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Investing.com -- Rigetti Computing, Inc. (NASDAQ:RGTI), a pioneer in full-stack quantum-classical computing, reported first quarter earnings that beat analyst expectations on the bottom line but fell short on revenue, sending shares down 5% in response.
The quantum computing company reported Q1 adjusted earnings per share of $0.13, surpassing the analyst estimate of -$0.05 by $0.18. However, revenue for the quarter came in at $1.47 million, significantly below the consensus estimate of $2.82 million.
Rigetti’s total revenues for the three months ended March 31, 2025, were $1.5 million, down from $2.2 million in the same quarter last year, representing a 32% YoY decline. The company reported a net income of $42.6 million for the quarter, which included $62.1 million of non-cash gains from changes in fair value of derivative warrant and earn-out liabilities.
"Rigetti is proud to be awarded important government-funded projects in the U.S. and U.K. to advance our technology, which demonstrates our continued leadership in superconducting quantum computing," said Rigetti CEO Dr. Subodh Kulkarni.
The company’s cash position remained strong, with cash, cash equivalents, and available-for-sale investments totaling $209.1 million as of March 31, 2025. This figure increased to $237.7 million as of April 30, 2025, following the closing of a share purchase by Quanta Computer, Inc.
Rigetti highlighted several recent business developments, including its selection to participate in DARPA’s Quantum Benchmarking Initiative and the award of three Innovate UK Quantum Mission Pilot Awards. The company also reported progress in its technical capabilities, including the successful demonstration of optical control of a superconducting qubit.
Despite these positive developments, the significant revenue miss appears to have overshadowed the earnings beat, leading to the 5% drop in share price following the earnings release.
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