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]

Rigetti Computing (NasdaqCM:RGTI) Q3 2025 Earnings Call November 11, 2025 08:30 AM ET Company ParticipantsJeff Bertelsen - CFOSubodh Kulkarni - President and CEOTyler Anderson - Equity Research AssociateQuinn Bolton - Managing Director of Equity ResearchTroy Jensen - Managing DirectorConference Call ParticipantsSteven Chin - AnalystBrian Kinstlinger - Director of Research and Senior Technology AnalystDavid Williams - Equity Research AnalystCraig Ellis - Director of Research and Senior Semiconductor and Capi ...

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].

Market Overview - Major U.S. indexes closed higher, with the Dow Jones Industrial Average up 0.8% to 47,368.63, the S&P 500 up 1.54% to 6,832.43, and the Nasdaq up 2.27% to 23,527.17 [1] CoreWeave Inc. (NASDAQ:CRWV) - CoreWeave's stock rose by 1.54%, closing at $105.61, with an intraday high of $110.3 and a low of $102.78; after-hours trading saw a decline of 6.02% to $99.25 [2] - The company reported third-quarter revenue of $1.36 billion, exceeding estimates of $1.29 billion, with an adjusted loss of eight cents per share; revenue backlog nearly doubled to $55.6 billion due to strong demand from AI-focused clients [3] Rocket Lab Corp. (NASDAQ:RKLB) - Rocket Lab's shares increased by 0.50%, closing at $51.90, with an intraday high of $54.50 and a low of $50.76; after-hours trading saw a rise of 7.2% to $55.65 [4] - The company reported third-quarter revenue of $155.05 million, surpassing the consensus estimate of $151.75 million, and secured 17 Electron launch contracts, aiming to break its annual launch record in Q4 [4] AST SpaceMobile Inc. (NASDAQ:ASTS) - AST SpaceMobile's stock fell by 0.71%, closing at $68.70, with an intraday high of $72.36 and a low of $67; it slipped 1.16% to $67.90 in extended trading [5] - The company reported quarterly losses of 45 cents per share, missing the analyst estimate for losses of 23 cents, with quarterly revenue of $14.73 million, below the consensus estimate of $19.93 million [5] Rigetti Computing Inc. (NASDAQ:RGTI) - Rigetti's shares dropped by 2.04%, closing at $33.08, with an intraday high of $34.71 and a low of $32.60; after-hours trading saw a further decline of 1.69% to $32.52 [6] - The company reported quarterly losses of three cents per share, beating the analyst estimate for losses of four cents, but revenues missed expectations at $1.94 million, below the Street estimate of $2.17 million [7] BigBear.ai Holdings (NYSE:BBAI) - BigBear.ai's stock increased by 0.53%, closing at $5.71, with an intraday high of $5.96 and a low of $5.58; it surged over 12.4% to $6.42 in after-hours trading [8] - The company posted third-quarter revenue of $33.14 million, exceeding estimates but marking a 20% year-over-year decline due to reduced Army program volumes; it narrowed its loss to three cents per share and reaffirmed full-year guidance, also announcing plans to acquire generative AI platform Ask Sage [9]

Core Insights - Rigetti Computing, Inc. reported a quarterly loss of $0.03 per share, better than the Zacks Consensus Estimate of a loss of $0.05, marking a 40.00% earnings surprise [1] - The company generated revenues of $1.95 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 18.54%, and down from $2.38 million year-over-year [2] - Rigetti Computing shares have increased approximately 121.3% year-to-date, significantly outperforming the S&P 500's gain of 14.4% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $3 million, and for the current fiscal year, it is -$0.09 on revenues of $8.67 million [7] - The estimate revisions trend for Rigetti Computing was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Rigetti Computing belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Earnings Summary for Rigetti Computing - Rigetti Computing reported a third quarter operating loss of $20.5 million, exceeding the estimated loss of $20.1 million, with revenue of $1.9 million, which was below the expected $2.17 million [1][2] - The company also reported a loss per share of $0.62, significantly worse than the estimated loss of $0.05 [2][12] - The revenue figures are considered small, primarily derived from government contracts and consulting work [4][5] Market Reaction and Future Outlook - Despite the significant misses in earnings and revenue, the stock did not experience violent trading movements, with a downside of about 1.5% [2][3] - Investors view Rigetti as a potential long-term player in the quantum computing space, akin to Nvidia, but acknowledge the near-term challenges [5][6] - Any material breakthroughs or new contracts, especially from the U.S. government, could serve as catalysts for stock price recovery [6][9] Industry Context and Competitive Landscape - The quantum computing sector is still in its early stages, with significant capital flowing into speculative trades based on anticipated revolutionary technology [8][9] - Rigetti is competing with major players like Intel, IBM, and Google, which may impact its market positioning [12][13] - The company is focusing on building relationships with the Department of Defense, which could provide a strategic advantage [13][14] Earnings Summary for Core - Core reported a third quarter loss per share of $0.22, better than estimates ranging from $0.39 to $0.57 [14] - The net loss was $110.1 million, significantly better than the estimated loss of $299.6 million [14] - Revenue for the quarter was $1.36 billion, exceeding the expected $1.29 billion [15] Operational Insights and Market Dynamics - Core's backlog of orders as of September 30 was $55.6 billion, missing the street's expectation of $60 billion [17] - The company is investing heavily in building data centers and leasing Nvidia chips, which raises concerns about potential overcapacity in the future [18][19] - Analysts express concerns about the sustainability of business models for companies like Core that rely on overcapacity from hyperscalers [25][26]

Rigetti Computing Inc. (NASDAQ:RGTI) shares fell after the company released a mixed third-quarter earnings report after Monday's closing bell. Here's a look at the details in the report. RGTI stock is moving. Watch the price action here.The Details: Rigetti Computing reported quarterly losses of three cents per share, which beat the analyst estimate for losses of four cents.Quarterly revenue came in at $1.94 million, which missed the Street estimate of $2.17 million and was down from revenue of $2.37 millio ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 or ☐ TRANSITION PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT For the transition period from to Commission File Number (001-40140) | | Trading | Name of each exchange | | --- | --- | --- | | Title of each class | Symbol(s) | on which registered | | Common ...