RJ Hamster
Behind Rigetti’s Earnings Flop: DARPA Setback Insights
| UnsubscribeTrump’s Next Ban – Coming January 19, 2026 (shocking) (From Banyan Hill Publishing)Rigetti’s Q3 Miss Reveals Quantum Funding and Timing PressuresWritten by Chris Markoch on November 14, 2025 Key PointsRigetti Computing missed Q3 revenue expectations and remains unprofitable.Losing DARPA funding pressures Rigetti to self-finance its quantum roadmap.The company’s 1,000-qubit goal may be years behind larger rivals like IBM.Rigetti Computing Inc. (NASDAQ: RGTI) had high expectations for its third-quarter earnings report. Unfortunately, the results didn’t meet expectations, and RGTI stock has declined by over 5% since the report.The company reported revenue of $1.95 million, which fell short of expectations of $2.17 million and decreased 18.1% year-over-year. On a more positive note, the company’s quarterly loss of three cents per share was better than the forecasted loss of five cents per share.Overall, the report contrasted the promise and the practicality of quantum computing. Rigetti is one of many companies trying to develop this technology. This will take several years and billions of dollars, and investors seem to be rethinking their decision on RGTI stock based on this timeline.7 Signals Flashing Red: Crash Incoming? (Ad)A free report revealing the 7 key indicators that have predicted every major economic collapse since 1929. Right now, all seven are flashing red simultaneously for the first time since 2007. These aren’t the signals you’ll see on CNBC.Claim Your Free Report Now »What Makes Rigetti Different in Quantum Technology?The key to understanding Rigetti’s technology lies in its chiplet architecture, as showcased in its 36-qubit Cepheus-1 system. Each 9-qubit chiplet acts as a modular building block that can be linked to form larger processors.Rigetti is moving from one chiplet to four in its upcoming system. This is a proof of concept that its tiling approach can scale without degrading performance, while maintaining 99.5% two-qubit gate fidelity.To that end, Rigetti announced two key landmarks on its 2026-2027 technology roadmap. The company expects to deploy:A 150+ qubit system by or around the end of 2026 with an anticipated 99.7% median two-qubit gate fidelity.A 1,000+ qubit system by or around the end of 2027 with an anticipated 99.8% median two-qubit gate fidelity.This roadmap, while distinctive, places Rigetti approximately two to three years behind companies like International Business Machines (NYSE: IBM) or IonQ Inc. (NYSE: IONQ). On the other hand, Rigetti has a proprietary fabrication facility that could narrow that gap by accelerating design cycles.Rigetti Needs to Overcome a DARPA SetbackA key takeaway from Rigetti’s earnings call was its exclusion from the Defense Advanced Research Projects Agency’s (DARPA) Phase B program. This phase focuses on evaluating quantum systems capable of demonstrating “quantum advantage” (i.e., outperforming classical computers on specific tasks).Rigetti was part of Phase A of the program, in which companies participated in feasibility studies and prototype development. Missing Phase B means losing both non-dilutive government funding and a valuable stamp of credibility. Like many early-stage quantum companies, Rigetti depends on such contracts to support its R&D while the technology remains pre-commercial.Nvidia Chief: Where The Next AI Fortune Could Land (Ad)This Feels Like Collecting ‘Toll Money’ From AI… Every time AI ‘thinks,’ data has to move, and that movement is not free. With one billion AI users, it’s one of the fastest growing cash streams in America today…Click here for the full scoop.Rigetti Is Betting on Itself, But Maybe Not by ChoiceDespite the setback, Rigetti isn’t throwing in the towel. Chief executive officer (CEO) Subodh Kulkarni said on the earnings call:“A lot of our focus has been and continues to be on getting to quantum advantage in the next three to five years with 1,000 qubit and 99.9% two-qubit gate fidelity, gate speeds, and with some error correction.”This is a signal to markets that Rigetti remains committed to reaching quantum advantage on its own roadmap, even if it isn’t selected to be part of DARPA’s Phase B. To that end, Kulkarni noted that the company has received constructive feedback from DARPA and anticipates that it will be incorporated into Phase B in the near future.However, for now, Rigetti will have to rely on its own resources and partnerships. That’s why investors may want to think about Rigetti as a smaller, more agile player trying to carve out a niche in hybrid quantum-classical applications.RGTI Stock Isn’t for Every InvestorRigetti Computing, like most quantum computing stocks, is a speculative stock. That doesn’t mean it won’t become a profitable company. If it does, many early investors will be very happy.But revenue and earnings aren’t driving the price action in RGTI stock right now. That would be attributed to traders looking to capitalize on volatile price swings in either direction. One example of this is short interest, which is down about 4.4% in the last 30 days but is still over 12% of the stock’s float.By the company’s own admission, Rigetti is probably five years away from being commercially viable. Profits may take even longer.Investors seeking exposure to quantum computing and other technology stocks with less risk may want to consider the Defiance Quantum ETF (NASDAQ: QTUM). It has over $816 million of assets under management and a respectable expense ratio of 0.40%. As of Nov. 12, RGTI stock carried the most weight in the index at 3.12%.The QTUM fund is up over 36% in 2025 and more than 209% in the last five years. That’s the kind of consistency that risk-averse investors may find more attractive.Read this article online ›Read More:Monolithic Power Surges in 2025—Time to Buy or Hold?3 Under-$10 Stocks That Could Skyrocket (From TradingTips)Tesla Has Been Trapped in a 10% Range for Months—What’s Going On?Forget AI, This Will Be the Next Big Tech Breakthrough (From Brownstone Research)dLocal Falls Despite Blowout Q3 Results—What Investors Are MissingOndas Holdings Signals a Rebound as Drone Demand SoarsDisney’s 2026 Outlook Brightens Under Iger’s Magic Touch Did you enjoy this article? Thank you for subscribing to DividendStocks.com‘s daily newsletter for dividend and income investors that covers ex-dividend stocks, new dividend declarations, dividend stock ideas, and the latest market news. If you need help with your subscription, please don’t hesitate to contact MarketBeat’s South Dakota based support team at contact@marketbeat.com. 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