Rigetti Computing, a quantum computing company, reported disappointing first-quarter 2025 results on May 12. The company’s revenue declined by more than 50% year-over-year to $1.5 million, missing analyst expectations of $2.6 million. Rigetti’s operating loss also widened from $16.6 million a year ago to $21.6 million this quarter.
Despite the disappointing financial results, the company has recently secured several promising government contracts. In April, Rigetti secured a contract from the U.S. Air Force to help lead a project developing next-generation chip technology. The company was also recognized by the UK government as one of the winners of a quantum computing pilot program, leading a £3.5 million consortium focused on improving quantum error correction.
Furthermore, Rigetti was selected for a major U.S. defense initiative: the DARPA Quantum Benchmarking program. However, CEO Dr. Subodh Kulkarni downplayed the immediate impact of these wins during the company’s earnings call.
Rigetti Q1 earnings disappoint investors
“Our focus as a company is on R&D and technology milestones,” Kulkarni said. Some of these government contracts do come with sizable awards, but they’re not the kind of revenue numbers investors should focus on yet.
Kulkarni mentioned that most of the company’s current interest is coming from national labs and academic institutions.
However, until Congress passes the appropriations bill, which would unlock $2.7 billion in federal funding over the next five years, budgets remain tight. Quantum computing stocks like Rigetti are known for their volatility. Despite Rigetti’s stock being up nearly 900% over the past 12 months, this quarter’s disappointing earnings are a reminder that real-world sales are still a long way off.
Kulkarni advised investors not to expect steady growth any time soon. “We’re looking at three years from now, maybe four or five years from now,” he said, before commercial sales become a meaningful metric. In late April, Rigetti also received a new investment from Quanta Computer.
The tech manufacturer purchased about $35 million worth of Rigetti stock at $11.59 per share. Rigetti closed Monday’s trading at $11.55.
Image Credits: Photo by Burak The Weekender on Pexels
Cameron is a highly regarded contributor in the rapidly evolving fields of artificial intelligence (AI) and machine learning. His articles delve into the theoretical underpinnings of AI, the practical applications of machine learning across industries, ethical considerations of autonomous systems, and the societal impacts of these disruptive technologies.
