StubHub - StubHub's stock is down 14% following disappointing quarterly results, reporting a loss of $1.56 per share on revenue of approximately $449 million, both figures worse than expected [2][4] - The company experienced a decline in revenue compared to the previous year, attributed to the absence of significant events like the Taylor Swift tour that boosted demand last year [3][5] - StubHub is shifting its strategy by investing in AI tools and direct ticket issuance, which may slow near-term revenue growth, contributing to negative market sentiment [4][6] - Analysts have downgraded their views on StubHub, despite noting that underlying ticket demand remains strong when excluding the Taylor Swift effect [4][5] American Eagle Outfitters - American Eagle's stock is down 10% despite reporting a solid holiday quarter with adjusted earnings per share of $0.86 and revenue of $1.76 billion, reflecting a 10% year-over-year increase [10][11] - The brand "Aerie" showed strong performance with same-store sales growth of 23%, while the core American Eagle brand had modest growth with same-store sales up 2% [10][11] - The company projected high single-digit same-store sales growth for the first quarter, which did not meet Wall Street expectations [12] Regetti - Regetti's stock is down 5% after reporting a loss of $0.03 per share, with revenue of $1.87 million falling short of expectations [13][14] - The company is in the early stages of commercialization in the supercomputing space, which is expected to take time to scale [14][15] - Regetti has secured a new purchase order from a Japanese research organization, with delivery expected in April, and has also made system sales to India's national computing center [15]

Core Insights - Rigetti Computing Inc. is experiencing increased market enthusiasm despite a revenue miss in the fourth quarter, reporting $1.87 million against an expectation of $2.34 million [2][6] Financial Performance - The company reported fourth-quarter revenue of $1.87 million, which was below the consensus estimate of $2.34 million [2] - Rigetti's balance sheet has significantly improved, ending 2025 with $589.8 million in cash and investments, up from $270 million the previous year [4] Technical Achievements - Rigetti achieved a milestone of 99.9% two-qubit gate fidelity at a 28-nanosecond gate speed, enhancing its superconducting architecture's competitiveness [3] - The company is on track to deploy a 108-qubit chiplet-based system by late March 2026, aiming for 99.5% median two-qubit fidelity [5] Market Position and Future Plans - Rigetti's momentum score increased from 84.04 to 91.90, placing it in the top 10% of stocks for relative price strength [2] - The company is transitioning its "open modular architecture" into a global commercial pipeline, with new purchase orders from research institutions in India and Japan [5] Stock Performance - Year-to-date, Rigetti's shares have dropped by 19.82%, while the Nasdaq Composite index has declined by 1.84% [6] - Over the last six months, the stock has increased by 17.46% and by 125.95% over the past year [6]

Core Insights - Rigetti Computing is focused on advancing superconducting gate-based quantum computing, emphasizing technical validation and disciplined execution in 2025 [2][3] Technical Developments - The company has deployed multiple systems to the cloud, including an 84-qubit monolithic chip system and a 36-qubit chiplet-based system, demonstrating the practicality of chiplet tiling [1] - Rigetti achieved a prototype result with 2-qubit gate fidelity as high as 99.9% at a 28-nanosecond gate speed, while maintaining 99.9% 1-qubit gate fidelity [1] - Median 2-qubit gate fidelities reported are 99.7% for a 9-qubit system, 99.6% for a 36-qubit system, and 99% for the 108-qubit system named Cepheus-1-108Q [1][6] Financial Overview - Rigetti reported Q4 2025 revenue of $1.9 million, down from $2.3 million in the prior year, with gross margin at 35% compared to 44% a year earlier [13] - Total operating expenses for Q4 were $23.2 million, up from $19.5 million a year ago, with a significant portion allocated to R&D [14] - The company ended 2025 with approximately $590 million in cash and investments, a significant increase from about $217 million at the end of 2024 [17] Customer Orders and Partnerships - Rigetti is building an on-premises order pipeline, including an $8.4 million order from India's C-DAC for a 108-qubit system and approximately $5.7 million in orders for two 9-qubit Novera systems [4][10] - The company is collaborating with Riverlane on quantum error correction and with NVIDIA to integrate quantum systems with AI supercomputing [16] Deployment Updates - The general availability of the Cepheus-1-108Q has been delayed to address stability issues, with a target deployment around the end of March, aiming for approximately 99.5% median 2-qubit fidelity and 99.9% 1-qubit fidelity [5][7]

Core Insights - Rigetti Computing, Inc. reported a quarterly loss of $0.03 per share, outperforming the Zacks Consensus Estimate of a loss of $0.05, marking an earnings surprise of +35.76% [1] - The company generated revenues of $1.87 million for the quarter ended December 2025, which was 30.04% below the Zacks Consensus Estimate and a decrease from $2.27 million in the same quarter last year [2] - Rigetti Computing shares have declined approximately 23.4% year-to-date, contrasting with the S&P 500's slight decline of 0.4% [3] Company Performance - Over the last four quarters, Rigetti Computing has exceeded consensus EPS estimates three times, but has not surpassed revenue estimates during this period [2] - The current consensus EPS estimate for the upcoming quarter is -$0.05 on projected revenues of $3.29 million, while the estimate for the current fiscal year is -$0.18 on revenues of $24.94 million [7] Industry Context - The Internet - Software industry, to which Rigetti Computing belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and earnings estimate revisions, which could impact Rigetti's stock performance [5]

Financial Data and Key Metrics Changes - For Q4 2025, revenue was $1.9 million, down from $2.3 million in Q4 2024, influenced by system delivery timing and government contract activity [18] - Gross margins for Q4 were 35%, compared to 44% in Q4 2024, primarily driven by contract mix [18][19] - Total operating expenses for Q4 were $23.2 million, up from $19.5 million in the same period last year [19] - Operating loss for Q4 was $22.6 million, compared to $18.5 million in Q4 2024 [20] - GAAP net loss for Q4 was lower than the previous year due to non-cash changes in fair value of derivative liabilities [21] Business Line Data and Key Metrics Changes - The company achieved a 2-qubit gate fidelity of 99.9% at a gate speed of 28 nanoseconds on a prototype platform [7] - Median 2-qubit gate fidelities reported were 99.7% on a 9-qubit system, 99.6% on a 36-qubit system, and 99% on a 108-qubit system [7] - The company deployed multiple systems to the cloud, including an 84-qubit monolithic chip system and a 36-qubit chiplet-based system [8] Market Data and Key Metrics Changes - Increased demand for on-premises quantum systems, particularly from national governments and research institutions [9] - An $8.4 million order from India's C-DAC for a 108-qubit on-premises quantum computer is scheduled for deployment in the second half of 2026 [10] - Purchase orders totaling approximately $5.7 million for two 9-qubit Novera systems were announced, used as testbeds for quantum hardware research [11] Company Strategy and Development Direction - The company focuses on superconducting gate-based quantum computing for speed and scalability [6] - The strategy emphasizes achieving true quantum advantage rather than just meeting headline milestones [4] - The company operates Fab-1, the first dedicated quantum device manufacturing facility, which is seen as a competitive advantage [9] Management's Comments on Operating Environment and Future Outlook - The company expects to reach quantum advantage in approximately three years, requiring systems with 1,000 qubits and high fidelity [15] - 2026 will focus on executing and scaling, with a priority on deploying the 108-qubit system by the end of March [16] - The balance sheet is strong, with approximately $590 million in cash, providing flexibility for future operations [17] Other Important Information - The company maintains a disciplined approach to capital allocation, focusing on organic growth and evaluating M&A opportunities only if they accelerate the roadmap [24] - The quantum computing market remains research-driven, with most systems deployed to government labs and research centers [14] Q&A Session Summary Question: What are the key remaining gating items to deliver the 108-qubit system as a customer-ready system? - The company is on track to deploy the 108-qubit system around the end of March, addressing interactions between tunable couplers [27][28] Question: Would the company consider offering foundry or manufacturing capacity to others in the quantum computing industry? - The company already offers Fab-1 as a foundry to select customers, including government entities [29] Question: Can you clarify the fidelity levels for the 108-qubit system upon launch? - The 1-qubit gate fidelity will be 99.9%, and the 2-qubit gate fidelity is expected to be about 99.5% [33][34] Question: What is the status of the partnership with NVIDIA on NVQLink? - The partnership aims to integrate quantum systems with AI supercomputing, leveraging the speed of superconducting gate-based quantum computing [51] Question: What is the company's stance on potential M&A opportunities? - The company is open to M&A if it helps accelerate the roadmap but currently focuses on organic growth [57][59]

Financial Data and Key Metrics Changes - For Q4 2025, revenue was $1.9 million, down from $2.3 million in Q4 2024, influenced by system delivery timing and government contract activity [18] - Gross margins for Q4 were 35%, compared to 44% in the same period last year, primarily driven by contract mix [18][19] - Total operating expenses for Q4 were $23.2 million, up from $19.5 million in Q4 2024, with R&D spending concentrated on engineering and system integration [19][20] - GAAP net loss for Q4 2025 was lower than the previous year, while non-GAAP net loss was $11.3 million or $0.03 per share, compared to a net loss of $14 million or $0.06 per share in Q4 2024 [21] Business Line Data and Key Metrics Changes - The company achieved a 2-qubit gate fidelity of 99.9% at a gate speed of 28 nanoseconds, maintaining 99.9% 1-qubit gate fidelity [7][37] - Multiple systems were deployed to the cloud, including an 84-qubit monolithic chip system and a 36-qubit chiplet-based system [8] - The company received an $8.4 million order from India's C-DAC for a 108-qubit on-premises quantum computer, scheduled for deployment in H2 2026 [10] Market Data and Key Metrics Changes - Increased demand for on-premises quantum systems, particularly from national governments and research institutions [9] - The company is expanding into Japan with a purchase order for a Novera QPU scheduled for delivery in April 2026 [11] Company Strategy and Development Direction - The company focuses on superconducting gate-based quantum computing, emphasizing speed and scalability as key advantages [6] - The strategy includes achieving true quantum advantage, defined as outperforming classical systems on practical workloads [14] - The company plans to deploy a system with more than 150 qubits by the end of 2026, targeting 99.7% median two-qubit gate fidelity [15][92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving quantum advantage within approximately three years, emphasizing the importance of precision and credibility in timelines [15] - The company exited the year with approximately $590 million in cash, providing flexibility to execute its roadmap [17] - Management highlighted the importance of patience and technical rigor in the long-term development of quantum computing [17] Other Important Information - The company operates Fab-1, the first dedicated quantum device manufacturing facility, which is seen as a competitive advantage [9] - The company is open to M&A opportunities that could accelerate its roadmap but does not rely on acquisitions for its core strategy [24][59] Q&A Session Summary Question: What are the key remaining gating items to deliver the 108-qubit system as a customer-ready system? - Management confirmed they are on track to deploy the 108-qubit system by the end of March, addressing interactions between tunable couplers [27][28] Question: Would the company consider offering foundry or manufacturing capacity to others in the quantum computing industry? - Management stated they already offer Fab-1 as a foundry to select customers, including government entities [29] Question: Can you clarify the fidelity levels for the 108-qubit system upon launch? - Management confirmed 1-qubit gate fidelity will be 99.9% and 2-qubit gate fidelity will be about 99.5% [33][34] Question: What is the status of the DARPA collaboration? - Management expressed confidence in progressing to Phase B of the DARPA program by the end of the year [38] Question: What is the expected gross margin for the Novera and C-DAC systems? - Management refrained from disclosing specific gross margins for competitive reasons but indicated that margins for Novera systems with dilution refrigeration would be lower [46][47] Question: What is the company's stance on government funding initiatives? - Management noted ongoing discussions at the U.S. government level for quantum computing support and highlighted existing funding from the DoD [67][68]

Financial Data and Key Metrics Changes - For Q4 2025, revenue was $1.9 million, down from $2.3 million in Q4 2024, influenced by system delivery timing and government contract activity [16] - Gross margins for Q4 were 35%, compared to 44% in the same period last year, primarily driven by contract mix [16] - Total operating expenses for Q4 were $23.2 million, up from $19.5 million in Q4 2024, with R&D spending concentrated on engineering and system integration [17] - GAAP net loss for Q4 2025 was lower than the previous year, while non-GAAP net loss was $11.3 million or $0.03 per share, compared to a loss of $14 million or $0.06 per share in Q4 2024 [18] Business Line Data and Key Metrics Changes - Rigetti achieved a 2-qubit gate fidelity of 99.9% at a gate speed of 28 nanoseconds, maintaining 99.9% 1-qubit gate fidelity [6] - The company deployed multiple systems to the cloud, including an 84-qubit monolithic chip system and a 36-qubit chiplet-based system [7] - Orders included an $8.4 million contract for a 108-qubit on-premises quantum computer for India's C-DAC and approximately $5.7 million for two 9-qubit Novera systems [9][10] Market Data and Key Metrics Changes - Increased demand for on-premises quantum systems, particularly from national governments and research institutions [8] - The quantum computing market remains research-driven, with most systems deployed to government labs and academic institutions [12] - The company expects significant year-over-year revenue growth driven by the Novera sales and the C-DAC order [19] Company Strategy and Development Direction - Rigetti's strategy focuses on superconducting gate-based quantum computing, emphasizing speed and scalability [5] - The company aims to achieve true quantum advantage by outperforming classical systems on practical workloads within three years [13] - Rigetti operates Fab-1, a dedicated quantum device manufacturing facility, which is seen as a competitive advantage [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving milestones for the 108-qubit system deployment by the end of March 2026 [25] - The company anticipates a focus on delivering on-premises systems across government and academic institutions in 2026 [14] - Management highlighted the importance of patience and technical rigor in the long-term development of quantum computing [15] Other Important Information - Rigetti ended the year with approximately $590 million in cash, providing flexibility for future operations [21] - The company does not plan to rely on acquisitions for its core strategy but remains open to M&A if it accelerates their roadmap [22][55] Q&A Session Summary Question: What are the key remaining gating items to deliver the 108-qubit system as a customer-ready system? - Management confirmed they are on track to deploy the system with 99.5% two-qubit gate fidelity and addressed interactions between tunable couplers [25] Question: Would Rigetti consider offering foundry or manufacturing capacity to others in the quantum computing industry? - Management stated they already offer Fab-1 as a foundry to select customers, including government entities [26] Question: Can you clarify the fidelity levels for the 108-qubit system upon launch? - Management confirmed 1-qubit gate fidelity will be 99.9% and 2-qubit gate fidelity will be about 99.5% [31] Question: What is the expected gross margin for the Novera and C-DAC systems? - Management refrained from disclosing specific gross margins but indicated that the Novera systems with dilution refrigeration would carry lower margins [43][45] Question: What is the status of the partnership with NVIDIA on NVQLink? - Management emphasized the importance of hybrid computing and the advantages of superconducting gate-based quantum systems in collaboration with NVIDIA [50] Question: What is the timeline for making decisions on building another fab? - Management indicated that the existing fab is sufficient for the next three years, with potential future needs being evaluated [61][63] Question: What is the outlook for government funding initiatives? - Management noted ongoing discussions and support for quantum computing initiatives from the U.S. and U.K. governments, as well as a significant order from the Indian government [65][66]

Market Overview - U.S. equity markets experienced a recovery on March 4th, 2026, driven by moderating energy prices and resilient economic data, particularly in the technology sector [1] - Major indexes trended higher, with the S&P 500 gaining 52.87 points (0.8%) to 6,869.50, the Nasdaq Composite rising 290.79 points (1.3%) to 22,807.48, and the Dow Jones Industrial Average adding 238.14 points (0.5%) to 48,739.14 [2] Economic Data - The ADP Private Payrolls report for February indicated the addition of 63,000 jobs, exceeding expectations of 50,000, reflecting continued resilience in private hiring [4] - The ISM Non-Manufacturing PMI registered at 53.5, slightly down from 53.8, with a slowing "prices paid" component suggesting potential peaking of service-sector inflation [4] - The Federal Reserve's Beige Book reported "slight to moderate" growth in seven districts, with five districts showing flat or declining activity, highlighting ongoing price pressures but general business optimism [5] Corporate News - Technology stocks showed recovery, with Nvidia rising 1.5%, Microsoft gaining 1.4% to $403.93, and Amazon surging 3.3% due to positive retail sentiment [6] - Tesla faced pressure, falling 2.7% to approximately $392.43 ahead of a critical deadline for autonomous driving data submission [6] - Ross Stores jumped 7.5% following a stronger-than-expected quarterly profit and revenue report, while Coinbase soared 14% as Bitcoin climbed above $73,000 [7] Upcoming Events - Investor focus is on high-profile earnings reports, particularly from Broadcom, with expectations for insights on AI networking demand [8] - The U.S. Employment Report is anticipated to be a significant catalyst before the Federal Reserve's mid-month meeting, influencing potential interest rate decisions [9] - Markets are also alert for details regarding a potential 15% global tariff hike indicated by Treasury Secretary Scott Bessent [9]

Core Insights - Rigetti Computing reported revenue that fell short of expectations and experienced a widening operating loss in the fourth quarter [1] Financial Performance - The company's revenue for the fourth quarter did not meet market expectations, indicating potential challenges in achieving growth targets [1] - The operating loss increased compared to previous periods, suggesting that the company is facing escalating costs or declining profitability [1]

Core Viewpoint - Rigetti Computing Inc. reported its fourth-quarter earnings, which missed revenue expectations, leading to a decline in stock price during extended trading hours [1][2]. Financial Performance - The company reported a quarterly loss of $0.03 per share, aligning with consensus estimates [2]. - Quarterly revenue was $1.87 million, falling short of the analyst consensus estimate of $2.34 million [2]. - As of December 31, 2025, Rigetti's cash, cash equivalents, and available-for-sale investments totaled $589.8 million [2]. Management Commentary - CEO Dr. Subodh Kulkarni highlighted significant progress in fidelity, scale, and system architecture during 2025 [3]. - There is a growing demand for on-premises quantum systems from government and research institutions, as noted by Dr. Kulkarni [3]. Stock Performance - Rigetti's stock price decreased by 3.21% to $17.19 in Wednesday's extended trading [3].