Rigetti hits 99.5% median two‑qubit fidelity across 108 qubits; Q3 revenue falls as capex raises cash burn

【Article Title】 Rigetti hits 99.5% median two‑qubit fidelity across 108 qubits; Q3 revenue falls as capex raises cash burn 【Article Body】 AI TRANSLATION This article is an AI-generated translation of the original Japanese article. For the authoritative version, please refer to the original. Read the original Japanese article → (https://quantumindex.jp/rigetti-q3-2026-results-cepheus-108q-fidelity/) Rigetti Computing reported Q3 2026 revenue of $1.4 million and an operating loss of $33.2 million. Its superconducting quantum computersuperconducting quantum computerSuperconducting Quantum Computing / Superconducting Quantum Computing / Superconducting QubitAn implementation approach for quantum computers that operates superconducting circuits at ultra-low (cryogenic) temperatures and uses electrical quantum states as quantum bits (qubits).QI NoteCharacterized by fast gate operations, but performance is not determined by qubit count alone. Gate fidelity, coherence time, connectivity, and support for error correction should also be verified., Cepheus-1-108Q, achieved a median two‑qubitqubitQubit / Quantum Bit / QubitThe basic unit of information in a quantum computer. It can represent not only 0 or 1 but also a quantum state that is a superposition of them.QI NoteHaving more qubits does not necessarily mean higher performance. Error rates, connectivity, coherence time, and the number of logical qubits are also important. gate fidelitygate fidelityGate Fidelity / Gate Fidelity / Quantum Gate FidelityA measure of accuracy that indicates how closely a quantum gate operation was performed compared to the ideal operation.QI NoteHigher is generally better, but values depend on the measurement method and differ between single-qubit and two-qubit gates. When comparing, also check the evaluation conditions. of 99.5% across all 108 qubits. ✍️ Quantum Index Analysis We explain the technical and business significance behind the announcement and evaluation points that numbers and headlines alone may not reveal. Read our independent analysis ↓ Announcement summary GAAP net loss for Q3 2026 was $3.1 million, and non‑GAAP net loss was $20.5 million. Revenue for Jan–Sep 2026 was $10.9 million, up about 110% from $5.2 million in the prior year period. As of the end of September, cash, cash equivalents, and marketable securities totaled $497.1 million. Full‑year 2026 revenue is expected to be roughly $20 million, contingent on customer acceptance of the C‑DAC system and recognition of revenue in Q4. Cepheus‑1‑108Q is a system that connects twelve 9‑qubit chiplets. The median two‑qubit gate fidelity was 99.5% across all 108 qubits, 99.6% on an 80‑qubit sublattice, and 99.7% on a 50‑qubit sublattice. The company is targeting, by mid‑2028, a system with more than 300 qubits, a median two‑qubit gate fidelity of about 99.7%, and gate speeds under 60 ns. Rigetti also signed an R&D support agreement with the U.S. Department of Commerce for up to $100 million. The funding focuses on three areas: compact readout electronics, new cryostat configurations to expand ultra‑low‑temperature capacity, and manufacturing capability for highly connected chips; the Department acquired a minority, non‑controlling equity stake. Key points • Q3 2026 revenue was $1.4 million; operating loss was $33.2 million; GAAP net loss was $3.1 million. • Revenue for Jan–Sep 2026 was $10.9 million, an increase of about 110% year‑over‑year. • Cepheus‑1‑108Q achieved a median two‑qubit gate fidelity of 99.5% across all 108 qubits. • Rigetti signed an R&D support agreement with the U.S. Department of Commerce for up to $100 million to advance readout, cryogenics, and manufacturing. • Targeting a system of more than 300 qubits with ~99.7% median two‑qubit fidelity and gate speeds under 60 ns by mid‑2028. Technical and business implications The fidelity improvement at the 108‑qubit scale provides data to validate a design approach that connects multiple chiplets to scale superconducting QPUs. The Department of Commerce’s funding targets—readout, cryogenics to expand low‑temperature capacity, and manufacturing—align with the company’s roadmap for scaling. However, the company has not clarified how the reported performance metrics translate into commercial performance or quantum advantagequantum advantage量子優位性 / Quantum Advantage / Quantum Computational AdvantageFor a particular problem, a quantum computer demonstrates a practical advantage over classical computation in terms of speed, accuracy, cost, etc.QI NoteNot necessarily synonymous with "quantum supremacy"; the term is often used to include practical usefulness. When evaluating claims, check the classical methods used for comparison and the evaluation metrics., and operating losses still substantially exceed revenue. What to watch next First, whether customer acceptance and revenue recognition for the C‑DAC system—assumed in the roughly $20 million full‑year revenue guidance—materialize will be critical. On the technical side, whether the planned >300‑qubit system targeted for mid‑2028 can simultaneously achieve ~99.7% median two‑qubit fidelity and sub‑60 ns gate speeds is an important milestone. In addition, receipt of funds under the Department of Commerce agreement and R&D progress across the three targeted areas, along with concretizing plans to scale toward ~1,000 qubits, will be key evaluation points. ✍️ Quantum Index Analysis Rigetti’s Q3 2026 results illustrate that technical development of quantum computers continues to advance, while commercialization‑driven revenue growth lags. Year‑to‑date revenue for Jan–Sep rose 110% year‑over‑year, but Q3 alone saw about a 28% revenue decline. Operating loss widened from roughly $20.5 million in the prior‑year quarter to about $33.2 million. Although GAAP net loss was limited to $3.1 million, that figure includes an approximately $25.3 million gain from revaluation of warrant liabilities, so core operating profitability has not improved. On the balance sheet, Rigetti held about $497.1 million in cash and marketable investments at the end of September and has no interest‑bearing debt, so there is not an immediate liquidity crisis. However, operating cash outflow for Jan–Sep 2026 was about $49.06 million and capital expenditures were about $42.6 million, consuming roughly $91.66 million in total cash over the nine months. Capital spending has roughly tripled from about $14.1 million in the prior‑year period, indicating significant investment not only in R&D but also in manufacturing and cryogenic infrastructure. Financial metricJan–Sep 2026Revenue$10.95 millionOperating cash outflow$49.06 millionCapital expenditures$42.60 millionCash consumed by operating CFoperating CFOperating Cash Flow / Cash Flow from Operating Activities / Operating Cash Flow / Cash Flow from Operating ActivitiesAn indicator that shows the net difference between the cash actually received and the cash actually paid by a company as a result of its core operating activities.QI NoteOperating cash flow can be negative even when operating profit is positive. When assessing a company's financial capacity, you should check not only profits but also whether the company is consistently generating cash. + capex$91.66 millionCash & investments at end of Sep$497.10 millionImplied cash runway (simple calculation)About 4.1 years The roughly 4.1‑year implied runway is a simple calculation assuming the nine‑month cash consumption pace continues and does not account for potential increases in future spending. Rigetti’s partnership with Quanta Computer commits Quanta to invest at least $250 million in the quantum computing space over five years beginning February 2025. That commitment includes typical R&D and capital spending, so it is not necessarily additive to current expenditures in full; however, if Fab‑1 upgrades and new manufacturing equipment proceed, cash consumption could increase further. From a technical perspective, achieving a median 99.5% two‑qubitqubitQubit / Quantum Bit / QubitThe basic unit of information in a quantum computer. It can represent not only 0 or 1 but also a quantum state that is a superposition of them.QI NoteHaving more qubits does not necessarily mean higher performance. Error rates, connectivity, coherence time, and the number of logical qubits are also important. fidelity on a 108‑qubit system built from twelve chiplets is notable. Maintaining performance while combining multiple chips is one of the key challenges for scaling superconducting quantum computers. At the same time, 99.5% fidelity corresponds to an error rate of roughly 0.5%, which remains far from the levels required for large‑scale quantum error correctionquantum error correction量子誤り訂正 / Quantum Error Correction / QECA technique that distributes information across multiple physical qubits and detects and corrects errors without directly disturbing the quantum state.QI NoteSimply implementing it does not automatically provide practical fault tolerance. What matters is whether the logical error rate is improved relative to the physical error rate.—further improvements will be necessary. The reported median alone does not reveal inter‑chiplet connection performance or whether deep quantum circuits can be executed stably. The earnings release emphasizes fidelity improvements for the 108‑qubit system, but technical progress does not automatically equate to commercial success. Given Q3 revenue decline and widening operating losses, the key question is when and to what extent R&D investments will translate into meaningful revenue growth. The up‑to‑$100 million R&D support from the U.S. Department of Commerce is positive, but disbursements are tied to eligible expenditures and do not immediately increase unrestricted cash in a lump sum. The government’s participation also involved the issuance of equity to the Department, meaning the support is accompanied by share issuance. Rigetti’s central challenge is less the headline size of its cash balance than whether it can establish commercial revenues sufficient to justify the scale of R&D and capital investment. Commercializing quantum computers takes time, so short‑term losses are not necessarily problematic. However, at current revenue levels the business is far from self‑funding these investments, and dependency on capital markets is likely to continue. Delivering the >300‑qubit system targeted for mid‑2028 while securing customer acceptance of the C‑DAC system, additional orders, and steady revenue growth will determine future funding needs and dilutiondilutionDilution / Dilution / Shareholder Dilution / Equity DilutionAn increase in the number of shares—such as through the issuance of new shares—that causes existing shareholders' ownership percentage and the value per share to be relatively reduced.QI NoteCan occur through issuance of new shares for fundraising or through stock options, among other mechanisms. You should check not only the amount raised but also the number of shares after issuance and the resulting change in existing shareholders' ownership. risk. Related QI articles 【Continuously updated】Q3 2026 earnings roundup for nine leading quantum companies — dates, results, and highlights (https://en.quantumindex.jp/quantum-computing-q3-2026-earnings-calendar/) NETWORKView the industry network around Rigetti → (/qi-network/) Related articles • IQM Q3 2026 revenue up 51% — backlog tops €100M, cash position healthy (https://en.quantumindex.jp/iqm-q3-2026-results-order-backlog/) • Rigetti signs up‑to‑$100M final agreement with U.S. Department of Commerce to bolster readout, cooling, and manufacturing (https://en.quantumindex.jp/rigetti-us-government-100m-superconducting-rd/) • Pasqal H1 2026 revenue €4.9M — assessing commercialization relative to public quantum peers (https://en.quantumindex.jp/pasqal-first-half-2026-financial-results/) Source Read the company’s press release (https://investors.rigetti.com/news-releases/news-release-details/rigetti-computing-reports-third-quarter-2026-financial-results) If you found this article useful, please consider sharing it. ──────────────────── 【AI Evaluation Request】 Evaluate the following article critically, not based on the quality of its writing, but on its **original informational value as a specialist publication**. 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Rigetti Computing reported Q3 2026 revenue of $1.4 million and an operating loss of $33.2 million. Its superconducting quantum computersuperconducting quantum computerSuperconducting Quantum Computing / Superconducting Quantum Computing / Superconducting QubitAn implementation approach for quantum computers that operates superconducting circuits at ultra-low (cryogenic) temperatures and uses electrical quantum states as quantum bits (qubits).QI NoteCharacterized by fast gate operations, but performance is not determined by qubit count alone. Gate fidelity, coherence time, connectivity, and support for error correction should also be verified., Cepheus-1-108Q, achieved a median two‑qubitqubitQubit / Quantum Bit / QubitThe basic unit of information in a quantum computer. It can represent not only 0 or 1 but also a quantum state that is a superposition of them.QI NoteHaving more qubits does not necessarily mean higher performance. Error rates, connectivity, coherence time, and the number of logical qubits are also important. gate fidelitygate fidelityGate Fidelity / Gate Fidelity / Quantum Gate FidelityA measure of accuracy that indicates how closely a quantum gate operation was performed compared to the ideal operation.QI NoteHigher is generally better, but values depend on the measurement method and differ between single-qubit and two-qubit gates. When comparing, also check the evaluation conditions. of 99.5% across all 108 qubits.

Announcement summary

GAAP net loss for Q3 2026 was $3.1 million, and non‑GAAP net loss was $20.5 million. Revenue for Jan–Sep 2026 was $10.9 million, up about 110% from $5.2 million in the prior year period. As of the end of September, cash, cash equivalents, and marketable securities totaled $497.1 million. Full‑year 2026 revenue is expected to be roughly $20 million, contingent on customer acceptance of the C‑DAC system and recognition of revenue in Q4. Cepheus‑1‑108Q is a system that connects twelve 9‑qubit chiplets. The median two‑qubit gate fidelity was 99.5% across all 108 qubits, 99.6% on an 80‑qubit sublattice, and 99.7% on a 50‑qubit sublattice. The company is targeting, by mid‑2028, a system with more than 300 qubits, a median two‑qubit gate fidelity of about 99.7%, and gate speeds under 60 ns. Rigetti also signed an R&D support agreement with the U.S. Department of Commerce for up to $100 million. The funding focuses on three areas: compact readout electronics, new cryostat configurations to expand ultra‑low‑temperature capacity, and manufacturing capability for highly connected chips; the Department acquired a minority, non‑controlling equity stake.

Key points

• Q3 2026 revenue was $1.4 million; operating loss was $33.2 million; GAAP net loss was $3.1 million.
• Revenue for Jan–Sep 2026 was $10.9 million, an increase of about 110% year‑over‑year.
• Cepheus‑1‑108Q achieved a median two‑qubit gate fidelity of 99.5% across all 108 qubits.
• Rigetti signed an R&D support agreement with the U.S. Department of Commerce for up to $100 million to advance readout, cryogenics, and manufacturing.
• Targeting a system of more than 300 qubits with ~99.7% median two‑qubit fidelity and gate speeds under 60 ns by mid‑2028.

Technical and business implications

The fidelity improvement at the 108‑qubit scale provides data to validate a design approach that connects multiple chiplets to scale superconducting QPUs. The Department of Commerce’s funding targets—readout, cryogenics to expand low‑temperature capacity, and manufacturing—align with the company’s roadmap for scaling. However, the company has not clarified how the reported performance metrics translate into commercial performance or quantum advantagequantum advantage量子優位性 / Quantum Advantage / Quantum Computational AdvantageFor a particular problem, a quantum computer demonstrates a practical advantage over classical computation in terms of speed, accuracy, cost, etc.QI NoteNot necessarily synonymous with "quantum supremacy"; the term is often used to include practical usefulness. When evaluating claims, check the classical methods used for comparison and the evaluation metrics., and operating losses still substantially exceed revenue.

What to watch next

First, whether customer acceptance and revenue recognition for the C‑DAC system—assumed in the roughly $20 million full‑year revenue guidance—materialize will be critical. On the technical side, whether the planned >300‑qubit system targeted for mid‑2028 can simultaneously achieve ~99.7% median two‑qubit fidelity and sub‑60 ns gate speeds is an important milestone. In addition, receipt of funds under the Department of Commerce agreement and R&D progress across the three targeted areas, along with concretizing plans to scale toward ~1,000 qubits, will be key evaluation points.

✍️ Quantum Index Analysis

Rigetti’s Q3 2026 results illustrate that technical development of quantum computers continues to advance, while commercialization‑driven revenue growth lags. Year‑to‑date revenue for Jan–Sep rose 110% year‑over‑year, but Q3 alone saw about a 28% revenue decline. Operating loss widened from roughly $20.5 million in the prior‑year quarter to about $33.2 million. Although GAAP net loss was limited to $3.1 million, that figure includes an approximately $25.3 million gain from revaluation of warrant liabilities, so core operating profitability has not improved.

On the balance sheet, Rigetti held about $497.1 million in cash and marketable investments at the end of September and has no interest‑bearing debt, so there is not an immediate liquidity crisis. However, operating cash outflow for Jan–Sep 2026 was about $49.06 million and capital expenditures were about $42.6 million, consuming roughly $91.66 million in total cash over the nine months. Capital spending has roughly tripled from about $14.1 million in the prior‑year period, indicating significant investment not only in R&D but also in manufacturing and cryogenic infrastructure.

Financial metric	Jan–Sep 2026
Revenue	$10.95 million
Operating cash outflow	$49.06 million
Capital expenditures	$42.60 million
Cash consumed by operating CFoperating CFOperating Cash Flow / Cash Flow from Operating Activities / Operating Cash Flow / Cash Flow from Operating ActivitiesAn indicator that shows the net difference between the cash actually received and the cash actually paid by a company as a result of its core operating activities.QI NoteOperating cash flow can be negative even when operating profit is positive. When assessing a company's financial capacity, you should check not only profits but also whether the company is consistently generating cash. + capex	$91.66 million
Cash & investments at end of Sep	$497.10 million
Implied cash runway (simple calculation)	About 4.1 years

The roughly 4.1‑year implied runway is a simple calculation assuming the nine‑month cash consumption pace continues and does not account for potential increases in future spending. Rigetti’s partnership with Quanta Computer commits Quanta to invest at least $250 million in the quantum computing space over five years beginning February 2025. That commitment includes typical R&D and capital spending, so it is not necessarily additive to current expenditures in full; however, if Fab‑1 upgrades and new manufacturing equipment proceed, cash consumption could increase further.

From a technical perspective, achieving a median 99.5% two‑qubitqubitQubit / Quantum Bit / QubitThe basic unit of information in a quantum computer. It can represent not only 0 or 1 but also a quantum state that is a superposition of them.QI NoteHaving more qubits does not necessarily mean higher performance. Error rates, connectivity, coherence time, and the number of logical qubits are also important. fidelity on a 108‑qubit system built from twelve chiplets is notable. Maintaining performance while combining multiple chips is one of the key challenges for scaling superconducting quantum computers. At the same time, 99.5% fidelity corresponds to an error rate of roughly 0.5%, which remains far from the levels required for large‑scale quantum error correctionquantum error correction量子誤り訂正 / Quantum Error Correction / QECA technique that distributes information across multiple physical qubits and detects and corrects errors without directly disturbing the quantum state.QI NoteSimply implementing it does not automatically provide practical fault tolerance. What matters is whether the logical error rate is improved relative to the physical error rate.—further improvements will be necessary. The reported median alone does not reveal inter‑chiplet connection performance or whether deep quantum circuits can be executed stably.

The earnings release emphasizes fidelity improvements for the 108‑qubit system, but technical progress does not automatically equate to commercial success. Given Q3 revenue decline and widening operating losses, the key question is when and to what extent R&D investments will translate into meaningful revenue growth.

The up‑to‑$100 million R&D support from the U.S. Department of Commerce is positive, but disbursements are tied to eligible expenditures and do not immediately increase unrestricted cash in a lump sum. The government’s participation also involved the issuance of equity to the Department, meaning the support is accompanied by share issuance.

Rigetti’s central challenge is less the headline size of its cash balance than whether it can establish commercial revenues sufficient to justify the scale of R&D and capital investment. Commercializing quantum computers takes time, so short‑term losses are not necessarily problematic. However, at current revenue levels the business is far from self‑funding these investments, and dependency on capital markets is likely to continue. Delivering the >300‑qubit system targeted for mid‑2028 while securing customer acceptance of the C‑DAC system, additional orders, and steady revenue growth will determine future funding needs and dilutiondilutionDilution / Dilution / Shareholder Dilution / Equity DilutionAn increase in the number of shares—such as through the issuance of new shares—that causes existing shareholders' ownership percentage and the value per share to be relatively reduced.QI NoteCan occur through issuance of new shares for fundraising or through stock options, among other mechanisms. You should check not only the amount raised but also the number of shares after issuance and the resulting change in existing shareholders' ownership. risk.

Related QI articles
【Continuously updated】Q3 2026 earnings roundup for nine leading quantum companies — dates, results, and highlights

NETWORKView the industry network around Rigetti →

Related articles

• IQM Q3 2026 revenue up 51% — backlog tops €100M, cash position healthy
• Rigetti signs up‑to‑$100M final agreement with U.S. Department of Commerce to bolster readout, cooling, and manufacturing
• Pasqal H1 2026 revenue €4.9M — assessing commercialization relative to public quantum peers

Source

Read the company’s press release