March 21, 2025 – Rigetti Computing Inc. (NASDAQ: RGTI) reported challenging Q4 financial results, posting a $153 million net loss, but the quantum computing company’s stock surged 32.6% over the past quarter. The stock’s impressive performance comes amid technological advancements, new private placements, and growing investor confidence.
Financial Struggles Amid Expansion
Rigetti’s Q4 2024 earnings revealed:
- $153 million net loss, reflecting ongoing profitability challenges.
- Declining sales and earnings, indicating near-term financial strain.
Despite the weak financials, Rigetti successfully raised $35 million through a private placement, featuring a notable investment from Quanta Computer Inc. This capital infusion is expected to fuel future growth and drive innovation.
Quantum Breakthrough: 84-Qubit Ankaa-3 System
A key highlight in Rigetti’s growth narrative is the launch of its 84-qubit Ankaa-3 quantum system in December 2024. This release marked a significant technological milestone, showcasing Rigetti’s ability to push the boundaries of quantum computing capabilities.
Leadership and Strategic Shifts
The recent departure of board member Cathy McCarthy could signal upcoming strategic and staffing changes, potentially influencing the company’s direction.
Stock Performance and Market Recognition
Rigetti’s stock delivered an extraordinary 479.24% total shareholder return over the past year, far outperforming the broader US market’s 8.1% gain and the US semiconductor industry’s 12.2% return.
Several key events boosted investor sentiment:
- $100 million follow-on equity offering in November 2024, strengthening Rigetti’s financial foundation.
- Inclusion in major indexes, including the S&P Semiconductors Select Industry Index in December 2024 and the Russell Indexes in July 2024, enhancing visibility and attracting institutional interest.
- Expansion into global markets, highlighted by the sale of a Novera QPU in Singapore in April 2024, expanding its international reach.
Outlook: Balancing Innovation and Profitability
While Rigetti continues to face profitability hurdles, its technological advancements and strategic partnerships have fueled investor optimism. The company’s recent breakthroughs in quantum technology and increased market visibility position it for potential long-term growth, though financial stability remains a challenge.
