How RGTI (Rigetti Computing) Makes Money in 2026: A Deep-Dive With Income Statement

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Understanding how a quantum computing technology company like RGTI makes money is essential for investors and anyone interested in the business of quantum computing. In this post, we break down RGTI's quarterly income statement (Q3 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 company focused on developing and commercializing quantum processors and related hardware. Revenue comes primarily from sales of quantum computing systems, components, and related services in the emerging quantum technology market. As a pre-commercial stage firm in a high-tech sector, RGTI's business model emphasizes R&D-intensive growth with limited but growing revenue streams.

Revenue Breakdown

• Total Revenue (Q3 2025): $1.9M (-18.1% YoY)
  • No detailed segment breakdown available; revenue primarily from quantum hardware and services.
  • Growth is powered by early adoption in quantum computing applications, though facing headwinds from market ramp-up and competition.

Gross Profit and Margins

• Gross Profit: $0.4M (20.7% gross margin)
  • Cost of Revenue: $1.5M (+31.4% YoY)
  • RGTI maintains moderate margins due to high production costs in specialized quantum hardware manufacturing and scaling challenges in an nascent industry.
• Most costs come from manufacturing quantum chips, materials, and direct service delivery.

Operating Income and Expenses

• Operating Income: Not specified (implied negative based on high expenses relative to gross profit)
• Operating Expenses: $5.4M (+13.0% YoY)
  • R&D: $0.02M (+17.8% YoY, 771.4% of revenue) — Investments in quantum processor development, algorithm research, and prototype testing to advance core technology.
  • SG&A: $5.4M (-2.3% YoY, 304.7% of revenue) — Covers administrative overhead, sales efforts, and general operations in a growth-focused tech firm.
  • RGTI continues to prioritize innovation while expanding operations amid heavy R&D and overhead in early-stage quantum commercialization.

Net Income

• Pre-Tax Income: Not specified
• Income Tax: Not specified (0% effective tax rate implied)
• Net Income: $0.2M (+1254.9% YoY, 10321.9% net margin)
• RGTI converts a significant portion of sales into profit due to other income sources offsetting operational losses, highlighting non-core financial boosts in this development-stage company.

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What Drives RGTI's Money Machine?

• Quantum hardware sales: Core revenue driver, though small at $1.9M total, representing early commercialization efforts.
• Other income: $0.2M, critical metric enabling positive net income despite operating losses.
• R&D investments: Heavy focus on quantum chip tech and scaling, with expenses far exceeding revenue.
• Future growth areas: Quantum-as-a-service platforms and partnerships, though 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 SG&A) taking the largest chunk.
• Even after significant costs, 10321.9% of revenue drops to the bottom line due to other income.

Key Takeaways

• RGTI's money comes overwhelmingly from quantum hardware and services
• High gross and net margins illustrate the power of RGTI's development-stage financing and other income
• Heavy investment in R&D, balanced by efficiency in operating costs
• Ongoing growth is driven by quantum technology advancements

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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 100% of its revenue from quantum computing hardware and services. No significant additional revenue sources detailed.

2. How profitable is RGTI in Q3 2025?

RGTI reported net income of $0.2M in Q3 2025, with a net margin of approximately 10321.9%, reflecting strong profitability driven by other income despite operational losses.

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) and Sales, General & Administrative (SG&A) costs. R&D investment reached $0.02M in Q3 2025, as RGTI prioritizes quantum processor development.

4. Why does the core business operate at a loss?

Core operations, despite generating $1.9M in revenue, show implied losses with operating expenses of $5.4M in Q3 2025. This is because RGTI aggressively invests in R&D and scaling quantum tech, believing these will drive long-term growth—even if unprofitable today.

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

RGTI's effective tax rate in Q3 2025 was 0%, consistent with previous years. This low rate is primarily due to net operating loss carryforwards and development-stage status.