Shares of Rigetti Computing (NASDAQ: RGTI) tumbled 11.77% in after-hours trading on Monday following the release of its first-quarter 2025 financial results. The quantum computing company's performance fell short of analyst expectations, particularly in terms of revenue and operating loss.

Rigetti reported Q1 revenue of $1.5 million, significantly below the analyst consensus estimate of $2.55 million. This represents a substantial decrease from the $3.05 million reported in the same quarter last year. The company's operating loss widened to $21.6 million, compared to the expected loss of $16.4 million.

Despite the disappointing top-line results, Rigetti posted a net income of $42.6 million for the quarter. However, this profit was largely attributed to non-cash gains from changes in fair value of derivative warrant and earn-out liabilities, rather than operational performance. The company's total operating expenses for the quarter stood at $22.1 million.

Rigetti CEO Dr. Subodh Kulkarni commented on the results, highlighting the company's progress in quantum computing technology and recent government contract awards. "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," Kulkarni stated.

The after-hours stock plunge reflects investor concerns about Rigetti's ability to meet revenue expectations and control losses as it continues to invest heavily in research and development. The company's focus on long-term scientific advancements in quantum computing, while promising, may continue to present challenges in terms of near-term financial performance.