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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on RGTI

Rigetti Computing's recent performance is driven by advancements in quantum computing technology and expanded global partnerships, as seen in its expected strong Q3 2024 performance. The company's growing influence in the quantum computing space, expanding clientele, and increasing adoption of its services have contributed to its rising stock price. Additionally, Rigetti's recent news of a significant development could have long-term implications for shareholders, further boosting investor confidence.

1.c. Company Highlights

2. Rigetti's Q3 2025 Earnings: A Closer Look at Financials and Progress

Rigetti's financial performance in Q3 2025 was marked by revenue of $1.9 million, down from $2.4 million in the same quarter last year, primarily due to the expiration of the National Quantum Initiative. Gross margins were 21%, significantly lower than the 51% reported in Q3 2024. The non-GAAP net loss per share was -$0.03, beating estimates of -$0.05. Operating expenses were $21 million, up from $18.6 million in Q3 2024, contributing to an operating loss of $20.5 million.

Publication Date: Nov -30

📋 Highlights
  • Revenue Decline: Q3 2025 revenue was $1.9 million vs. $2.4 million YoY, impacted by National Quantum Initiative expiration.
  • Gross Margin Drop: Q3 2025 gross margin fell to 21% from 51% YoY due to contract variability.
  • Novera System Sales: $5.7 million in purchase orders for 2 upgradable 9-qubit systems, with revenue split across Q1/Q2 2026.
  • AFRL Collaboration: $5.8 million 3-year contract to advance superconducting quantum networking with Air Force Research Lab.

Revenue and Margin Analysis

The revenue decline was largely attributed to the National Quantum Initiative's expiration, awaiting reauthorization. However, the company secured $5.7 million in purchase orders for two 9-qubit Novera quantum computing systems, indicating strong demand. Gross margin contraction was due to variability in contracts, but the CFO, Jeffrey Bertelsen, mentioned anticipating better margins on future sales, particularly the Novera sales.

Operational Highlights and Roadmap

Rigetti made significant progress on its roadmap, remaining on track to deliver a 100-plus qubit chiplet-based quantum system by the end of 2025. The company is also working towards deploying a 150-plus qubit system by the end of 2026 and a 1,000-plus qubit system by the end of 2027. According to Subodh Kulkarni, "We're confident that our 9-qubit chiplets will achieve 99.7% 2-qubit gate fidelity by the end of next year, and we're working towards demonstrating over 1,000 qubits at 99.8% by the end of 2027."

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at 166.7%. With a current P/S Ratio of 1064.83, the market has high expectations for future growth. The ROE is -65.29%, and the ROIC is -12.31%, indicating that the company is currently not generating profits. As the company progresses on its roadmap and potentially achieves milestones, the valuation may be justified if growth materializes as expected.

Cash Position and Funding

Rigetti ended Q3 2025 with approximately $558.9 million in cash, cash equivalents, and available-for-sale investments, with no debt. The company's cash position is robust, supporting its operations and investments in R&D. The recent $5.8 million contract from the Air Force Research Laboratory adds to the revenue stream.

3. NewsRoom

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Why Rigetti Computing Stock Skyrocketed 15.4% Today

Dec -04

Source: fool.com

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Time to Buy Quantum Stocks? (QBTS, IONQ, RGTI)

Dec -04

Source: zacks.com

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IonQ vs. Rigetti Computing: Which Quantum Stock Wins?

Dec -04

Source: fool.com

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Rigetti Computing Stock Plunged 42% Last Month. Here's Why.

Dec -04

Source: fool.com

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Can Rigetti Maintain Its Balance Sheet Strength While Scaling R&D?

Dec -03

Source: zacks.com

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Rigetti Computing Drops 40% as CEO Holds Zero Shares and Revenue Falls 18%

Dec -03

Source: 247wallst.com

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3 Small-Cap Stocks With Big-Time Upside

Dec -03

Source: 247wallst.com

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Will Quantum Computing Stocks IonQ, Rigetti Computing, and D-Wave Quantum Plunge 80% (or More)? History Offers a Chilling Answer.

Dec -03

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (38.08%)

6. Segments

Collaborative Research, Other Professional Services and Related Materials

Expected Growth: 39.1%

Rigetti Computing, Inc.'s 39.1% growth in Collaborative Research, Other Professional Services, and Related Materials is driven by increasing adoption of quantum computing solutions, strategic partnerships, and expansion into new markets. Growing demand for quantum-inspired AI and machine learning applications, as well as government investments in quantum research, also contribute to this growth.

Quantum Computing Systems

Expected Growth: 32.95%

Rigetti Computing's 32.95% growth in Quantum Computing Systems is driven by increasing adoption in industries like finance, healthcare, and materials science, where complex simulations and optimizations are critical. Government investments in quantum research, advancements in quantum algorithms, and growing demand for cloud-based quantum computing services also contribute to this growth.

7. Detailed Products

Rigetti Quantum Cloud

A full-stack quantum computing platform that provides access to quantum processors, a quantum machine learning platform, and a suite of software development tools.

Rigetti Quantum Machine Learning (QML)

A software platform that enables the development of quantum machine learning models and integrates with popular machine learning frameworks.

Rigetti Quantum Development Environment (QDE)

A suite of software development tools for building, testing, and deploying quantum algorithms and applications.

Rigetti Quantum Processor Units (QPUs)

A cloud-based quantum computing platform that provides access to Rigetti's quantum processors.

Rigetti Quantum Consulting Services

Expert consulting services to help organizations explore the potential of quantum computing and develop quantum-enabled solutions.

8. Rigetti Computing, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Rigetti Computing, Inc. faces moderate threat from substitutes due to the presence of alternative quantum computing technologies and classical computing methods.

Bargaining Power Of Customers

Rigetti Computing, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Rigetti Computing, Inc. relies on a few key suppliers for its quantum computing hardware and software components, giving them moderate bargaining power.

Threat Of New Entrants

The quantum computing industry is rapidly evolving, and new entrants with significant resources and expertise can easily disrupt the market, posing a high threat to Rigetti Computing, Inc.

Intensity Of Rivalry

The quantum computing industry is highly competitive, with multiple players vying for market share, leading to a high intensity of rivalry among companies like Rigetti Computing, Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 18.13%
Debt Cost 16.20%
Equity Weight 81.87%
Equity Cost 16.20%
WACC 16.20%
Leverage 22.14%

11. Quality Control: Rigetti Computing, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Stratasys

A-Score: 4.3/10

Value: 8.6

Growth: 2.3

Quality: 3.5

Yield: 0.0

Momentum: 8.5

Volatility: 3.0

1-Year Total Return ->

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Rigetti Computing

A-Score: 4.3/10

Value: 6.0

Growth: 4.9

Quality: 4.4

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

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Corsair Gaming

A-Score: 4.0/10

Value: 6.5

Growth: 2.7

Quality: 4.5

Yield: 0.0

Momentum: 7.5

Volatility: 3.0

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Fathom Digital

A-Score: 3.9/10

Value: 8.1

Growth: 4.9

Quality: 4.8

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

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Red Cat Holdings

A-Score: 3.7/10

Value: 6.0

Growth: 2.8

Quality: 3.3

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

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Key Tronic

A-Score: 3.2/10

Value: 8.0

Growth: 3.9

Quality: 2.1

Yield: 0.0

Momentum: 1.0

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

28.11$

Current Price

28.11$

Potential

-0.00%

Expected Cash-Flows