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    RGTI
    Earnings call· Dec 2025(Q4 FY25)

    Rigetti Computing Q4 FY25 earnings call RGTI

    Mar 4, 2026 Source

    Executive summary

    Rigetti Computing Q4 FY25 — Technical Validation and Strategic Deployments

    Rigetti Computing advanced its quantum technology in Q4 FY25, achieving significant fidelity and speed milestones while securing key on-premises system orders from international governments and research institutions. The company maintains a disciplined, long-term focus on achieving quantum advantage within three years, leveraging its proprietary Fab 1 and chiplet architecture. Despite quarterly revenue variability and increased operating expenses, a strong cash position supports its organic roadmap and strategic partnerships for hybrid computing.

    Highlights

    5
    • Achieved 2-qubit gate fidelity as high as 99.9% at 28 nanosecond gate speed using proprietary Adiabatic CZ scheme.

    • Secured an $8.4 million order from India's C-DAC for a 108-qubit on-premises quantum computer, scheduled for H2 2026 deployment.

    • Secured purchase orders totaling approximately $5.7 million for two 9-qubit Novera on-premises systems.

    • Expanded geographic presence with a Novera QPU order from a Japanese research organization, to be delivered in April 2026.

    • Exited the year with approximately $590 million in cash, cash equivalents, and available for sale investments, providing sufficient runway.

    Concerns

    5
    • Q4 FY25 revenue decreased to $1.9 million from $2.3 million in Q4 FY24.

    • Gross margins for Q4 FY25 decreased to 35% from 44% in Q4 FY24, driven by contract mix with lower-margin strategic contracts.

    • Total operating expenses increased to $23.2 million in Q4 FY25 from $19.5 million in Q4 FY24.

    • Operating loss widened to $22.6 million in Q4 FY25 from $18.5 million in Q4 FY24.

    • Delay in general availability of the 108-qubit system due to identified tunable coupler interactions at higher scale.

    Guidance & targets

    9
    CategoryTargetConfidence
    108-qubit system deployment
    Deployment of 108-qubit system at 99.5% median 2-qubit gate fidelity
    high materiality
    High
    150-plus qubit system deployment
    Deployment of system with more than 150-qubits with 99.7% median 2-qubit gate fidelity
    high materiality
    High
    1,000-plus qubit system deployment
    Deployment of system with more than 1,000 qubits with 99.8% median 2-qubit fidelity
    high materiality
    High
    Novera sales revenue recognition
    Less than half of $5.7 million revenue recognized
    medium materiality
    High
    Novera sales revenue recognition
    Balance of $5.7 million revenue recognized
    medium materiality
    High
    C-DAC order revenue recognition
    Revenue from $8.4 million C-DAC sale recognized
    high materiality
    High
    Japanese Novera QPU revenue recognition
    Novera QPU to Japanese organization to ship and rev rec
    medium materiality
    High
    Quantum advantage timeline
    Roughly 3 years from reaching quantum advantage
    high materiality
    Medium
    DARPA Phase B entry
    Entry into DARPA Phase B
    medium materiality
    Medium

    Operational metrics

    18
    Revenue
    $1.9 millionvs $2.3 million in Q4 FY24
    Q4 FY25

    Influenced by timing of system deliveries and government contract activity.

    Gross margins
    35%vs 44% in Q4 FY24
    Q4 FY25

    Driven primarily by contract mix, with certain strategic contracts carrying lower margin profiles.

    Total operating expenses
    $23.2 millionvs $19.5 million in Q4 FY24
    Q4 FY25

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

    Stock-based compensation
    $5.6 millionvs $3.4 million a year ago
    Q4 FY25

    Component of total operating expenses.

    Operating loss
    $22.6 millionvs $18.5 million in Q4 FY24
    Q4 FY25

    Result of revenue and operating expense trends.

    GAAP net loss
    lowervs Q4 FY24
    Q4 FY25

    Primarily due to noncash change in the fair value of derivative warrant and earn-out liabilities.

    Non-GAAP net loss
    $11.3 millionvs $14 million in Q4 FY24
    Q4 FY25

    Non-GAAP measure of net loss.

    Non-GAAP EPS
    $0.03vs $0.06 in Q4 FY24
    Q4 FY25

    Non-GAAP measure of earnings per share.

    Cash and investments balance
    $590 millionvs $217 million at end of FY24
    FY25

    Includes cash, cash equivalents and available for sale investments. Provides sufficient runway to execute roadmap.

    2-qubit gate fidelity (achieved)
    99.9%
    Q4 FY25

    Achieved with new proprietary Adiabatic CZ scheme.

    1-qubit gate fidelity
    99.9%maintained
    Q4 FY25

    Consistently maintained at this level or better for a few years.

    Median 2-qubit gate fidelity
    99.7%
    Q4 FY25

    Reported on the 9-qubit system.

    Median 2-qubit gate fidelity
    99.6%
    Q4 FY25

    Reported on the 36-qubit system.

    Median 2-qubit gate fidelity
    99%
    Q4 FY25

    Reported on the 108-qubit system.

    Qubit count
    84
    Q4 FY25

    System successfully deployed to the cloud.

    Qubit count
    36
    Q4 FY25

    System successfully deployed to the cloud, demonstrating chiplet timing works.

    Qubit count
    108
    Q4 FY25

    System where tunable coupler interactions were identified and addressed, leading to architectural refinements.

    Physical to logical qubit ratio
    10 to 50
    current

    Typical ratio depending on fidelity, potentially 10 to 100 in worst case.

    Industry KPIs

    3
    MetricValueDetails
    Backlog order book$14.1 millionUSD
    Bookings net order intake$14.1 millionUSD
    Node platform ramp schedule108-qubit systemqubits

    Orderbook & backlog

    1
    Net bookings (total)$14.1 millionQ4 FY25

    Includes an $8.4 million order from India's C-DAC for a 108-qubit on-premises quantum computer and approximately $5.7 million for two 9-qubit Novera on-premises systems.

    Product announcements

    1
    ProductTypeDetails
    Novera QPUexpansion

    Deals & partnerships

    6
    Center for Development of Advanced Computing (C-DAC), IndiaOrder for 108-qubit on-premises quantum computer$8.4 million

    Order for a 108-qubit on-premises quantum computer, scheduled for deployment in the second half of 2026. This system will be integrated into C-DAC's supercomputing environment and is based on Rigetti's chiplet architecture. Builds on a prior MOU to explore co-development of hybrid classical quantum systems.

    Unnamed customersPurchase orders for 2, 9-qubit Novera on-premises systems$5.7 million

    Purchase orders totaling approximately $5.7 million for two 9-qubit Novera on-premises systems. These systems are used as test beds for quantum hardware research, error correction, and internal capability development, and are upgradeable.

    Japanese research organizationPurchase order for Novera QPU

    Secured a purchase order for a Novera QPU from a Japanese research organization, scheduled for delivery in April 2026. This will be Rigetti's first QPU in Japan.

    ReverianeCollaboration on real-time quantum error correction

    Partnering to advance real-time quantum error correction capabilities, foundational for achieving fault-tolerant quantum computing. Reveriane's capabilities are expected to meaningfully advance this goal, with published papers and demonstrated concepts for real-time error correction.

    NVIDIACollaboration to support NVQLink

    Working closely with NVIDIA to support NVQLink, an open platform designed to integrate quantum systems with AI supercomputing. This reflects a shared view that quantum computers will coexist with CPUs and GPUs in data centers as part of future hybrid computing environments.

    QphoX and U.K.'s National Quantum Compute CenterCollaboration on optical readout of superconducting qubits

    Collaboration addresses a fundamental scaling bottleneck by reducing cryogenic heat load and wiring complexity. This early-stage research illustrates how Rigetti's architecture allows for incorporating novel technologies to improve scalability.

    Risks & headwinds

    5
    Revenue variability due to contract timingQuarterly

    Q4 FY25 revenue $1.9 million vs $2.3 million in Q4 FY24

    Mitigation: Focus on building a growing base of recurring and multiperiod activity; balance sheet provides runway to manage variability.

    Lower gross margins on strategic government/national lab contractsQuarterly

    Q4 FY25 gross margins 35% vs 44% in Q4 FY24

    Mitigation: These contracts play an important role in advancing system validation, ecosystem integration, and long-term positioning, despite lower margin profiles.

    Technical challenges at higher qubit scaleQ4 FY25

    Identified tunable coupler interactions on 108-qubit system

    Mitigation: Made a deliberate decision to delay general availability, executed architectural refinements, and improved system stability and control through chip redesign.

    Quantum computing market remains research-drivenCurrent

    Most systems deployed to government labs, national research centers, universities, and early commercial researchers

    Mitigation: Focus on delivering on-premise systems to these entities; expect significant spike in interest closer to quantum advantage (approx. 3 years).

    Quantum computing is a long cycle opportunity5 to 10 years

    Requires patience, technical rigor and capital discipline

    Mitigation: Strategy focused on speed, scalability, fidelity, leveraging ecosystem, rigorous success definition, and long-term investment view. Strong balance sheet provides runway.

    What to watch in Q1 FY26

    4

    108-qubit system deployment

    around the end of March
    CurrentIdentified tunable coupler interactions at higher scale, leading to delay
    TargetCompleting deployment of the 108 Qubit system at 99.5% median Two-qubit gate fidelity

    Why it matters

    This is a key near-term technical milestone for the company's scaling strategy and customer readiness, demonstrating resolution of prior technical challenges.

    Our near-term priority is completing deployment of the 108 Qubit system at 99.5% median Two-qubit gate fidelity, which we expect around the end of March.

    Q&A highlights

    6

    What are the key remaining gating items to deliver the 108-qubit system as customer-ready?

    The company is on track to deploy the 108-qubit system around the end of March with 99.5% 2-qubit gate fidelity. The delay was due to tunable coupler interactions at scale, which have been addressed through a chip redesign and data verification.

    We have done that. We feel pretty good about deploying the system here so. Hopefully, that answers your question.

    asked by Kevin Garrigan · answered by Subodh Kulkarni

    2 min read6 chapters

    Detailed Narrative

    01

    Technical Milestones and Fidelity Advancements

    Rigetti achieved a 2-qubit gate fidelity as high as 99.9% at 28 nanosecond gate speed using its proprietary Adiabatic CZ scheme, alongside maintaining 99.9% 1-qubit gate fidelity. The company also reported median 2-qubit gate fidelities of 99.7% on its 9-qubit system, 99.6% on its 36-qubit system, and 99% on its 108-qubit system (CPS-108Q), demonstrating significant progress in materials, fabrication, and system design. This progress helps narrow the fidelity gap with other quantum modalities while delivering speeds significantly faster than some approaches.

    02

    Chiplet Architecture and Scaling Strategy

    Rigetti successfully deployed multiple systems to the cloud, including an 84-qubit monolithic chip system and a 36-qubit chiplet-based system, validating the chiplet timing in practice. The company views chiplets as crucial for scaling quantum systems beyond 100 qubits, addressing the impracticality of scaling to thousands of qubits on a single die. Architectural refinements were executed to improve system stability and control for the 108-qubit chiplet-based system, underscoring the importance of their in-house foundry.

    03

    Fab 1 as a Competitive Advantage

    Rigetti operates Fab 1, the industry's only dedicated and integrated quantum device manufacturing facility. This allows for tight coupling of design, fabrication, and testing, enabling faster iteration cycles and proprietary advancements as systems scale. Fab 1 is considered a durable competitive advantage, accelerating the roadmap and creating a barrier to entry for competitors. The company also offers Fab 1 as a foundry to select customers like the DOE, DoD, and U.K. National Government.

    04

    Strategic Customer Engagements and On-Premises Demand

    The company is experiencing increased demand for on-premises quantum systems, particularly from national governments and research institutions. This includes an $8.4 million order from India's C-DAC for a 108-qubit system and approximately $5.7 million in purchase orders for two 9-qubit Novera systems. A Novera QPU order from a Japanese research organization further expands Rigetti's international presence, with delivery scheduled for April 2026.

    05

    Ecosystem Approach and Partnerships

    Rigetti emphasizes an open, modular architecture, partnering with companies like Reveriane for real-time quantum error correction, NVIDIA for NVQLink integration with AI supercomputing, and QphoX and the U.K.'s National Quantum Compute Center on optical readout of superconducting qubits. This ecosystem approach provides flexibility, accelerates innovation, and reduces execution risk by integrating best-in-class solutions, reflecting a shared view that quantum computers will coexist with CPUs and GPUs.

    06

    Long-Term Vision and Quantum Advantage

    Rigetti defines quantum advantage as outperforming classical systems on tactical workloads in real computing environments for commercial applicability, requiring systems on the order of 1,000 qubits, 2-qubit gate fidelity approaching 99.9%, gate speeds below 15 nanoseconds, and integrated error mitigation. The company estimates being roughly three years from reaching this point, prioritizing technical rigor and capital discipline over short-term milestones, with a focus on meaningful, durable impact over the next 5 to 10 years.

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