Rigetti Computing (RGTI) AI Stock Analysis

• Market Cap: $3.05B
• Dividend Yield: N/A
• Average Volume (3M): 32.16M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.33
• Revenue Growth: -10.15%
• EPS Growth: -67.68%
• Country: US
• Employees: 137
• Sector: Technology
• Sector Strength: 68
• Industry: Computer Hardware
• EPS (TTM): -0.96
• Shares Outstanding: 286,980,500
• 10 Day Avg. Volume: 26,644,017
• 30 Day Avg. Volume: 32,163,288
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 574.17
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15.50
• Price Target Upside: 45.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Rigetti's overall stock score reflects a company with promising strategic initiatives and technological advancements, yet facing substantial financial and operational hurdles. Positive equity and strategic partnerships offer potential upside, but persistent losses and revenue decline are key risks.

Positive Factors

Financial Performance

The balance sheet was significantly strengthened with approximately $217 million in cash, providing financial stability and runway for future developments.

Partnerships

The partnership with Quanta is a significant validation of Rigetti's approach, as Quanta's extensive evaluation concluded that superconducting gate-based systems are the optimal technology.

Technological Advancements

Significant progress in qubit fidelity has been achieved, reaching 99.5% from the mid-90s in just two years, with a path to further reduce error rates to 99.7% near-term.

Negative Factors

Revenue

Revenue came in slightly below model as re-authorization of the DOE Quantum Leadership Act is awaited.

Rigetti Computing Business Overview & Revenue Model

Company Description

Rigetti Computing, Inc. (RGTI) is a pioneering company in the quantum computing sector, known for its development and deployment of quantum integrated circuits and cloud-based quantum computing platforms. Founded in 2013, the company focuses on advancing quantum computing technology to solve complex problems across various industries, including pharmaceuticals, finance, and artificial intelligence. Rigetti's flagship product, Forest, is a full-stack quantum computing platform that enables developers to build and run quantum algorithms on Rigetti's cloud-based quantum processors.

How the Company Makes Money

Rigetti Computing generates revenue primarily through offering quantum computing services via its cloud platform, where customers pay for access to Rigetti's quantum processors to execute algorithms and perform complex computations. The company also enters into research and development collaborations with academic institutions, government agencies, and corporations, which can provide additional revenue streams through partnerships and funded projects. Additionally, Rigetti may engage in technology licensing and consulting services, leveraging its expertise in quantum computing to assist clients in integrating quantum solutions into their operations.

Rigetti Computing Financial Statement Overview

Summary

Rigetti Computing's financial performance is concerning, with significant net losses, negative cash flows, and declining revenues. The balance sheet shows some stability with positive equity, but operational inefficiencies need to be addressed.

Income Statement

Rigetti Computing's income statement reveals a challenging financial landscape. The gross profit margin has been relatively high, but the company has been facing significant net losses, impacting the net profit margin negatively. Revenue has declined over the last year, and both EBIT and EBITDA margins are deeply negative, indicating operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet shows a mixed picture. Rigetti Computing has a positive equity position, with stockholders' equity surpassing total liabilities, which is a positive sign. However, the debt-to-equity ratio is relatively low, indicating potential leverage. The equity ratio indicates that the company is primarily financed by equity, reducing financial risk but also limiting growth opportunities through debt financing.

Cash Flow

The cash flow statement highlights concerns about cash generation. Operating cash flows are negative, which, combined with negative free cash flow, suggests challenges in sustaining operations without external financing. However, the company's ability to secure financing is a positive aspect, enabling it to continue its operations despite cash outflows.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Mar 2021
Income Statement		Total Revenue
10.79M	12.01M	13.10M	8.20M	5.54M
	Gross Profit
5.70M	9.21M	10.23M	1.92M	4.05M
	EBIT
-68.51M	-72.30M	-103.70M	-34.13M	-35.09M
	EBITDA
-190.83M	-61.90M	-58.68M	-31.13M	-35.09M
	Net Income Common Stockholders
-200.99M	-75.11M	-36.49M	-38.24M	-17.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
67.67M	99.93M	142.81M	11.73M	22.20M
	Total Assets
284.79M	159.91M	203.44M	46.43M	49.68M
	Total Debt
8.80M	30.57M	39.14M	24.79M	0.00
	Net Debt
-58.87M	9.17M	-18.75M	13.06M	-22.20M
	Total Liabilities
158.20M	50.33M	53.22M	117.96M	85.11M
	Stockholders Equity
126.59M	109.59M	150.22M	-71.53M	-35.43M
Cash Flow		Free Cash Flow
-61.73M	-59.64M	-85.43M	-36.30M	-34.47M
	Operating Cash Flow
-50.63M	-50.58M	-62.69M	-29.29M	-30.07M
	Investing Cash Flow
-78.36M	773.00K	-107.02M	-7.01M	-4.40M
	Financing Cash Flow
175.46M	13.23M	215.45M	25.83M	56.29M

Rigetti Computing Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGTI, the sentiment is Positive. The current price of 10.63 is above the 20-day moving average (MA) of 8.83, above the 50-day MA of 8.92, and above the 200-day MA of 5.76, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 63.38 is Neutral, neither overbought nor oversold. The STOCH value of 65.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RGTI.

Rigetti Computing Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$10.94B	10.58	-7.08%	2.98%	7.52%	-12.04%
RGTI	50 Neutral	$3.05B	―	-170.20%	―	-10.15%	-67.68%
IONQ	50 Neutral	$7.53B	―	-76.34%	―	95.41%	-97.85%
QUBT	50 Neutral	$1.10B	―	-77.89%	―	4.19%	-65.44%
QBTS	47 Neutral	$2.30B	―	-753.98%	―	0.79%	-10.85%

Rigetti Computing Corporate Events

Rigetti Computing Announces Board of Directors Changes

Rigetti Computing announced that Cathy McCarthy will not seek re-election as a Class III director at the company’s 2025 Annual Meeting of Stockholders. To maintain balance among board classes, Ray O. Johnson, currently a Class I director, has been nominated to stand for election as a Class III director, with his resignation from Class I contingent upon his election.

Rigetti Computing CEO Discusses Quantum Industry Outlook

On February 28, 2025, Rigetti Computing’s CEO, Dr. Subodh Kulkarni, discussed the company’s collaboration with Quanta Computer Inc. and the state of the quantum computing industry during an interview on Bloomberg Television. He highlighted that Rigetti ended 2024 with $220 million in cash and no debt, providing a financial runway for three to four years, potentially leading to a cash flow positive situation.

Cathy McCarthy to Depart Rigetti Board in 2025

Cathy McCarthy has announced she will not seek re-election to Rigetti Computing’s Board of Directors after her term ends at the 2025 Annual Meeting of Stockholders. Her departure is amicable and unrelated to any company disagreements, and her unvested restricted stock units will vest prior to the meeting.

Rigetti Computing Partners with Quanta for Quantum Leap

On February 27, 2025, Rigetti Computing entered a strategic collaboration with Quanta Computer to accelerate the development and commercialization of superconducting quantum computing. Both companies committed to investing over $100 million each over five years, with Quanta also investing $35 million in Rigetti through a private placement. This collaboration aims to leverage Rigetti’s quantum technology and Quanta’s manufacturing capabilities to strengthen their position in the rapidly growing quantum computing market, expected to reach $1-2 billion annually by 2030.