Rigetti revenue jumps 185% on Novera sales

Rigetti Computing (RGTI) reported a sharp increase in quarterly revenue driven by the sale of its on-premises Novera quantum computing systems. The company recorded $5.14 million in revenue during the second quarter of fiscal 2026, representing a 185.3% increase from the same period a year earlier. Management attributed this growth to orders announced previously turning into recognized revenue during the August 6, 2026 earnings call.

Despite the top-line growth, Rigetti remains significantly unprofitable. The company posted an operating loss of $97.2 million over the four quarters ending in June, an amount more than seven times its total revenue for that period. While gross margin improved to 42.6% in the June quarter from 31.4% a year earlier, the operating loss for the single quarter expanded to $28.1 million from $19.9 million in the prior year period.

The revenue model relies heavily on specific large contracts. Rigetti is currently building a 108-qubit system for C-DAC in India under an $8.4 million order. Management expects to book this revenue in the fourth quarter of 2026, contingent on the system passing acceptance testing after installation. This single order accounts for approximately 63% of the $13.4 million in revenue Rigetti generated over the four quarters to June.

Demand indicators suggest a widening customer base. Management reported increased interest in Novera systems from national labs and universities. Additionally, the first two 9-qubit systems delivered in 2026 were sold to commercial organizations rather than academic or government entities. However, revenue timing remains volatile; fourth-quarter 2025 revenue fell 17.9% year over year to $1.87 million due to the timing of large system contracts.

Market valuation and share structure present distinct risks for investors. Rigetti trades at 291 times sales, compared to 3.1 times for the S&P 500, despite the stock losing 74.9% over the past year while the S&P 500 returned 17.1%. The company held $394 million in cash and short-term investments at the end of June against $7.7 million in debt, equating to about $1.18 per share at a closing price of $11.66.

Dilution is another factor affecting holders, as the number of diluted shares outstanding increased by 159.3% between the second quarters of fiscal 2023 and fiscal 2026. The U.S. Department of Commerce has selected Rigetti for up to $100 million over three years. A definitive agreement was announced in early September 2026, with management stating that any final deal would include issuing securities to the department.

Rigetti's next earnings report is expected on or around November 16, 2026.