Upcoming Report from Rigetti Computing
For fans of Rigetti Computing, August 12th is a date to remember. The company is set to reveal its quarterly revenue for 2025 after the market closes. Analysts are hopeful, predicting a reduction in losses by nearly 30%. So, there’s a lot of anticipation surrounding whether Rigetti will show any signs of improvement.
Investors will be keeping a close watch on updates regarding quantum systems scaling, partnerships, and the company’s path to commercial success. In an industry that’s constantly evolving, any fresh insights into Rigetti’s plans, revenue outlook, or technological benchmarks could lead to significant movements in the market.
Established in 2013 and based in Berkeley, California, Rigetti Computing has emerged as a key player in the field of full-stack quantum computing. The company is involved in designing, manufacturing, and deploying superconducting quantum processors, in addition to offering software platforms and quantum cloud services.
Currently, the company boasts a market cap of nearly $5 billion, indicative of rising interest in its potential.
Recently, Rigetti’s stock has been on the rise, boosting optimism among newer investors in quantum technology. In fact, it has gained about 31.5% over the past month.
A standout moment was on July 16th, when Rigetti’s stock increased by 30.2% in a single trading day, thanks to achieving 99.5% fidelity on a two-kit gate. Analysts have grown more optimistic as well, which has shifted the mood among investors.
Interestingly, the company has achieved an impressive annual return of 1,926%, outpacing broader indicators like the S&P 500, which rose only 19.4% during the same timeframe.
In its first quarter financial report released on May 12th, Rigetti showed a complex picture, balancing operational hurdles against strategic advancements. Revenue for the quarter ending March 31st fell significantly to $3.1 million, while operational costs climbed to $22.1 million, leading to an operating loss of $21.6 million. However, there was a net profit of $42.6 million, primarily driven by $62.1 million in non-cash profits due to a revision of derivative warrants and acquisition liabilities.
Rigetti reported earnings per share (EPS) at $0.13, a welcome change from a loss of $0.14 per share in the first quarter of 2024.
Moreover, the company has received various awards and collaborations that underscore its commitment to advancing quantum computing. It participated in Stage A of DARPA’s Quantum Benchmark Initiative, a performance agreement worth up to $1 million, focusing on partnerships like Riverlane’s utility-scale quantum computer project.
An additional $5.48 million award has been granted to lead a consortium working on alternating bias-assisted annealing chip manufacturing technology aimed at enhancing the quality of superconducting qubits.
Rigetti recently garnered three distinctions from the UK Quantum Missions Pilot Awards, upgraded its NQCC host quantum processing unit from 24 to 36 qubits, and collaborated with SEEQC to integrate additional QPUs.
By the end of the first quarter, Rigetti had $209.1 million in cash and equivalents. This amount increased to $237.7 million by April 30th following share purchases by Quanta Computer.
Looking ahead to the upcoming revenue announcement on August 12th, analysts anticipate a loss per share of $0.05, a notable improvement from a projected loss of about $0.07. Revenue predictions for this quarter appear to be down 39.3% year-on-year, with expectations of around $1.87 million.
Interestingly, forecasts suggest an increase in earnings per share, raising expectations to $0.21 for fiscal year 2026, up from a predicted $0.25 for fiscal year 2025.
The broader roadmap for 2025 looks promising, with Rigetti setting out several optimistic technological goals. Management has plans to scale Quantum Systems, aiming for 36-qubit processors by mid-2025, exceeding 100 qubits by the year’s end, and achieving extremely fast gate speeds.
Rigetti has recently seen a wave of positive reassessments from analysts. Notably, Needham’s analyst raised its price target from $15 to $18, reiterating a “buy” rating. B. Riley followed suit by increasing its target from $15 to $19 while maintaining its “buy” outlook.
Overall, Wall Street has a generally positive sentiment toward Rigetti, with a consensus “strong buy” rating. Out of six analysts covering the stock, five suggest strong buys while one opts for a medium buy.
RGTI’s average target price stands at $16.33, with B. Riley’s higher target of $19 indicating a potential 19% increase in stock value.
