Business Context and Reporting Period
Company: Rigetti Computing, Inc. (RGTI)
Filing Type: Form 10-K (Annual Report)
Period Covered: Fiscal year ended December 31, 2025
Business Overview: Rigetti is a vertically integrated quantum computing company designing, manufacturing, and operating superconducting quantum computers. The company operates its own wafer fabrication facility (Fab-1) and offers Quantum Computing as a Service (QCaaS) via its QCS platform and public cloud partners (AWS, Azure). Revenue is currently derived primarily from government and commercial development contracts, with emerging sales of Quantum Processing Units (QPUs).
Key Financial Metrics (Year Ended Dec 31, 2025)
| Metric | 2025 | 2024 |
|---|---|---|
| Revenue | $7.1 million | $10.8 million |
| Cost of Revenue | $5.0 million | $5.1 million |
| Gross Profit | $2.1 million | $5.7 million |
| Operating Expenses | $86.7 million | $74.2 million |
| Net Loss | $(216.2) million | $(201.0) million |
| Cash and Cash Equivalents | $44.9 million | $67.7 million |
| Total Assets | $666.6 million | $284.8 million |
| Accumulated Deficit | $(771.0) million | $(554.7) million |
Liquidity: As of December 31, 2025, the company held $44.9 million in cash and cash equivalents and $545.0 million in available-for-sale investments. Management believes these resources are sufficient to meet operating needs for at least the next twelve months.
Debt: The company prepaid all outstanding debt with Trinity Capital Inc. in December 2024. There is no outstanding principal debt as of December 31, 2025.
Material Changes vs. Prior Period
- Revenue Decline: Revenue decreased 34% to $7.1 million, driven by a $1.4 million reduction in collaborative research services and a $2.4 million reduction in sales of quantum computers (no Novera sales in 2025 vs. $1.6 million in 2024).
- Increased Operating Loss: Net loss increased to $216.2 million, primarily due to a $150.6 million non-cash loss from the change in fair value of derivative warrant liabilities and increased R&D expenses ($61.3 million vs. $49.8 million).
- Capital Raising: The company completed a $350 million At-the-Market (ATM) offering in 2025, raising net proceeds of $346.7 million. Additionally, a $35.0 million private placement with Quanta Computer Inc. closed in April 2025.
- Investment Activity: Significant increase in cash used for investing activities ($403.3 million) due to the purchase of available-for-sale securities using ATM proceeds.
Guidance, Outlook, and Risks
Technology Milestones:
- Launched the 36-qubit Cepheus-1-36Q system (Q2 2025) with 99.6% median two-qubit gate fidelity.
- Achieved 99.9% two-qubit gate fidelity on a prototype platform.
- Received an $8.4 million purchase order in January 2026 for a 108-qubit system to be delivered to C-DAC in India.
Strategic Partnerships: Entered a Collaboration Agreement with Quanta Computer Inc. in February 2025, committing both parties to invest at least $250 million over five years in quantum computing development.
Key Risks:
- Customer Concentration: 90.2% of revenue in 2025 came from government entities. One customer accounted for 42% of total revenue.
- Profitability: The company has a history of operating losses and expects to incur significant losses for the foreseeable future until it achieves quantum advantage or large-scale fault tolerance.
- Capital Needs: Continued significant cash burn requires future financing, which may be dilutive or unavailable on favorable terms.
- Warrant Liability Volatility: Public and Private Warrants are classified as liabilities; fluctuations in stock price cause significant non-cash gains or losses impacting net income.
Investor Verification Checklist
- Revenue Mix: Verify the sustainability of government contracts (90% of revenue) and the timeline for commercial QPU sales to reduce concentration risk.
- Cash Burn Rate: Assess the runway provided by the $590 million+ in liquid assets against the $250 million commitment to Quanta and ongoing R&D costs.
- Warrant Liability Impact: Understand that net loss is heavily distorted by non-cash warrant valuation changes; focus on operating cash flow and adjusted EBITDA if available.
- Technology Roadmap: Monitor progress on the 108-qubit Cepheus-1-108Q delivery and the achievement of "Quantum Advantage" (defined as solving practical problems impossible for classical computers).
- Regulatory Status: Note the company will lose "Smaller Reporting Company" status in Q1 2026, increasing compliance costs and disclosure requirements.