Q3 2025 Rigetti Computing Inc Earnings Call Transcript

Bonisiwe Shabane

-Jan 2, 2026, 7:49 PM

q3 2025 rigetti computing inc earnings call transcript

Explore more earnings information and financial data for RGTI Rigetti Computing, Inc. (NASDAQ:RGTI) Q3 2025 Earnings Call Transcript November 11, 2025 Operator: Good day, and thank you for standing by. Welcome to the Rigetti Computing Third Quarter 2025 Financial Results Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded.

I would now like to hand the conference over to your first speaker today, Dr. Subodh Kulkarni, Chief Executive Officer. Please go ahead. Subodh Kulkarni: Good morning, and thank you for participating in Rigetti’s earnings conference call covering the third quarter ended September 30, 2025. Joining me today is Jeff Bertelsen, our CFO, who will review our results in some detail following my overview. Our CTO, David Rivas, is also here to participate in the Q&A session.

We will be pleased to answer your questions at the conclusion of our remarks. We would like to point out that this call and Rigetti’s third quarter ended September 30, 2025 press release contains forward-looking statements regarding current expectations, objectives and underlying assumptions regarding our outlook and future... These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described and are discussed in more detail in our Form 10-K for... These filings identify and address important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. We urge you to review these discussions of risk factors. During today’s call, we will refer to certain non-GAAP financial measures.

For details on these measures and reconciliations to comparable GAAP measures and for further information regarding the factors that may affect Rigetti’s future operating results, please refer to yesterday’s earnings release on Rigetti’s website... Today, I’m pleased to report that during this past quarter, we saw strong momentum with both the demand for our on-premises quantum computers and the development of collaborations to advance our own R&D and... On the technology front, we remain on track to deliver our 100-plus qubit chiplet-based quantum system with an anticipated 99.5% median 2-qubit gate fidelity by the end of 2025. I’m also excited to share our 2026, 2027 road map updates. We expect to deploy a 150-plus qubit system by or around the end of 2026, with an anticipated 99.7% median 2-qubit gate fidelity. And by or around the end of 2027, we expect to deploy a 1,000-plus qubit system with an anticipated 99.8% median 2-qubit gate fidelity.

In September 2025, we announced purchase orders totaling approximately $5.7 million for 2 9-qubit Novera quantum computing systems. Both systems are upgradable, allowing the customers to increase the system qubit count for more complex computations and research. Good day, and thank you for standing by. Welcome to the Rigetti Computing Third Quarter 2025 Financial Results Conference Call. At this time, all participants are in listen-only mode. After this speaker's presentation, there will be a question and answer session.

To ask a question during the session, you'll need to press star 1-1 on your telephone. You will then hear automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I'd like to hand the conference over to your first speaker today, Dr. Subol Kulkarni, CEO.

Please go ahead. Good morning, and thank you for participating in Rigetti's Earnings Conference Call, covering the third quarter ended September 30th, 2025. Joining me today is Jeff Bertelsen, our CFO, who will review our results in some detail following my overview. Our CTO, David Rivas, is also here to participate in the Q&A session. We will be pleased to answer your questions at the conclusion of our remarks. We would like to point out that this call and Regatta's third quarter ended September 30th, 2025.

This release contains forward-looking statements regarding current expectations, objectives, and underlying assumptions regarding our outlook and future operating results. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described and are discussed in more detail in our Form 10-K for... These findings identify and address important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. We urge you to review these discussions of risk factors. During today's call, we will refer to certain non-GAAP financial measures. For details on these measures and reconciliations to comparable GAAP measures, and for further information regarding the factors that may affect Rigetti's future operating reserves, please refer to yesterday's earnings release on Rigetti's website...

Today, I'm pleased to report that during this past quarter, we saw strong momentum with both the demand for our on-premises quantum computers and the development of collaborations to advance our own R&D and... On the technology front, we remain on track to deliver our 100-plus-qubit chiplet-based quantum system with an anticipated 99.5% median two-qubit gate fidelity by the end of 2025. I'm also excited to share our 2026-2027 roadmap updates. we expect to deploy 150 plus qubit system by or around the end of 2026 with an anticipated 99.7% median two qubit gate fidelity. And by or around the end of 2027, we expect to deploy a thousand plus qubit system with an anticipated 99.8% median two qubit gate fidelity. In September 2025, We announced purchase orders totaling approximately $5.7 million for two 9-qubit Novera quantum computing systems.

Both systems are upgradable, allowing the customers to increase the system qubit count for more complex computations and research. One system is being purchased by an Asian technology manufacturing company. The system will serve as a testbed to develop internal quantum computing expertise. They also plan to benchmark and validate their own quantum computing technologies with the Novera system. The other system is being purchased by a California-based applied physics and artificial intelligence startup. The system will be used for quantum hardware and error correction research.

Our open and modular architecture continues to allow us to integrate innovative solutions with our technology stack, including our project with QFox and the Air Force Research Laboratory, or AFRL, to advance superconducting quantum... In September 2025, we announced a three-year, 5.8 million contract from AFRL to advance superconducting quantum networking. Rigetti will be collaborating with QFox on the project, a Dutch quantum technology startup developing leading frequency conversion systems for quantum applications. A key challenge to networking superconducting quantum computers is the need to convert the microwave signals, which are used to control superconducting qubits, to optical photons that can travel along those fibers. This project aims to deliver systems providing entanglement between superconducting qubits and optical photons, the essential building block of quantum networking. Our new collaborations with the Center for Development of Advanced Computing, or CDANC, and Montana State University showcase the increasing maturity of the quantum computing ecosystem.

MSU is the first academic institution with an on-premises quantum computer, a 9-qubit Novera QPU, which will be used by researchers to advance quantum computing R&D. We intend to work with MSU on a variety of initiatives, including research projects related to quantum hardware and hybrid quantum systems and co-development and testing of enabling quantum technologies and quantum system components. Collectively, these initiatives underscore the importance of public-private partnerships in advancing next-generation quantum technologies. We also signed a memorandum of understanding with CDAC, India's premier R&D organization of the Ministry of Electronics and Information Technology. With this MOU, Rigetti and CDAC intend to collaborate on the design and development of hybrid quantum computing systems and related technologies and bring them to market. We are proud to be deepening our support for quantum computing capabilities in the academic and government sectors.

We are equally excited to support NVIDIA NVQ Link, NVIDIA's new open platform for AI supercomputer quantum integration. By providing low latency and high-throughput integration between quantum hardware and AI supercomputing, NVQ-Link is a very promising resource to accelerate hybrid computation development on the path towards quantum advantage. We remain engaged with the Defense Advanced Research Projects Agency, or DARPA, on stage A of Quantum Benchmarking Initiative, or QBI project. On November 6th, DARPA announced the companies initially selected to participate in Phase B of the QBI project. Although we were not selected at this time for Phase B, we received constructive feedback regarding our proposal and will continue to work with their team. We are optimistic that we will be chosen for Phase B in the coming months.

Lastly, I'm also pleased to share that Regattiv plans to open an Italian subsidiary in the coming months. We believe that this development will allow us to accelerate our pursuit of business opportunities and talent in Italy as the region dedicates more resources and funding to bolstering its quantum initiatives. Thank you. Jeff will now make a few remarks regarding our recent financial performance. Thanks, Subodh. Revenues in the third quarter of 2025 were 1.9 million compared to 2.4 million in the third quarter of 2024.

On a year-over-year basis, our revenue for the quarter was impacted by expiration of the National Quantum Initiative and its pending reauthorization in the U.S. Congress. Renewal of the U.S. National Quantum Initiative sales to U.S. and foreign governments and Novera are all important to future sales. The recent sales, Subodh noted in his remarks, the two nine-qubit Novera system sales and the AFRL contract will benefit revenue in the fourth quarter and as we move into 2026.

Gross margins in the third quarter of 2025 came in at 21 percent compared to 51 percent in the third quarter of 2024. The lower gross margins on a year-over-year basis was due to the composition of our revenue and variability in the pricing in terms of our contracts. Our recent contracts with the UK's National Quantum Computing Center for quantum systems have a lower gross margin profile than most of our other contracts. On the expense side, total OPEX in the third quarter of 2025 was $21 million compared to $18.6 million in the same period of the prior year. The increase in total OPEX was due to annual salary increases, new hires, and higher stock-based compensation and consulting costs. primarily in research and development.

Stock compensation expense for the third quarter of 2025 was $4.3 million compared to $3.4 million for the third quarter of 2024. Our operating loss for the third quarter of 2025 came in at $20.5 million compared to $17.3 million in the prior year period. Our GAAP net loss for the third quarter of 2025 was higher than our GAAP net loss for the third quarter of 2024, primarily due to the non-cash change in the fair value of... We recorded a 10.7 million or 3 cents per share non-GAAP net loss for the third quarter of 2025, compared to a $13.4 million or $0.07 per share non-GAAP net loss for the third... As of September 30, 2025, we had approximately $558.9 million of cash, cash equivalents, and available for sale investments and no debt. Subsequent to September 30, 2025 and through November 6, 2025, proceeds of $46.5 million from the exercise of slightly more than $4 million of our public warrants.

Q3 2025 Rigetti Computing Inc Earnings Call Transcript

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