Rigetti(RGTI) - 2025 Q1 - Quarterly Results

Financial & Business Highlights Rigetti reported Q1 2025 revenues of $1.5 million and a net income of $42.6 million, driven by a non-cash gain, alongside key government contracts and a $35 million strategic investment Q1 2025 Financial Highlights Rigetti reported Q1 2025 revenues of $1.5 million, an operating loss of $21.6 million, and a net income of $42.6 million, largely due to a non-cash gain, with cash reserves at $209.1 million Q1 2025 Financial Metrics | Metric | Value (USD) | | :--- | :--- | | Total Revenues | $1.5 million | | Total Operating Expenses | $22.1 million | | Operating Loss | $21.6 million | | Net Income | $42.6 million | | Cash, cash equivalents and available-for-sale investments (as of Mar 31, 2025) | $209.1 million | - Net income was primarily driven by a $62.1 million non-cash gain from the change in fair value of derivative warrant and earn-out liabilities[7] - Following the closing of the share purchase by Quanta Computer, Inc., cash and equivalents increased to $237.7 million as of April 30, 2025[7] Recent Business Developments Rigetti secured strategic government contracts, including DARPA and AFOSR awards, three Innovate UK projects, and closed a $35 million investment from Quanta Computer - Selected to participate in Stage A of DARPA's Quantum Benchmarking Initiative, a project worth up to $1 million to design a Utility-Scale Quantum Computer (USQC)[4] - Awarded a $5.48 million consortium grant by AFOSR to further develop its Alternating-Bias Assisted Annealing (ABAA) chip fabrication technology[5] - Awarded three Innovate UK projects, including leading a £3.5 million consortium to advance quantum error correction (QEC) and upgrading its NQCC quantum computer from 24 to 36 qubits[6][7][8] - Closed a previously announced strategic investment from Quanta Computer Inc., which purchased approximately $35 million of Rigetti common stock[10] Recent Technical Updates Rigetti achieved significant technical progress, including demonstrating optical control of a superconducting qubit and applying a quantum preconditioning algorithm on its 84-qubit Ankaa-3 system for power grid optimization - A joint paper published in Nature Physics demonstrated the coherent control of a superconducting qubit using light, a key development for scaling quantum systems by replacing bulky microwave components with optical signals[11][12][13] - Successfully applied a new quantum optimization algorithm, quantum preconditioning, on the 84-qubit Ankaa-3 system to boost classical optimizers in solving a power grid problem, achieving a relative advantage and high solution accuracy[14] Financial Statements Unaudited Q1 2025 financial statements show decreased liabilities, increased equity, and a $42.6 million net income driven by a non-cash gain, despite lower revenue and cash used in operations Condensed Consolidated Balance Sheets As of March 31, 2025, Rigetti's balance sheet reported total assets of $269.1 million, with total liabilities decreasing to $62.0 million, resulting in stockholders' equity of $207.1 million Condensed Consolidated Balance Sheet Data | Balance Sheet Item (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $37,162 | $67,674 | | Total current assets | $214,361 | $206,758 | | Total assets | $269,138 | $284,787 | | Total liabilities | $62,010 | $158,198 | | Total stockholders' equity | $207,128 | $126,589 | Condensed Consolidated Statements of Operations Rigetti's Q1 2025 revenue was $1.5 million, with a net income of $42.6 million, a significant improvement from a prior-year loss, primarily due to a $64.3 million gain in other income Condensed Consolidated Statements of Operations Data | Income Statement Item (in thousands, except per share data) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $1,472 | $3,052 | | Gross Profit | $442 | $1,500 | | Loss from operations | ($21,632) | ($16,585) | | Net income (loss) | $42,619 | ($20,773) | | Diluted EPS | $0.13 | ($0.14) | - The shift from a net loss to a net income was primarily due to a $62.1 million positive change in the fair value of derivative warrant and earn-out liabilities in Q1 2025, compared to a $4.2 million negative change in Q1 2024[24] Condensed Consolidated Statements of Cash Flows In Q1 2025, net cash used in operating activities was $13.7 million, with a total decrease in cash and cash equivalents of $30.5 million, ending the period at $37.2 million Condensed Consolidated Statements of Cash Flows Data | Cash Flow Item (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($13,651) | ($13,139) | | Net cash (used in) provided by investing activities | ($23,609) | $6,220 | | Net cash provided by financing activities | $6,935 | $20,710 | | Net (decrease) increase in cash and cash equivalents | ($30,512) | $13,706 | | Cash and cash equivalents – end of period | $37,162 | $35,098 | Corporate Information This section outlines Rigetti's full-stack quantum computing business model and provides details for the upcoming investor conference call About Rigetti Rigetti is a full-stack quantum computing company providing cloud and on-premises systems, serving global clients, and manufacturing proprietary processors at its Fab-1 facility - Rigetti provides quantum computing capabilities through its Rigetti Quantum Cloud Services platform and by selling on-premises systems[18] - The company is vertically integrated, designing and manufacturing its chips at its own facility, Fab-1[18] Conference Call and Webcast Rigetti will host a conference call and webcast on May 12, 2025, at 5:00 pm ET to discuss its Q1 2025 financial results, with access details available online - A conference call to discuss Q1 2025 financial results is scheduled for May 12, 2025, at 5:00 pm ET[15] - Details for accessing the live webcast and replay are available on the company's Investor Relations website[16]