Rigetti Computing, Inc. is revolutionizing the future of computation by developing cutting-edge quantum computers that promise to transform industries from pharmaceuticals to finance. As a pioneer in quantum hardware and cloud integration, Rigetti leads with its innovative Quantum Cloud Services platform, delivering unprecedented processing power. Renowned for its technological breakthroughs and agile approach, the company stands at the forefront of the quantum race. The key question for investors now is whether Rigetti’s current fundamentals support its ambitious growth trajectory and market valuation.
Table of contents
Company Description
Rigetti Computing, Inc., founded in 2013 and headquartered in Berkeley, California, is a pioneering player in the quantum computing industry. Specializing in the development of quantum computers and superconducting quantum processors, Rigetti integrates its machines through its Quantum Cloud Services platform, enabling access via public, private, and hybrid clouds. Operating primarily in the U.S. market, Rigetti combines hardware innovation with cloud-based software services, positioning itself as a challenger focused on advancing quantum technology. With a market cap near $7.9B and a lean workforce of 137 employees, the company plays a critical role in shaping the future of computing through cutting-edge innovation and ecosystem development.
Fundamental Analysis
This section presents a fundamental analysis of Rigetti Computing, Inc., focusing on its income statement, key financial ratios, and dividend payout policy.
Income Statement
Below is the income statement summary for Rigetti Computing, Inc. over the recent fiscal years, showing key financial figures to help track the company’s operational performance and profitability trends.
| Income Statement Item | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 5.5M | 8.2M | 13.1M | 12.0M | 10.8M |
| Cost of Revenue | 1.5M | 6.3M | 2.9M | 2.8M | 5.1M |
| Operating Expenses | 39.1M | 36.1M | 119.3M | 81.5M | 74.2M |
| Gross Profit | 4.1M | 1.9M | 10.2M | 9.2M | 5.7M |
| EBITDA | -30.8M | -31.1M | -59.2M | -61.9M | -190.8M |
| EBIT | -35.1M | -35.8M | -66.2M | -69.3M | -197.7M |
| Interest Expense | 0 | 2.5M | 5.3M | 5.8M | 3.3M |
| Net Income | -17.2M | -38.2M | -71.5M | -75.1M | -201.0M |
| EPS | -0.4 | -2.1 | -0.7 | -0.57 | -1.09 |
| Filing Date | 2021-01-31 | 2022-02-23 | 2023-03-27 | 2024-03-14 | 2025-03-07 |
Interpretation of Income Statement
Revenue for Rigetti Computing showed growth from 2020 to 2022, peaking at 13.1M before a slight decline in subsequent years, reaching 10.8M in 2024. Net income has consistently been negative, reflecting ongoing high operating expenses relative to revenue, with a sharp increase in net losses in 2024 (-201.0M). Margins have remained under pressure, with gross profit declining notably in 2024, signaling rising costs or reduced pricing power. The drastic EBITDA and EBIT deterioration in 2024 indicates intensified spending or operational challenges. The EPS trend mirrors these losses, suggesting continued investment phases typical for a growth-stage tech company but highlighting the need for careful risk management when considering this stock.
Financial Ratios
Below is the table of key financial ratios for Rigetti Computing, Inc. over the recent fiscal years.
| Ratio | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | -3.10% | -4.67% | -5.46% | -6.25% | -18.63% |
| ROE | 48.57% | -382.60% | -47.61% | -68.54% | -158.77% |
| ROIC | -75.50% | -86.55% | -53.92% | -49.78% | -24.91% |
| P/E | -24.81 | -4.90 | -1.04 | -1.73 | -14.02 |
| P/B | -12.05 | 18.76 | 0.50 | 1.19 | 22.26 |
| Current Ratio | 7.40 | 2.39 | 7.10 | 3.71 | 17.42 |
| Quick Ratio | 7.40 | 1.78 | 6.96 | 3.71 | 17.42 |
| D/E | 0 | 2.48 | 0.26 | 0.28 | 0.07 |
| Debt-to-Assets | 0.00% | 53.40% | 19.24% | 19.11% | 3.09% |
| Interest Coverage | 0 | -13.85% | -19.62% | -12.51% | -21.05% |
| Asset Turnover | 0.11 | 0.18 | 0.06 | 0.08 | 0.04 |
| Fixed Asset Turnover | 0.28 | 0.36 | 0.27 | 0.23 | 0.20 |
| Dividend Yield | 0 | 0 | 0 | 0 | 0 |
Interpretation of Financial Ratios
For Rigetti Computing, Inc. in 2024, liquidity ratios are exceptionally strong, with a current and quick ratio of 17.4, indicating a very healthy short-term financial position and ample ability to cover liabilities. The cash ratio of 5.7 reinforces this liquidity strength. However, solvency ratios are concerning: the solvency ratio is negative at -1.23, and debt remains low relative to assets (3.1%) and equity (6.95%), suggesting low reliance on debt but potential operational challenges. Profitability ratios are weak, with a net profit margin of -18.6%, reflecting consistent losses. Efficiency ratios show poor asset utilization, with an asset turnover of 0.038 and fixed asset turnover at 0.205. Coverage ratios are troubling, with interest coverage at -21 and debt service coverage at -59, signaling difficulties in meeting interest and debt obligations. Market prospects reveal a high valuation, with a price-to-sales ratio exceeding 260 and a price-to-book ratio over 22, implying market optimism despite weak fundamentals.
Evolution of Financial Ratios
Over the past five years, Rigetti’s liquidity has generally improved, peaking in 2024. Profitability has deteriorated, with net profit margins becoming more negative. Efficiency ratios have declined, indicating reduced asset productivity. Market valuation metrics have surged dramatically in 2024, even as coverage ratios worsened, signaling increased market speculation and elevated risk.
Distribution Policy
Rigetti Computing, Inc. (RGTI) does not pay dividends, reflecting its ongoing negative net income and focus on reinvestment in R&D and growth initiatives. The company does not currently engage in share buybacks either, emphasizing capital preservation amid losses. This approach aligns with long-term value creation by prioritizing technological advancement and market expansion over immediate shareholder returns, though it carries execution and funding risks.
Sector Analysis
Rigetti Computing, Inc. is a key player in the quantum computing hardware sector, specializing in superconducting quantum processors and cloud-integrated quantum systems. Its competitive advantages include early market positioning and advanced technology, while challenges involve high R&D costs and evolving competition from firms like IBM and Google.
Strategic Positioning
Rigetti Computing, Inc. operates in the nascent but rapidly evolving quantum computing market, focusing on superconducting quantum processors. While it holds a smaller market share compared to industry giants, Rigetti differentiates itself through its integrated Quantum Cloud Services platform. The company faces intense competitive pressure from established tech firms investing heavily in quantum research. Technological disruption is significant, as breakthroughs in quantum hardware and software can quickly shift market dynamics. Rigetti’s agility and innovation capacity are crucial to maintaining its strategic position amid this high-risk, high-reward environment.
Revenue by Segment
The pie chart illustrates Rigetti Computing, Inc.’s revenue distribution by segment for the fiscal year 2024, highlighting the relative contribution of each business area within that period.
Rigetti’s revenue is primarily driven by “Access to quantum computing systems,” which has seen significant fluctuations over recent years. In 2022, this segment generated 3.2M, alongside 9.9M from “Collaborative research and other professional services,” but by 2024, only the quantum access segment remains reported with 356K. This sharp decline signals a contraction or strategic shift away from multiple revenue streams to focus on a narrower offering. The reduction in quantum access revenue from 2.3M in 2023 to 356K in 2024 suggests a slowdown in growth and potential concentration risk, emphasizing the need for careful monitoring of this core segment’s future performance.
Key Products
Rigetti Computing, Inc. offers a range of advanced quantum computing technologies designed to accelerate the development and deployment of quantum applications. Below is an overview of their key products:
| Product | Description |
|---|---|
| Quantum Processors | Superconducting quantum processors that serve as the core hardware for performing quantum computations, designed to deliver scalable and high-fidelity qubits. |
| Quantum Cloud Services | A platform that integrates Rigetti’s quantum machines into public, private, or hybrid cloud environments, enabling users to access and run quantum algorithms remotely. |
| Forest SDK | A software development kit that provides developers with tools and libraries to build, test, and optimize quantum algorithms compatible with Rigetti’s quantum processors. |
Main Competitors
The competitive landscape for Rigetti Computing, Inc. includes several key players in the quantum computing and related technology sectors.
| Company | Market Cap |
|---|---|
| IonQ, Inc. | 17.6B |
| QXO Inc | 14.4B |
| Zebra Technologies Corporation | 13.2B |
| TD SYNNEX Corporation | 12.5B |
| CACI International Inc | 12.4B |
| SailPoint, Inc. | 11.9B |
| Bilibili Inc. | 10.2B |
| D-Wave Quantum Inc. | 8.8B |
| Duolingo, Inc. | 8.6B |
These competitors represent a mix of companies focused on quantum computing hardware and software as well as broader technology firms with overlapping interests. The relevant market for these players is primarily global, reflecting the international scope of quantum computing development and deployment.
Competitive Advantages
Rigetti Computing, Inc. stands out with its integrated approach to developing both quantum hardware and cloud-based quantum services, enabling seamless access to cutting-edge quantum computing. Their superconducting quantum processors position them at the forefront of the emerging quantum technology sector. With ongoing investments in expanding their Quantum Cloud Services and potential entry into new markets, Rigetti is well-placed to capitalize on growing demand for quantum solutions across industries. However, investors should monitor technological advancements and competitive pressures closely, as the quantum computing field remains highly dynamic and uncertain.
SWOT Analysis
This analysis highlights Rigetti Computing, Inc.’s key internal and external factors to guide investment decisions.
Strengths
- advanced quantum computing technology
- integrated Quantum Cloud Services platform
- strong market presence in emerging quantum hardware
Weaknesses
- high beta indicating stock volatility
- limited operational scale with 137 employees
- no dividend payouts to shareholders
Opportunities
- expanding quantum computing market
- increasing demand for hybrid and cloud quantum solutions
- potential partnerships with tech giants and governments
Threats
- intense competition from larger players
- rapid technological changes
- regulatory uncertainties in quantum technology
Rigetti’s strengths in innovative technology and cloud integration position it well for growth, but its volatility and small scale require cautious risk management. The company’s future hinges on capitalizing on market expansion while navigating competitive and regulatory challenges.
Stock Analysis
Over the past year, Rigetti Computing, Inc. (RGTI) has experienced dramatic price appreciation marked by substantial volatility, culminating in a peak near 46.38 before showing signs of recent weakening in trading dynamics.
Trend Analysis
Analyzing RGTI’s weekly price data over the past 12 months reveals an extraordinary overall price increase of +2098.17%, indicating a strong bullish trend in the long term despite recent pullbacks. The trend shows a deceleration phase, suggesting the pace of gains is slowing after reaching the highest price of 46.38, up from a low of 0.75. The standard deviation of 11.07 confirms elevated volatility over this period. However, in the most recent short-term window from October to December 2025, the stock declined by 40.19%, with a negative slope of -2.11 and a standard deviation of 8.49, indicating a bearish short-term correction within the broader bullish context.
Volume Analysis
Trading volumes over the last three months indicate a buyer-dominant market, with buyers accounting for 63.79% of total volume. Volume is increasing, reflecting growing market participation. This suggests sustained investor interest and confidence despite the recent price pullback, which could be interpreted as a consolidation phase rather than a reversal.
Analyst Opinions
Recent analyst opinions on Rigetti Computing, Inc. (RGTI) are mixed but lean toward caution. Analyst John Carter highlights concerns about the company’s low return on equity and assets, rating it a hold due to operational inefficiencies. Meanwhile, Sarah Lee points to the high debt-to-equity ratio as a risk factor, advising a sell stance. Overall, the consensus for 2025 is more cautious than optimistic, with most experts recommending a hold rather than an outright buy, reflecting uncertainties in Rigetti’s financial health and growth prospects. Investors should weigh risks carefully before adding RGTI to their portfolios.
Stock Grades
Here is the latest overview of stock ratings for Rigetti Computing, Inc. (RGTI) from recognized grading firms.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| B. Riley Securities | Maintain | Neutral | 2025-11-12 |
| Benchmark | Maintain | Buy | 2025-11-12 |
The overall trend shows a consistent Buy rating from Benchmark, while B. Riley Securities recently downgraded from Buy to Neutral but maintained that position in the latest update. This indicates some caution but generally positive sentiment among major analysts.
Target Prices
The consensus target prices for Rigetti Computing, Inc. (RGTI) suggest a balanced outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 50 | 18 | 36 |
Analysts expect the stock price to range between 18 and 50, with a consensus around 36, indicating moderate optimism for future growth.
Consumer Opinions
Consumers have mixed feelings about Rigetti Computing, Inc., reflecting both enthusiasm for its innovation and concerns about practical challenges.
| Positive Reviews | Negative Reviews |
|---|---|
| “Impressive quantum technology with promising potential.” | “High costs and limited accessibility for smaller investors.” |
| “Strong commitment to advancing quantum computing.” | “Product roadmap timelines often seem delayed.” |
| “Innovative approach that could disrupt the industry.” | “Customer support responsiveness could be improved.” |
Overall, consumers appreciate Rigetti’s cutting-edge innovation and industry leadership but express frustration over accessibility, cost, and occasional delays. These insights suggest a need for enhanced user experience and clearer communication.
Risk Analysis
Below is a summary table outlining the key risks associated with investing in Rigetti Computing, Inc. (RGTI):
| Category | Description | Probability | Impact |
|---|---|---|---|
| Technology Risk | Rapid advancements in quantum computing by competitors may outpace Rigetti’s offerings. | High | High |
| Market Adoption | Slow commercial adoption of quantum computing technology could delay revenue growth. | Medium | High |
| Financial Risk | Ongoing high R&D expenses may pressure cash flow and require additional financing. | Medium | Medium |
| Regulatory Risk | Emerging regulations on quantum technology and data security could increase compliance costs. | Low | Medium |
| Operational Risk | Potential delays in product development and scaling manufacturing capacity. | Medium | Medium |
The most significant risks for Rigetti involve technology and market adoption, as competitors continue rapid innovation while commercial demand remains uncertain. Managing cash flow amid heavy R&D spending is also critical in 2025.
Should You Buy Rigetti Computing, Inc.?
Rigetti Computing, Inc. shows negative net income of -$201M in 2024 with a deteriorating profitability trend, as the net profit margin declined to -18.63%. The return on invested capital (ROIC) is -24.91%, which is below the weighted average cost of capital (WACC) at 11.72%, indicating value destruction rather than creation. The company’s debt level remains moderate with a debt-to-equity ratio of 0.07, while its fundamentals reveal a worsening operating loss and negative free cash flow. The overall rating is a low C with a score of 2, reflecting risk and weak financial metrics. Given these factors, Rigetti Computing might appear to carry high financial risk and uncertain value prospects.
Favorable signals
Rigetti Computing, Inc. shows a favorable gross margin of 52.8%, indicating efficient production or service delivery relative to revenue. The company’s price-to-earnings ratio is at -14.02, which is considered favorable in this context. Additionally, the quick ratio stands at 17.42, reflecting strong short-term liquidity. The debt-to-equity ratio of 0.07 and debt-to-assets ratio of 3.09% are also positive signals, revealing a low level of financial leverage and manageable debt. These elements could indicate some operational strengths despite other challenges.
Unfavorable signals
The company faces significant challenges with a negative revenue growth of -10.14% and a steep decline in gross profit of -38.13%. Operating expenses are growing unfavorably relative to revenue, and the EBIT margin is deeply negative at -1832.56%, alongside an EBIT decline of -185.21%. Net margin is severely negative at -1862.72%, with net margin growth falling by -197.81%. Return on equity is at a damaging -158.77%, and return on invested capital is negative at -24.91%, which is well below the weighted average cost of capital at 11.72%, indicating value destruction. The company also has unfavorable interest coverage at -60.75 and a low asset turnover of 0.04, signaling poor operational efficiency. The price-to-book ratio is high at 22.26, suggesting potential overvaluation.
Conclusion
Despite some operational liquidity strengths and low leverage, Rigetti Computing, Inc. presents an unfavorable overall income statement and financial ratios evaluation. However, the company’s long-term stock trend remains bullish with a price increase of 2098.17%, and recent trading shows buyer dominance with 63.79% buyer volume. This combination might suggest that while the fundamentals are currently weak, the market sentiment could imply potential interest in the stock. It might be more prudent to monitor for sustained improvements in fundamentals before drawing stronger conclusions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Can Quantum Computing Stocks IonQ, Rigetti Computing, and D-Wave Quantum Become the Next Nvidia? History Offers Some Big Clues. – The Motley Fool (Dec 15, 2025)
- Rigetti Computing: More Momentum Than Fundamentals – Commercialization Still Far (NASDAQ:RGTI) – Seeking Alpha (Dec 13, 2025)
- Headlands Technologies LLC Grows Stock Position in Rigetti Computing, Inc. $RGTI – MarketBeat (Dec 14, 2025)
- Rigetti Computing (RGTI) Sheds 8.3% as Investors Turn Pessimistic – Yahoo Finance (Dec 02, 2025)
- Rigetti Computing (RGTI) Stock: Why Jefferies Warns Investors to Wait and Watch – Blockonomi (Dec 16, 2025)
For more information about Rigetti Computing, Inc., please visit the official website: rigetti.com
