Schulz Duggan(@Schulz_Research):$RGTI $497.1m in cash and investments buys development time; commercial traction still has to justify the roadmap. 1. Results Q3 2026 revenue was $1.411m versus $1.947m a year earlier. Nine-month revenue rose to $10.9m from $5.2m, but that growth masks a weaker quarter. Operating loss widened to $33.2m from $20.5m. GAAP net loss was $3.1m, versus adjusted non-GAAP loss of $20.5m; diluted losses per share were $0.08 and $0.06, respectively. A $25.3m noncash warrant fair-value gain helped GAAP earnings; it does not show operating improvement. September 30 cash and equivalents were $45.799m; the $497.1m total includes short- and long-term available-for-sale investments, down from $541.3m at June 30. Debt was zero. Outstanding shares increased to 342.7m from 331.3m at December 2025: funding capacity does not eliminate dilution. 2. Our reading Resources support continued development, but sales do not yet validate the scaling plan. The 108-qubit system reached 99.5% median two-qubit gate fidelity, up from about 99.1% in Q2. That is better fidelity at the same qubit count, not evidence of customer delivery. Commerce support advanced from a letter of intent to a definitive award of up to $100m, with a minority equity stake granted to the department. The award ceiling is not cash received or product revenue. Management now targets 300-plus qubits, about 99.7% median two-qubit fidelity and gates below 60ns by mid-2028. It retains the roughly three-year target of about 1,000 qubits, about 99.9% two-qubit fidelity and gates below 50ns. These remain forecasts. The approximately $20m 2026 revenue outlook depends on Q4 C-DAC acceptance and recognition. Confirmed acceptance with recognized revenue would strengthen our view of commercialization. 3. Task questions Q1 — Partly answered: revenue is reported; new order totals and completed customer deliveries are not disclosed. Q2 — Partly answered: losses, liquidity and share growth are clear; the Commerce stake percentage is not disclosed. Q3 — Answered: fidelity improved, a mid-2028 scaling target was specified, and conditional annual revenue guidance was provided. 4. Call questions C1: What remains before C-DAC acceptance? C2: What are Commerce's funding conditions, payment schedule and equity percentage?

2026.11.10 21:09

$RGTI $497.1m in cash and investments buys development time; commercial traction still has to justify the roadmap. 1. Results Q3 2026 revenue was $1.411m versus $1.947m a year earlier. Nine-month revenue rose to $10.9m from $5.2m, but that growth masks a weaker quarter. Operating loss widened to $33.2m from $20.5m. GAAP net loss was $3.1m, versus adjusted non-GAAP loss of $20.5m; diluted losses per share were $0.08 and $0.06, respectively. A $25.3m noncash warrant fair-value gain helped GAAP earnings; it does not show operating improvement. September 30 cash and equivalents were $45.799m; the $497.1m total includes short- and long-term available-for-sale investments, down from $541.3m at June 30. Debt was zero. Outstanding shares increased to 342.7m from 331.3m at December 2025: funding capacity does not eliminate dilution. 2. Our reading Resources support continued development, but sales do not yet validate the scaling plan. The 108-qubit system reached 99.5% median two-qubit gate fidelity, up from about 99.1% in Q2. That is better fidelity at the same qubit count, not evidence of customer delivery. Commerce support advanced from a letter of intent to a definitive award of up to $100m, with a minority equity stake granted to the department. The award ceiling is not cash received or product revenue. Management now targets 300-plus qubits, about 99.7% median two-qubit fidelity and gates below 60ns by mid-2028. It retains the roughly three-year target of about 1,000 qubits, about 99.9% two-qubit fidelity and gates below 50ns. These remain forecasts. The approximately $20m 2026 revenue outlook depends on Q4 C-DAC acceptance and recognition. Confirmed acceptance with recognized revenue would strengthen our view of commercialization. 3. Task questions Q1 — Partly answered: revenue is reported; new order totals and completed customer deliveries are not disclosed. Q2 — Partly answered: losses, liquidity and share growth are clear; the Commerce stake percentage is not disclosed. Q3 — Answered: fidelity improved, a mid-2028 scaling target was specified, and conditional annual revenue guidance was provided. 4. Call questions C1: What remains before C-DAC acceptance? C2: What are Commerce's funding conditions, payment schedule and equity percentage?