Rigetti Computing Is Down 70% From Its High. Time to Buy?

Rigetti Computing (NASDAQ: RGTI) has taken investors on a wild ride over the last few months. The stock price spiked last fall, surging by as much as 275% over a month.

However, by February, the stock had given back all of those gains and has traded in a range since. That may leave investors wondering what is next for Rigetti. Does that mean the quantum computing stock won't recover, or should investors look at the drop as a second chance at buying Rigetti stock?

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The state of Rigetti

Rigetti has taken a unique approach to quantum computing. Instead of trying to create bigger chips with more processing power, it seeks to tile together multiple chiplets, using 36-qubit chiplets to create a 108-qubit system. This allows it to achieve 99.5% to 99.9% reliability while scaling higher qubit counts.

This approach allows for gate speeds as fast as 28 nanoseconds, making its systems exponentially faster than the trapped-ion systems that are common to other quantum computing companies.

Nonetheless, as promising as that sounds, investors may struggle with the company's finances. In 2025, its revenue of $7.1 million fell by 34% amid the delayed launch of the 108-qubit Cepheus-1 system and a pause in the reauthorization of a government contract.

Moreover, operating costs continue to far exceed its revenue, leading to a $216 million loss in 2025, more than the $201 million loss in 2024.

The good news is that the revenue decline is probably a one-time event. Analysts forecast 219% revenue growth this year and a 103% increase in 2027, which could stoke investor optimism.

Also, Rigetti reported negative free cash flow of $77 million in 2025, but with almost $444 million in liquidity, it can stay afloat for a while.

Unfortunately, an improved financial performance doesn't necessarily lead to profitability, or even positive free cash flow. Additionally, investors won't see much relief on the valuation front. Without earnings, it has no P/E ratio, and its price-to-sales (P/S) ratio is over 730.

The stock's price-to-book ratio of 10 may offer some justification for buying at these levels, but no matter how one looks at this stock, the buy case appears increasingly speculative.

Is it time to buy Rigetti Computing stock?

Given the state of Rigetti, investors should only buy speculative positions if they choose to buy this stock at all.

Last year's price spike showed the potential effect of investor optimism on this stock. Now, it appears to have bottomed out, and if conditions appear to improve, it could move substantially higher.

However, any move higher could prove temporary, as we also just saw. Moreover, even though it will probably return to revenue growth, the state of its finances makes near-term profitability highly unlikely.

Ultimately, Rigetti Computing could succeed, but it has much to prove to investors. Until its financial condition improves significantly, investors should limit themselves to speculative buys or avoid the stock completely.

Will Healy has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.