Rigetti(US:RGTI)2025-11-10 21:08Financial 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].