Rigetti Computing reports Q1 2025 revenue of $1.5 million and net income of $42.6 million, driven by non-cash gains.
Quiver AI Summary
Rigetti Computing, Inc. announced its financial results for the first quarter of 2025, reporting total revenues of $1.5 million and an operating loss of $21.6 million amid operating expenses of $22.1 million. Notably, the company recorded a net income of $42.6 million, bolstered by $62.1 million in non-cash gains from changes in the fair value of derivative liabilities. As of March 31, 2025, Rigetti had $209.1 million in cash and investments, which rose to $237.7 million by April 30 after an investment from Quanta Computer. The company highlighted its participation in pivotal projects, including DARPA’s Quantum Benchmarking Initiative and several Innovate UK awards, aimed at advancing superconducting quantum computing and error correction capabilities. Additionally, Rigetti announced collaborations for chip fabrication technology and integration efforts with various academic institutions and industry partners.
Potential Positives
- Rigetti reported a significant net income of $42.6 million for the first quarter of 2025, showcasing a major turnaround from a net loss of $20.8 million in the same quarter of the previous year.
- The company successfully closed a $35 million investment from Quanta Computer Inc., enhancing its financial stability and strategic collaborations.
- Rigetti has been awarded multiple government-funded projects, including those from DARPA and Innovate UK, further establishing its reputation as a leader in superconducting quantum computing.
- Recent advancements in technology, such as a new quantum algorithm that improves energy grid optimization, underline Rigetti's innovative capabilities and potential to influence practical applications of quantum computing.
Potential Negatives
- Total revenues decreased significantly to $1.5 million in Q1 2025, down from $3.05 million in Q1 2024, indicating potential challenges in revenue growth.
- Total operating expenses of $22.1 million in Q1 2025 were substantially higher than the revenues, leading to an operating loss of $21.6 million.
- The net income of $42.6 million was primarily driven by $62.1 million of non-cash gains from the change in fair value of derivative warrant and earn-out liabilities, raising concerns about the sustainability of actual operational profitability.
FAQ
What are Rigetti's Q1 2025 revenue and net income figures?
Rigetti reported total revenues of $1.5 million and net income of $42.6 million for Q1 2025.
How much cash does Rigetti have as of March 31, 2025?
As of March 31, 2025, Rigetti had cash, cash equivalents, and available-for-sale investments totaling $209.1 million.
What projects is Rigetti currently involved in?
Rigetti is participating in DARPA’s Quantum Benchmarking Initiative and has received awards to develop chip fabrication technology and advance quantum computing.
How does Rigetti's quantum preconditioning algorithm enhance classical optimizers?
Rigetti’s quantum preconditioning algorithm improved the performance of classical optimizers in solving power grid optimization problems.
When will Rigetti's conference call discussing Q1 2025 results take place?
Rigetti will host a conference call on May 12, 2025, at 5:00 pm ET to discuss its Q1 2025 financial results.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$RGTI Insider Trading Activity
$RGTI insiders have traded $RGTI stock on the open market 14 times in the past 6 months. Of those trades, 0 have been purchases and 14 have been sales.
Here’s a breakdown of recent trading of $RGTI stock by insiders over the last 6 months:
- DAVID RIVAS (CHIEF TECHNOLOGY OFFICER) has made 0 purchases and 4 sales selling 716,631 shares for an estimated $5,384,200.
- VENTURE PARTNERS X L.P. BESSEMER has made 0 purchases and 3 sales selling 1,953,107 shares for an estimated $3,036,011.
- MICHAEL S. CLIFTON has made 0 purchases and 4 sales selling 500,000 shares for an estimated $2,253,750.
- CATHY L MCCARTHY has made 0 purchases and 2 sales selling 200,000 shares for an estimated $1,278,240.
- RICHARD DANIS (GENERAL COUNSEL & CORP. SEC.) sold 5,982 shares for an estimated $9,272
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$RGTI Hedge Fund Activity
We have seen 210 institutional investors add shares of $RGTI stock to their portfolio, and 82 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- DEER MANAGEMENT CO. LLC removed 21,582,218 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $329,344,646
- AMERICAN ASSETS INVESTMENT MANAGEMENT, LLC removed 7,221,216 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $57,192,030
- INVESCO LTD. added 4,518,978 shares (+7367.2%) to their portfolio in Q4 2024, for an estimated $68,959,604
- UNICOM SYSTEMS, INC. added 3,521,935 shares (+1235.8%) to their portfolio in Q1 2025, for an estimated $27,893,725
- BLACKROCK, INC. added 3,253,889 shares (+27.4%) to their portfolio in Q1 2025, for an estimated $25,770,800
- UBS GROUP AG added 3,192,406 shares (+4480.5%) to their portfolio in Q4 2024, for an estimated $48,716,115
- VANGUARD GROUP INC added 2,430,758 shares (+20.7%) to their portfolio in Q1 2025, for an estimated $19,251,603
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$RGTI Analyst Ratings
Wall Street analysts have issued reports on $RGTI in the last several months. We have seen 3 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Alliance Global Partners issued a "Buy" rating on 03/06/2025
- B. Riley issued a "Buy" rating on 01/14/2025
- Craig-Hallum issued a "Buy" rating on 12/20/2024
To track analyst ratings and price targets for $RGTI, check out Quiver Quantitative's $RGTI forecast page.
Full Release
BERKELEY, Calif., May 12, 2025 (GLOBE NEWSWIRE) -- Rigetti Computing, Inc. (Nasdaq: RGTI) (“Rigetti” or the “Company”), a pioneer in full-stack quantum-classical computing, today announced its financial results for the first quarter ended March 31, 2025.
First Quarter 2025 and Recent Financial Highlights
Total revenues for the three months ended March 31, 2025 were $1.5 million
Total operating expenses for the three months ended March 31, 2025 were $22.1 million
Operating loss for the three months ended March 31, 2025 was $21.6 million
Net income for the three months ended March 31, 2025 was $42.6 million
Net income for the three months ended March 31, 2025 includes $62.1 million of non-cash gains from the change in fair value of derivative warrant and earn-out liabilities
As of March 31, 2025 cash, cash equivalents and available-for-sale investments totaled $209.1 million
As of April 30, 2025, following the previously announced closing of the share purchase by Quanta Computer, Inc., cash, cash equivalents and available-for-sale investments totaled $237.7 million
“Rigetti is proud to be awarded important government-funded projects in the U.S. and U.K. to advance our technology, which demonstrates our continued leadership in superconducting quantum computing,” says Rigetti CEO Dr. Subodh Kulkarni. “We also are making great strides in developing innovative approaches to scaling to higher qubit count systems, which is possible due to our open and modular system architecture, in-house full-stack expertise, and world-class partners.”
Recent Business Developments
Rigetti Selected to Participate in DARPA’s Quantum Benchmarking Initiative
Rigetti will advance to Stage A, a 6-month performance period focused on the Company’s utility-scale quantum computer concept worth up to $1 million upon completion of program milestones. Rigetti’s proposed concept to design and build a Utility-Scale Quantum Computer (USQC) combines the Company’s proprietary multi-chip architecture with scalable quantum error correction (QEC) codes. Rigetti’s long-time partner and leader in QEC technology, Riverlane, will be collaborating on this project and bringing their expertise to help refine the proposed USQC concept and validate the underlying technology.
Rigetti Granted AFOSR Award to Further Develop Breakthrough Chip Fabrication Technology
Rigetti will lead a $5.48 million consortium to further develop its breakthrough chip fabrication technology, Alternating-Bias Assisted Annealing (ABAA). Rigetti will collaborate with Iowa State University, the Royal Melbourne Institute of Technology, the University of Connecticut, and Lawrence Livermore National Laboratory* to develop a detailed understanding of how ABAA impacts the chip on a microscopic level — which aims to shed light on defects in superconducting qubits and open new avenues for understanding and mitigating them.
*Funded separately though Laboratory for Physical Sciences, University of Maryland
Rigetti Awarded Three Innovate UK Quantum Mission Pilot Awards to Advance Superconducting Quantum Computing
Rigetti will lead a £3.5 million consortium to advance quantum error correction capabilities on superconducting quantum computers. In collaboration with Riverlane and the National Quantum Computing Centre (NQCC) Superconducting Circuits Team, the consortium will conduct ambitious QEC tests that advance state-of-the-art metrics and demonstrate real-time QEC capabilities — a requirement for universal, fault-tolerant quantum computing.
As part of the project, Rigetti will also upgrade its existing NQCC quantum computer. The upgrades will include:
Deploying a larger 36-qubit quantum processing unit (QPU), updating from the current 24-qubit QPU
Integrating Rigetti’s latest generation control system, enabling improved qubit control and a fully programmable, low-latency interface with Riverlane’s QEC Stack
Rigetti was also awarded two additional Quantum Missions pilot competition projects:
Collaboration with SEEQC to integrate its digital chip-based technology with Rigetti’s 9-qubit Novera™ QPU hosted at the NQCC with the goal of identifying and understanding the key system components needed for scalable QEC.
Collaboration with TreQ, Qruise, Q-CTRL, and Oxford Ionics aims to create an open-architecture quantum computing testbed and deliver an open specification for quantum workflows, creating a common interface between quantum software and hardware.
Rigetti Closes Investment by Quanta Computer
On April 29, 2025, Rigetti closed its previously announced investment by Quanta Computer Inc. related to our strategic collaboration agreement. In connection with the closing, Quanta purchased approximately $35 million of shares of Rigetti common stock at approximately $11.59 per share.
Recent Technical Updates
Controlling a Superconducting Qubit Using Optical Signals
Rigetti's joint paper with Harvard University, Massachusetts Institute of Technology, and University of Chicago, “Coherent control of a superconducting qubit using light,” has been published in
Nature Physics
.
Fault-tolerant quantum computing will likely require 10,000 to a million physical qubits. Scaling these systems is challenging because they require bulky microwave components with high thermal loads that can quickly overwhelm the cooling power of a dilution refrigerator. Optical signals have a considerably smaller footprint and negligible thermal conductivity.
The team successfully demonstrated the integration of a hybrid microwave-optical quantum transducer with a Rigetti-fabricated superconducting qubit. This hybrid set-up enables optical control of the qubit, removing the need for coax lines and provides a promising approach to scaling to higher qubit count systems.
New Quantum Algorithm Boosts Classical Optimizers
Rigetti leveraged its new quantum optimization algorithm, quantum preconditioning, to address a power energy grid problem. Using a public dataset representing South Carolina’s energy grid, the problem was to compute the maximum power exchange section, a metric that informs on the health and the power delivery capability of the energy network. Using Rigetti’s 84-qubit Ankaa-3 system, quantum preconditioning was used to boost best-in-class classical optimizers. A relative advantage against the classical baseline was achieved along with a high solution accuracy, highlighting the potential for quantum preconditioning to achieve quantum utility for solving practical optimization problems.
Conference Call and Webcast
Rigetti will host a conference call later today, May 12, 2025, at 5:00 pm ET, or 2:00 pm PT, to discuss its first quarter 2025 financial results.
You can listen to a live audio webcast of the conference call at
https://edge.media-server.com/mmc/p/5w8qggnn/
or the "Events & Presentations" section of the Company's Investor Relations website at
https://investors.rigetti.com/
. A replay of the conference call will be available at the same locations following the conclusion of the call for one year.
To participate in the live call, you must register using the following link:
https://register-conf.media-server.com/register/BIa01e2c81dc8f4031b25c1ce89653b15e
. Once registered, you will receive dial-in numbers and a unique PIN number. When you dial in, you will input your PIN and be routed into the call. If you register and forget your PIN, or lose the registration confirmation email, simply re-register to receive a new PIN.
About Rigetti
Rigetti is a pioneer in full-stack quantum computing. The Company has operated quantum computers over the cloud since 2017 and serves global enterprise, government, and research clients through its Rigetti Quantum Cloud Services platform. In 2021, Rigetti began selling on-premises quantum computing systems with qubit counts between 24 and 84 qubits, supporting national laboratories and quantum computing centers. Rigetti’s 9-qubit Novera QPU was introduced in 2023 supporting a broader R&D community with a high-performance, on-premises QPU designed to plug into a customer’s existing cryogenic and control systems. The Company’s proprietary quantum-classical infrastructure provides high-performance integration with public and private clouds for practical quantum computing. Rigetti has developed the industry’s first multi-chip quantum processor for scalable quantum computing systems. The Company designs and manufactures its chips in-house at Fab-1, the industry’s first dedicated and integrated quantum device manufacturing facility. Learn more at
https://www.rigetti.com/
.
Contacts
Rigetti Computing Investor Contact:
IR@Rigetti.com
Rigetti Computing Media Contact:
press@rigetti.com
Cautionary Language Concerning Forward-Looking Statements
Certain statements in this communication may be considered “forward-looking statements” within the meaning of the federal securities laws, including statements with respect to the Company’s future success and performance, including expectations with respect to timing of the development and commercialization of superconducting quantum computing; expectations regarding the advantages and impact of the government-funded projects on the Company’s operations, technology roadmap, milestones, and the Company’s position in the industry; statements to the development of innovative approaches to scaling to higher qubit count systems and the impact of our open and modular system architecture, in-house full-stack expertise, and world-class partners; expectations for work under the AFOSR Award to shed light on defects in superconducting qubits and open new avenues for understanding and mitigating them; and expectations for the Quantum Missions pilot competition projects to: (a) lead to identifying and understanding key system components needed for scalable QEC, and (b) create an open-architecture quantum computing testbed and deliver an open specification for quantum workflows, creating a common interface between quantum software and hardware. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the Company’s ability to achieve milestones, technological advancements, including with respect to its technology roadmap; the ability of the Company to obtain government contracts successfully and in a timely manner and the availability of government funding; the potential of quantum computing; the success of the Company’s partnerships and collaborations, including the strategic collaboration with Quanta; the Company’s ability to accelerate its development of multiple generations of quantum processors; the outcome of any legal proceedings that may be instituted against the Company or others; the ability to maintain relationships with customers and suppliers and attract and retain management and key employees; costs related to operating as a public company; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, or competitive factors; the Company’s estimates of expenses and profitability; the evolution of the markets in which the Company competes; the ability of the Company to implement its strategic initiatives and expansion plans; the expected use of proceeds from the Company’s past and future financings or other capital; the sufficiency of the Company’s cash resources; unfavorable conditions in the Company’s industry, the global economy or global supply chain, including rising inflation and interest rates, deteriorating international trade relations, political turmoil, natural catastrophes, warfare and terrorist attacks; and other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 and other documents filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements other than as required by applicable law. The Company does not give any assurance that it will achieve its expectations.
RIGETTI COMPUTING, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except number of shares and par value) (unaudited) | ||||||||
March 31, | December 31, | |||||||
2025 | 2024 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 37,162 | $ | 67,674 | ||||
Available-for-sale investments - short-term | 171,966 | 124,420 | ||||||
Accounts receivable | 1,068 | 2,427 | ||||||
Prepaid expenses | 2,124 | 3,156 | ||||||
Other current assets | 2,041 | 9,081 | ||||||
Total current assets | 214,361 | 206,758 | ||||||
Available-for-sale investments - long-term | — | 25,068 | ||||||
Property and equipment, net | 46,100 | 44,643 | ||||||
Operating lease right-of-use assets | 7,609 | 7,993 | ||||||
Other assets | 1,068 | 325 | ||||||
Total assets | $ | 269,138 | $ | 284,787 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 3,401 | $ | 1,590 | ||||
Accrued expenses and other current liabilities | 5,665 | 8,005 | ||||||
Current portion of deferred revenue | 147 | 113 | ||||||
Current portion of operating lease liabilities | 2,179 | 2,159 | ||||||
Total current liabilities | 11,392 | 11,867 | ||||||
Deferred revenue, less current portion | 698 | 698 | ||||||
Operating lease liabilities, less current portion | 6,230 | 6,641 | ||||||
Derivative warrant liabilities | 39,576 | 93,095 | ||||||
Earn-out liabilities | 4,114 | 45,897 | ||||||
Total liabilities | 62,010 | 158,198 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, par value $0.0001 per share, 10,000,000 shares authorized, none outstanding | — | — | ||||||
Common stock, par value $0.0001 per share, 1,000,000,000 shares authorized, 286,974,947 shares issued and outstanding at March 31, 2025 and 283,546,871 shares issued and outstanding at December 31, 2024 | 29 | 29 | ||||||
Additional paid-in capital | 719,315 | 681,202 | ||||||
Accumulated other comprehensive (loss) income | (88 | ) | 105 | |||||
Accumulated deficit | (512,128 | ) | (554,747 | ) | ||||
Total stockholders’ equity | 207,128 | 126,589 | ||||||
Total liabilities and stockholders’ equity | $ | 269,138 | $ | 284,787 | ||||
RIGETTI COMPUTING, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) | ||||||||
Three months ended March 31, | ||||||||
2025 | 2024 | |||||||
Revenue | $ | 1,472 | $ | 3,052 | ||||
Cost of revenue | 1,030 | 1,552 | ||||||
Total gross profit | 442 | 1,500 | ||||||
Operating expenses: | ||||||||
Research and development | 15,455 | 11,471 | ||||||
Selling, general and administrative | 6,619 | 6,614 | ||||||
Total operating expenses | 22,074 | 18,085 | ||||||
Loss from operations | (21,632 | ) | (16,585 | ) | ||||
Other income (expense), net | ||||||||
Interest expense | — | (1,107 | ) | |||||
Interest income | 2,152 | 1,123 | ||||||
Change in fair value of derivative warrant liabilities | 53,262 | (2,583 | ) | |||||
Change in fair value of earn-out liabilities | 8,837 | (1,621 | ) | |||||
Total other income (expense), net | 64,251 | (4,188 | ) | |||||
Net income (loss) before provision for income taxes | 42,619 | (20,773 | ) | |||||
Provision for income taxes | — | — | ||||||
Net income (loss) | $ | 42,619 | $ | (20,773 | ) | |||
Net income (loss) available to common stockholders used in diluted earnings per share | $ | 38,256 | $ | (20,773 | ) | |||
Net income (loss) per share attributable to common stockholders – basic | $ | 0.15 | $ | (0.14 | ) | |||
Net income (loss) per share attributable to common stockholders – diluted | $ | 0.13 | $ | (0.14 | ) | |||
Weighted average shares used to compute net income (loss) per share attributable to common stockholders – basic | 284,698 | 151,855 | ||||||
Weighted average shares used to compute net income (loss) per share attributable to common stockholders – diluted | 301,595 | 151,855 | ||||||
RIGETTI COMPUTING INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) | ||||||||
Three months ended March 31, | ||||||||
2025 | 2024 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 42,619 | $ | (20,773 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Depreciation and amortization | 1,829 | 1,787 | ||||||
Stock-based compensation | 4,174 | 2,991 | ||||||
Change in fair value of earn-out liabilities | (8,837 | ) | 1,621 | |||||
Change in fair value of derivative warrant liabilities | (53,262 | ) | 2,583 | |||||
Accretion of available-for-sale securities | (1,423 | ) | (855 | ) | ||||
Amortization of debt issuance costs, commitment fees and accretion of final payment fees | — | 298 | ||||||
Non-cash lease expense | 384 | 391 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 1,359 | 323 | ||||||
Prepaid expenses, other current assets and other assets | 1,379 | 435 | ||||||
Deferred revenue | 34 | (214 | ) | |||||
Accounts payable | 747 | 334 | ||||||
Accrued expenses and operating lease liabilities | (2,654 | ) | (2,060 | ) | ||||
Net cash used in operating activities | (13,651 | ) | (13,139 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (2,547 | ) | (5,493 | ) | ||||
Purchases of available-for-sale securities | (44,062 | ) | (27,287 | ) | ||||
Maturities of available-for-sale securities | 23,000 | 39,000 | ||||||
Net cash (used in) provided by investing activities | (23,609 | ) | 6,220 | |||||
Cash flows from financing activities: | ||||||||
Payments of principal of notes payable | — | (3,045 | ) | |||||
Proceeds from sale of common stock through Common Stock Purchase Agreement | — | 12,838 | ||||||
Proceeds from sale of common stock through At-The-Market (ATM) Offering | — | 11,031 | ||||||
Payments of offering costs | (73 | ) | (174 | ) | ||||
Net proceeds from tax withholdings on sell-to-cover equity award transactions | 6,272 | — | ||||||
Proceeds from issuance of common stock upon exercise of stock options | 327 | 60 | ||||||
Proceeds from issuance of common stock upon exercise of warrants | 409 | — | ||||||
Net cash provided by financing activities | 6,935 | 20,710 | ||||||
Effects of exchange rate changes on cash and cash equivalents | (187 | ) | (85 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (30,512 | ) | 13,706 | |||||
Cash and cash equivalents – beginning of period | 67,674 | 21,392 | ||||||
Cash and cash equivalents – end of period | $ | 37,162 | $ | 35,098 | ||||
Supplemental disclosures of other cash flow information: | ||||||||
Cash paid for interest | $ | — | $ | 811 | ||||
Non-cash investing and financing activities: | ||||||||
Capitalization of deferred costs to equity upon share issuance | — | 52 | ||||||
Purchases of property and equipment recorded in accounts payable | 1,408 | 1,115 | ||||||
Purchases of property and equipment recorded in accrued expenses | 74 | — | ||||||
Reclassification of earn-out liabilities to additional paid-in capital for vesting of Promote Sponsor Vesting Shares | 32,946 | — | ||||||
Reclassification of derivative liabilities to additional paid-in capital due to exercise of Public Warrants | 257 | — | ||||||
Purchases of deferred offering costs in accounts payable | 122 | 273 | ||||||
Unrealized losses on short term investments | (8 | ) | (18 | ) | ||||
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