Rigetti Computing (RGTI) is back in focus after its fourth quarter and full year 2025 earnings. Quarterly revenue was US$1.87 million, and the company reported a quarterly net loss of US$18.21 million.

The earnings release and updated product roadmap arrived after a sharp pullback, with a 90 day share price return of a 34.95% decline and a year to date share price return of a 28.01% decline. However, the 1 year total shareholder return of 111.06% and very large 3 year total shareholder return suggest earlier buyers have still seen strong gains as expectations around Rigetti’s quantum systems have shifted over time.

If quantum computing is on your radar, this is also a good moment to see what else is out there through our screener of 22 quantum computing stocks.

With Rigetti still loss making, recent revenue softness, and analysts flagging room to the average price target, the real question for you is whether the current pullback offers value or if the market already reflects future growth.

Most Popular Narrative: 30.7% Undervalued

Rigetti's most followed valuation narrative, according to LongTermer, puts fair value at $24.50 per share versus the last close of $16.99, which is a wide gap for any investor to think about.

The trajectory of quantum computing, particularly in the context of Rigetti Computing and the Quantum Benchmark Testing System (QBTS), could witness significant shifts. Trump's emphasis on "America First" policies might lead to increased funding for public-private partnerships and The Defense Advanced Research Projects Agency (DARPA)'s R&D works in critical technologies, including quantum computing, as part of national security and technological supremacy initiatives. Although the company may not achieve profitability in the short or medium term, 2025 will be a much positive year in terms of strengthening commercial relationships and improving cash flow.

Curious what sits behind that valuation gap and optimism on cash flow, even with ongoing losses? The narrative leans heavily on rapid revenue expansion, improving margins, and a future earnings multiple that assumes Rigetti turns today’s research heavy spending into meaningful commercial traction.

Result: Fair Value of $24.50 (UNDERVALUED)

However, this story can break if revenue growth falls short of expectations or if ongoing net losses of US$216.21 million continue to pressure future funding options.

Another View: Price Tag Tells a Different Story

That 30.7% undervaluation story sits awkwardly next to Rigetti’s current P/B of 10.3x, which is more than double the US semiconductor industry and peer average of 4.3x. Put simply, you are paying far more per dollar of book value than many alternatives, which raises the question of how much execution risk you are really comfortable taking on.

Next Steps

If this mix of optimism and concern around Rigetti feels finely balanced, consider taking a closer look now to shape your own view with 1 key reward and 3 important warning signs.

Ready to widen your watchlist?

If Rigetti has your attention, do not stop there. Use this momentum to scan the market and uncover fresh ideas that fit your own checklist.

• Target potential value opportunities by checking companies on our 48 high quality undervalued stocks that combine solid fundamentals with prices that may not fully reflect them.
• Prioritise resilience by reviewing businesses in our 68 resilient stocks with low risk scores that score well on stability and risk factors.
• Hunt for less crowded opportunities by browsing our screener containing 23 high quality undiscovered gems backed by strong underlying numbers.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.