RGTI Stock Down Despite Q4 Earnings Top Estimates, Revenues Decline Y/Y

Core Insights - Rigetti Computing (RGTI) reported a narrower adjusted loss per share of 3 cents for Q4 2025, compared to a loss of 6 cents in the same quarter last year, exceeding the Zacks Consensus Estimate by 40% [1] - Total revenues for Q4 2025 were $1.9 million, down 17.9% year over year, and missed the Zacks Consensus Estimate by 30% [2] - The company secured an $8.4 million purchase order from India's Centre for Development of Advanced Computing for a 108-qubit quantum computer, expected to be deployed in the second half of 2026 [7][9] Revenue and Earnings - RGTI's total revenues for 2025 were $7.1 million, a decline of 34.3% year over year, with an adjusted loss per share of 16 cents, improved from 29 cents in 2024 [2] - The gross profit for Q4 2025 decreased by 35% year over year to $0.7 million, with a gross margin contraction of 920 basis points to 34.9% [3] Operating Expenses and Losses - Selling, general and administrative expenses rose by 1% year over year to $5.9 million, while research and development expenses increased by 27% to $17.3 million [3] - Total operating expenses for the quarter were $23.2 million, up 19.2% year over year, leading to an operating loss of $22.6 million compared to $18.5 million in the prior-year quarter [4][6] Financial Position - At the end of Q4 2025, RGTI had cash, cash equivalents, and short-term investments totaling $443.5 million, slightly down from $446.9 million at the end of Q3 2025, with no debts on its balance sheet [5] - Cumulative net cash used in operating activities was $58.5 million, compared to $50.6 million a year ago [5] Technological Advancements - Rigetti made progress in its Novera on-premises quantum systems, with two installations representing approximately $5.7 million in purchase orders [10] - The company achieved two-qubit gate fidelity of 99.9% at a 28-nanosecond gate speed, maintaining 99.9% one-qubit gate fidelity [11] - Rigetti is advancing its scalable architecture with chiplet tiling, enhancing qubit counts and manufacturing consistency [12]