standout in the quantum computing space. Shares slipped 2% to $33.08 following the earnings release but have surged more than 2,000% over the past 12 months. Year-to-date gains stand at 117%, although this trails competitor D-Wave Quantum’s impressive 250% increase.
### CEO Highlights and Strategic Partnerships
CEO Subodh Kulkarni pointed to growing commercial interest in Rigetti’s on-premises quantum systems. He also emphasized the company’s support for Nvidia’s NVQLink platform, an initiative to integrate quantum computing with AI supercomputers, signaling Rigetti’s commitment to advancing quantum applications.
### Growing Losses and Industry Comparison
While Rigetti’s operating losses have expanded, some peers show stronger revenue growth. For instance, IonQ recently reported $39.9 million in sales, more than tripling revenue year-over-year. Meanwhile, D-Wave Quantum’s recent earnings disappointed investors despite strong stock performance earlier in the year.
Reflecting these challenges, B. Riley Securities downgraded Rigetti’s rating from Buy to Neutral, citing concerns over potential delays in U.S. government funding that could impact sales.
### Commercial Progress: New Purchase Orders
Rigetti announced two purchase orders totaling $5.7 million for its 9-qubit Novera quantum systems. One system will be delivered to an Asian technology manufacturing company, and the other to a California-based applied physics and AI startup. Both are expected to be delivered in the first half of 2026.
These purchase orders highlight Rigetti’s efforts to expand beyond government contracts, which still represent a significant portion of its revenue. Earlier this year, the company secured a $5.8 million contract with the Air Force Research Laboratory to study quantum networking.
### Research Collaborations and Global Expansion
In addition to commercial deals, Rigetti continues to invest in research partnerships, working with Montana State University and India’s Centre for Development of Advanced Computing on quantum hardware research. The company is also establishing a subsidiary in Italy to broaden its presence in the European market.
### Strong Cash Position and Future Outlook
As of November 6, Rigetti reported approximately $600 million in cash and investments, including $46.5 million raised from warrant exercises. The company has operated quantum computers via the cloud since 2017 and began selling on-premises systems in 2021.
The 9-qubit Novera quantum processing unit, launched in 2023, aims to support a growing community of researchers. Looking ahead, Rigetti plans to deliver a chiplet-based 100+ qubit quantum system by the end of 2025, expected to achieve a 99.5% median two-qubit gate fidelity. The roadmap includes a 150+ qubit system by late 2026 with 99.7% fidelity and a 1,000+ qubit system targeted for the end of 2027 with 99.8% fidelity.
### Upcoming Earnings Call
Management will hold a conference call to discuss the Q3 results at 8:30 a.m. Eastern Time on Tuesday.
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Rigetti’s latest results signal continued advancements in quantum computing technology alongside financial challenges typical of this emerging sector. Investors will be watching closely as the company navigates growing commercial opportunities and increasing operational expenses.
https://coincentral.com/rigetti-computing-rgti-stock-q3-earnings-beat-estimates-despite-widening-losses/