Rigetti Computing, Inc.

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Bullish +55

Rigetti (RGTI) Q2 2026 Earnings Call Transcript - Currently.com

📈 Q2 2026 revenue reached $5.1 million, a substantial increase from $1.8 million in the same period last year.

💰 Gross margin expanded to 43% compared to 31% in the prior year quarter.

🤝 Signed a letter of intent with the U.S. Department of Commerce for up to $100 million in funding over 3 years.

🧪 Cepheus-1-108Q system operates at ~99.9% single qubit gate fidelity and ~99.1% 2-qubit gate fidelity.

🚀 Announced an expanded collaboration with HPE and Pittsburgh Supercomputing Center for a hybrid quantum-classical supercomputer.

📅 The HPE/PSC hybrid system is targeted for delivery in 2027.

💵 Company ended the quarter with $541.3 million in cash, cash equivalents, and available-for-sale investments.

🏭 Operating loss was $28.1 million, compared to $19.9 million in the prior year period.

🔬 CEO targets reaching 1,000 qubits with 99.9% 2-qubit fidelity within roughly 3 years.

🌍 Secured a 108-qubit system award from C-DAC in India for delivery in Q4 2026.

🎓 Received NSF funding to deploy a 9-qubit Novera system into the Pittsburgh Supercomputing Center's TangleLab.

🔍 Coherence times are currently in the 25-30 microsecond range, with plans to double or triple them over several years.

🏭 Fremont Fab-1 is a 150mm facility with sufficient capacity for current 9-qubit chiplet production.

🔗 Optical interconnect research is ongoing with QphoX for future scaling beyond 1,000 qubits.

Bullish Signals
  • Revenue grew significantly year-over-year to $5.1 million, driven by on-premises Novera QPU sales and recognition of large purchase orders.
  • Gross margin improved to 43% from 31%, indicating a favorable shift in revenue mix toward higher-value hardware systems.
  • Secured a strategic letter of intent for up to $100 million in U.S. government funding under the CHIPS Act to accelerate R&D.
  • Cepheus-1-108Q maintains high performance metrics with ~99.9% single qubit gate fidelity and is one of only three companies globally with >100 qubit gate-based systems.
  • Expanded partnership with HPE and Pittsburgh Supercomputing Center validates the hybrid quantum-classical computing approach.
  • Strong balance sheet with $541 million in cash provides ample runway for R&D, CapEx, and strategic investments without debt.
  • Growing commercial traction evidenced by sales to national labs, universities, and commercial entities like a large Japanese conglomerate.
  • Technical progress demonstrated through improved 36-qubit system fidelity (99.6%) and ongoing coherence time improvements via material innovations.
Risk Factors
  • GAAP net loss was $52.6 million, impacted by non-cash fair value adjustments to warrant and earn-out liabilities.
  • Non-GAAP net loss increased slightly to $16 million from $13.3 million year-over-year on a diluted share basis.
  • The U.S. Department of Commerce funding is currently a letter of intent and not yet a definitive agreement, subject to conditions.
  • Commercial revenue remains in early stages, with most current deployments focused on research applications rather than production workloads.
Full Analysis
Rigetti Computing reported second quarter 2026 financial results, highlighting significant revenue growth to approximately $5.1 million from $1.8 million in the prior year period. This increase was driven by on-premises Novera QPU sales and recognition of previously announced purchase orders, including an $8.4 million order for a system in India. Gross margin improved to 43% from 31%, reflecting the higher value mix of these hardware sales. CEO Subodh Kulkarni emphasized technical leadership with the Cepheus-1-108Q platform, which operates at a median single qubit gate fidelity of approximately 99.9%. The company secured a letter of intent from the U.S. Department of Commerce for up to $100 million in funding over three years under the CHIPS Act, contingent on meeting technical milestones related to scaling and advancing superconducting quantum computing systems. Strategic partnerships were expanded, including a collaboration with HPE and the Pittsburgh Supercomputing Center to develop a hybrid quantum-classical supercomputer. Rigetti aims to deliver this system in 2027, integrating its 9-qubit Novera QPU with HPC infrastructure. The company maintains a strong balance sheet with approximately $541 million in cash and no debt, positioning it to fund R&D and capital expenditures for Fab-1 and dilution refrigeration infrastructure. Management outlined a roadmap to reach approximately 1,000 qubits with 2-qubit gate fidelities of 99.9% within roughly three years. Key technical initiatives include improving coherence times from the current 25-30 microsecond range through material innovations like tantalum capping and refining fabrication processes. While commercial revenue remains early-stage, engagement is growing across research institutions and enterprises exploring hybrid workloads.