Rigetti Computing Inc. reported third‑quarter 2025 results that included $1.94 million in revenue, a 19% decline from the $2.378 million earned in the same quarter a year earlier. The company posted a GAAP net loss of $201 million and a non‑GAAP loss of $0.03 per share, beating the consensus estimate of a $0.04‑$0.05 loss per share.
Revenue fell short of analysts’ expectations, which were in the range of $2.17 million to $2.39 million. Management attributed the shortfall to the expiration of the National Quantum Initiative and the delayed timing of a DARPA Quantum Business Innovation (QBI) Stage B award, both of which had previously provided a significant portion of the company’s government‑sector revenue. The decline also reflects a shift in the mix of services toward lower‑margin commercial offerings.
Gross margin compression was a key driver of the company’s weaker financial profile. Gross margin dropped to 21% in Q3 2025 from 51% in Q3 2024, largely due to a substantial non‑cash charge related to the fair‑value change of warrant liabilities and increased operating expenses that rose to $21.0 million from $18.6 million year‑over‑year. The higher cost base and the mix shift toward lower‑margin segments contributed to the margin squeeze.
Despite the revenue miss and margin contraction, Rigetti’s guidance for the next quarter remained unchanged. The company reiterated that it is on track to deliver a 100‑plus qubit chiplet‑based quantum system by the end of 2025, a milestone that underpins its long‑term technology roadmap. Management emphasized continued investment in research and development and highlighted partnerships with NVIDIA and the Air Force Research Laboratory as strategic enablers of future growth.
Investors reacted negatively to the earnings release, citing the revenue miss and significant margin compression as primary concerns. Analysts noted that while the non‑GAAP loss beat expectations, the company’s ongoing GAAP losses and the headwinds from government‑contract timing issues raise questions about near‑term revenue sustainability.
"This quarter’s results demonstrate strong momentum in demand for our on‑premises quantum computers and the development of collaborations to advance our R&D and the quantum ecosystem," said Dr. Subodh Kulkarni, CEO. "We remain on track to deliver our 100‑plus qubit chiplet‑based quantum system with an anticipated 99.5% median two‑qubit gate fidelity by the end of 2025."
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