ZACKSยท2025-05-27 20:00Core Insights - D-Wave Quantum and Rigetti Computing are both focusing on quantum computing with distinct approaches, one being commercial and the other research-driven [2][15] - D-Wave Quantum has shown significant growth in revenue and operational efficiency, while Rigetti Computing faces challenges with declining revenues [11][15] D-Wave Quantum Highlights - D-Wave Quantum reported a 509% increase in first-quarter 2025 revenues, reaching $15 million, primarily due to the sale of the Advantage2 quantum system [3] - The company achieved a GAAP gross margin of 92.5%, up from 67.3% year-over-year, indicating strong operational leverage [3][4] - D-Wave's net loss narrowed to $5.4 million, the lowest since going public, reflecting improved operational efficiency [4] - The company ended March 2025 with $304.3 million in cash and a debt-to-capital ratio of 12.9%, showcasing a strong liquidity position [5] Rigetti Computing Highlights - Rigetti Computing was selected for Phase A of DARPA's Quantum Benchmarking Initiative, receiving a $1 million award to support scalable quantum computing concepts [8] - The company secured a $5.48 million AFOSR grant to advance chip fabrication technology, aiming to improve superconducting qubit performance [9] - Rigetti received a $35 million equity investment from Quanta Computer, boosting its cash position to $237.7 million [10] - Despite these funding successes, Rigetti reported a 51% year-over-year decline in first-quarter revenues, indicating weak demand for its quantum solutions [11][15] Comparative Performance - Year-to-date, D-Wave Quantum's stock surged 123.8%, outperforming the broader Internet Software industry and the S&P 500, while Rigetti's stock declined by 8.2% [11] - D-Wave's strong revenue growth and enterprise adoption contrast with Rigetti's projected flat-to-lower revenues for the year, highlighting the latter's ongoing challenges [15]