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Friday's Bonus Article Rigetti's Q3 Miss Reveals Quantum Funding and Timing PressuresWritten by Chris Markoch. Published 11/14/2025. 
Key Points - Rigetti 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) entered its third-quarter earnings report with high expectations. The results fell short, and RGTI stock has dropped by more than 5% since the report. The company reported revenue of $1.95 million, below the expected $2.17 million and down 18.1% year over year. On the upside, the quarterly loss of $0.03 per share was narrower than the forecasted $0.05 per share loss. Discover the 10 Best AI Stocks to Buy Now!
The AI revolution is reshaping the investment landscape, and knowing where to place your bets is crucial. Our free report reveals the 10 top AI stocks that should be on your radar right now. Don't miss your chance to get in on these high-potential tech plays. Download your free report today. Overall, the report highlighted the gap between the promise and the practicality of quantum computing. Rigetti is one of several firms racing to develop this technology, which will require years and substantial capital — and investors appear to be reassessing RGTI given that timeline. What Makes Rigetti Different in Quantum Technology? The key to Rigetti's approach is its chiplet architecture, demonstrated in its 36-qubit Cepheus-1 system. Each 9-qubit chiplet serves as a modular building block that can be tiled together to create larger processors. Rigetti is moving from a single chiplet to a four-chiplet design in its next system. That upgrade is a proof of concept that its tiling approach can scale without degrading performance while maintaining roughly 99.5% two-qubit gate fidelity. On its 2026–2027 technology roadmap, Rigetti outlined two milestones: - A 150+ qubit system by around the end of 2026 with an anticipated 99.7% median two-qubit gate fidelity.
- A 1,000+ qubit system by around the end of 2027 with an anticipated 99.8% median two-qubit gate fidelity.
While distinctive, this roadmap places Rigetti roughly two to three years behind companies like International Business Machines (NYSE: IBM) and IonQ Inc. (NYSE: IONQ). However, Rigetti's proprietary fabrication facility could help narrow that gap by accelerating design cycles. Rigetti Needs to Overcome a DARPA Setback A notable takeaway from Rigetti's earnings call was its exclusion from the Defense Advanced Research Projects Agency's (DARPA) Phase B program, which focuses on evaluating systems capable of demonstrating "quantum advantage" (i.e., outperforming classical computers on specific tasks). Rigetti participated in Phase A, where companies conducted feasibility studies and developed prototypes. Missing Phase B means losing non-dilutive government funding and a valuable credibility boost. Like many early-stage quantum companies, Rigetti relies on such contracts to support R&D while the technology remains pre-commercial. Rigetti Is Betting on Itself, But Maybe Not by Choice Despite the setback, Rigetti remains committed. 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." That comment signals that Rigetti intends to pursue quantum advantage along its own roadmap, even without Phase B participation. Kulkarni also said the company received constructive feedback from DARPA and expects that input to inform future efforts related to Phase B. For now, Rigetti will need to rely on its own resources and partnerships. Investors should therefore view it as a smaller, more agile player trying to carve out a niche in hybrid quantum-classical applications. RGTI Stock Isn't for Every Investor Rigetti Computing, like most quantum computing stocks, is a speculative investment. That doesn't mean it can't become a profitable company — if it does, early investors could benefit substantially. Currently, price action in RGTI is driven more by traders seeking volatile swings than by fundamentals. Short interest is down about 4.4% in the last 30 days but still represents more than 12% of the stock's float. By the company's own estimate, Rigetti is likely about five years away from commercial viability, and profits could take even longer. Investors seeking exposure to quantum computing and related technology with lower idiosyncratic risk may consider the Defiance Quantum ETF (NASDAQ: QTUM). It has over $816 million in assets under management and an expense ratio of 0.40%. As of Nov. 12, RGTI was the largest holding in the fund at a 3.12% weight. The QTUM fund is up over 36% in 2025 and more than 209% over the last five years — a track record that risk-averse investors may find more attractive than a single speculative name.
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