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 ...

Financial Performance - The company reported net losses of $201.0 million and $75.1 million for the years ended December 31, 2024, and December 31, 2023, respectively, with an accumulated deficit of $752.8 million as of September 30, 2025[142]. - Revenue decreased by $431,000 (18%) for the three months and $3.3 million (39%) for the nine months ended September 30, 2025, compared to the same periods in 2024, primarily due to reductions in collaborative research and related contracts[166]. - The net loss for the nine months ended September 30, 2025, was $198.0 million, compared to a net loss of $48.0 million for the same period in 2024[201][202]. - Non-cash expenses impacting the net loss increased by $145.5 million to $158.7 million during the nine months ended September 30, 2025, compared to the same period in 2024[203]. - The change in fair value of warrant liabilities resulted in a loss of $182 million for the three months and $149.3 million for the nine months ended September 30, 2025, compared to gains in the prior year[182]. Cash Flow and Investments - Net cash used in operating activities for the nine months ended September 30, 2025, was $43.6 million, an increase of $1.5 million compared to $42.1 million for the same period in 2024[203]. - Cash used in investing activities increased significantly to $389.7 million for the nine months ended September 30, 2025, compared to $0.8 million for the same period in 2024[206]. - Cash provided by financing activities totaled $391.9 million for the nine months ended September 30, 2025, a substantial increase from $41.8 million in the same period in 2024[209]. - The company received net proceeds of $346.7 million from the sale of 30,309,780 shares of common stock under its ATM program during the nine months ended September 30, 2025[207]. Research and Development - The company launched the 84-qubit Ankaa-3 system in Q4 2024, achieving a 99.0% median two-qubit iSWAP gate fidelity and a 99.5% median two-qubit fidelity with fSim gates[144][145]. - The company announced a mid-year performance milestone of 99.5% median two-qubit gate fidelity on a modular 36-qubit system, a 2x reduction in median two-qubit gate error rate from previous results[147]. - The company expects to release a 100+ qubit chiplet-based system with a 99.5% median two-qubit gate fidelity before the end of 2025[147]. - The company expects research and development expenses to increase as it continues to invest in quantum computing technologies[161]. - Research and development expenses rose by $2.3 million (18%) for the three months and $7.9 million (22%) for the nine months ended September 30, 2025, driven by higher salaries and employee-related costs[172]. Contracts and Collaborations - The company entered into a three-year $5.8 million contract with the Air Force Research Laboratory to advance superconducting quantum networking[152]. - The company signed a Memorandum of Understanding with C-DAC to explore co-development of hybrid quantum computing systems[152]. - The company expects to generate much of its future revenue from development contracts and anticipated sales of on-premises quantum processing units (QPUs)[168]. - The company plans to invest at least $250.0 million in quantum computing over a five-year period starting February 27, 2025, as part of its Collaboration Agreement with Quanta[194]. Operational Costs - Cost of revenue increased by $369,000 (31%) for the three months ended September 30, 2025, while the nine-month change was not significant, impacted by a less favorable revenue mix[169]. - Selling, general and administrative expenses increased by $135,000 (2%) for the three months and $861,000 (5%) for the nine months ended September 30, 2025, mainly due to higher stock-based compensation and proxy solicitation costs[175]. - The company has not recorded a provision for income taxes for the three and nine months ended September 30, 2025, due to a full valuation allowance for deferred tax assets[186]. Future Outlook - The company anticipates significant future capital expenditures to upgrade its chip fabrication facility and possibly invest in a new facility[193]. - The company plans to potentially increase capital expenditures significantly to upgrade its chip fabrication facility and possibly invest in a new facility[174]. - Macroeconomic conditions, including inflation and interest rates, may adversely affect product demand and corporate capital expenditures[198]. - The company may face dilution of stockholder ownership if additional capital is raised through equity or convertible debt securities[195]. - The company anticipates that existing cash and investments will be sufficient to meet operating cash needs for at least the next 12 months[143].

Financial Performance - Total revenues for Q3 2025 were $1.9 million, with an operating loss of $20.5 million[9] - GAAP net loss for Q3 2025 was $201.0 million, resulting in a GAAP net loss per share of $(0.62)[9] - Non-GAAP net loss for Q3 2025 was $10.7 million, with a non-GAAP net loss per share of $(0.03)[9] - Total revenue for the three months ended September 30, 2025, was $1,947,000, a decrease of 18.1% compared to $2,378,000 for the same period in 2024[30] - Gross profit for the nine months ended September 30, 2025, was $1,412,000, down 70.0% from $4,694,000 in 2024[30] - Net loss for the three months ended September 30, 2025, was $200,968,000, compared to a net loss of $14,833,000 in 2024, representing a significant increase[30] - Non-GAAP net loss for the nine months ended September 30, 2025, was $39,244,000, compared to $39,553,000 in 2024[35] - The company reported a significant increase in stock-based compensation expense, totaling $12,027,000 for the nine months ended September 30, 2025, compared to $9,705,000 in 2024[35] - The weighted average shares used to compute net loss per share attributable to common stockholders increased to 325,024,000 for the three months ended September 30, 2025, from 188,389,000 in 2024[35] Cash and Assets - As of September 30, 2025, cash, cash equivalents, and available-for-sale investments totaled $558.9 million, increasing to approximately $600.0 million by November 6, 2025[9] - Cash and cash equivalents decreased to $26,133,000 as of September 30, 2025, from $67,674,000 at the beginning of the period[32] - Total assets increased to $630,274,000 as of September 30, 2025, compared to $284,787,000 at December 31, 2024[28] - Total liabilities rose to $258,448,000 as of September 30, 2025, up from $158,198,000 at December 31, 2024[28] Business Development and Collaborations - Rigetti secured purchase orders for two 9-qubit Novera™ quantum computing systems totaling approximately $5.7 million, with delivery expected in the first half of 2026[7] - The company plans to deploy a 150+ qubit system by the end of 2026 with an anticipated 99.7% median two-qubit gate fidelity, and a 1,000+ qubit system by the end of 2027 with an anticipated 99.8% median two-qubit gate fidelity[6] - Rigetti was awarded a $5.8 million contract from AFRL to advance superconducting quantum networking, collaborating with QphoX on the project[11] - Rigetti plans to open an Italian subsidiary to accelerate business opportunities and talent acquisition in Italy[10] - The company announced new collaborations with C-DAC in India and MSU to advance quantum computing research and workforce development[16][14] - Rigetti supports NVIDIA NVQLink, an open platform for AI supercomputer-quantum integration, to enhance hybrid computation development[13] Research and Development - Research and development expenses increased to $15,020,000 for the three months ended September 30, 2025, up 17.7% from $12,752,000 in 2024[30]

Core Insights - Rigetti Computing, Inc. reported strong momentum in demand for its quantum computers and collaborations to enhance R&D and the quantum ecosystem [3][5] - The company is on track to deliver a 100+ qubit chiplet-based quantum system by the end of 2025, with a median two-qubit gate fidelity of 99.5% [5][6] - Rigetti secured purchase orders totaling approximately $5.7 million for two 9-qubit Novera™ quantum computing systems, expected to be delivered in the first half of 2026 [7][8] Financial Highlights - Total revenues for Q3 2025 were $1.9 million, with an operating loss of $20.5 million [9] - GAAP net loss for the quarter was $201.0 million, translating to a net loss per share of $(0.62) [9][28] - As of September 30, 2025, cash, cash equivalents, and available-for-sale investments totaled $558.9 million, increasing to approximately $600.0 million by November 6, 2025 [9] Technology and Development - The company plans to deploy a 150+ qubit system by the end of 2026 and a 1,000+ qubit system by the end of 2027, with anticipated median two-qubit gate fidelities of 99.7% and 99.8%, respectively [6] - Rigetti is collaborating with QphoX on a $5.8 million AFRL contract to advance superconducting quantum networking [11] - The company is also engaged with DARPA on the Quantum Benchmarking Initiative, with ongoing discussions for future participation [12] Partnerships and Collaborations - New collaborations with the Centre for Development of Advanced Computing (C-DAC) and Montana State University (MSU) aim to advance quantum computing capabilities in academic and government sectors [5][14][16] - Rigetti supports NVIDIA's NVQLink platform for AI supercomputer-quantum integration, which is expected to enhance hybrid computation development [13] - The company plans to open an Italian subsidiary to pursue business opportunities and talent in the region [10]

Key Takeaways RGTI announced $5.7M in orders for two Novera 9-qubit systems from tech and AI startups.RGTI signed an MOU with India's C-DAC to co-develop hybrid quantum-classical systems.Upcoming Q3 results will gauge RGTI's shift from R&D toward commercial execution and scalability.As the third quarter approaches, Rigetti Computing (RGTI) is trying to turn strategy into reality. In September, the company announced purchase orders totaling approximately $5.7 million for two of its Novera 9-qubit quantum sys ...