Rigetti Computing’s (RGTI) Q1 results perfectly capture the quantum nature of being in several different states of existence simultaneously. In this case, incredible technological breakthroughs occurred alongside challenging financial results. While the company surprised markets with unexpected profitability and major technical milestones, a dramatic revenue shortfall sent shares tumbling 13% after earnings. While the stock managed to claw back that loss the following few days, it remains 22% lower year-to-date.
Rigetti Computing (RGTI) stock price history year-to-date
Published last week, Rigetti’s results offer compelling reasons for optimism and a sobering reminder of the challenges facing early-stage quantum computing companies. I am long-term bullish on the potential of quantum computing, and Rigetti is among the leaders in the space (though, as there are several paths to market for this nascent technology, I encourage investors to consider spreading their bets across several holdings).
RGTI Spearheads the Quantum Realm
Rigetti is a frontrunner in the growing field of full-stack quantum computing. It offers cloud-based quantum computers to various sectors, including government, enterprises, and research organizations.
Notably, the company has developed the first-ever multi-chip quantum processor in the industry, paving the way for scalable quantum computing solutions. These processors are manufactured at their dedicated facility, Fab-1, emphasizing Rigetti’s commitment to innovation and advancement in quantum technology.
Rigetti Computing (RGTI) Revenue by Segment
The company’s recent efforts include creating the 84-qubit Ankaa-3 system, which exhibits improved hardware design and progress in two-qubit gate fidelity. Looking ahead to the rest of 2025, Rigetti has laid out an ambitious roadmap. They’re targeting a 36-qubit modular system launch by mid-year and a 100+ qubit system by year-end, with the ultimate goal of achieving 99.9% qubit fidelity by 2027, a threshold many experts believe is necessary for practical quantum advantage in commercial applications.
Meanwhile, the core business told a different story. Revenue plummeted 52% compared to last year’s quarter, falling from $3.1 million to just $1.5 million, missing analyst expectations by nearly $1 million. The company’s gross margin dropped significantly from 49% to 30%, while operating losses widened from $16.6 million to $21.6 million year-over-year.
The one bright spot? A strong cash position of $237.7 million gives Rigetti plenty of runway to fund operations through 2027.
Rigetti Computing (RGTI) Cash flow
Commercial Partnerships Signal Technical Progress for RGTI
While its financial results disappointed, Rigetti’s technical achievements in Q1 2025 were impressive. The company successfully applied its new “quantum preconditioning” algorithm to a real-world energy grid optimization problem using its 84-qubit Ankaa-3 system. It demonstrated to the market the potential of quantum-enhanced performance on a practical problem that classical computers struggle with.
Further, the company was selected for Stage A of DARPA’s Quantum Benchmarking Initiative, a competitive program focused on developing utility-scale quantum computers. The Air Force Office of Scientific Research awarded them $5.48 million to advance their chip fabrication technology. In the UK, they won three Innovate UK Quantum Mission awards for various projects.
Perhaps most impressive was its collaboration with Harvard, MIT, and the University of Chicago on research published in Nature Physics. The team demonstrated coherent optical control of superconducting qubits — a breakthrough that could enable much higher-density quantum processors in the future.
Is Rigetti Computing Stock a Good Buy?
Wall Street analysts remain rather bullish on Rigetti’s long-term prospects. Based on the most recent recommendations of five analysts, Rigetti Computing is rated a Strong Buy. The average stock price target for RGTI stock is $15, representing a potential upside of almost 27% from current levels.
Both analysts emphasized Rigetti’s strong balance sheet as a key advantage. With nearly $240 million in cash and a recent strategic investment from Quanta Computer, the company has the financial resources to execute its ambitious technical goals without worrying about running out of money.
RGTI Represents High-Risk, High-Reward Bet on Quantum Technology
Rigetti Computing presents a classic high-risk, high-reward investment opportunity in the quantum computing space. The company had taken a leading role in the market and offers meaningful exposure to this potentially transformative technology.
However, the next two years will be critical for validating the investment thesis. The stock’s short-term volatility could become less important if Rigetti hits its technical milestones. Technical success should translate to more robust commercial applications, creating more predictable income streams over time.
I remain bullish on this opportunity. The company’s technical progress remains impressive, and its financial position is strong. For investors with a healthy risk appetite, a long-term horizon, and conviction about quantum computing’s future, Rigetti’s current challenges present an attractive discounted entry point.
