By Mackenzie Tatananni

Rigetti Computing reported first-quarter results on Monday, disclosing numbers that are in line with the company's slow and steady approach to quantum computing.

The start-up reported revenue of $1.5 million for the March quarter, down from $3.1 million a year ago and below the consensus forecast of $2.6 million among analysts tracked by FactSet. The figure represents a 35% decrease sequentially. Rigetti's operating loss reached $21.6 million, wider than the $16.6 million loss recorded a year ago.

Management said the changes in revenue reflected the "lumpy" nature of milestone-based research and development and government contracts, which can vary between quarters. The company notched a handful of contracts this year, including a $5.5 million grant from the U.S. Air Force and three awards in the U.K.

While they contrast with D-Wave Quantum's strong first-quarter print, Rigetti's latest financials shouldn't surprise investors who follow the company. Rigetti focuses primarily on scientific research and development rather than commercial applications.

The company has operated cloud-based quantum computers since 2017 and serves a range of government and research clients. In 2023, Rigetti unveiled its nine-qubit Novera processor to support a "broader R&D community." The company manufactures all hardware in-house at a factory in California.

In early April, Rigetti was named as a finalist for a Department of Defense initiative alongside IonQ and privately held Quantinuum. While selection for the Defense Advanced Research Projects Agency's Quantum Benchmarking Initiative didn't include a financial award, it was nevertheless a vote of confidence in the technology.

The program aims to determine whether any quantum computing approach can achieve utility-scale operation by 2033. In simple language, that means reaching a point where the technology's computational value exceeds the cost to build and operate it.

Rigetti said it would advance to Stage A, a six-month performance period worth up to $1 million upon completion of milestones. The company will face off with smaller pure plays as well as International Business Machines and Hewlett Packard Enterprise.

Rigetti's cash, cash equivalents and available-for-sale investments totaled $237.7 million as of April 30, up from $217.2 million a quarter earlier.

Management attributed the change, in part, to the closing of an investment from the Taiwanese hardware maker Quanta Computer last month. As part of a "strategic collaboration agreement," Quanta purchased approximately $35 million of shares of Rigetti common stock.

Like its peers, the company steered clear of providing a timeline for when it might start making money. CEO Subodh Kulkarni told Barron's he expects the business to continue providing quantum computing power to federally funded laboratories for the next few years.

"We are in R&D, so it's difficult to project how things are going to evolve from here," Kulkarni said. However, if the company secures the necessary number of projects, "there's a good chance we could start making profit fairly soon."

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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May 12, 2025 16:15 ET (20:15 GMT)

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