Rigetti's Q1 2025: Key Contradictions on Qubit Scaling, Government Funding, and Fidelity Goals

Qubit count and scaling strategy, government funding and partnerships, qubit count and fidelity goals, government funding and opportunities, tiling and scaling approach are the key contradictions discussed in Rigetti's latest 2025Q1 earnings call.



Revenue and Gross Margin Fluctuations:
- Rigetti Computing reported revenues of $1.5 million in Q1 2025, a decrease from $3.1 million in Q1 2024.
- Gross margins in Q1 2025 were 30%, compared to 49% in Q1 2024, driven in part by lower margins from a UK NQCC contract.

Operating Expenses and Stock Compensation:
- Total operating expenses increased to $22.1 million in Q1 2025 from $18.1 million in the same period last year.
- This increase was due to annual salary increases, new hires, higher FICA taxes, and stock compensation expenses related to employee bonuses.

Government Contracts and R&D Focus:
- Rigetti secured multiple government contracts, including a $1 million award from DARPA's Quantum Benchmarking Initiative.
- The focus remains on R&D and technology milestones, with government contracts playing a significant role in funding these efforts.

Investment and Strategic Partnerships:
- Quanta Computer invested approximately $35 million in Rigetti Computing, with a commitment to invest $250 million over five years in non-QPU hardware.
- This strategic partnership is aimed at accelerating Rigetti's time to market and enabling increased focus on core QPU development.