TenQ

The Rigetti Computing story

Rigetti Computing builds superconducting quantum computers and provides cloud access to them, with the central question whether its chiplet architecture can support larger, more accurate systems while turning research deployments into a sustained business.

Written from Rigetti Computing's own filings with the SEC, and rewritten when it publishes a new earnings release. Updated 2026-09-30.

  • $15.95share price, last close
  • $5.3Bmarket value
  • 6/36TenQ Score checks passed

The story in brief

  • Deployments meet development costs. Rigetti reported $5.1 million in revenue and a $28.1 million operating loss in the quarter to June 2026 as it expanded customer deployments and processor development.
  • Scale needs better accuracy. Cepheus-1-108Q achieved approximately 99.1% median two-qubit gate fidelity in the quarter to June 2026, below the 99.5% goal reiterated in August 2026.
  • Cash supports the roadmap. Rigetti ended June 2026 with $541.3 million in cash, cash equivalents, and investments and no debt, while free cash flow over the last twelve months was -$88 million.

What drives the business

  • Rigetti designs and manufactures quantum chips at its Fab-1 facility, linking smaller chiplets into larger processors and offering both physical systems and cloud access through Rigetti Quantum Cloud Services and Amazon Braket.
  • Its February 2025 collaboration with Quanta covers components such as control systems and dilution refrigerators, with each company agreeing to invest at least $250 million in quantum computing over the next five years.
  • India’s Centre for Development of Advanced Computing, C-DAC, placed an $8.4 million order in January 2026 for a 108-qubit system scheduled for deployment in Bengaluru in the second half of 2026.
  • The expanded collaboration with Hewlett Packard Enterprise and the Pittsburgh Supercomputing Center calls for a 9-qubit Novera system at the center’s TangleLab testbed, extending Rigetti’s work integrating quantum systems with classical supercomputing.
  • In September 2026, Rigetti signed a definitive agreement with the U.S. Department of Commerce for $100 million to develop readout electronics, cryogenic capacity, and chip fabrication capabilities, with the Department receiving a minority, non-controlling equity stake as a condition of funding.

What the price assumes

At $15.95 per share and a $5.3 billion market value, the reverse DCF growth assumption is not measurable because free cash flow and operating earnings are negative, leaving the price dependent on future profits.

Revenue reached $13 million over the last twelve months, growing 68.5%, but its annual growth rate over the last three years was -18.5%.

The 398.7x price-to-sales multiple stands against TenQ’s sales check of under 2.5x, while the -1.6% free cash flow yield falls short of its above 3% check, leaving Rigetti with 0 of 6 Value checks passed.

What could change the story

  • Scaling is not simply a matter of adding qubits, as tunable coupler complexities prompted another chip iteration and a revised deployment timetable in January 2026.
  • The -727.6% operating margin over the last twelve months shows how far revenue remains from covering operations, while the planned United Kingdom investment of up to $100 million adds spending demands.
  • The share count rose 202.8% over the last three years, and stock-based pay of $23 million over the last twelve months exceeded revenue.
  • The funding risks disclosed with the Commerce letter of intent included phased payments tied to milestones within a five-year period, possible withholding or clawback, and the Department retaining issued shares even if the full funding was not received.
  • The September 2026 definitive agreement advances the financing beyond the letter of intent, but the equity stake still makes dilution part of the funding arrangement.

What to watch next

  • The next technology updates will show progress from approximately 99.1% median two-qubit gate fidelity on Cepheus-1-108Q toward the 99.5% goal reiterated in August 2026.
  • The longer roadmap calls for approximately 1,000 qubits, approximately 99.9% two-qubit gate fidelity, and gate speeds below 50 nanoseconds over roughly a three-year horizon, compared with approximately 60 nanosecond gate speeds reported for Cepheus-1-108Q.
  • Customer delivery updates will show whether the C-DAC installation remains on schedule for the second half of 2026 and whether the dedicated Systems Delivery organization established in August 2026 supports additional deployments.
  • Commerce funding receipts, shares issued, investment spending, and free cash flow will show how customer deployments and government support affect the cash needed for processor development and the United Kingdom expansion.

Sources

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