Rigetti Computing (RGTI) AI Stock Analysis

• Market Cap: $4.91B
• Dividend Yield: N/A
• Average Volume (3M): 43.92M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.16
• Revenue Growth: -37.20%
• EPS Growth: -58.82%
• Country: US
• Employees: 137
• Sector: Technology
• Sector Strength: 87
• Industry: Computer Hardware
• EPS (TTM): -0.05
• Shares Outstanding: 324,165,160
• 10 Day Avg. Volume: 40,610,323
• 30 Day Avg. Volume: 43,917,691
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 393.64
• Enterprise Value/Gross Profit: 970.32
• Enterprise Value/Ebitda: -15.25
• 1Y Price Target: $18.83
• Price Target Upside: 27.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 49 Neutral
• Price Target: $16.50 ▲(11.79% Upside)

Rigetti Computing's overall stock score is primarily impacted by its poor financial performance, with declining revenues and profitability issues being major concerns. While technical analysis shows some positive momentum, the valuation remains unattractive due to negative earnings. The earnings call provided some positive technological advancements, but financial challenges remain significant.

Positive Factors

Funding and Liquidity

Rigetti Computing added $350M to the balance sheet, resulting in $570M in cash, providing substantial liquidity for continued investment towards commercialization.

Product Development

The successful release of the Cepheus-1 system marked the launch of the industry's largest multi-chip quantum processor and met important performance targets.

Technological Milestones

Rigetti Computing is on schedule to deliver a 100-qubit multi-chiplet QPU with 99.5% two-qubit gate fidelity by year-end, an important milestone on the path to quantum advantage.

Negative Factors

Market Timing

Indicated quantum advantage is still ~4 years away.

Revenue Impact

2Q revenue was mostly in-line with expectations, but sales were negatively impacted by the expiration of a key agreement.

Rigetti Computing Business Overview & Revenue Model

Company Description

Rigetti Computing, Inc. (RGTI) is a pioneering company in the field of quantum computing. It operates in the technology sector, specifically focusing on the development and commercialization of quantum computing hardware and software. The company's core products include quantum processors and a cloud-based platform, Quantum Cloud Services, which enables users to access quantum computing capabilities over the internet. Rigetti's innovations are aimed at solving complex computational problems that are beyond the reach of classical computers, targeting industries such as pharmaceuticals, finance, and materials science.

How the Company Makes Money

Rigetti Computing primarily generates revenue through its Quantum Cloud Services platform, which allows customers to access its quantum processors on a pay-per-use or subscription basis. This platform serves as a key revenue stream by providing cloud-based quantum computing resources to businesses, researchers, and developers. Additionally, Rigetti engages in partnerships and collaborations with academic institutions, government agencies, and private enterprises, which can lead to funded research projects and joint ventures, contributing to its revenue. The company may also receive grants or contracts from governmental bodies for advancing quantum computing technologies. Rigetti's earnings are significantly influenced by its ability to continuously innovate and improve its quantum computing capabilities, maintaining a competitive edge in this rapidly evolving sector.

Rigetti Computing Financial Statement Overview

Summary

Rigetti Computing faces significant financial challenges, with declining revenue, negative profit margins, and cash flow issues. Despite a low debt level, the company must improve profitability and cash generation to enhance its financial health.

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: 14.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 14.76 is below the 20-day moving average (MA) of 15.62, above the 50-day MA of 14.11, and above the 200-day MA of 10.45, indicating a neutral trend. The MACD of 0.33 indicates Positive momentum. The RSI at 43.91 is Neutral, neither overbought nor oversold. The STOCH value of 10.87 is Positive, 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 *	59 Neutral	€6.32B	13.11	2.05%	2.04%	2.92%	-49.70%
QUBT	51 Neutral	$2.38B	―	-32.63%	―	-21.56%	-103.08%
RGTI	49 Neutral	$4.91B	―	-48.81%	―	-37.20%	-58.82%
QBTS	48 Neutral	$5.24B	―	-83.70%	―	120.20%	-143.95%
IONQ	45 Neutral	$10.92B	―	-57.06%	―	67.83%	-154.69%

Rigetti Computing Corporate Events

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.

Rigetti Computing Achieves Milestone in Quantum Fidelity

On July 16, 2025, Rigetti Computing announced it achieved a significant milestone by reaching a 99.5% median two-qubit gate fidelity on its modular 36-qubit system. This achievement marks a 2x reduction in error rate compared to their previous 84-qubit system, indicating a substantial improvement in their quantum computing capabilities.

Rigetti Computing Elects Directors at Annual Meeting

On June 10, 2025, Rigetti Computing held its Annual Meeting of Stockholders where two Class III Directors, Michael Clifton and Ray Johnson, were elected to serve until 2028. Additionally, the stockholders ratified the appointment of BDO USA, P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

Rigetti Computing Completes $350 Million Equity Offering

On June 11, 2025, Rigetti Computing announced the completion of its $350 million at-the-market equity offering program, resulting in approximately $575 million in cash and investments with no debt. The proceeds will be used for working capital, capital expenditures, and potential strategic collaborations, positioning Rigetti to support the commercial scale-up of its superconducting gate-based quantum computers.

Rigetti Computing Announces New Stock Sale Agreement

On May 29, 2025, Rigetti Computing entered into an Open Market Sale Agreement with Jefferies LLC for an ‘at-the-market’ offering program, allowing the company to issue and sell shares of its common stock up to $350 million. This agreement provides Rigetti with flexibility in raising capital, potentially impacting its financial strategy and market positioning.