Rigetti Computing (RGTI) delivered a mixed second-quarter report that triggered volatile trading for its stock. While revenue beat estimates by a hair, widening losses and a lack of finalized federal funding weighed on sentiment.
The company posted Q2 revenue of $5.14 million, surpassing the consensus forecast of $5.09 million and marking a 185% jump from the $1.8 million reported in the prior-year period. System and component sales were the main drivers, generating $4.1 million of the total—a figure that was zero a year ago. Rigetti fulfilled orders for its Novera-based nine-qubit systems, including a major delivery to India’s Centre for Development of Advanced Computing (C-DAC).
Despite the top-line beat, RGTI dropped 4.4% in after-hours trading on Thursday as investors focused on the bottom line. The operating loss widened to $28.1 million from $20.4 million a year earlier, and adjusted earnings per share came in at a loss of $0.05, missing the Zacks consensus estimate of a $0.03 loss. The stock bounced back 4.9% on Friday, though it still lagged peers IonQ (+9.9%) and D-Wave (+5.2%).
Rigetti’s balance sheet remains robust, with $541.3 million in cash and no debt as of June 30. Management highlighted a shift toward commercial revenues, with US revenue climbing to 80% of the total. Meanwhile, a letter of intent with the Commerce Department for $100 million in federal funding—in exchange for an equity stake—remains unsigned. The company also plans to deliver a quantum computer to the Pittsburgh Supercomputing Center backed by NSF grant and an existing partnership with Hewlett Packard Enterprise.
Wedbush analyst Matt Bryson retained a Neutral rating on RGTI but cut his price target to $37 from $40, noting that commercial sales arrived faster than expected.
