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RGTI Stock Down Despite Q2 Earnings Top Estimates, Revenues Decline Y/Y
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Key Takeaways
Rigetti's Q2 loss per share beat estimates, narrowing to 5 cents from 7 cents a year ago.
Revenue fell 41.6% year over year to $1.8M, missing the consensus estimate by 5.7%.
RGTI launched Cepheus-1-36Q, its largest multi-chip quantum computer, with 99.5% fidelity.
Rigetti Computing (RGTI - Free Report) reported second-quarter 2025 adjusted loss per share of 5 cents, narrower than the loss per share of 7 cents in the prior-year quarter. The metric also surpassed the Zacks Consensus Estimate of earnings by 16.7%.
GAAP loss per share in the reported quarter was 13 cents compared with the loss per share of 7 cents in the prior-year quarter.
Shares of this company lost nearly 2.6% in today’s pre-market hours. The company’s shares have gained 3% in the year-to-date period compared with the industry’s growth of 20.5%. The broader S&P 500 Index has increased 8.2% in the same time frame.
Image Source: Zacks Investment Research
Rigetti’s Revenue Details
The company reported total revenues of $1.8 million, down 41.6% year over year. The top line missed the Zacks Consensus Estimate by 5.7%.
Per management, on a year-over-year basis, quarterly revenue was impacted by the expiration of the U.S. National Quantum Initiative and the pending reauthorization in the U.S. Congress. The renewal of this initiative, along with sales to the United States and international government entities and contributions from Novera, will be critical to driving future growth.
RGTI’s Technology Updates
Per the company’s second-quarter earnings release, Rigetti has launched its Cepheus-1-36Q, the industry’s largest multi-chip quantum computer, for general availability on the Rigetti Quantum Cloud Services platform, with availability on Microsoft Azure to follow. The system delivers a median two-qubit gate fidelity of 99.5%, reflecting a two-fold reduction in two-qubit gate error rates compared to the prior Ankaa-3 system. With four chiplets, Cepheus-1-36Q contains the highest number of chiplets in any quantum computer to date, reinforcing Rigetti’s chiplet-based scaling strategy.
The Cepheus-1-36Q incorporates proprietary architecture that improves chip uniformity, reduces manufacturing complexity, and enhances fabrication yield. Optimized two-qubit gates enable faster operation while lowering coherent errors, and advancements in intermodule coupler design further boost performance. Rigetti, which introduced the world’s first multi-chip quantum processor in 2021, plans to build on this platform with the release of a 100+ qubit chiplet-based system at 99.5% median two-qubit gate fidelity before the end of 2025.
RGTI’s Margin Trend
In the quarter under review, RGTI’s gross profit declined 71.6% year over year to $0.6 million. The gross margin significantly contracted 3310 basis points to 31.4%. Per management, the year-over-year decline in gross margin was impacted by revenue mix and pricing variability in development contracts, including those with the U.K.’s National Quantum Computing Centre for Quantum Systems, which carry lower margins compared to most other revenue streams.
Selling, general and administrative expenses increased 11.6% year over year to $6.9 million. Research and development expenses increased 13.9% year over year to $13.5 million. Total operating expenses of $20.4 million increased 13.1% year over year.
Operating loss for the quarter under review totaled $19.9 million compared with $16.1 million in the prior-year quarter.
Rigetti Computing, Inc. Price, Consensus and EPS Surprise
RGTI exited the second quarter of 2025 with cash, cash equivalents and short-term available-for-sale investments of $425.7 million compared with $209.1 million at the end of the first quarter.
The company ended the quarter with no debts on its balance sheet.
Cumulative net cash used in operating activities at the end of the second quarter was $29.8 million compared with $26.7 million a year ago.
Our Take
RGTI exited second-quarter 2025 results on a mixed note, where its earnings surpassed the Zacks Consensus Estimate while revenues missed the same. Continued decline in revenues and gross margin does not bode well for the stock. Increased operating loss also seems a matter of concern.
However, Rigetti continues to advance its technology roadmap, highlighted by the launch of its Cepheus-1-36Q, now available on its cloud platform and soon on Microsoft Azure. The system delivers significantly improved fidelity and reduced error rates over its predecessor, underscoring the strength of Rigetti’s chiplet-based scaling strategy. Supporting these technological strides, the company maintains a solid financial position with a strengthened cash balance, no debt on its books, and disciplined operating cash flow management.
Zacks Rank and Stocks to Consider
RGTI carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. (MEDP - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Medpace Holdings, sporting a Zacks Rank of 1 (Strong Buy), reported second-quarter 2025 EPS of $3.10, beating the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.
West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.
West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy).
Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.
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RGTI Stock Down Despite Q2 Earnings Top Estimates, Revenues Decline Y/Y
Key Takeaways
Rigetti Computing (RGTI - Free Report) reported second-quarter 2025 adjusted loss per share of 5 cents, narrower than the loss per share of 7 cents in the prior-year quarter. The metric also surpassed the Zacks Consensus Estimate of earnings by 16.7%.
GAAP loss per share in the reported quarter was 13 cents compared with the loss per share of 7 cents in the prior-year quarter.
Shares of this company lost nearly 2.6% in today’s pre-market hours. The company’s shares have gained 3% in the year-to-date period compared with the industry’s growth of 20.5%. The broader S&P 500 Index has increased 8.2% in the same time frame.
Image Source: Zacks Investment Research
Rigetti’s Revenue Details
The company reported total revenues of $1.8 million, down 41.6% year over year. The top line missed the Zacks Consensus Estimate by 5.7%.
Per management, on a year-over-year basis, quarterly revenue was impacted by the expiration of the U.S. National Quantum Initiative and the pending reauthorization in the U.S. Congress. The renewal of this initiative, along with sales to the United States and international government entities and contributions from Novera, will be critical to driving future growth.
RGTI’s Technology Updates
Per the company’s second-quarter earnings release, Rigetti has launched its Cepheus-1-36Q, the industry’s largest multi-chip quantum computer, for general availability on the Rigetti Quantum Cloud Services platform, with availability on Microsoft Azure to follow. The system delivers a median two-qubit gate fidelity of 99.5%, reflecting a two-fold reduction in two-qubit gate error rates compared to the prior Ankaa-3 system. With four chiplets, Cepheus-1-36Q contains the highest number of chiplets in any quantum computer to date, reinforcing Rigetti’s chiplet-based scaling strategy.
The Cepheus-1-36Q incorporates proprietary architecture that improves chip uniformity, reduces manufacturing complexity, and enhances fabrication yield. Optimized two-qubit gates enable faster operation while lowering coherent errors, and advancements in intermodule coupler design further boost performance. Rigetti, which introduced the world’s first multi-chip quantum processor in 2021, plans to build on this platform with the release of a 100+ qubit chiplet-based system at 99.5% median two-qubit gate fidelity before the end of 2025.
RGTI’s Margin Trend
In the quarter under review, RGTI’s gross profit declined 71.6% year over year to $0.6 million. The gross margin significantly contracted 3310 basis points to 31.4%. Per management, the year-over-year decline in gross margin was impacted by revenue mix and pricing variability in development contracts, including those with the U.K.’s National Quantum Computing Centre for Quantum Systems, which carry lower margins compared to most other revenue streams.
Selling, general and administrative expenses increased 11.6% year over year to $6.9 million. Research and development expenses increased 13.9% year over year to $13.5 million. Total operating expenses of $20.4 million increased 13.1% year over year.
Operating loss for the quarter under review totaled $19.9 million compared with $16.1 million in the prior-year quarter.
Rigetti Computing, Inc. Price, Consensus and EPS Surprise
Rigetti Computing, Inc. price-consensus-eps-surprise-chart | Rigetti Computing, Inc. Quote
RGTI’s Financial Position
RGTI exited the second quarter of 2025 with cash, cash equivalents and short-term available-for-sale investments of $425.7 million compared with $209.1 million at the end of the first quarter.
The company ended the quarter with no debts on its balance sheet.
Cumulative net cash used in operating activities at the end of the second quarter was $29.8 million compared with $26.7 million a year ago.
Our Take
RGTI exited second-quarter 2025 results on a mixed note, where its earnings surpassed the Zacks Consensus Estimate while revenues missed the same. Continued decline in revenues and gross margin does not bode well for the stock. Increased operating loss also seems a matter of concern.
However, Rigetti continues to advance its technology roadmap, highlighted by the launch of its Cepheus-1-36Q, now available on its cloud platform and soon on Microsoft Azure. The system delivers significantly improved fidelity and reduced error rates over its predecessor, underscoring the strength of Rigetti’s chiplet-based scaling strategy. Supporting these technological strides, the company maintains a solid financial position with a strengthened cash balance, no debt on its books, and disciplined operating cash flow management.
Zacks Rank and Stocks to Consider
RGTI carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. (MEDP - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Medpace Holdings, sporting a Zacks Rank of 1 (Strong Buy), reported second-quarter 2025 EPS of $3.10, beating the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.
West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.
West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy).
Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.