Rigetti Earnings Beat, Profit Concerns Persist
Rigetti earnings showed a Q1 2026 revenue beat and 108-qubit rollout but wider operating losses and a non-cash gain left profitability and runway central.
KEY TAKEAWAYS
- Revenue beat at $4.4 million led by $3.0 million hardware sales and an $8.4 million order.
- Operating loss widened to $26.0 million as expenses rose to $27.3 million.
- GAAP net income reflected a $53.7 million non-cash gain that masked a $16.2 million cash use.
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Rigetti Computing reported first-quarter 2026 results on May 11, announcing a revenue beat and the general availability of its 108-qubit Cepheus-1-108Q system. The earnings also revealed a wider operating loss, keeping near-term profitability in focus.
Quarter Results, Profitability, and Product Sales
The company’s 10-Q for the period ended March 31 showed revenue of $4.4 million, a 199% increase from $1.472 million a year earlier, with gross profit of $1.378 million and a gross margin near 31%. Revenue exceeded analyst estimates, which ranged from $3.97 million to $4.13 million.
Operating loss widened to $26.0 million as expenses rose to $27.3 million, driven by $20.0 million in research and development and $7.4 million in selling, general, and administrative costs. The filing reported GAAP net income of $33.1 million, reflecting a $53.7 million non-cash gain on derivative warrant liabilities and $5.4 million in interest income. Non-GAAP net loss was $14.7 million, with diluted GAAP and non-GAAP earnings per share of -$0.06 and -$0.04, respectively. Net cash used in operating activities totaled $16.2 million.
Hardware and component sales contributed $3.0 million to revenue. The company announced that the 108-qubit Cepheus-1-108Q system is generally available across major cloud platforms and secured an $8.4 million order for the machine.
Cash Position and Expansion Plans
At quarter-end, Rigetti held $569.0 million in cash, cash equivalents, and available-for-sale investments, with no debt. The company plans to invest up to $100 million in a U.K. expansion. It emphasized ongoing improvements in system fidelity and customer adoption of the 108-qubit platform but provided no quantitative forward guidance.
