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Rigetti Stock Fall as Heavy Losses Drown Quantum Breakthrough


Aug 14- Rigetti Computing (NASDAQ:RGTI) sank about 2.5% on Thursday morning after posting Q2 2025 results that mixed major quantum computing progress with deep financial losses.

Shares fell as investors reacted to a 41.6% drop in revenue to $1.8 million and a net loss of $39.7 million. Gross margin nearly halved to 31.4% from 65% a year earlier, with rising R&D costs pushing operating expenses up 23.6%. The financial hit overshadowed news that its 36-qubit Cepheus-1-36Q system achieved a 99.5% median two-qubit gate fidelity, halving error rates compared to its predecessor.

Rigetti also raised $350 million through an equity offering, boosting its cash to $571.6 million and leaving the company debt-free. However, the raise nearly doubled its share count, stoking dilution worries.

Despite the market’s reaction, management reiterated plans to launch a 100+ qubit system by year-end, a move that could bring it closer to fault-tolerant quantum computing. In the background, rivals like IBM (NYSE:IBM), Microsoft (NASDAQ:MSFT), and Alphabet (GOOGL) are pushing aggressively in the same race, adding pressure to deliver.

This article first appeared on GuruFocus.

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