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Mar 31

Rigetti Q1 2025 Earnings Report

Rigetti reported a net income of $42.6 million despite operating losses, driven by non-cash gains.

Key Takeaways

Rigetti Computing posted a strong net income for Q1 2025 primarily due to non-cash gains from revaluation of liabilities, despite modest revenue and high operating expenses.

Revenue for Q1 2025 was $1.5 million, significantly down from the previous year.

Net income reached $42.6 million, driven by $62.1 million in non-cash gains.

The company closed a $35 million equity investment from Quanta Computer, boosting cash reserves.

Government awards in the U.S. and U.K. support long-term innovation and scaling efforts.

Total Revenue
$1.47M
Previous year: $3.05M
-51.8%
EPS
$0.13
Previous year: -$0.14
-192.9%
Gross margin
30.03%
Gross Profit
$442K
Previous year: $1.5M
-70.5%
Cash and Equivalents
$209M
Previous year: $35.1M
+495.8%

Rigetti

Rigetti

Forward Guidance

Rigetti emphasized future innovation with government-funded projects and new hardware developments to support quantum error correction and scaling.

Positive Outlook

  • Participation in DARPA’s Quantum Benchmarking Initiative with up to $1 million in potential funding.
  • Awarded $5.48 million from AFOSR for chip fabrication technology development.
  • Received three UK Quantum Mission awards to advance quantum error correction.
  • Demonstrated optical control of superconducting qubits, a step toward scalable architectures.
  • Closed $35 million equity investment with Quanta Computer to strengthen strategic partnership.

Challenges Ahead

  • Revenue declined from $3.05 million in Q1 2024 to $1.47 million in Q1 2025.
  • Continued high operating expenses of $22.1 million, contributing to an operating loss.
  • Negative cash flow from operating activities of $13.7 million.
  • Overall reduction in total assets from the previous quarter.
  • Heavy reliance on non-cash gains for reported profitability.