Rigetti Computing (RGTI) AI Stock Analysis

• Market Cap: $11.40B
• Dividend Yield: N/A
• Average Volume (3M): 114.88M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.91
• Revenue Growth: -37.20%
• EPS Growth: -58.82%
• Country: US
• Employees: 137
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): -0.05
• Shares Outstanding: 324,165,160
• 10 Day Avg. Volume: 86,800,820
• 30 Day Avg. Volume: 114,883,524
• PEG Ratio: -0.15
• Price to Book (P/B): 22.26
• Price to Sales (P/S): 261.17
• P/FCF Ratio: -45.65
• Enterprise Value/Market Cap: 0.27
• Enterprise Value/Revenue: 393.64
• Enterprise Value/Gross Profit: 970.32
• Enterprise Value/Ebitda: -15.25
• 1Y Price Target: $32.00
• Price Target Upside: -9.04% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): -0.29
• Revenue Forecast (FY): $8.14M

• Rating: 49 Neutral
• Price Target: $44.00 ▲(25.07% Upside)

Rigetti Computing's overall stock score reflects significant financial challenges, including declining revenues and negative profit margins, which weigh heavily on its financial performance score. Technical analysis provides some positive signals with short-term bullish momentum, but valuation remains a concern due to unprofitability. The earnings call highlighted technological advancements, yet financial issues overshadow these achievements. The company must focus on improving profitability and cash generation to enhance its stock attractiveness.

Positive Factors

Technological Advancements

The development of the Cepheus-1-36Q, with improved fidelity and reduced error rates, positions Rigetti as a leader in quantum computing technology, enhancing its competitive advantage and long-term growth potential.

Financial Positioning

The significant capital raise strengthens Rigetti's balance sheet, providing financial resources to support commercial scale-up and strategic initiatives, which is crucial for long-term business sustainability.

Strategic Partnerships

The partnership with Quanta enhances Rigetti's technological capabilities and market reach, potentially leading to innovative solutions and expanded customer base, supporting long-term growth.

Negative Factors

Declining Revenues

The significant drop in revenue highlights challenges in maintaining sales momentum, which could impact Rigetti's ability to fund operations and invest in growth initiatives over the long term.

Decreased Gross Margins

The sharp decline in gross margins indicates increased cost pressures and pricing challenges, which could erode profitability and hinder Rigetti's financial performance if not addressed.

Increased Operating Expenses

Rising operating expenses, driven by salary increases and consulting costs, may strain Rigetti's financial resources, reducing its ability to invest in growth and innovation if revenue does not improve.

Rigetti Computing Business Overview & Revenue Model

Company Description

Rigetti Computing is a leading quantum computing company that specializes in developing quantum processors and software for a wide range of applications. The company operates in the technology sector, focusing on creating quantum computing systems that can solve complex problems beyond the capabilities of classical computers. Rigetti's core products include its quantum processors, quantum cloud services, and a suite of software tools designed for quantum programming and application development.

How the Company Makes Money

Rigetti Computing generates revenue through multiple streams, primarily by offering quantum computing as a service (QCaaS) through its cloud platform, which allows businesses and researchers to access its quantum processors for various computational tasks. Additionally, the company partners with industry leaders and academic institutions to develop custom quantum solutions, which can include consulting services and the sale of proprietary quantum hardware. Strategic collaborations with technology giants and government agencies further enhance its revenue potential by securing funding for joint research and development projects, as well as providing access to broader markets.

Rigetti Computing Financial Statement Overview

Summary

Rigetti Computing is facing significant financial challenges across its income statement, balance sheet, and cash flow. Declining revenues, negative profit margins, and cash flow issues highlight the need for strategic initiatives to stabilize and grow the business. While the low debt level is a positive, the company must improve profitability and cash generation to enhance its financial health and investor confidence.

Income Statement

Rigetti Computing's income statement reveals significant challenges, with declining revenue and negative profit margins. The TTM data shows a revenue decline of 13.95%, and the net profit margin is deeply negative at -20.80%. Gross profit margin has also decreased from previous years, indicating pressure on profitability. The company needs to address these issues to improve its financial health.

Balance Sheet

The balance sheet presents a mixed picture. The debt-to-equity ratio is low at 0.014, suggesting limited leverage, which is a positive aspect. However, the return on equity is negative, indicating that the company is not generating returns for its shareholders. The equity ratio is relatively stable, but the overall financial position needs improvement to ensure long-term sustainability.

Cash Flow

Cash flow analysis shows some improvement in free cash flow growth at 10.58% in the TTM period, but operating cash flow remains negative. The operating cash flow to net income ratio is concerning at -5.16, indicating cash flow challenges. The company must focus on enhancing cash generation to support its operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.92M	10.79M	12.01M	13.10M	8.20M	5.54M
Gross Profit	3.21M	5.70M	9.21M	10.23M	1.92M	4.05M
EBITDA	-204.56M	-190.83M	-61.90M	-58.68M	-31.13M	-30.79M
Net Income	-164.83M	-200.99M	-75.11M	-71.52M	-38.24M	-17.21M
Balance Sheet
Total Assets	636.69M	284.79M	159.91M	203.44M	46.43M	49.68M
Cash, Cash Equivalents and Short-Term Investments	57.18M	192.09M	99.93M	142.81M	11.73M	22.20M
Total Debt	8.01M	8.80M	30.57M	39.14M	24.79M	0.00
Total Liabilities	83.43M	158.20M	50.33M	53.22M	117.96M	85.11M
Stockholders Equity	553.26M	126.59M	109.59M	150.22M	9.99M	-35.43M
Cash Flow
Free Cash Flow	-65.56M	-61.73M	-59.64M	-85.43M	-36.30M	-34.47M
Operating Cash Flow	-53.79M	-50.63M	-50.58M	-62.69M	-29.29M	-30.07M
Investing Cash Flow	-441.06M	-78.36M	773.00K	-107.02M	-7.01M	-4.40M
Financing Cash Flow	531.46M	175.46M	13.23M	215.45M	25.83M	56.29M

Rigetti Computing Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 35.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGTI, the sentiment is Neutral. The current price of 35.18 is below the 20-day moving average (MA) of 43.58, above the 50-day MA of 31.98, and above the 200-day MA of 16.80, indicating a neutral trend. The MACD of 1.28 indicates Positive momentum. The RSI at 45.10 is Neutral, neither overbought nor oversold. The STOCH value of 50.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RGTI.

Rigetti Computing Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
QBTS	52 Neutral	$10.17B	―	-83.70%	―	120.20%	-143.95%
RGTI	49 Neutral	$11.40B	―	-48.81%	―	-37.20%	-58.82%
QUBT	47 Neutral	$2.56B	-20.16	-32.63%	―	-21.56%	-103.08%
IONQ	41 Neutral	$18.55B	-26.46	-57.06%	―	67.83%	-154.69%

Rigetti Computing Corporate Events

Rigetti Computing Partners with India’s C-DAC for Quantum Innovation

On September 2, 2025, Rigetti Computing announced a Memorandum of Understanding with India’s Centre for Development of Advanced Computing (C-DAC) to explore the co-development of hybrid quantum computing systems. This collaboration aims to support government laboratories and academics in quantum computing research and development, focusing on the design and market introduction of hybrid systems and related technologies. The partnership is expected to drive innovation in electronics and information technology, particularly in quantum and hybrid computing, reinforcing India’s position in next-generation technologies.

The most recent analyst rating on (RGTI) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on Rigetti Computing stock, see the RGTI Stock Forecast page.

Rigetti Computing’s Earnings Call: Tech Gains Amid Financial Strains

The recent earnings call for Rigetti Computing Inc. painted a mixed picture for investors, with notable advancements in technology and strategic financial moves being overshadowed by declining revenues and increased losses. While the company is making strides in quantum computing, financial challenges remain a concern.

Rigetti Computing Unveils New Quantum Computer Amid Losses

Rigetti Computing Inc. is a leading company in the quantum computing sector, known for its pioneering work in full-stack quantum-classical computing and its development of scalable quantum processors. The company serves a global clientele through its Rigetti Quantum Cloud Services platform.

Rigetti Computing Updates Corporate Presentation

On August 12, 2025, Rigetti Computing posted an updated corporate presentation on its website, accessible through the ‘Investors’ section. This update is not considered filed under the Exchange Act, nor is it incorporated by reference in SEC filings unless specifically stated.

The most recent analyst rating on (RGTI) stock is a Buy with a $2.00 price target. To see the full list of analyst forecasts on Rigetti Computing stock, see the RGTI Stock Forecast page.