Rigetti Computing, Inc. Q3 FY2025 earnings call

• Technology progress: On track to deliver 100-plus qubit chiplet-based quantum system with 99.5% median 2-qubit gate fidelity by end 2025. Road map includes 150-plus qubit system with 99.7% fidelity by end 2026 and 1,000-plus qubit system with 99.8% fidelity by end 2027.
• Contracts/partnerships: Announced $5.7 million purchase orders for 2 9-qubit Novera systems; $5.8 million AFRL contract to advance superconducting quantum networking with QphoX; collaborations with C-DAC and Montana State University.
• Ecosystem developments: MSU has on-premises Rigetti 9-qubit Novera QPU; partnership with NVIDIA NVQLink for hybrid computation.

In the third quarter of 2025, Rigetti's revenues were $1.9 million, compared to $2.4 million in the third quarter of 2024. Gross margins were 21% in Q3 2025 versus 51% in Q3 2024. Total OpEx in Q3 2025 was $21 million, up from $18.6 million in the prior year. Operating loss for Q3 2025 was $20.5 million, compared to $17.3 million in the prior year period. GAAP net loss was higher in Q3 2025 due to noncash changes, but non-GAAP net loss was $10.7 million in Q3 2025 vs. $13.4 million in Q3 2024. As of September 30, 2025, cash, cash equivalents, and available-for-sale investments were ~$558.9 million; subsequent to that, proceeds from warrant exercises brought cash to ~$600 million as of November 6, 2025.

• 2026: Anticipate deploying 150-plus qubit system with 99.7% median 2-qubit gate fidelity.
• 2027: Anticipate deploying 1,000-plus qubit system with 99.8% median 2-qubit gate fidelity.
• AFRL contract and Novera system sales to contribute revenue in Q4 2025 and 2026, with revenue recognized upon shipment of Novera systems.

• DARPA Phase B not selected, but constructive feedback received to improve for future phases.
• Challenges in quantum networking related to converting microwave signals to optical photons.
• Potential delays in investing in new quantum fabs due to need for advanced tooling and considerations of foundry vs. standalone models.

Q: Tyler Anderson of Craig-Hallum Capital Group asked about share count and foundry tooling.

A: Jeff said share count depends on warrant exercises; Subodh said existing fab can support current road map, with options for foundries or new fabs considered.