Rigetti Computing Reports $42.6 Million Net Income Turnaround Amid Revenue Decline

Rigetti Computing, Inc. reported a net income of $42.6 million for the three months ended March 31, 2025, a significant turnaround from a net loss of $20.8 million during the same period in 2024. This improvement was primarily driven by a $64.3 million gain from changes in the fair value of derivative warrant liabilities and earn-out liabilities. Total revenue for the quarter was $1.5 million, down 52% from $3.1 million in the prior year, largely due to a decrease in collaborative research and professional services contracts, which was impacted by the expiration of the National Quantum Initiative Act in September 2023.

The company’s operating expenses increased to $22.1 million, up 22% from $18.1 million in the previous year, with research and development costs rising by 35% to $15.5 million. This increase was attributed to higher salaries, stock-based compensation, and consulting fees. Despite the rise in expenses, Rigetti's gross profit for the quarter was $442,000, a decrease from $1.5 million in the prior year, reflecting the lower revenue and a less favorable revenue mix.

In terms of operational metrics, Rigetti's cash and cash equivalents at the end of the quarter stood at $37.2 million, down from $67.7 million at the beginning of the period. The company reported net cash used in operating activities of $13.7 million, slightly higher than the $13.1 million used in the same quarter last year. Rigetti's employee headcount has also increased, reflecting its ongoing investment in research and development as it aims to enhance its quantum computing capabilities.

Strategically, Rigetti entered into a Collaboration Agreement with Quanta Computer Inc. in February 2025, committing to invest at least $250 million in quantum computing over the next five years. This partnership is expected to bolster Rigetti's product roadmap and manufacturing capabilities. Additionally, the company plans to launch a 36-qubit system by mid-2025 and a system with over 100 qubits by the end of the year, targeting significant reductions in error rates.

Looking ahead, Rigetti anticipates continued investment in research and development, with expectations of generating revenue primarily from development contracts and sales of quantum processing units (QPUs). The company believes its existing cash and investments will be sufficient to meet operational needs for at least the next 12 months, although it may seek additional funding through equity or debt financing as necessary.