Rigetti Computing, Inc

Rigetti Computing, Inc (NASDAQ: RGTI) is a full-stack quantum computing provider that runs quantum systems via the cloud, delivering access to its technology for enterprise, government, and research users worldwide through the Rigetti Quantum Cloud Services platform.

Key Growth Aspects

• Strengthened Liquidity Position: Rigetti entered the third quarter of 2025 with a significantly strengthened liquidity profile. Total cash, cash equivalents and available-for-sale investments reached USD 558.9 million as of September 30, 2025, up sharply from December 2024 levels due to equity raises and warrant exercises. This improved liquidity provides operational runway and supports long-term R&D initiatives in quantum processor development and commercialization.
• Growing Strategic Partnerships and Commercial Progress: Operationally, Rigetti demonstrated momentum in securing commercial engagements, including purchase orders worth USD 5.7 million for two Novera quantum systems during September 2025, with deliveries expected in 2026 . The expansion of academic and government collaborations—including AFRL, C-DAC in India, and MSU—supports ecosystem development while reinforcing enterprise-grade credibility and adoption potential.
• Technology Roadmap Visibility: The Company continued to execute against its quantum technology roadmap, reaffirming expectations to deliver a 100+ qubit system with 99.5% median two-qubit fidelity by end-2025, advancing to 150+ qubits in 2026 and 1,000+ qubits in 2027 . This multiyear roadmap illustrates technological progress and may position the Company competitively for future quantum advantage milestones.
• R&D and Innovation Focus: Rigetti maintained a heavy emphasis on research and development, with R&D expenses increasing to USD 15.0 million in Q3 2025 versus USD 12.8 million in Q3 2024, reflecting continued investment in processor fidelity, hybrid integration, and quantum networking initiatives. These investments underpin long-term product advancement and reinforce the Company’s full-stack quantum positioning.

Growth Challenges

• Continuous Operating Losses: Despite technology progress, Rigetti reported sustained operating losses. Q3 2025 operating loss was USD 20.5 million, widening from USD 17.3 million in Q3 2024.The business model remains far from breakeven due to limited revenue scale and high R&D intensity.
• Sharp Revenue Contraction and Weak Gross Margin: Financial performance reflected declining revenue, with Q3 2025 revenue of USD 1.9 million, down from USD 2.4 million in Q3 2024, while nine-month revenues also fell materially year-over-year. Gross profit dropped significantly due to lower revenue levels and limited contribution margin scale, underscoring early-stage commercialization challenges.
• Very Large Net Loss Driven by Fair-Value Adjustments: GAAP net loss was heavily affected by fair-value movements in derivative warrant liabilities, resulting in a GAAP net loss of USD 201.0 million in Q3 2025, versus USD 14.8 million in Q3 2024. Although partially non-cash, such volatility adds large swings to reported earnings and reinforces investor sensitivity to equity-linked instruments.
• Dependence on Equity Financing: The Company materially increased additional paid-in capital through ATM issuances and warrant-related equity events, which contributed to diluted share count and reliance on capital markets. Continued funding through dilution rather than operating cash flow remains a structural financial weakness until commercial revenues scale.

Technical Observation (on the daily chart):

The stock has pulled back sharply from its October peak and is now attempting to stabilize, trading back above the 20-day moving average but still below the 50-day, which keeps the broader trend cautious. Momentum has improved from oversold conditions, as seen in the mid-range RSI, but volumes during the rebound remain relatively muted. Overall, the chart indicates an early recovery attempt, although a sustained move above the 50-day moving average would be needed to confirm a clearer trend reversal.

Rigetti’s Q3FY25 reflects a mixed picture, with the company demonstrating clear technological progress and strengthening liquidity while continuing to face significant commercial and financial challenges. On the positive side, Rigetti expanded partnerships, secured new purchase orders, and reaffirmed a detailed quantum roadmap, supported by a considerably stronger cash position that provides investment capacity for long-term development. However, revenues declined year-over-year, losses remain substantial, and dependence on equity financing persists, underscoring the early-stage nature of the business and its limited near-term profitability. Overall, Rigetti continues to advance strategically and technologically, but meaningful commercial scale and financial improvement remain key hurdles ahead.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given Rigetti Computing, Inc (NASDAQ: RGTI) at the closing market price of USD 28.11 as of Dec 05,2025. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is December 05,2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.