Rigetti Computing Reports Increased Q1 Revenue, But Operational Loss Widens and Diluted EPS Turns Negative
RGTI has more than doubled off its 52-week low of $9.85.
Summary
Rigetti Computing reported a significant increase in Q1 2026 revenue to $4.4 million, but its operating loss widened to $25.951 million, and diluted earnings per share turned negative at $(0.06), largely due to non-cash warrant revaluation gains.
Key Events · Earnings and Guidance · RGTI
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Q1 2026 Revenue Growth
Revenue increased by 199% to $4.4 million for Q1 2026, up from $1.472 million in Q1 2025, primarily driven by sales of 9-qubit Novera™ quantum computing systems.
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Worsening Operational Performance
The operating loss widened to $(25.951) million in Q1 2026 from $(21.632) million in Q1 2025, indicating increased operational expenses.
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Diluted EPS Turns Negative Due to Non-Cash Gains
Diluted EPS was $(0.06) for Q1 2026, a significant shift from $0.13 in Q1 2025. The reported GAAP net income of $33.109 million was largely due to a $53.697 million non-cash gain from derivative warrant liabilities.
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Increased Cash Burn from Operations
Net cash used in operating activities increased to $(16.216) million in Q1 2026 from $(13.651) million in Q1 2025.
Analysis · RGTI · Technology
This quarterly report provides a detailed look into Rigetti Computing's Q1 2026 financial performance, following the concurrent 8-K and news release. While the company achieved substantial revenue growth, driven by quantum system sales, its core operational profitability deteriorated, with a widening operating loss and increased cash burn. The reported GAAP net income of $33.109 million is primarily attributable to a large non-cash gain from the revaluation of derivative warrant liabilities, which masks the underlying operational challenges. The shift to a diluted loss per share highlights this discrepancy. The company maintains it has sufficient cash for the next 12 months, but the increased operational cash usage is a concern for a company in its development phase. The updated 10b5-1 plan by a director to sell a notable number of shares adds a minor negative signal.
At the time of this filing, RGTI was trading at $20.09 on NASDAQ in the Technology sector, with a market capitalization of approximately $6.8B. The 52-week trading range was $9.85 to $58.15. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.