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Rigetti Computing (RGTI)
NASDAQ:RGTI
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Rigetti Computing
(NASDAQ:RGTI)
Rating:55Neutral
Price Target:
$13.50
▼(-1.82%Downside)
Positive Factors
Awards and Recognition
Rigetti was selected for DARPA’s Quantum Benchmarking Initiative and secured a $5.48 million consortium award to advance its proprietary Alternating Bias Assisted Annealing fabrication.
Strategic Positioning
RGTI is strategically positioned with a compelling architecture, substantial IP moat, and healthy balance sheet to support its efforts.
Technological Advancements
The company's superconducting methodology and modular architecture give it an inherent edge in solving the scalability issue faced by gate-based systems.
Negative Factors
Competition and Challenges
IBM has expressed an interest in adopting the chiplet approach but will likely face challenges navigating RGTI’s rich patent portfolio surrounding the chiplet architecture.
Funding Sources
Near-term revenues are expected to come mainly from recent Department of Defense awards and limited Department of Energy funding, providing some immediate financial inflow.
Rigetti Computing (RGTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.02B
Dividend YieldN/A
Average Volume (3M)53.02M
Price to Earnings (P/E)―
Beta (1Y)2.07
Revenue Growth-28.38%
EPS Growth-29.15%
CountryUS
Employees137
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)-0.08
Shares Outstanding292,442,750
10 Day Avg. Volume37,640,102
30 Day Avg. Volume53,015,146
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.50
Price to Sales (P/S)0.00
P/FCF Ratio-0.87
Enterprise Value/Market Cap0.01
Enterprise Value/Revenue1.25
Enterprise Value/Gross Profit12.04
Enterprise Value/Ebitda-0.11
Forecast
1Y Price Target
$15.00Price Target Upside9.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Rigetti Computing Business Overview & Revenue Model
Company DescriptionRigetti Computing, Inc. operates as an integrated systems company. The company builds quantum computers and the superconducting quantum processors that power them. Its machines are integrated into various public, private, or hybrid clouds through its Quantum Cloud Services platform. The company was founded in 2013 and is based in Berkeley, California.
How the Company Makes MoneyRigetti 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 Key Performance Indicators (KPIs)
Any
Remaining Performance Obligations
Indicates the value of contracted work yet to be completed, providing insight into future revenue streams and the company's ability to deliver on existing commitments.
Indicates the value of contracted work yet to be completed, providing insight into future revenue streams and the company's ability to deliver on existing commitments.
Data provided by:
Main Street Data
Main Street DataRigetti Computing Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 19.05%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
Rigetti's earnings call highlighted significant strategic achievements, including participation in prestigious government projects and securing major investments, which suggest strong future potential. However, these are tempered by immediate financial challenges such as declining revenue, lower gross margins, and increased operating expenses, alongside dependency on government funding. Despite these challenges, the strategic developments and partnerships position Rigetti positively for future growth.Q1-2025 Updates
Positive Updates
Participation in DARPA's Quantum Benchmarking Initiative
Rigetti has been selected to participate in DARPA's Quantum Benchmarking Initiative, advancing to Stage A. The project is focused on developing a utility-scale quantum computer using proprietary multi-chip architecture with scalable quantum error correction codes.
Strategic Collaboration with Quanta Computer
Rigetti closed a $35 million investment from Quanta Computer, strengthening their strategic collaboration. Quanta will invest $250 million over five years in the non-QPU hardware portion of the stack.
AFOSR Award for Chip Fabrication Technology
Rigetti leads a $5.48 million consortium to further develop Alternating-Bias Assisted Annealing (ABAA) technology, collaborating with several prestigious institutions to improve chip fabrication.
Innovate UK Quantum Mission Pilot Awards
Rigetti received three Innovate UK Quantum Mission Pilot Awards to advance superconducting quantum computing, focusing on quantum error correction capabilities and upgrading their existing quantum computer.
Publication in Nature Physics
A joint paper with Harvard, MIT, and the University of Chicago on superconducting qubit control using light was published in Nature Physics, showcasing a promising approach to scaling qubit count systems.
Quantum Optimization Algorithm Success
Using Rigetti's 84-qubit Ankaa-3 system, Rigetti's quantum optimization algorithm achieved relative advantage against classical baselines on a power energy grid problem, highlighting potential quantum utility.
Negative Updates
Decline in Revenue and Gross Margin
First quarter 2025 revenues were $1.5 million, down from $3.1 million in the first quarter of 2024. Gross margins decreased to 30% from 49% year-over-year.
Increased Operating Expenses
Total operating expenses in Q1 2025 were $22.1 million, up from $18.1 million in the same period of 2024, due to salary increases, new hires, and higher stock compensation expenses.
Operating Loss
Rigetti reported an operating loss of $21.6 million for Q1 2025, compared to a $16.6 million loss in the prior year period.
Dependency on Government Funding
Sales are highly dependent on government contracts and funding, with delays in the NQI Reauthorization Act affecting potential revenue from academic institutions.
Company Guidance
During the Rigetti Computing First Quarter 2025 Financial Results Conference Call, CEO Subodh Kulkarni discussed several strategic initiatives and partnerships that are expected to drive the company's future growth. Rigetti has been selected for DARPA's Quantum Benchmarking Initiative, where it will advance to Stage A with a focus on developing a utility-scale quantum computer, combining its proprietary multi-chip architecture with scalable quantum error correction codes. This initiative is part of a broader effort to achieve utility-scale quantum computing, requiring over 10,000 physical qubits and high fidelity rates. Additionally, Rigetti has been awarded a $5.48 million AFOSR Award to develop its Alternating-Bias Assisted Annealing technology, which aims to improve chip fabrication. The firm also received three Innovate UK Quantum Mission Pilot Awards, with plans to upgrade its quantum computer at the National Quantum Computing Center to a 36-qubit system, enhancing error correction capabilities. Financially, Rigetti reported Q1 2025 revenues of $1.5 million, a decrease from $3.1 million the previous year, with gross margins falling from 49% to 30%, and an operating loss of $21.6 million. However, the company recorded a net income of $42.6 million, driven by favorable non-cash changes in derivative warrant and earn-out liabilities. Cash and equivalents stood at $237.7 million as of April 30, 2025. The call also highlighted a strategic investment by Quanta Computer, with Quanta purchasing $35 million worth of Rigetti common stock, further solidifying their collaboration.Rigetti Computing Financial Statement Overview
Summary
Rigetti Computing faces significant financial challenges with declining revenue, persistent losses, and cash flow difficulties. Despite a strong equity base, profitability and cash flow management are crucial areas needing improvement. The company has a high gross profit margin but struggles with high operational costs and negative cash flows, reflecting financial strain.Income Statement
Rigetti Computing shows declining revenue with a negative revenue growth rate over the last two years. The company experiences substantial negative net profit margins and EBIT margins, indicating significant losses. Despite a high gross profit margin, overall profitability remains challenged due to high operational costs.35
Negative
Balance Sheet
The company has a high equity ratio, indicating a solid equity base relative to its assets. However, the debt-to-equity ratio is low due to the negative equity in earlier years, leading to a misleadingly low leverage indication. The return on equity is negative, showing inefficiency in generating profits from shareholders' equity.40
Negative
Cash Flow
Rigetti Computing faces challenges with negative free cash flow and operating cash flow, indicating cash management issues. The negative free cash flow growth rate highlights difficulties in converting revenue into cash, while financing activities remain high to support operations.30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.21M | 10.79M | 12.01M | 13.10M | 8.20M | 5.54M |
| Gross Profit | 4.64M | 5.70M | 9.21M | 10.23M | 1.92M | 4.05M |
| EBITDA | -194.58M | -190.83M | -61.90M | -58.68M | -31.13M | -35.09M |
| Net Income | -137.60M | -200.99M | -75.11M | -36.49M | -38.24M | -17.21M |
Balance Sheet | ||||||
| Total Assets | 269.14M | 284.79M | 159.91M | 203.44M | 46.43M | 49.68M |
| Cash, Cash Equivalents and Short-Term Investments | 37.16M | 192.09M | 99.93M | 142.81M | 11.73M | 22.20M |
| Total Debt | 8.41M | 8.80M | 30.57M | 39.14M | 24.79M | 0.00 |
| Total Liabilities | 62.01M | 158.20M | 50.33M | 53.22M | 117.96M | 85.11M |
| Stockholders Equity | 207.13M | 126.59M | 109.59M | 150.22M | -71.53M | -35.43M |
Cash Flow | ||||||
| Free Cash Flow | -59.29M | -61.73M | -59.64M | -85.43M | -36.30M | -34.47M |
| Operating Cash Flow | -51.14M | -50.63M | -50.58M | -62.69M | -29.29M | -30.07M |
| Investing Cash Flow | -108.19M | -78.36M | 773.00K | -107.02M | -7.01M | -4.40M |
| Financing Cash Flow | 161.68M | 175.46M | 13.23M | 215.45M | 25.83M | 56.29M |
Rigetti Computing Technical Analysis
Positive
13.75
Price Trends
11.48
Positive
10.33
Positive
8.15
Positive
Market Momentum
0.43
Negative
60.41
Neutral
90.43
Negative
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 13.75 is above the 20-day moving average (MA) of 11.85, above the 50-day MA of 11.48, and above the 200-day MA of 8.15, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 60.41 is Neutral, neither overbought nor oversold. The STOCH value of 90.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RGTI.
Rigetti Computing Risk Analysis
Rigetti Computing disclosed 70 risk factors in its most recent earnings report. Rigetti Computing reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rigetti Computing Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $5.24B | ― | -154.89% | ― | 121.61% | -13.50% | |
63 Neutral | $33.76B | 6.14 | -11.84% | 1.84% | 5.29% | -18.23% | |
59 Neutral | $11.83B | ― | -52.11% | ― | 69.92% | -79.18% | |
57 Neutral | $3.14B | ― | -30.47% | ― | 45.57% | -35.70% | |
55 Neutral | $4.02B | ― | -85.28% | ― | -28.38% | -29.15% |
* Technology Sector Average
Performance Comparison
RGTI
Rigetti Computing
13.38
12.34
1186.54%
QUBT
Quantum Computing
19.35
18.78
3294.74%
IONQ
IonQ
44.97
37.04
467.09%
QBTS
D-Wave Quantum
15.99
14.87
1327.68%
Rigetti Computing Corporate Events
Executive/Board ChangesShareholder Meetings
Rigetti Computing Elects Directors at Annual Meeting
Neutral
Jun 11, 2025
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.
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.
Private Placements and FinancingBusiness Operations and Strategy
Rigetti Computing Completes $350 Million Equity Offering
Positive
Jun 11, 2025
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.
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.
Private Placements and FinancingBusiness Operations and Strategy
Rigetti Computing Announces New Stock Sale Agreement
Neutral
May 30, 2025
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.
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.