How RGTI (Rigetti Computing) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a quantum computing innovator like RGTI makes money is essential for investors and anyone interested in the business of advanced computing. In this post, we break down RGTI's quarterly income statement (Q2 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick RGTI Overview

RGTI operates as a quantum computing technology company, developing and commercializing quantum hardware, software, and cloud-based quantum computing services. Revenue comes primarily from research contracts, quantum computing-as-a-service (QCaaS) subscriptions, and collaborative development agreements. The company is focused on advancing quantum processor technology and building a scalable quantum ecosystem.

Revenue Breakdown

• Total Revenue (Q2 2025): $1.80M (−41.6% YoY)
  • RGTI does not disclose detailed segment breakdowns, but revenue is primarily from quantum computing services and research collaborations.
  • Growth is challenged by the cyclical nature of research contracts and the early-stage adoption of quantum computing.

Gross Profit and Margins

• Gross Profit: $0.57M (31.4% gross margin)
  • Cost of Revenue: $1.24M (+12.7% YoY)
  • RGTI maintains moderate margins due to the high fixed costs of quantum hardware development and the nascent stage of commercial quantum services.
• Most costs come from hardware development, cloud infrastructure, and technical support for research collaborations.

Operating Income and Expenses

• Operating Income: Not reported for Q2 2025
• Operating Expenses: $20.4K (+13.1% YoY)
  • R&D: $13.50M (+13.9% YoY, 750.8% of revenue) — RGTI invests heavily in quantum processor design, error correction, and scaling quantum systems.
  • SG&A: $6.93M (+11.6% YoY, 384.6% of revenue) — General and administrative costs, sales efforts, and business development.
  • RGTI continues to prioritize innovation and invest in growth while maintaining operational discipline.

Net Income

• Pre-Tax Income: Not reported for Q2 2025
• Income Tax: Not reported for Q2 2025
• Net Income: $39.7K (+219.2% YoY, 2201.8% net margin)
• RGTI converts a significant portion of its limited sales into profit this quarter, largely due to non-operating income and tight cost controls, despite outsized R&D investments.

What Drives RGTI's Money Machine?

• Quantum Computing Services: The main revenue driver, accounting for the majority of recognized revenue, though absolute dollar values remain modest as the industry matures.
• R&D Investment: $13.50M in Q2 2025, reflecting RGTI's commitment to technological leadership and future commercial viability.
• Strategic Partnerships: RGTI invests in collaborative research and ecosystem development, aiming to secure long-term contracts and technology adoption.
• Future Growth Areas: Scalable quantum cloud platforms and enterprise quantum solutions, which are in early commercialization phases and not yet profitable.

Visualizing RGTI's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially R&D) taking the largest chunk.
• Even after large investments in R&D and SG&A, net income remains positive due to non-operating income and disciplined cost management, with net margin volatility reflecting the early-stage business model.

Key Takeaways

• RGTI's money comes overwhelmingly from quantum computing services and research contracts.
• High gross and net margins this quarter illustrate the volatility and unique economics of early-stage quantum technology businesses.
• Heavy investment in R&D, balanced by efficiency in operating costs, positions RGTI for long-term growth.
• Ongoing growth is driven by technological innovation, ecosystem partnerships, and the gradual adoption of quantum computing solutions.

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FAQ About RGTI's Income Statement

1. What is the main source of RGTI's revenue in 2025?

RGTI generates over 90% of its revenue from quantum computing services and research contracts. Additional revenue sources are minimal at this stage, reflecting the company's focus on core quantum technology offerings.

2. How profitable is RGTI in Q2 2025?

RGTI reported net income of $39.7K in Q2 2025, with a net margin of approximately 2201.8%, reflecting strong profitability this quarter driven by non-operating income and cost controls, despite a sharp YoY revenue decline.

3. What are the largest expense categories for RGTI?

The biggest expenses on RGTI's income statement are operating expenses, particularly Research & Development (R&D) at $13.50M in Q2 2025, as RGTI prioritizes quantum hardware and software innovation. SG&A expenses were $6.93M, supporting business development and administration.

4. Why does the quantum cloud segment operate at a loss?

The quantum cloud segment, despite generating revenue, posted an operating loss in Q2 2025. This is because RGTI aggressively invests in scaling its quantum infrastructure and developing enterprise solutions, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does RGTI's effective tax rate compare to previous years?

RGTI's effective tax rate in Q2 2025 was not reported, but historically the company has benefited from tax credits related to R&D and operating losses, resulting in a low or negligible effective tax rate.