Rigetti Computing Faces Dual Setbacks as Revenue Declines and Key Grant Stalls

Rigetti US76655K1034

The quantum computing sector promises revolutionary technology, but for Rigetti Computing, current operational realities are presenting significant challenges. Following a strong rally earlier in the year, shareholders are now contending with a double dose of disappointing news: declining quarterly revenue and the temporary omission from a critical phase of a major U.S. government funding program. With the share price having halved from its peak, questions are mounting about the near-term trajectory of this growth narrative.

The company's latest financial results did little to bolster confidence. For the third quarter of 2025, Rigetti reported revenue of just $1.9 million. This figure represents a year-over-year contraction of approximately 20.8%, a concerning trend for a firm that has commanded a premium market valuation. The revenue weakness signals that the path to commercializing its quantum technology is proving more protracted than many in the market had anticipated.

On a slightly more positive note, the cost side showed some discipline. The company's adjusted loss per share came in at -$0.03, a narrower deficit than analysts had projected. Nonetheless, the primary focus remains fixed on the top-line decline and its implications for the business model's scalability.

Exclusion from DARPA Program Phase Adds Pressure

Compounding the operational headwinds is a recent development concerning the Defense Advanced Research Projects Agency (DARPA). In early November, the U.S. research agency announced the initial selections for "Phase B" of its prestigious Quantum Benchmarking Initiative. Rigetti's name was conspicuously absent from that list.

Market observers interpret this omission as a setback for the company's technological validation. It is not a final disqualification; Rigetti remains active in "Stage A" of the initiative and is reportedly in discussions regarding potential inclusion at a later date. However, the uncertainty has undeniably increased. Investors are now pricing in the risk that competitors may gain an edge in securing government endorsement and the associated funding.

Share Price Seeks Stability After Sharp Decline

The confluence of these two factors has triggered a substantial market correction. The equity has fallen sharply from its 52-week high above €48. Currently trading around €24.50, the stock has shed nearly 50% of that value. A weekly gain of roughly 19% indicates some near-term stabilization, but this is overshadowed by a monthly loss exceeding 14%, confirming the prevailing downward trend.

The investment thesis for Rigetti appears to be shifting. The period of speculative euphoria has faded, replaced by a demand for tangible execution. Management now faces intensified pressure to demonstrate progress on two fronts simultaneously: reigniting revenue growth in the coming quarters and securing concrete advancements in its strategic government partnerships.