Rigetti Computing Stock Drops 14.59% After Disappointing Q1 Results

BERKELEY, California — Rigetti Computing, Inc. (NASDAQ: RGTI) experienced a significant stock decline on Tuesday, falling 14.59% to close at $9.86. This downturn occurred in the wake of disappointing first-quarter financial results, which were announced after the market closed on Monday.

The Labor Department released inflation figures earlier that day, which showed subdued consumer price growth. However, that news couldn’t offset the negative sentiment surrounding Rigetti’s performance.

In its earnings report, Rigetti revealed a revenue drop of 52%, totaling $1.47 million compared to $3.05 million during the same quarter last year. Additionally, the company’s losses from operations increased by 30% to $21.6 million from $16.58 million year-on-year. Total operating expenses also rose by 22%, reaching $22.07 million.

CEO Subodh Kulkarni noted during the earnings call that “quantum computing continues to be in R&D mode” and reassured investors that fluctuations in revenue growth were normal for companies at this stage. Despite the loss, the firm recorded an adjusted earnings per share (EPS) of $0.13, a positive shift from a loss of $0.14 per share in the same period last year.

Market analysts, however, expressed concern about the sustainability of Rigetti’s profitability. The Q1 net income included $62.1 million in noncash gains from changes in the fair value of certain financial instruments, indicating that the profit was largely due to accounting rather than operational success.

Investors reacted negatively, leading to a steep decline in Rigetti’s stock, which has plunged nearly 50% since the start of 2025. Analysts had anticipated revenues of $2.6 million, significantly higher than what Rigetti delivered. The disappointing earnings are reflective of the intense competition in the quantum technology space, with major players like Google and IBM investing heavily in the sector.

Despite the challenges, Rigetti remains committed to advancing its quantum technology. Earlier this year, it secured several government contracts, demonstrating its role in the burgeoning quantum sector.

As the landscape for quantum computing evolves, investors are advised to exercise caution. Rigetti’s current forward price-to-sales ratio stands at nearly 150, suggesting a high valuation that may not be sustainable given its declining revenues.