Rigetti 2q25 Not Too Bad But Still A Sell Nasdaq Rgti

Bonisiwe Shabane

-Jan 2, 2026, 1:42 PM

rigetti 2q25 not too bad but still a sell nasdaq rgti

Rigetti Computing’s RGTI second-quarter 2025 results painted a picture of a company balancing short-term revenue challenges with long-term promise. Revenue came in at $1.8 million, down from $3.1 million in the prior year. Gross margin also narrowed to 31% from 64%, reflecting lower-margin government contracts. Even so, Rigetti strengthened its position by raising $350 million through an equity offering, ending the quarter with a healthy $571.6 million in cash and no debt. That financial cushion gives the company flexibility to continue investing aggressively in research and development while weathering near-term losses. On the innovation side, Rigetti continued to push boundaries.

The company introduced Cepheus-1-36Q, the largest multichip quantum computer demonstrated to date, achieving a two-fold reduction in error rates compared with its earlier system. Management expressed confidence in delivering a 100-plus qubit chiplet-based system with 99.5% gate fidelity before year-end, underscoring its focus on scaling toward quantum advantage. While peers such as Arqit Quantum ARQQ, D-Wave Quantum QBTS, and Quantum Computing Inc. QUBT pursue alternative paths ranging from quantum encryption to annealing and software-first solutions, Rigetti’s progress in superconducting qubits highlights a differentiated strategy aimed at building scalable, fault-tolerant hardware. For investors, the key will be monitoring Rigetti’s ability to sustain this technical momentum, the reauthorizing of the National Quantum Initiative and the company’s progress in converting its strong cash position into meaningful commercial... Rigetti’s shares have held up better than some quantum peers in the year-to-date period, even as the sector remains volatile.

RGTI stock has gained 9.1% so far this year. Shares of QUBT and ARQQ have lost 7.4% and 15.2%, respectively. By contrast, QBTS has surged 102.5% over the same timeframe. The broader Zacks Internet - Software Industry has advanced 22.9%, showing that Rigetti continues to make steady progress while outpacing certain competitors. Rigetti Computing’s RGTI second-quarter 2025 results painted a picture of a company balancing short-term revenue challenges with long-term promise. Revenue came in at $1.8 million, down from $3.1 million in the prior year.

Gross margin also narrowed to 31% from 64%, reflecting lower-margin government contracts. Even so, Rigetti strengthened its position by raising $350 million through an equity offering, ending the quarter with a healthy $571.6 million in cash and no debt. That financial cushion gives the company flexibility to continue investing aggressively in research and development while weathering near-term losses. On the innovation side, Rigetti continued to push boundaries. The company introduced Cepheus-1-36Q, the largest multichip quantum computer demonstrated to date, achieving a two-fold reduction in error rates compared with its earlier system. Management expressed confidence in delivering a 100-plus qubit chiplet-based system with 99.5% gate fidelity before year-end, underscoring its focus on scaling toward quantum advantage.

While peers such as Arqit Quantum ARQQ, D-Wave Quantum QBTS, and Quantum Computing Inc. QUBT pursue alternative paths ranging from quantum encryption to annealing and software-first solutions, Rigetti’s progress in superconducting qubits highlights a differentiated strategy aimed at building scalable, fault-tolerant hardware. For investors, the key will be monitoring Rigetti’s ability to sustain this technical momentum, the reauthorizing of the National Quantum Initiative and the company’s progress in converting its strong cash position into meaningful commercial... Rigetti’s shares have held up better than some quantum peers in the year-to-date period, even as the sector remains volatile. RGTI stock has gained 9.1% so far this year. Shares of QUBT and ARQQ have lost 7.4% and 15.2%, respectively.

By contrast, QBTS has surged 102.5% over the same timeframe. The broader Zacks Internet - Software Industry has advanced 22.9%, showing that Rigetti continues to make steady progress while outpacing certain competitors. Rigetti Computing, Inc. (NASDAQ:RGTI) released its second-quarter results after Tuesday's closing bell. Here's a look at the details in the report. The Details: Rigetti Computing reported quarterly losses of 13 cents per share, which missed the analyst consensus estimate for losses of six cents.

Quarterly revenue came in at $1.8 million, which missed the analyst consensus estimate of $1.88 million and is down from revenue of $3.086 million from the same period last year. Read Next: Retail Crowd’s Top Stocks With Earnings This Week: Archer, Rigetti, Oklo And More For the second quarter, Rigetti reported: Written by George Budwell for The Motley Fool-> Rigetti's new 36-qubit system achieves 99.5% median 2-qubit gate fidelity, but revenue remains stuck below $2 million quarterly. A $5.8 million Air Force contract adds credibility, while $571 million in cash provides a healthy runway.

At 990 times trailing sales, investors are pricing in a quantum revolution that may still be years away. Quantum computing stocks are having their moment, and Rigetti Computing (NASDAQ: RGTI) sits at the center of the frenzy. The stock has surged about 100% year to date, riding technical milestones and government contracts to fresh highs. The company just unveiled a 36-qubit modular system with 99.5% median 2-qubit gate fidelity. It also secured a $5.8 million Air Force contract for quantum networking. Some analysts have turned bullish on the industry as a whole in response to this rapid progress.

This summary was created by AI, based on 7 opinions in the last 12 months. Rigetti Computing, a player in the quantum computing sector, is currently navigating a challenging landscape with limited revenue significantly overshadowed by its high market cap. Experts highlight its expected revenue of only $8M this year against a market cap exceeding $8B, raising concerns about valuation amidst extreme expectations. Additionally, despite a 22.4% increase in revenue from the previous quarter, the company is still not profitable, facing ongoing negative cash flow challenges. Social media engagement around the company is increasing, yet experts warn that the quantum computing market is undergoing a hype cycle with significant volatility, suggesting that short-term trading could be risky. The overarching sentiment is cautious, reflecting anxieties about the future profitability of quantum technologies.

RGTI is going to move only with the quantum sector, as it still has essentially no revenue ($8M expected this year, total). Market cap is more than $8B so expectations are extreme here. Short interest is 14%. There is a big debate on quantum. Some expect it to change the world, but most do not see meaningful revenue for perhaps a decade. A lot can happen in that time, of course.

A market correction would see the sector take some giant hits. RGTI has $$440M cash, but cash flow is negative and is expected to be for some time. With its valuation and fundamentals, we cannot give it a general endorsement today.Unlock Premium - Try 5i Free Up 85% this year, but has fallen recently, including 10% today. They have declining revenues, losing gobs of money. Could sell half of it, if you've ridden this.

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Rigetti 2q25 Not Too Bad But Still A Sell Nasdaq Rgti

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