Core Viewpoint - Rigetti stock (NASDAQ: RGTI) experienced a decline of over 8% following the release of its mixed Q3 earnings report, which showed an earnings surprise despite a revenue miss [1] Financial Performance - The company reported an earnings surprise, indicating that the earnings per share (EPS) exceeded analysts' expectations [1] - However, the revenue figures fell short of market expectations, contributing to the stock's decline [1]

Welcome back. Take a look at shares of Regetti Computing lower this morning after reporting a miss on revenue in Q3. Stocks still up roughly 2,000% over the last year though amid this excitement over quantum computing and the AI boom.Joining us this morning in a CBC exclusive is Betti CEO Subode KC Carney. Sabot, welcome back. It's good to have you.>> Thank you for having me. I wonder how I hope you won't mind me asking how you recommend investors value the shares right now given you're a 10 billion market ...

Welcome back. Take a look at shares of Regetti Computing lower this morning after reporting a miss on revenue in Q3. Stocks still up roughly 2,000% over the last year though amid this excitement over quantum computing and the AI boom.Joining us this morning in a CBC exclusive is Betti CEO Subode KC Carney. Sabot, welcome back. It's good to have you.>> Thank you for having me. I wonder how I hope you won't mind me asking how you recommend investors value the shares right now given you're a 10 billion market ...

Core Viewpoint - Rigetti Computing (NASDAQ: RGTI) specializes in quantum computer chips known as superconducting qubit processors and offers cloud access to these technologies [1] Company Summary - The company has been rated as "Hold" due to its stock price reflecting current valuations [1] - Rigetti focuses on producing objective, data-driven research primarily on small- to mid-cap companies, which are often overlooked by investors [1] Industry Context - The analysis occasionally includes large-cap companies to provide a broader perspective on equity markets [1]

Quantum computing stock Rigetti Computing Inc (NASDAQ:RGTI) was last seen down 4.6% to trade at $31.57 after mixed third-quarter results. The company posted adjusted third-quarter losses of 3 cents per share, narrower than analysts' anticipated losses of 5 cents per share, but the $1.95 million figure missed estimates of $2.2 million. On the charts, RGTI has taken a 45% haircut since its Oct. 14 record high of $58.15. The ascending 60-day moving average, which has provided close support since early May, is ...

Financial Data and Key Metrics Changes - Revenues in Q3 2025 were $1.9 million, down from $2.4 million in Q3 2024, impacted by the expiration of the National Quantum Initiative [12] - Gross margins in Q3 2025 were 21%, compared to 51% in Q3 2024, due to revenue composition and pricing variability [12][13] - Operating loss for Q3 2025 was $20.5 million, compared to $17.3 million in the prior year [14] - GAAP net loss for Q3 2025 was higher than in Q3 2024, with a non-GAAP net loss of $10.7 million, or $0.03 per share, compared to $13.4 million, or $0.07 per share, in Q3 2024 [15] - As of September 30, 2025, the company had approximately $558.9 million in cash and equivalents, with no debt [15] Business Line Data and Key Metrics Changes - The company announced purchase orders totaling approximately $5.7 million for two 9-qubit Novera quantum computing systems, which are upgradable [6][7] - A three-year, $5.8 million contract from the Air Force Research Laboratory (AFRL) was announced to advance superconducting quantum networking [8] Market Data and Key Metrics Changes - The expiration of the National Quantum Initiative and its pending reauthorization in the U.S. Congress impacted revenue [12] - The company is engaged with various academic and government sectors to enhance quantum computing capabilities [9][10] Company Strategy and Development Direction - The company plans to deliver a 150-plus qubit system by the end of 2026 and a 1,000-plus qubit system by the end of 2027, with anticipated gate fidelity improvements [5][6] - The company is focusing on public-private partnerships to advance quantum technologies [9] - The company intends to open an Italian subsidiary to pursue business opportunities in the region [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future sales driven by recent contracts and collaborations, despite current revenue challenges [12][15] - The company is optimistic about being selected for phase B of the DARPA Quantum Benchmarking Initiative project in the coming months [10][18] Other Important Information - The company is exploring options for a new chip fab facility to enhance capabilities beyond the current 150 mm fab [63][66] - The potential investment for a new quantum fab is expected to be in the hundreds of millions of dollars, significantly less than a CMOS fab [66] Q&A Session Summary Question: Can you discuss the DARPA phase B and the feedback received? - Management noted that while not selected for phase B, constructive feedback was received, focusing on error correction and long-range coupling [17][18] Question: What is the comfort level for achieving 99% fidelity by 2027? - Management is confident in achieving 99.7% fidelity at 150-plus qubits by 2026 and 99.8% at 1,000 qubits by 2027 [21][22] Question: Will the 1,000-qubit system use chiplet-based architecture? - The plan is to use 36-qubit chiplets for the 1,000-qubit system, with confidence in achieving the fidelity targets [27][28] Question: How will revenue recognition work for the Novera system sales? - Revenue for the two Novera systems will be recognized upon shipment, expected in Q1 and Q2 of 2026 [31] Question: What is the expected impact of the National Quantum Initiative funding? - The recent reinstatement of funding to $625 million over five years is seen as a positive step, though discussions for higher funding amounts are ongoing [88][89] Question: What is the company's strategy regarding potential M&A? - The company is open to exploring M&A opportunities to accelerate its roadmap but believes it can execute its plans organically [50][51]

Financial Data and Key Metrics Changes - Revenues in Q3 2025 were $1.9 million, down from $2.4 million in Q3 2024, impacted by the expiration of the National Quantum Initiative [12] - Gross margins in Q3 2025 were 21%, compared to 51% in Q3 2024, due to revenue composition and pricing variability [12][13] - Operating loss for Q3 2025 was $20.5 million, compared to $17.3 million in the prior year [14] - GAAP net loss for Q3 2025 was higher than in Q3 2024, primarily due to non-cash changes in fair value of derivative liabilities [15] - As of September 30, 2025, the company had approximately $558.9 million in cash and equivalents, with no debt [15] Business Line Data and Key Metrics Changes - The company announced purchase orders totaling approximately $5.7 million for two 9-qubit Novera quantum computing systems, which are upgradable [6][7] - A three-year, $5.8 million contract from the Air Force Research Laboratory (AFRL) was announced to advance superconducting quantum networking [8] Market Data and Key Metrics Changes - The expiration of the National Quantum Initiative and its pending reauthorization in the U.S. Congress impacted revenue [12] - The company is engaged with various academic and government institutions to advance quantum computing capabilities [9][10] Company Strategy and Development Direction - The company plans to deliver a 100+ qubit chiplet-based quantum system by the end of 2025, with a roadmap to deploy a 150+ qubit system by the end of 2026 and a 1,000+ qubit system by the end of 2027 [5][6] - The company is focusing on public-private partnerships to advance quantum technologies [9] - The company intends to open an Italian subsidiary to pursue business opportunities in the region [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future sales driven by recent contracts and collaborations, despite current revenue challenges [12][15] - The company is focused on achieving quantum advantage within the next three to five years, targeting 1,000 qubits with 99.9% fidelity [18][22] - Management is optimistic about potential funding increases for quantum initiatives from the U.S. government [88][89] Other Important Information - The company is exploring options for a new chip fab facility to enhance capabilities beyond the current 150 mm fab [63][66] - The potential investment for a new quantum fab could be in the hundreds of millions of dollars, significantly less than a traditional CMOS fab [66] Q&A Session Summary Question: Can you talk about DARPA phase B and the feedback received? - Management noted that while not selected for phase B, constructive feedback was received, focusing on error correction and long-range coupling [17][18] Question: What is the comfort level for achieving 99% fidelity by 2027? - Management expressed confidence in achieving 99.7% fidelity at 150+ qubits by 2026 and 99.8% at 1,000 qubits by 2027 [22][23] Question: Will the 1,000-qubit system be chiplet-based? - The plan is to use 36-qubit chiplets for the 1,000-qubit system, with no significant challenges anticipated for long-range coupling [28][30] Question: How will revenue recognition work for the Novera sales? - Revenue for the two Novera systems will be recognized upon shipment, expected in Q1 and Q2 of 2026 [32] Question: What is the expected gross margin profile moving forward? - Management indicated that margins may improve with upcoming sales, particularly from Novera systems [71] Question: What types of applications will the 1,000-qubit system run? - The system is expected to handle complex applications like drug discovery and financial forecasting, which current CPUs and GPUs struggle with [76][77] Question: How does the recent funding from the Energy Department affect the business? - The reinstatement of the National Quantum Initiative funding is seen as a positive step, although discussions for higher funding amounts are ongoing [88][89]

Financial Data and Key Metrics Changes - Revenues in Q3 2025 were $1.9 million, down from $2.4 million in Q3 2024, impacted by the expiration of the National Quantum Initiative [10] - Gross margins decreased to 21% in Q3 2025 from 51% in Q3 2024, attributed to the composition of revenue and pricing variability [10] - Total operating expenses increased to $21 million in Q3 2025 from $18.6 million in the same period of the prior year, due to salary increases, new hires, and higher stock-based compensation [11] - GAAP net loss for Q3 2025 was higher than in Q3 2024, primarily due to a non-cash change in the fair value of derivative warrant and earn-out liabilities [12] - As of September 30, 2025, the company had approximately $558.9 million in cash and equivalents, with no debt, and this increased to approximately $600 million by November 6, 2025 [12] Business Line Data and Key Metrics Changes - The company announced purchase orders totaling approximately $5.7 million for two 9-qubit Novera quantum computing systems, which are upgradable [5] - A three-year, $5.8 million contract from the Air Force Research Laboratory (AFRL) was secured to advance superconducting quantum networking [6] Market Data and Key Metrics Changes - The expiration of the National Quantum Initiative and its pending reauthorization in the U.S. Congress impacted revenue, with future sales dependent on its renewal [10] - The company is engaged with various academic and government sectors to enhance quantum computing capabilities, including collaborations with Montana State University and the Center for Development of Advanced Computing [7][8] Company Strategy and Development Direction - The company aims to deliver a 150-plus qubit system by the end of 2026 and a 1,000-plus qubit system by the end of 2027, with anticipated gate fidelity improvements [4][5] - The strategy includes deepening support for quantum computing capabilities in academic and government sectors and integrating with NVIDIA's NVLink for AI supercomputer quantum integration [8] - The company plans to open an Italian subsidiary to accelerate business opportunities in the region [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future sales from recent contracts and collaborations, which are expected to benefit revenue in Q4 2025 and into 2026 [10] - The management acknowledged challenges in achieving long-range coupling and error correction, which are critical for future milestones [17] - The company is optimistic about being selected for phase B of the DARPA Quantum Benchmarking Initiative project in the coming months [18] Other Important Information - The company is exploring options for potential M&A to accelerate its roadmap, although it believes it can execute its current plans organically [47][48] - The company is considering significant capital expenditures for upgrading its chip fabrication facility in the future [56][60] Q&A Session Summary Question: Can you talk about DARPA phase B and the feedback received? - Management noted that while they were not selected for phase B, constructive feedback was received regarding error correction and long-range coupling, which are important for future milestones [16][17] Question: What is the comfort level for achieving 99% fidelity by 2027? - Management expressed confidence in achieving 99.8% fidelity with 1,000 qubits by the end of 2027, emphasizing the importance of error correction [20][22] Question: Will the 150-qubit and 1,000-qubit systems use chiplet-based approaches? - The company plans to use 9-qubit chiplets for the 150-qubit system and 36-qubit chiplets for the 1,000-qubit system [27] Question: How will revenue recognition work for the Novera system sales? - Revenue for the two Novera systems will be recognized upon shipment, expected in Q1 and Q2 of 2026 [31] Question: What is the expected gross margin profile moving forward? - Management indicated that while gross margins were lower in Q3, future sales, particularly from Novera, are expected to have better margins [64] Question: How does the recent funding for the National Quantum Initiative affect the business? - Management noted that the reinstatement of funding to $625 million over five years is a positive step, although discussions for higher funding amounts are ongoing [81][82]

Core Viewpoint - Traders are shifting their focus from artificial intelligence (AI) stocks to quantum computing stocks in search of significant price movements [1] Group 1 - The interest in quantum computing stocks is growing as traders seek alternatives to AI stocks for potential high returns [1]

Core Insights - Rigetti Computing reported a smaller-than-expected adjusted loss for Q3, but revenue fell short of consensus estimates, leading to a decline in stock price [1][2][4]. Financial Performance - For Q3, Rigetti reported a loss of 3 cents per share on an adjusted basis, compared to a 7-cent loss a year earlier [2]. - Revenue decreased by 18% to $1.95 million, while analysts had forecasted a 5-cent loss on revenue of $2.2 million [2]. Technology Development - The company is on track to deliver a 100-plus qubit chiplet-based quantum system with an anticipated 99.5% median two-qubit gate fidelity by the end of 2025, as stated by CEO Subodh Kulkarni [3]. Market Reaction - Rigetti's stock fell over 4% to $31.72 in early trading following the earnings report, despite having advanced 68% in 2025 prior to the report [4]. Contracts and Revenue Recognition - Earlier in the year, Rigetti secured a $5.8 million contract with the Air Force Research Laboratory to explore quantum networking, but has yet to recognize any revenue from this deal [4]. Industry Context - Quantum computing operates on a subatomic level and aims to solve complex problems beyond the capabilities of classical computers [5]. - The quantum computing sector has experienced volatility in 2025, influenced by controversies surrounding Nvidia and the timeline for commercially viable quantum technology [5]. Stock Ratings - Rigetti holds a Composite Rating of 70 out of a best-possible 99, indicating moderate growth potential [6]. - The stock has an Accumulation/Distribution Rating of A, suggesting heavy institutional buying over the past 13 weeks [7].