Quantum computing company Rigetti Computing (RGTI) is scheduled to report its results for the first quarter of 2025 after the market closes on Monday, May 12. Despite growing competition in the quantum computing space, analysts remain upbeat about the company’s growth due to its meaningful progress on its quantum roadmap. RGTI stock has surged approximately 705% over the past year, driven by growing investor interest in next-gen computing. Overall, analysts currently rate RGTI stock as a Strong Buy ahead of the release.
What to Expect from RGTI’s Q1 Earnings
Wall Street analysts expect Rigetti to report a narrower loss per share of $0.05 in Q1 2025, compared to $0.14 in the prior-year quarter. However, the company’s revenue for Q1 2025 is projected to decline about 16% year-over-year to $2.6 million. It’s worth noting that Rigetti has missed earnings estimates six times in the past nine quarters.
Rigetti Takes on Quantum Heat With Cool New Tech
Ahead of its Q1 earnings, Rigetti, in collaboration with Dutch startup QphoX and the UK’s National Quantum Computing Centre (NQCC), has received a multinational grant to develop and scale a new method for reading superconducting qubits using light instead of wires. This technology will transmit light through optical fibers, replacing bulky cables, and could help reduce heat in quantum machines, which must operate at extremely low temperatures.
If successful, this innovation could allow Rigetti to pack more qubits into its systems, moving closer to building reliable, large-scale quantum computers.
RGTI Is Not Yet Profitable
Rigetti is making progress, but it’s not profitable yet. The company posted a net loss of $153.0 million in Q4 2024, with much of that loss attributed to non-cash items, such as changes in warrant values.
Despite these losses, the company’s cash position remains strong. Rigetti ended the year with $217.2 million in cash and investments, providing some financial cushion for its operations. At the same time, Rigetti is actively working on cost-cutting measures and maintaining focus on its technology goals, including plans to develop a 100-qubit system by late 2025.
Options Traders Anticipate Major Move on RGTI’s Q1 Earnings
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about 18.23% move in either direction in reaction to RGTI’s Q1 2025 results.
Is RGTI Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on RGTI stock based on six unanimous Buys assigned in the past three months, as indicated by the graphic below. The average RGTI stock price target is $15.50, implying upside potential of 50.34%.
