Rigetti Computing (NASDAQ: RGTI ), a developer of full-stack quantum computing systems, reported mixed financial results for the fourth quarter, with a revenue miss sending its shares down 9% on Thursday.
Total revenue for the quarter was $1.87 million, topping analysts’ estimates of $2.37 million.
The company reported a loss of $0.03 per share, compared to the consensus estimate of a loss of $0.05. That marked an improvement from a non-GAAP loss of $0.08 per share a year ago.
For the full year, Rigetti reported total revenue of $7.1 million. Non-GAAP net loss came in at $50.5 million, or $0.16 per share, while GAAP net loss came in at $216.2 million, or $0.70 per share. At the end of the year, the company had $589.8 million in cash, cash equivalents, and available for sale.
Along with its financial results, Righetti highlighted the progress in its quantum computing technology. The company demonstrated 99.9% two-qubit gate fidelity at 28-nanosecond gate speeds on its prototype platform.
In a post-earnings note, Jefferies analysts wrote that Regetti’s system sales cadence is strengthening and partnerships are supporting technological advancements.
“The improvement in speed and error rates, especially with the proprietary adiabatic CZ scheme, and the reaffirmation of the deployment target for a 108-qubit system by the end of March are encouraging,” the analyst believes.
On earnings, Jefferies wrote that while December-quarter revenue came in slightly below Street estimates, management pointed to a faster year-over-year step up in revenue in the March quarter, driven by the recognition of about $5.7 million in sales of the Novira On-Prem system.
The company has indicated an initial system sales build in 2026, including two Nuvira On-Prem deliveries in the first half of the year, the sale of a Nuvira QPU to a Japanese research organization in April, and an $8.4 million 108-qubit C-DAC system scheduled for the second half of 2026.
“Management reiterated its schedule for deploying a 108-qubit system at the end of March, and we view this delivery as near-term under the next leg of the roadmap (>150 qubits by the end of 2026 and >1,000 qubits by 2027), anystalysts wrote.
“Partnerships increase credibility and should help technical progress, especially with error correction. Net-net, we like the road map and the proof points, but RGTI remains a showcase for implementation.”
Jefferies maintained a ‘hold’ rating on the company and set a price target of $20 below $30.
