Shares of Rigetti Computing (RGTI) plummeted 12.81% in Tuesday's trading session following the release of disappointing first-quarter 2025 financial results. The quantum computing company's performance fell significantly short of analyst expectations, raising concerns about its growth trajectory and path to profitability.

Rigetti reported Q1 revenue of $1.5 million, well below the analyst consensus estimate of $2.55 million. This represents a substantial 51.77% decrease compared to the $3.05 million reported in the same period last year. The company attributed the revenue decline to the "lumpy" nature of milestone-based research and development and government contracts, which can vary between quarters.

Adding to investors' concerns, Rigetti's operating loss widened to $21.6 million, compared to $16.6 million a year ago. Despite reporting a net income of $42.6 million, it's worth noting that this figure includes $62.1 million of non-cash gains from changes in fair value of derivative warrant and earn-out liabilities, masking the underlying operational challenges. The sharp stock decline reflects investor disappointment with Rigetti's slower-than-expected progress in commercializing its quantum computing technology and concerns about its ability to translate recent developments into sustainable financial performance.