Shares of Rigetti Computing (RGTI) plummeted 11.77% in after-hours trading on Monday following the release of its first-quarter 2025 financial results, which fell short of analyst expectations. The quantum computing company's disappointing performance raised concerns about its growth trajectory and path to profitability.

Rigetti reported Q1 revenue of $1.5 million, significantly below the analyst consensus estimate of $2.55 million. This represents a substantial 51.77% decrease compared to the same period last year when the company posted sales of $3.05 million. The company attributed the revenue decline to the "lumpy" nature of milestone-based research and development and government contracts.

Adding to investors' concerns, Rigetti's operating loss widened to $21.6 million, compared to the estimated loss of $16.4 million. This increase in operating expenses, which totaled $22.1 million for the quarter, reflects the company's ongoing investments in research and development as well as selling, general, and administrative costs.

Despite reporting a net income of $42.6 million, it's worth noting that this figure includes $62.1 million of non-cash gains from changes in fair value of derivative warrant and earn-out liabilities. Excluding these non-operational items, the company's core business performance remains challenged.

The after-hours stock plunge reflects investor disappointment with Rigetti's slower-than-expected progress in commercializing its quantum computing technology. While the company continues to secure government contracts and research partnerships, the market appears to be looking for more tangible signs of revenue growth and a clearer path to profitability in the highly competitive and rapidly evolving quantum computing sector.