Rigetti Computing (RGTI) AI Stock Analysis

• Market Cap: $3.33B
• Dividend Yield: N/A
• Average Volume (3M): 64.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.12
• Revenue Growth: -28.38%
• EPS Growth: -29.15%
• Country: US
• Employees: 137
• Sector: Technology
• Sector Strength: 84
• Industry: Computer Hardware
• EPS (TTM): -0.08
• Shares Outstanding: 292,442,750
• 10 Day Avg. Volume: 59,765,256
• 30 Day Avg. Volume: 64,719,743
• PEG Ratio: 0.02
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.87
• Enterprise Value/Market Cap: 0.02
• Enterprise Value/Revenue: 1.25
• Enterprise Value/Gross Profit: 12.04
• Enterprise Value/Ebitda: -0.11
• 1Y Price Target: $15.00
• Price Target Upside: 23.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 56 Neutral
• Price Target: $13.00 ▲(6.91%Upside)

Rigetti Computing's overall stock score reflects a balance between significant strategic potential and immediate financial challenges. While corporate events and strategic initiatives point towards future growth, current financial performance and valuation concerns weigh heavily. The company's strong cash position post-equity offering provides a cushion for pursuing growth opportunities.

Positive Factors

Financial Performance

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

Strategic 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

Rigetti's collaboration with NVIDIA and Quantum Machines successfully implemented AI to automate the calibration of its 9-qubit chip, showcasing improvements in scaling quantum computing systems.

Negative Factors

Competitive 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.

Revenue Dependence

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 Business Overview & Revenue Model

Company Description

Rigetti 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 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, 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.

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.

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.

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
	EBIT
-73.56M	-68.51M	-72.30M	-103.70M	-34.13M	-35.09M
	EBITDA
-194.58M	-190.83M	-61.90M	-58.68M	-31.13M	-35.09M
	Net Income Common Stockholders
-137.60M	-200.99M	-75.11M	-36.49M	-38.24M	-17.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
37.16M	192.09M	99.93M	142.81M	11.73M	22.20M
	Total Assets
269.14M	284.79M	159.91M	203.44M	46.43M	49.68M
	Total Debt
8.41M	8.80M	30.57M	39.14M	24.79M	0.00
	Net Debt
-28.75M	-58.87M	9.17M	-18.75M	13.06M	-22.20M
	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

• Technical Analysis Sentiment: Positive
• Last Price: 12.16
• 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 Positive. The current price of 12.16 is below the 20-day moving average (MA) of 12.27, above the 50-day MA of 10.56, and above the 200-day MA of 7.38, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 53.61 is Neutral, neither overbought nor oversold. The STOCH value of 41.30 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
QBTS	63 Neutral	$4.74B	―	-154.89%	―	121.61%	-13.50%
Sector *	62 Neutral	$11.97B	10.29	-7.47%	2.99%	7.32%	-8.06%
IONQ	58 Neutral	$9.90B	―	-52.11%	―	69.92%	-79.18%
RGTI	56 Neutral	$3.33B	―	-85.28%	―	-28.38%	-29.15%
QUBT	55 Neutral	$2.99B	―	-30.47%	―	45.57%	-35.70%

Rigetti Computing Corporate Events

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.

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.

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.

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.

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.

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.

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.