Rigetti Computing reported a profit for its first quarter owing to an accounting gain while revenue missed views as investors focus on the near-term growth and profitability outlook for quantum computing stocks.
The quantum computing company reported Q1 earnings after the market close on Monday.
For the March quarter, Rigetti reported a 13-cent profit on an adjusted basis versus a 14-cent loss a year earlier. Revenue fell 51% to $1.5 million.
Further, Wall Street analysts had forecast a 5-cent loss on revenue of $2.6 million.
First quarter net income included "$62.1 million of noncash gains from the change in fair value of derivative warrant and earn-out liabilities," the company said. The accounting gain came from revaluing stock warrants the company has issued.
Meanwhile, Taiwan-based Quanta Computer in February agreed to invest $35 million in Rigetti through a stock purchase.
National Quantum Initiative Reauthorization Act
Revenue recognition can be lumpy, Rigetti's Chief Executive Subodh Kulkarni said on the company's earnings call with Wall Street analysts.
"Quantum computing continues to be in R&D mode," said Kulkarni. "Our view is that we are still very much in the stage of developing quantum computers. We are still four to five years away from what we call quantum advantage … Until then it's going to be primarily R&D, primarily driven by government contracts, academic researchers. So they're by definition those kinds of sales or one-off sales, they are lumpy in nature."
Kulkarni added that if Congresses passes the National Quantum Initiative Reauthorization Act it would provide a funding boost for quantum computing companies as well as potential customers. The original National Quantum Initiative Act, passed in 2018 during President Donald Trump's first administration, lapsed in September 2023.
On the stock market today, Rigetti stock fell nearly 12% to 10.17 in early trading. Heading into the earnings report, Rigetti stock had retreated nearly 23% in 2025.
Last week, IonQ reported an in-line loss and flat revenue. IonQ also announced two more acquisitions as it builds a quantum platform.
Meanwhile, D-Wave Quantum reported a smaller-than-expected first quarter loss while revenue topped views. For the March quarter, D-Wave reported a 2-cent loss on an adjusted basis versus an 11-cent loss a year earlier. Revenue rose 509% to $15 million.
IonQ and Rigetti were among 18 companies recently chosen by the Defense Advanced Research Projects Agency (or DARPA) to take part in the first stage of the Quantum Benchmarking Initiative, a program aimed at assessing the feasibility of developing industrially useful quantum computers.
Quantum computing works on a subatomic level and uses exotic technologies, like supercold superconductor chips. Further, Quantum computing's ultimate benefit is that it aims to solve problems too complex for today's classical computers.
Meanwhile, quantum computing stocks have been volatile in 2025 amid controversy involving Nvidia over how soon commercially viable quantum technology will be available.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
