RGTICAUTIOUS

RGTI Gross Margin Analysis

31.3%

Higher than 10% of Technology sector peers

Updated 50h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its goods or services.

Sector Performance

10th percentile

RGTI

31.3%

Sector Median

65.2%

Sector Avg

60.2%

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its goods or services.

At 31.3%, Rigetti retains less than a third of its revenue as gross profit, leaving a thin buffer for operating expenses. This figure places the company well below the technology sector median of 65.2%, ranking in the 10th percentile among peers — meaning 90% of sector companies have a higher gross margin. The year-over-year change is N/A, and the quarter-over-quarter change is N/A, so no trend data is available to assess direction. A low gross margin combined with no trend information indicates higher risk, as the company has limited profitability visibility at the product level. This metric directly contradicts the CAUTIOUS verdict, because a weak gross margin typically signals pricing pressure or high production costs, reinforcing the need for caution.

Frequently Asked Questions

What does the Gross Margin tell investors about RGTI?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does RGTI's Gross Margin compare to its sector?

RGTI's Gross Margin of 31.3% compares to a Technology sector median of 65.2%, placing it in the 10th percentile.

Who are RGTI's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: MDB (72.2%), NVDA (74.9%), SMTC (52.0%), KLIC (49.3%), APLD (42.5%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.