Rigetti Has Cash, Growth And A Problem: The Business Still Doesn't Scale

Value Vest296 FollowersFollowSummaryRigetti Computing offers a speculative play: strong cash reserves and recent revenue growth, but persistent losses and declining margins undermine traditional valuation.Q2 2026 revenue hit $5.14M, up 185% YoY, yet gross margin fell to 34% from 53% in 2024, and losses widened materially.Share count ballooned to 333.7M, reflecting heavy dilution as survival depends on repeated equity raises, not operating leverage.I rate RGTI a Hold for existing risk-tolerant holders; no-buy for new capital until sustained growth, margin recovery, and cash burn reduction are proven. mustafaU/iStock via Getty Images My Thesis My take on Rigetti Computing (RGTI) is simple: this is a business that has bought time but hasn't earned a valuation. Q2 2026 marked Rigetti’s highest quarterly revenue since Q2 2022. and it has a warThis article was written byValue Vest296 FollowersFollowFor over 12 years, I have been engaged as a passionate private investor and analyst in the technology sector. My professional career began in IT infrastructure management before transitioning to investment analysis, where I specialized in emerging technology companies. My analyses are based on a combination of fundamental valuation methods and a profound understanding of technological developments. I place special emphasis on identifying companies that can build structural competitive advantages through innovative technologies. As a contributor to Seeking Alpha, I aim to share my perspectives on technology stocks and provide well-founded insights that go beyond superficial market trends.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.