Rigetti Computing (NASDAQ:RGTI) reported lower third-quarter revenue as the timing of system deliveries and contract milestones weighed on results, while management said it achieved a key performance target for its 108-qubit quantum computing system and set a roadmap for a larger machine.
The company also forecast approximately $20 million in full-year 2026 revenue, subject to customer acceptance of its C-DAC system in the fourth quarter. Rigetti generated $10.9 million in revenue during the first nine months of the year.
Revenue Falls as Operating Loss Widens
Third-quarter revenue was approximately $1.4 million, down from $1.9 million a year earlier. Chief Financial Officer Jeff Bertelsen attributed the decline to the timing of system deliveries, customer acceptance milestones and government-funded development programs. Revenue recognition can vary significantly between quarters because it depends on a relatively small number of deliveries and contracts, he said.
For the first nine months of 2026, revenue rose approximately 110% to $10.9 million from $5.2 million a year earlier, exceeding the $7.1 million reported for all of 2025. Bertelsen attributed the year-to-date performance to on-premises system sales and work on customer and government programs.
Gross margin improved to approximately 61% in the third quarter from 21% a year earlier, although Bertelsen cautioned that margins can fluctuate with contract mix, pricing, system configuration and hardware revenue recognition. Operating expenses rose to $34 million from approximately $21 million, while the operating loss widened to $33.2 million from $20.5 million.
Rigetti reported a GAAP net loss of $3.1 million, or $0.08 per diluted share, compared with a loss of $201 million, or $0.60 per diluted share, a year earlier. Bertelsen said both periods were affected by noncash fair-value adjustments to derivative warrant and earnout liabilities. On a non-GAAP basis, the loss was approximately $20.5 million, compared with $10.7 million a year earlier.
Roadmap Targets 300-Plus Qubits
President and CEO Subodh Kulkarni said Rigetti’s Cepheus-1-108Q system achieved 99.5% median two-qubit gate fidelity in the third quarter. The system, built from 12 interconnected nine-qubit chiplets, also reached 99.6% fidelity on an 80-qubit sublattice and 99.7% on a 50-qubit sublattice, he said.
Kulkarni said the higher-performing sublattices give researchers an option to use part of the system when their applications do not require all 108 qubits. The full system operates at approximately 60-nanosecond gate speeds, according to the company.
Rigetti’s next major target is a system with more than 300 qubits, approximately 99.7% median two-qubit gate fidelity and gate speeds below 60 nanoseconds by mid-2028. In roughly three years, the company aims to deploy a system with approximately 1,000 qubits, 99.9% fidelity, gate speeds below 50 nanoseconds, and integrated error correction and mitigation.
Kulkarni described the 300-qubit target as an intermediate milestone rather than a level at which Rigetti expects to demonstrate quantum advantage. He said achieving the fidelity target across the larger system would be the biggest challenge, with real-time error correction another significant hurdle.
The company plans to increase qubit density within a single dilution refrigerator rather than network multiple refrigerators. Kulkarni said wiring is a major challenge at larger scales and that Rigetti expects to move from coaxial cables toward superconducting flex cables in the 300- to 1,000-qubit range.
Government Funding and Capital Spending
In September, Rigetti signed an agreement for up to $100 million in U.S. Department of Commerce funding to support miniaturized readout electronics, expanded cryogenic capacity and fabrication capabilities for high-connectivity chips. The department received approximately 7.7 million common shares, representing a minority, noncontrolling stake.
Bertelsen said funding is available monthly as costs are incurred and will generally be recorded in additional paid-in capital as it is drawn. Eligible project costs will be expensed or capitalized under normal accounting rules. Rigetti had not drawn any of the funding as of September, he said.
The company ended the quarter with $497.1 million in cash, cash equivalents and available-for-sale investments, down from $541.3 million at the end of June. It reported no debt. Capital expenditures totaled $42.6 million for the first nine months, reflecting investments in refrigeration capacity, fabrication equipment and infrastructure.
Bertelsen declined to provide a specific fourth-quarter capital spending figure but said he expects 2027 spending to be relatively consistent with 2026 levels rather than returning to the lower levels of earlier years.
About Rigetti Computing (NASDAQ:RGTI)
Rigetti Computing develops superconducting quantum computers and related software. Its work spans the design and manufacture of quantum processors, as well as systems that connect quantum processors with conventional computing infrastructure. The company offers access to its quantum computers and development tools through its Quantum Cloud Services platform. It also provides quantum hardware for on-premises use, serving customers and research organizations exploring quantum applications. Founded in 2013 by physicist Chad Rigetti, the company is based in Berkeley, California.
