Rigetti Computing (NASDAQ:RGTI) shares slid more than 8% on Tuesday morning after the company reported lower-than-expected revenue for the first quarter ended March 31, 2025.

Warning! GuruFocus has detected 5 Warning Signs with RGTI.Rigetti Computing Stock Plunges After Q1 Revenue Misses Forecasts

The quantum computing firm posted revenue of $1.5 million, well below the $2.6 million forecast by analysts. Operating expenses came in at $22.1 million, leading to a $21.6 million operating loss for the period.

Despite that, Rigetti posted net income of $42.6 million for the quarter, driven largely by $62.1 million in non-cash gains tied to revaluation of derivative warrant and earn-out liabilities. On an adjusted basis, earnings reached $0.13 per share, swinging from a $0.14 loss a year earlier. Wall Street had projected a $0.05 loss.

As of March 31, cash, equivalents, and investments totaled $209.1 million. That figure rose to $237.7 million by the end of April after Taiwan-based Quanta Computer purchased $35 million worth of shares.

Rigetti continues to invest in superconducting quantum systems and has secured government-funded projects in both the U.S. and U.K. The company said its modular architecture aims to scale toward higher qubit counts over time.

This article first appeared on GuruFocus.

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