University of Kwazulu-Natal

Rigetti Plunges On Sluggish Revenue Growth Ceo Says Meaningful

Bonisiwe Shabane
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rigetti plunges on sluggish revenue growth ceo says meaningful

Rigetti's top-line performance showed significant deterioration, with revenue contracting 41.6% year-over-year to $1.8 million. This marks a continuation of a challenging commercial environment for the company. However, after three consecutive quarters of sequential declines, revenue did see a modest 20% uptick from Q1 2025, a potential, albeit early, sign of stabilization. While the operating loss of -$19.9 million widened from the prior year, it represented a notable sequential improvement from the -$21.6 million loss in Q1 2025. This suggests that some measures of cost discipline are beginning to take hold, a crucial development as the company navigates its pre-commercial phase. The chart below illustrates the diverging trends between the sharp revenue decline and the recent moderation in operating losses.

Furthermore, the headline GAAP Net Loss of -$39.7 million, or -$0.13 per share, is distorted by significant non-cash items. The figure includes a $22.8 million loss from the change in fair value of derivative warrant and earn-out liabilities. This volatility, stemming from accounting adjustments rather than core operations, makes the GAAP net income an unreliable metric for assessing the company's fundamental performance, as visualized by the erratic swings compared to the more... The most significant event of the quarter was the radical transformation of Rigetti's balance sheet. Through an at-the-market offering and a private placement, the company raised approximately $385 million in gross proceeds. This has swelled its cash, cash equivalents, and available-for-sale investments to a formidable $571.6 million, all while remaining completely debt-free.

This massive capital buffer effectively de-risks the company from a liquidity standpoint, providing a multi-year runway to pursue its ambitious R&D roadmap without near-term financing pressures. However, this security came at the direct cost of significant shareholder dilution, with the weighted average basic share count increasing by 73.5% over the past year. Management has executed a classic deep-tech strategy: trading equity for time and the resources to innovate. On Tuesday, Rigetti Computing Inc.’s stocks have been trading down by -8.1 percent amid concerns over technology volatility. Live Update At 12:04:39 EST: On Tuesday, September 02, 2025 Rigetti Computing Inc. stock [NASDAQ: RGTI] is trending down by -8.1%!

Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below. It’s been a tough quarter for Rigetti Computing. Their revenue numbers fell short, amplifying concerns among investors. The profits dried up, and losses mounted. Revenue for the period sat at $10.79M, a sore number for analysts who expected much more promising figures. The gross margin painted a glimmer of hope at 40.6%, yet overshadowed by the grim profitability margins.

The EBIT margin hit rock bottom at -2065%, leaving investors scratching their heads. Despite these setbacks, the balance sheet still provides some comfort. Cash reserves are sitting at $57.18M, ensuring they keep the wheels turning for now. Their short-term liabilities are manageable, thanks in part to a current ratio of 41.6. But with a leverage ratio of 1.2 and total equity heavily tied to volatile external investments, many wonder about their financial strategy. A glance at the cash flow statement reveals some more telling challenges.

Rigetti burnt through piles of cash, with investments seeming more like cash drains rather than cash seeds. Some investors are waiting, watching and hoping their high-stake gambits to future-proof the company turn the tide soon. QUBT Quick QuoteQUBT IONQ Quick QuoteIONQ RGTI Quick QuoteRGTI QBTS Quick QuoteQBTS Rigetti Computing (RGTI Quick QuoteRGTI - Free Report) has come under renewed pressure, with shares sliding 41% over the past month as investors digest a mix of progress and persistent challenges. The company’s latest earnings showed lower revenues and continued losses, highlighting that meaningful commercial traction is still developing despite improvements in efficiency and ongoing technical and partnership advancements. While government and research contracts continue to validate Rigetti’s capabilities, they offer limited visibility into steady, recurring growth, a key concern weighing on near-term sentiment.

At the same time, Rigetti has continued to push ahead on strategic and technical fronts, including advancements in its quantum hardware roadmap and expansion of global partnerships. These initiatives reinforce its long-term ambitions in hybrid quantum computing, but with near-term financial headwinds and heightened market volatility, investors are now questioning whether the recent pullback presents an opportunity or a warning sign. Rigetti’s sharp pullback comes at a time when competition in the quantum space is only getting tougher. IonQ (IONQ Quick QuoteIONQ - Free Report) is pressing ahead with upgrades to its trapped-ion systems and expanding its commercial footprint through new partnerships. D-Wave Quantum (QBTS Quick QuoteQBTS - Free Report) continues to double down on enterprise-focused annealing solutions, pitching its technology as a practical tool for real-world optimization problems. Quantum Computing Inc.

(QUBT Quick QuoteQUBT - Free Report) is also pushing for relevance with its quantum-enabled software stack and niche industry applications. In this competitive landscape, Rigetti’s hardware roadmap and global collaborations still give it a differentiated long-term angle, but the recent slide shows that investors are becoming more cautious about near-term execution. RGTI shares have plunged 40.6% over the past month, marking the steepest decline among key quantum peers. QBTS and QUBT have plummeted 33.4% and 28.6%, respectively. IonQ has held up relatively better but is still lower by 18.1% during the same period. In comparison, the Zacks Internet – Software industry has declined a more modest 13.1%.

Written by Keith Speights for The Motley Fool-> Rigetti Computing's Q3 revenue miss is essentially meaningless. The company's most important financial metric is its cash position. Despite its large cash stockpile, Rigetti remains a high-risk bet. Rigetti Computing's (NASDAQ: RGTI) shares were up more than 200% year to date just weeks ago. However, since early October, the stock has plunged over 50%.

The company's disappointing third-quarter results accelerated the sell-off. Rigetti Computing is little changed in postmarket trading even as the quantum computing company delivered lower-than-expected revenue yet again. Revenue: $1.8 million (compared to estimates for $1.87 million). Operating loss: -$19.9 million (estimated -$20.9 million). Of course, with revenues so low to begin with in what is very much an emerging growth industry, any technological breakthroughs and shifting investor sentiment toward quantum computing will likely be bigger drivers of... “We continue to achieve our ambitious road map goals, most recently by demonstrating the industry’s largest multi-chip quantum computer with impressive performance,” CEO Dr.

Subodh Kulkarni said. “Our industry-leading proprietary chiplet approach to scaling and strong financial position makes us confident in hitting our end-of-year technology goals.” Dividends week graphic has been released. Happy weekend everyone. Let's take some time off to rest and recharge for next week's trading. 400+ companies have reported earnings - Week 9

Our buymeacoffee page has been published. Support the project so we can add more features you like. Data team are working hard to analyze the upcoming week.

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