Rigetti Computing Inc., (NASDAQ: RGTI), lost up to 12% after its first-quarter financial results were released. The overall result was disappointing.
The quantum technology company reported $1.5 million of revenue in Q1, which is a decline by more than half on an annual basis, and 35% sequentially.
Analysts expected a revenue of $2.6 million for RGTI’s recent quarter.
Rigetti Computing’s stock has fallen nearly 50% since the beginning of 2025, including today’s losses.
Rigetti Computing Q1 earnings doesn’t represent core strengths
RGTI supporters are celebrating the 13 cents a quarter profit that was reported by the Nasdaq listed firm for Q1 fiscal.
The company’s first-quarter earnings per share isn’t as good on the surface.
This is because Rigetti’s recent quarter’s strong earnings per share were mainly due to special benefits.
In the company’s first quarter net profit, there were “$62.1 millions of non-cash gains resulting from changes in fair values of derivative warrants” and “earnings liabilities.”
Quanta Computer, a Taiwanese firm that specializes in computer hardware and technology, bought 35 million dollars worth of RGTI stock, as reported by today’s earnings report.
This suggests that Rigetti Computing’s first-quarter headline profit isn’t always reflective of its actual operating strength.
Rigetti Computing’s stock has risen more than 40 percent since its April low.
RGTI’s valuation is still a concern for 2025
RGTI’s shares are currently trading at a price to sales ratio that is alarmingly large, nearly 150.
Rigetti’s multiple is significantly higher than that of its peers. This is a red flag as the company’s revenue is declining and it is still far away from achieving sustainable profitability.
Subodh Kullkarni, chief executive of Plus, a company located in Berkeley, California told investors that the company is still “four or five years” away from achieving what it calls quantum advantage.
Quantum stock is a risky investment until 2025.
Rigetti Computer: Should you Buy the Post-Earnings Dip?
Rigetti Computing faces fierce competition, including in the space of quantum technology.
Google, IBM, and other giants are investing aggressively in the field of quantum computing.
The news is not good for Rigetti’s investors, as the titans are able to move much faster in the quantum area than RGTI. This could potentially steal any advantage that RGTI may currently have.
Wall Street’s consensus rating for Rigetti Computing was “buy” on Tuesday.
This post Deep dive: Rigetti Computing Q1 earnings aren’t impressive under the surface could be updated as new information is released.
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