It has been about a month since the last earnings report for Rigetti Computing, Inc. (RGTI). Shares have lost about 10.1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, 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 its latest earnings report in order to get a better handle on the important drivers.
RGTI Q3 Earnings Top Estimates, Revenues Decline Y/Y
Rigetti reported third-quarter 2025 adjusted loss per share of 3 cents, narrower than the loss per share of 8 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 62 cents compared with the loss per share of 8 cents in the prior-year quarter.
Rigetti’s Revenue Details
The company reported total revenues of $1.9 million, down 18.1% year over year. The top line missed the Zacks Consensus Estimate by 18.5%.
Per management, on a year-over-year basis, quarterly revenue was impacted by the expiration of the U.S. National Quantum Initiative (NQI) and its pending reauthorization in Congress, which slowed government-driven contract activity and sales. While recent Novera system orders and the AFRL contract provide future revenue visibility, these contributions were not recognized in the third quarter, weighing on reported results.
RGTI’s Margin Trend
In the quarter under review, RGTI’s gross profit declined 66.5% year over year to $0.4 million. The gross margin significantly contracted 2990 basis points to 20.7%. 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 2.3% year over year to $5.9 million. Research and development expenses increased 17.8% year over year to $15 million. Total operating expenses of $20.9 million increased 12.9% year over year.
Operating loss for the quarter under review totaled $20.5 million compared with $17.3 million in the prior-year quarter.
RGTI’s Financial Position
RGTI exited the third quarter of 2025 with cash, cash equivalents and short-term available-for-sale investments of $446.9 million compared with $425.7 million at the end of the second 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 third quarter was $43.6 million compared with $42.1 million a year ago.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -12.5% due to these changes.
VGM Scores
At this time, Rigetti Computing has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock has a score of F on the value side, putting it in the fifth quintile for this investment strategy.
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 broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. 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 belongs to the Zacks Internet - Software industry. Another stock from the same industry, DoubleVerify Holdings (DV), has gained 0.6% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
DoubleVerify reported revenues of $188.62 million in the last reported quarter, representing a year-over-year change of +11.2%. EPS of $0.22 for the same period compares with $0.10 a year ago.
For the current quarter, DoubleVerify is expected to post earnings of $0.19 per share, indicating a change of +46.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.4% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for DoubleVerify. Also, the stock has a VGM Score of B.
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Rigetti Computing, Inc. (RGTI): Free Stock Analysis Report DoubleVerify Holdings, Inc. (DV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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