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    RGTI
    Earnings call· Mar 2026(Q1 FY26)

    Rigetti Computing Q1 FY26 earnings call RGTI

    May 11, 2026 Source

    Executive summary

    Rigetti Computing Q1 FY26 — Cepheus-1-108Q General Availability & Strong Revenue Growth

    Rigetti Computing reported a strong Q1 FY26, marked by the general availability of its 108-qubit Cepheus-1-108Q system across major cloud platforms, validating its chiplet-based scaling architecture. The company saw significant year-over-year revenue growth driven by Novera QPU sales and government contracts, while maintaining a strong balance sheet. Management remains focused on disciplined execution of its roadmap to quantum advantage within approximately three years, prioritizing R&D investments over short-term revenue optimization.

    Highlights

    4

    • General availability of 108-qubit Cepheus-1-108Q system on multiple cloud platforms, representing the largest modular quantum computing system on the market.

    • Revenue increased to $4.4 million in Q1 FY26, up from $1.5 million in Q1 FY25, driven by Novera QPU deliveries and government/research projects.

    • Gross margin improved to 31% in Q1 FY26, compared to 30% in Q1 FY25.

    • Ended Q1 FY26 with a strong cash, cash equivalents, and available-for-sale investments balance of $569 million, with no debt.

    Concerns

    4

    • Operating expenses increased to $27.3 million in Q1 FY26, up from $22.1 million in Q1 FY25, primarily due to R&D investments.

    • Operating loss widened to $26 million in Q1 FY26, compared to $21.6 million in Q1 FY25.

    • Non-GAAP net loss was $14.7 million, or $0.04 per diluted share, in Q1 FY26.

    • Revenue profile continues to be influenced by the timing of system deliveries and government-funded projects, leading to quarter-to-quarter variability.

    Guidance & targets

    8
    CategoryTargetConfidence
    Novera QPU Revenue Recognition
    $2.7 million
    medium materiality
    High
    C-DAC Order Revenue Recognition
    $8.4 million
    medium materiality
    High
    UK Investment
    Up to $100 million
    high materiality
    High
    Cepheus-1-108Q 2-qubit gate fidelity
    Approximately 99.5%
    high materiality
    High
    Quantum Advantage Timeline
    Roughly 3 years
    high materiality
    High
    Technology Roadmap Update
    Update later this year
    medium materiality
    Medium
    2026 Capital Expenditures
    Elevated relative to prior years
    medium materiality
    High
    Error-Corrected Quantum Computing Timeline
    5- to 7-year time line
    low materiality
    Medium

    Operational metrics

    17
    Revenue
    $4.4 millionUp from $1.5 million in Q1 FY25
    Q1 FY26

    Driven primarily by on-premises Novera QPU deliveries and related contracts, as well as certain government and research projects.

    Gross margin
    31%Compared to 30% in Q1 FY25
    Q1 FY26

    Impacted by contract mix, including a higher contribution from QPU and system deliveries that include lower-margin third-party refrigeration.

    Total operating expenses
    $27.3 millionCompared to $22.1 million in Q1 FY25
    Q1 FY26

    Spending remains concentrated in research and development, including engineering headcount, fabrication, and system integration.

    Stock-based compensation
    $5.9 millionCompared to $4.2 million in Q1 FY25
    Q1 FY26

    Included in total operating expenses.

    Operating loss
    $26 millionCompared to $21.6 million in Q1 FY25
    Q1 FY26

    GAAP operating loss.

    GAAP Net Income
    $33.1 millionCompared to $42.6 million in Q1 FY25
    Q1 FY26

    Includes noncash gains from fair value adjustments.

    Noncash gains from fair value adjustments
    $53.7 millionCompared to $62.1 million in Q1 FY25
    Q1 FY26

    From the change in fair value of derivative warrant and earn-out liabilities, introducing volatility to GAAP results.

    Non-GAAP Net Loss
    $14.7 millionCompared to $15.3 million in Q1 FY25
    Q1 FY26

    Excludes stock-based compensation and fair value adjustments to warrant and earn-out liabilities.

    Non-GAAP EPS
    $0.04Compared to $0.05 in Q1 FY25
    Q1 FY26

    Non-GAAP diluted earnings per share.

    Cash and investments balance
    $569 millionCompared to $209.1 million as of March 31, 2025, and $589.8 million at end of FY25
    Q1 FY26

    Includes cash, cash equivalents, and available-for-sale investments. Sequential decline from year-end reflects ongoing operating spend and capital expenditures.

    Prototype 2-qubit gate fidelity
    99.8%
    Recent

    Achieved on a 9-qubit system, informing how Cepheus-1-108Q operates and future systems are designed.

    Prototype 2-qubit gate fidelity
    99.9%
    Recent

    Demonstrated on a prototype system, informing how Cepheus-1-108Q operates and future systems are designed.

    Cepheus-1-108Q median 2-qubit gate fidelity
    99.1%
    Current

    Performance level for the generally available 108-qubit system.

    Cepheus-1-108Q 2-qubit gate speed
    60 nanoseconds
    Current

    Performance level for the generally available 108-qubit system.

    Cepheus-1-108Q median single-qubit gate fidelity
    99.9%
    Current

    Performance level for the generally available 108-qubit system.

    Coherence time
    25 to 30 microsecond range
    Current

    Current limiting factor for 2-qubit gate fidelity, targeted for improvement.

    Quantum Advantage Definition
    1,000 qubits, 99.9% 2-qubit gate fidelity, less than 50 nanosecond gate speed
    Target

    Rigetti's definition of quantum advantage, targeted for achievement in approximately 3 years.

    Orderbook & backlog

    2
    Novera QPU Purchase Orders$5.7 millionLate last year

    A portion recognized in Q1 FY26, remainder expected in Q2 FY26.

    C-DAC Order for 108-qubit system$8.4 millionEarlier this year

    Expected to be recognized in Q4 FY26 following installation and acceptance testing. Initial order did not include ongoing maintenance and support, for which a separate purchase order is expected.

    Product announcements

    1
    ProductTypeDetails
    Cepheus-1-108Qlaunch

    Deals & partnerships

    8
    Amazon Bracket (AWS)Cloud access to quantum computing systems

    Cepheus-1-108Q is now generally available on Amazon Bracket, extending Rigetti's relationship with AWS. This is the first gate-based device on Amazon Bracket with more than 100 qubits.

    Microsoft Azure QuantumCloud access to quantum computing systems

    Cepheus-1-108Q is now generally available on Microsoft Azure Quantum.

    qBraidCloud access to quantum computing systems

    Cepheus-1-108Q is now generally available on qBraid.

    University of SaskatchewanNovera QPU order

    Order for a Novera QPU to support quantum research and education.

    C-DAC (India)On-premises 108-qubit system order$8.4 million

    Order for an on-premises 108-qubit system in India. Revenue recognition expected in Q4 FY26 following installation and acceptance testing.

    QuantaStrategic partnership for hardware stack development

    Quanta has designed new control systems now being included in Rigetti's recent offerings. Rigetti benefits from Quanta's expertise in control systems and expects contributions to other parts of the hardware stack going forward. Quanta invested $40 million in Rigetti at the start of the partnership.

    River LaneCollaboration on error correction

    Collaboration to integrate error correction ready capabilities into the stack, including support for high fidelity native gates, improved compilation, and control electronics enhancements.

    NVIDIAEvaluation of open-source quantum models

    Rigetti is taking a close look at NVIDIA's open-source model (NVIDIA Async) for calibration, quantum computer bring-up, and error correction, viewing it as a possible means of accelerating their roadmap.

    Capital programs

    2
    UK Quantum Computing Development InvestmentannouncedUp to $100 million

    Benefit: Accelerate quantum computing development, increase headcount, deploy more quantum computers (Cepheus-1-108Q or higher), and establish a larger facility.

    Investment in the United Kingdom to accelerate quantum computing development, building on existing deployment at the UK's National Quantum Computing Center and the UK government's multibillion-dollar commitment to quantum technologies.

    Fab-1 and Dilution Refrigeration Capacity Expansionunderway
    Period spend: Primarily in Q1 FY26

    Benefit: Support higher qubit count systems.

    Capital expenditures in Q1 FY26 were primarily driven by investments in Fab-1 and additional dilution refrigeration capacity to support higher qubit count systems over the next several years. 2026 CapEx is expected to be elevated due to these needs.

    Risks & headwinds

    3
    Revenue variability due to timing of system deliveries and government projectsOngoing

    Not quantified, but noted as inherent to the current stage of the market.

    Mitigation: Management views this variability as inherent to the early stage of the market and not a driver of long-term capital allocation or technology strategy.

    Complexity of scaling prototype advancements to larger systemsNear to medium term (next 1-2 years)

    Prototype 99.9% fidelity at 28 nanoseconds vs. 108Q at 99.1% fidelity and 60 nanoseconds.

    Mitigation: Rigetti is actively working to take learnings from prototype systems and push them into larger scale systems as fast as possible, acknowledging the complexity involved in scaling.

    Skepticism regarding competitors' quantum advantage claimsCurrent

    Some companies claim quantum advantage this year, while Rigetti estimates 3 years.

    Mitigation: Rigetti maintains a realistic 3-year timeline for quantum advantage, based on its current Cepheus-1 performance and the challenges of achieving specific metrics.

    What to watch in Q2 FY26

    4

    Remaining Novera QPU revenue recognition

    Q2 FY26
    Current$2.7 million expected
    TargetRecognition of remaining $2.7 million

    Why it matters

    This represents a significant portion of previously announced purchase orders and will impact Q2 revenue.

    Of that $5.7 million, we recognized a little bit less than half of that in Q1. And then we expect the remainder to go in Q2.

    Q&A highlights

    5

    Inquired about the announced NVIDIA quantum models, their expected availability, and how Rigetti plans to test them for reducing error rates.

    Subodh Kulkarni stated that Rigetti is closely evaluating NVIDIA's open-source model (NVIDIA Async) for calibration, quantum computer bring-up, and error correction. He noted that these tools could accelerate their roadmap and work complementarily with existing partnerships, such as with River Lane in the U.K., for error correction.

    “Certainly, the announcement made by NVIDIA to help accelerate quantum computing in terms of calibration bring up but also error correction, we are taking a close look and we'll definitely take advantage of those tools that are available now.”

    asked by Brian Kinstlinger · answered by Subodh Kulkarni

    2 min read5 chapters

    Detailed Narrative

    01

    Cepheus-1-108Q System Launch and Performance

    Rigetti announced the general availability of its 108-qubit Cepheus-1-108Q system, accessible via Rigetti Quantum Cloud Services, Amazon Bracket, Microsoft Azure Quantum, and qBraid. This system is the company's highest qubit count to date and the industry's largest modular quantum computing system, built from 12 interconnected 9-qubit chiplets. It validates Rigetti's proprietary chiplet-based scaling architecture in a production setting. The system currently achieves a median 2-qubit-gate fidelity of approximately 99.1% with gate speeds of roughly 60 nanoseconds, and a median single-qubit gate fidelity of 99.9%.

    02

    Technological Advancements and Roadmap

    Rigetti is focused on improving Cepheus-1-108Q's fidelity to approximately 99.5% later this year by addressing coherence time limitations. The company has demonstrated 99.8% 2-qubit gate fidelity with 40-nanosecond gate speeds on a 9-qubit system using a proprietary adiabatic CZ gate scheme, and 99.9% fidelity at 28 nanoseconds on a prototype. These advancements inform future system designs. The long-term roadmap targets quantum advantage in roughly three years, aiming for 1,000 qubits with 99.9% 2-qubit gate fidelity and less than 50-nanosecond gate speeds, supported by error mitigation.

    03

    Customer Momentum and Market Traction

    Customer adoption is growing across cloud and on-premises channels. The combination of Rigetti QCS, Amazon Bracket, Microsoft Azure Quantum, and qBraid provides global access to their systems. Rigetti continues to expand its base of on-premises Novera QPUs, with recent sales including an order from the University of Saskatchewan and additional research organizations globally. These contracts contribute to significant year-over-year revenue growth and deepen technical engagement, creating multi-year usage pathways.

    04

    Strategic Investments and Partnerships

    Rigetti plans to invest up to $100 million in the United Kingdom over the next several years to accelerate quantum computing development, building on its existing 36-qubit system deployment at the UK's National Quantum Computing Center. This investment will cover increased headcount, quantum computers, and facilities. The company also continues to collaborate with partners like River Lane to integrate error correction-ready capabilities and is evaluating NVIDIA's open-source quantum models for calibration and error correction.

    05

    Financial Discipline and Capital Allocation

    Rigetti exited the year with a strong cash position and no debt, providing flexibility for technology roadmap investments. Spending is concentrated in core R&D, including fabrication, chip design, and control electronics development, along with CapEx for higher qubit count systems and cryogenic infrastructure. The company expects elevated CapEx in 2026 due to refrigeration and infrastructure needs. Capital allocation remains focused on organic execution, with M&A considered only if it accelerates the roadmap without compromising financial discipline.

    AI-generated summary of the company’s earnings call. Not investment advice.