Financial Data and Key Metrics Changes - Revenues for Q2 2025 were $1.8 million, down from $3.1 million in Q2 2024, impacted by the expiration of the National Quantum Initiative [11][12] - Gross margins decreased to 31% in Q2 2025 from 64% in Q2 2024, affected by revenue mix and pricing variability in development contracts [12] - Total operating expenses increased to $20.4 million in Q2 2025 from $18.1 million in the prior year, due to salary increases, new hires, and higher consulting costs [12][13] - Operating loss for Q2 2025 was $19.9 million, compared to $16.1 million in Q2 2024, with a net loss of $39.7 million in Q2 2025 versus $12.4 million in Q2 2024 [13][14] - As of June 30, 2025, the company had approximately $571.6 million in cash and no debt [14] Business Line Data and Key Metrics Changes - The company achieved a median two-qubit gate error rate of 99.5% with the CFES-136U system, a 2x reduction from the previous ANCA-3 system [5][6] - The CFES-136Q is the first multi-chip quantum computer to achieve this level of performance, validating the company's approach to scaling quantum computers [5][7] Market Data and Key Metrics Changes - The expiration of the National Quantum Initiative and its pending reauthorization in the U.S. Congress is critical for future sales, particularly to U.S. and foreign governments [11][12] Company Strategy and Development Direction - The company aims to continue its momentum in technology development, with plans to release a 100+ qubit chiplet-based system at 99.5% median two-qubit gate fidelity before the end of 2025 [8][9] - The focus remains on R&D development, with the potential for M&A opportunities to accelerate timelines if beneficial [18][44] - The company believes that superconducting qubits are the leading modality for quantum computers due to their scalability and speed advantages [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving technology milestones and emphasized that the key metric for long-term success is the achievement of technology goals rather than revenue growth [9] - The management team is optimistic about the bipartisan support for the reauthorization of the National Quantum Initiative, which is expected to enhance funding opportunities [69][70] Other Important Information - The company completed the sale of $350 million in common stock to strengthen its balance sheet [9] - The partnership with Quanta is viewed as strategic, focusing on control systems and hardware stack development [24][100] Q&A Session Summary Question: Use of proceeds from the recent equity raise - The company intends to focus on R&D development and will consider M&A opportunities if they can accelerate timelines [18][20] Question: Update on Quanta's involvement - Quanta is focused on developing control systems and is seen as a strategic partner for hardware development [24] Question: Confidence in achieving 100 qubit chip - The company is confident in reaching 100+ qubit systems with 99.5% fidelity by year-end, leveraging the chiplet approach [30][31] Question: Roadmap for gate speeds - The company aims to achieve gate speeds below 50 nanoseconds, which is critical for quantum advantage [47][50] Question: Current status of government funding - There is bipartisan support for the National Quantum Initiative reauthorization, with ongoing discussions in Congress [69][70] Question: Feedback from QBI or NQCC - The company is actively engaged with both organizations and is optimistic about progressing to phase two of the DARPA initiative [76][77] Question: Transitioning to larger chiplet sizes - The company is evaluating the optimal chiplet size and plans to transition before reaching 1,000 qubits [59][60] Question: Implications of chiplet approach on customer interest - The chiplet approach is seen as essential for scaling to fault-tolerant quantum computing, generating interest from government customers [86][87]

Core Insights - Rigetti Computing reported a quarterly loss of 13 cents per share, missing the analyst consensus estimate of a 6-cent loss [1] - Quarterly revenue was $1.8 million, below the analyst consensus estimate of $1.88 million, and down from $3.086 million in the same period last year [1][4] - Total operating expenses for the quarter were $20.4 million, resulting in an operating loss of $19.9 million and a net loss of $39.7 million [4] Company Developments - Rigetti announced the general availability of its multi-chip quantum computer, Cepheus 1-36Q, which is a significant technological advancement for the company [3] - CEO Dr. Subodh Kulkarni expressed confidence in achieving year-end technology goals, highlighting the company's proprietary chiplet approach and strong financial position [2]

Core Insights - Rigetti Computing, Inc. reported its financial results for Q2 2025, highlighting significant advancements in quantum computing technology and a strong financial position following a $350 million equity raise [1][12]. Financial Performance - Total revenues for Q2 2025 were $1.8 million, a decrease from $3.1 million in Q2 2024 [9][23]. - Total operating expenses for Q2 2025 were $20.4 million, compared to $18.1 million in Q2 2024 [9][23]. - The operating loss for Q2 2025 was $19.9 million, up from a loss of $16.1 million in Q2 2024 [9][23]. - The net loss for Q2 2025 was $39.7 million, which included $22.8 million of non-cash losses related to derivative warrant and earn-out liabilities [9][23]. - As of June 30, 2025, the company had cash, cash equivalents, and available-for-sale investments totaling $571.6 million, with no debt [9][12]. Technology Advancements - Rigetti launched the Cepheus™-1-36Q, the industry's largest multi-chip quantum computer, achieving a 2x reduction in two-qubit gate error rate and a median two-qubit gate fidelity of 99.5% [4][5]. - The company emphasizes the superiority of superconducting qubits for quantum computing, citing their scalability and speed advantages over other modalities [6]. - Rigetti's proprietary chiplet-based architecture enhances performance and manufacturing efficiency, contributing to the recent technological advancements [10]. Business Strategy - The proceeds from the recent equity offering will primarily be used for working capital, capital expenditures, and potential strategic collaborations or acquisitions [12][13]. - Rigetti plans to release a 100+ qubit chiplet-based system by the end of 2025, maintaining a target of 99.5% median two-qubit gate fidelity [11]. Historical Context - Rigetti introduced the world's first multi-chip quantum processor in 2021, which laid the groundwork for the recent Cepheus-1-36Q [7]. - The company has been operating quantum computers over the cloud since 2017 and has expanded its offerings to include on-premises quantum computing systems [17].

Rigetti Computing Inc. RGTI isn't just riding a wave – it's surfing a quantum tide that's left skeptics scrambling for their slide rules. The stock, up a staggering 1,770% over the past year, now finds itself at a fascinating inflection point: Wall Street expects its second-quarter report to show a modest $1.88 million in revenue and a loss of just four cents per share, according to Benzinga Pro data. That's peanuts in the big-cap tech world, but for a quantum computing upstart, it's enough to make the mark ...

Core Insights - Rigetti Computing (RGTI) is advancing its quantum systems with a chiplet-based design, targeting a 4×9-qubit chiplet system and over 100 qubits with high fidelities by year-end, aligning with DARPA's Quantum Benchmarking Initiative [1][6] - A $35 million investment from Quanta Computer will enhance Rigetti's operational capabilities, allowing the company to focus on chiplet design while Quanta handles non-QPU hardware production [2][6] - Key milestones for 2025 include the demonstration of the 4×9 chiplet, DARPA's Phase B decision, and progress in Quanta's production [2][6] Company Updates - Rigetti's shares have increased by 4.7% year-to-date, while the industry has grown by 21.7% [5] - The company has a price-to-book ratio of 22.41, which is above the industry average, and carries a Value Score of F [8] - The Zacks Consensus Estimate for Rigetti's 2025 earnings indicates an 86.1% rise from the previous year [10] Earnings Estimates - Current quarter EPS estimate is -0.06, with a year-over-year growth estimate of 14.29% [11] - Next quarter EPS estimate is -0.08, with a year-over-year growth estimate of 25.00% [11] - Current year EPS estimate is -0.05, with a significant year-over-year growth estimate of 86.11% [11]

Core Insights - The article compares two quantum computing companies, IonQ and Quantum Computing Inc. (QCi), highlighting IonQ as the superior investment opportunity due to its better financial performance and growth prospects [1][3][14]. Company Overview - IonQ and QCi utilize different technologies for quantum computing, with IonQ using ions and QCi using photons [2]. - Current quantum computers face challenges such as calculation errors and the need for expensive cryogenic equipment, which limits their scalability [4]. Quantum Computing Inc. (QCi) - QCi employs a method called entropy quantum computing, allowing its machines to operate at room temperature and integrate with standard computer servers [5]. - In Q1, QCi generated revenue of $39,000 against operating expenses of $8.3 million, indicating a significant financial imbalance [6]. - QCi secured notable sales, including a $332,000 purchase from a major U.S. bank, which is significant given its total revenue of $373,000 for all of 2024 [7]. IonQ - IonQ's technology also operates at room temperature and has shown promising revenue growth, with sales reaching $43.1 million in 2024, up from $22 million the previous year [8]. - In Q1, IonQ's revenue was flat at $7.6 million, with an operating loss of $75.7 million [9]. - Q2 saw a revenue increase to $20.7 million, nearly double the previous year's $11.4 million, driven by acquisitions aimed at building a quantum computer network [10]. - IonQ's Q2 operating costs surged to $181.3 million, leading to a significant operating loss of $160.6 million [11]. Financial Comparison - IonQ's price-to-sales (P/S) ratio is substantially lower than QCi's, indicating better value for investors [12][14]. - IonQ's superior sales growth and more favorable share price valuation position it as a better investment compared to QCi [14].

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D-Wave Quantum stock has been getting a healthy amount of positive coverage from analysts lately. D-Wave Quantum (QBTS 2.78%) stock posted another month of strong gains in July's trading. The company's share price jumped 17.4% in the month. For reference, the S&P 500 index's level rose 2.2% in the month, and the Nasdaq Composite gained 3.7%. D-Wave stock gained ground last month amid generally bullish momentum for growth stocks and continued excitement surrounding quantum computing plays. The company's shar ...

Core Insights - Rigetti Computing (RGTI) is set to release its second-quarter 2025 results on August 12, with a consensus estimate of a loss per share of 6 cents and revenues of $1.91 million, indicating a year-over-year growth of 14.3% in earnings but a decline of 38.2% in revenues [1][6] - The consensus for 2025 revenues is estimated at $8.8 million, reflecting an 18.6% year-over-year decline, while the loss per share is projected at 5 cents, suggesting an 86.1% growth year-over-year [2] Financial Performance - RGTI has an Earnings ESP of 0.00% and currently holds a Zacks Rank of 3 (Hold), indicating no strong expectation of beating estimates [4] - The company has had mixed results in the past four quarters, surpassing estimates once, missing once, and meeting expectations twice, leading to an average earnings surprise of negative 7.5% [2] Technological Advancements - Rigetti's 36-qubit Ankaa-class system achieved a two-qubit gate fidelity of 99.5%, which is expected to support the development of the Ankaa-3 system targeted for later in 2025 [5][6] - Early customer engagement with the 36-qubit system is underway, which is anticipated to accelerate product refinements and commercialization efforts [5] Business Development - The company is focusing on converting technological advancements into revenue-generating contracts, with ongoing work on government and research partnerships and exploration of commercial opportunities [7] - Management expects certain contracts and collaborations to progress in 2025, potentially strengthening the second half of the year [7] Financial Position - Rigetti ended the previous quarter with a solid cash position, supported by disciplined expense management and efforts to optimize its cost structure [8] - Investors should monitor revenue performance, operating expenses, and cash burn trends as indicators of the company's ability to sustain development without diluting shareholder value [8] Market Performance - Year-to-date, RGTI shares have gained 1.1%, while competitors IonQ and D-WAVE QUANTUM have seen gains of 0.1% and 101.1%, respectively, against a broader Internet Software industry increase of 23.5% [9] - RGTI trades at a Price-to-Book (P/B) ratio of 21.64, significantly higher than IonQ (9.29) and Quantum Computing Inc. (7.11), reflecting stronger growth expectations despite lower multiples from competitors [13] Investment Considerations - Rigetti's technological progress and customer engagement are promising for long-term positioning, but near-term upside appears reflected in the stock [18] - The company's ability to convert technical milestones into long-term contracts will be crucial for sustaining growth, with investors advised to watch for broader customer uptake and revenue visibility in the second half of the year [19]

Core Insights - D-Wave Quantum reported mixed earnings results with revenue growth exceeding analyst expectations but wider-than-expected losses [1][2] - Despite the mixed results, D-Wave's stock performance remains strong, with shares up nearly 20% in the last month [2] Financial Performance - D-Wave experienced a 42% year-over-year revenue increase, with bookings nearly doubling to $1.3 million [3] - The company ended the quarter with $819 million in cash reserves, positioning it well for future technological advancements and potential M&A strategies [5] Market Position and Competitors - D-Wave's marketability is bolstered by partnerships with a large aerospace and defense firm and law enforcement in North Wales, indicating growing use cases for its technology [4] - In comparison, IonQ reported an 81.6% year-over-year revenue increase, reaching $20.7 million for the quarter, which is significantly higher than D-Wave's growth rate [7][8] - IonQ's expanding global presence and partnerships with major tech firms like Amazon and Microsoft may pose competitive challenges for D-Wave [10] Future Outlook - D-Wave's Advantage2 system is now generally available, which is expected to drive additional sales and upgrades for existing customers [3] - Quantum Computing, another competitor, is set to report earnings soon and has operationalized a new foundry in Arizona, which could enhance its revenue growth [13][14]