Rigetti Computing, Inc. is a pioneer in the quantum computing industry, operating as a full-stack enterprise that designs, develops, and fabricates superconducting quantum processors and integrates them into complete quantum computing systems. Founded in 2013 by physicist Chad Rigetti, the company has established itself as a leader in the field, ...Rigetti Computing, Inc. is a pioneer in the quantum computing industry, operating as a full-stack enterprise that designs, develops, and fabricates superconducting quantum processors and integrates them into complete quantum computing systems. Founded in 2013 by physicist Chad Rigetti, the company has established itself as a leader in the field, with a focus on building scalable, high-performance quantum hardware. Rigetti's core products include quantum processing units (QPUs) ranging from 9-qubit to 108-qubit systems, which are sold both as on-premises systems for national laboratories and research centers, and as cloud-accessible services via its Quantum Cloud Services platform. The company's proprietary technology enables users to execute quantum algorithms through public, private, or hybrid cloud environments, making quantum computing more accessible to a broader range of researchers and developers.
Rigetti's business model combines hardware sales, cloud-based access, and software services. The company generates revenue primarily through the sale of quantum systems, government contracts, and cloud services. As of the latest TTM data, Rigetti has a market capitalization of approximately $5.96 billion, with an enterprise value of $5.94 billion. The company's financial metrics indicate that it is in a growth phase, with significant investments in research and development, as evidenced by its R&D-to-revenue ratio of 5.47. Despite negative profitability ratios, including a net profit margin of -17.87%, Rigetti continues to attract investor interest due to its disruptive potential in the emerging quantum computing market.
Key leadership under CEO Subodh K. Kulkarni, who took the helm in December 2022, has steered the company toward commercializing its technology. The company's cost structure includes substantial capital expenditures for manufacturing and R&D, with a capital expenditure-to-revenue ratio of 2.34. Financial ratios such as a current ratio of 3.94 indicate strong liquidity, while a debt-to-equity ratio of 0.014 shows minimal leverage. Rigetti's future outlook hinges on advancing its quantum processor technology, scaling production, and establishing strategic partnerships. With ongoing innovations and commitments from federal and research institutions, Rigetti aims to position itself as a central player in the quantum revolution, addressing complex problems in drug discovery, materials science, and cryptography.
Operator: Good day, and thank you for standing by. Welcome to the Rigetti Computing Second Quarter 2026 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Subodh Kulkarni, CEO of Rigetti. Please go ahead.
Subodh Kulkarni: Good afternoon, and thank you for joining us for Rigetti's Second Quarter 2026 Earnings Conference Call. I'm pleased to be joined today by our Chief Financial Officer, Jeffrey Bertelsen who will walk you through our financial results in more detail following my overview. We appreciate your continued interest in Rigetti and look forward to answering your questions at the conclusion of our prepared remarks. Before we begin, I would like to remind everyone that today's call, along with our second quarter 2026 press release, contains forward-looking statements. These statements reflect our current expectations, objectives and underlying assumptions regarding our outlook and future operating results and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. These risks and uncertainties are described in more detail in our filings with the Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2025, our Form 10-Q filing for the quarter ended June 30, 2026, and other periodic reports filed from time to time with the SEC. Rigetti undertakes no obligation to update any forward-looking statements made during this call, except as required by law. During today's call, we will refer to certain non-GAAP financial measures. For details on these measures and reconciliations to comparable GAAP measures, please refer to today's earnings release on our Investor Relations website at www.rigetti.com and to the 8-K furnished with the SEC. Before I dive into the quarter, I want to frame our discussion around 3 key takeaways. First, we continue to demonstrate technical leadership with our Cepheus-class systems, including ongoing progress to improve the performance of our 108Q, Cepheus-1-108Q platform. Second, the letter of intent we signed with the U.S. Department of Commerce for up to $100 million in funding over 3 years further validates our superconducting chiplet-based approach and strengthens our ability to invest against our road map to Quantum advantage. Third, we recently announced an expanded collaboration with HPE and the Pittsburgh Supercomputing Center to develop a hybrid quantum classical supercomputer, reflecting growing demand for our approach and positioning Rigetti to deliver differentiated quantum-enhanced HPC solutions. Q2 was another important proof point in our strategy to combine technical progress with real-world access and long-term strategic partnerships. Quantum computing remains a long-cycle opportunity, but we are increasingly seeing the ecosystem coalesce around platforms that can scale …