It has been about a month since the last earnings report for Rigetti Computing, Inc. (RGTI Quick QuoteRGTI - Free Report) . Shares have lost about 16.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Rigetti Computing due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

RGTI Q4 Earnings Top Estimates, Revenues Decline Y/Y

Rigetti reported fourth-quarter 2025 adjusted loss per share of 3 cents, narrower than the loss per share of 6 cents in the prior-year quarter. The metric also surpassed the Zacks Consensus Estimate of earnings by 40%.

GAAP loss per share in the reported quarter was 6 cents compared with 68 cents in the prior-year quarter.

Rigetti’s Revenue Details

The company reported total revenues of $1.9 million, down 17.9% year over year. The top line missed the Zacks Consensus Estimate by 30%.

For 2025, RGTI registered total revenues of $7.1 million, down 34.3% year over year. Adjusted loss per share for 2025 was 16 cents, narrower than 29 cents reported in 2024.

RGTI’s Margin Trend

In the quarter under review, RGTI’s gross profit declined 35% year over year to $0.7 million. The gross margin significantly contracted 920 basis points to 34.9%.

Selling, general and administrative expenses increased 1% year over year to $5.9 million. Research and development expenses increased 27% year over year to $17.3 million. Total operating expenses of $23.2 million increased 19.2% year over year.

Operating loss for the quarter under review totaled $22.6 million compared with $18.5 million in the prior-year quarter.

RGTI’s Financial Position

RGTI exited the fourth quarter of 2025 with cash, cash equivalents and short-term available-for-sale investments of $443.5 million compared with $446.9 million at the third-quarter end.

The company ended the quarter with no debts on its balance sheet.

Cumulative net cash used in operating activities at the end of the fourth quarter was $58.5 million compared with $50.6 million a year ago.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 11.11% due to these changes.

VGM Scores

Currently, Rigetti Computing has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Rigetti Computing has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Rigetti Computing is part of the Zacks Internet - Software industry. Over the past month, Zoom Communications (ZM Quick QuoteZM - Free Report) , a stock from the same industry, has gained 6.5%. The company reported its results for the quarter ended January 2026 more than a month ago.

Zoom reported revenues of $1.25 billion in the last reported quarter, representing a year-over-year change of +5.3%. EPS of $1.44 for the same period compares with $1.41 a year ago.

Zoom is expected to post earnings of $1.41 per share for the current quarter, representing a year-over-year change of -1.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.

Zoom has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.