Rigetti Computing 2025 Q3 Earnings Beats Estimates, Net Loss Widens 1254.9%

Rigetti Computing (RGTI) reported mixed third-quarter results, with earnings per share (EPS) exceeding expectations but revenue declining year-over-year. The stock price declined post-earnings, reflecting investor concerns over widening losses and revenue challenges.

Revenue

Rigetti’s total revenue fell 18.1% to $1.95 million in Q3 2025, compared to $2.38 million in the prior-year period. Collaborative research and professional services drove the majority of revenue at $1.90 million, while access to quantum computing systems contributed $51,000. The decline underscores ongoing pressure in the company’s core segments, with no signs of stabilization in near-term revenue growth.

Earnings/Net Income

The company’s losses deepened significantly, with a net loss of $200.97 million in Q3 2025, representing a 1254.9% increase from $14.83 million in Q3 2024. On a per-share basis, the loss widened to $0.62 from $0.08, despite a narrower-than-expected EPS of $0.03. The widening net loss highlights persistent operational inefficiencies and heavy R&D expenditures, raising questions about long-term profitability.

Post-Earnings Price Action Review

The strategy of buying RGTI shares on revenue raise announcements and holding for 30 days showed mixed performance over three years. While the approach delivered a 117.3% total return—outperforming the SPY ETF’s 100.8%—quarterly volatility ranged from -11.1% to 40.0%. Positive returns occurred in 12 of 12 quarters, averaging 15.2% per quarter, but risk considerations remain critical due to occasional drawdowns.

CEO Commentary

CEO Subodh Kulkarni emphasized progress in on-premises quantum systems and partnerships, including $5.7 million in Novera system sales and a $5.8 million AFRL contract. Strategic priorities include scaling chiplet-based systems, targeting 100+ qubits by 2025 and 1,000+ qubits by 2027. Collaborations with NVIDIA and academic institutions aim to accelerate hybrid quantum-AI integration, though challenges like missing DARPA’s Phase B selection persist.

Guidance

Rigetti expects revenue growth from the AFRL contract ($5.8 million over three years) and Novera system deliveries ($5.7 million, recognized in Q4 2025 and 2026). The roadmap includes 100+ qubit systems by late 2025, 150+ qubits by late 2026, and 1,000+ qubits by late 2027, with fidelity targets of 99.5%, 99.7%, and 99.8%, respectively.

Additional News

1. Commercial Orders: Rigetti secured $5.7 million in purchase orders for two 9-qubit Novera systems, with delivery scheduled for mid-2026.

2. International Expansion: The company announced plans to launch an Italian subsidiary to expand European operations and access government-backed quantum initiatives.

3. Analyst Downgrade: B. Riley Securities downgraded RGTI to Neutral from Buy, citing concerns over delayed U.S. government funding and execution risks.

Conclusion

Rigetti’s Q3 results highlight a fragile balance between long-term technological ambition and immediate financial pressures. While the company advances its quantum roadmap, investors must weigh the risks of sustained losses against potential breakthroughs in the quantum computing sector.