Total revenues for Rigetti Computing in the first quarter of 2025 were $1.5 million, which reflects a decrease from $3.1 million reported in the first quarter of 2024. Gross margins also declined, reaching 30% in Q1 2025 compared to 49% in the same quarter last year. This reduction in gross margin year-over-year resulted from continued revenues tied to a contract with the UK’s National Quantum Computing Centre (NQCC) for a 24-qubit quantum system, which carries a lower margin profile than Rigetti’s other revenue sources.

On the operating expense front, total operating expenses for the latest quarter were $22.1 million, up from $18.1 million in Q1 2024. Contributing factors to the increase included annual salary adjustments, new hires, and higher stock compensation costs related to employee bonuses. The stock compensation expense rose to $4.2 million from $3.0 million year-over-year.

Rigetti reported an operating loss of $21.6 million for Q1 2025, widening from a loss of $16.6 million in the same period of 2024. In contrast, the company recorded a net income of $42.6 million for the first quarter of 2025. This net income was significantly influenced by non-cash gains resulting from changes in the fair value of derivative warrant and earn-out liabilities, which individually contributed a favorable impact of $62.1 million to the net income for the quarter.

As of April 30, 2025, following an investment from Quanta Computer Inc., Rigetti reported cash, cash equivalents, and available-for-sale investments totaling $237.7 million. This figure represents an increase from $209.1 million reported as of March 31, 2025. The latest investment involved Quanta purchasing approximately $35 million worth of Rigetti common stock at an estimated price of $11.59 per share.

Future financial performance is expected to be influenced by the renewal of the U.S. National Quantum initiative, which could significantly impact future sales along with existing government contracts and sales to international entities.