Rigetti(US:RGTI)2025-08-12 22:02Financial 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 [10][11] - Gross margins decreased to 31% in Q2 2025 from 64% in Q2 2024, affected by revenue mix and pricing variability in development contracts [11] - Total operating expenses increased to $20.4 million in Q2 2025 from $18.1 million in Q2 2024, due to salary increases, new hires, and higher consulting costs [11][12] - The operating loss for Q2 2025 was $19.9 million, compared to $16.1 million in the prior year [12] - The net loss for Q2 2025 was $39.7 million, significantly higher than the $12.4 million net loss in Q2 2024, influenced by noncash charges related to derivative warrant liabilities [12][13] - As of June 30, 2025, the company had approximately $571.6 million in cash and no debt [13] 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, marking a 2x reduction from the previous ANCA-3 system [5][7] - The CFES-136Q is the first multi-chip quantum computer to achieve this level of performance, validating the company's approach to scaling [5][6] 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 [10][11] Company Strategy and Development Direction - The company aims to continue its focus on R&D and is exploring opportunities for mergers and acquisitions to accelerate its timeline [18][43] - The goal is to deliver a multi-chip 100+ qubit system with 99.5% two-qubit gate fidelity by the end of 2025, with a long-term target of achieving quantum advantage within four years [19][30] - 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 technology development remains the key metric for long-term success [8][19] - The management acknowledged the challenges in achieving quantum advantage, including the need for error correction and faster gate speeds [32][36] - There is optimism regarding bipartisan support for the reauthorization of the National Quantum Initiative, which is expected to enhance funding opportunities [70][71] Other Important Information - The company has completed the sale of $350 million in common stock to strengthen its balance sheet [8] - The partnership with Quanta is viewed as strategic, focusing on control systems and hardware stack development [22][98] 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 opportunities to accelerate timelines using its balance sheet [18] Question: Update on Quanta's involvement - Quanta is investing in the non-QPU portion of the hardware stack, focusing on control systems to work with the company's QPUs [22] Question: Confidence in achieving 100 qubit chip - The company is confident in reaching 100+ qubits with 99.5% fidelity by the end of the year, leveraging the chiplet approach for easier scaling [28] Question: Roadmap for gate speeds - The company aims to achieve gate speeds faster than 50 nanoseconds, which is critical for quantum advantage [49][50] Question: Current valuations in quantum assets and M&A - The company is open to M&A opportunities but currently sees no practical options that would significantly accelerate its timeline [44] Question: Updates on government funding and initiatives - The company continues to engage with the DOE and DOD, maintaining strong relationships despite the lack of NQI funding [106][107]