Rivian Automotive reported third‑quarter 2025 results that surpassed consensus expectations, with revenue reaching $1.558 billion—an increase of 78% from $874 million in Q3 2024—and beating the $1.46 billion estimate by $98 million, or roughly 6.7%. Adjusted earnings per share were $‑0.65, a $0.07 improvement over the $‑0.72 consensus, a 9.7% beat that reflects tighter cost control and a more favorable product mix.
Vehicle deliveries climbed to 13,201 units, up 32% year‑over‑year, driven by strong demand for the R1 and R1S models and a consumer rush to secure the federal EV tax credit before its November 30 expiration. The delivery growth helped lift revenue and contributed to the company’s first positive consolidated gross profit of $24 million, even as the automotive segment still posted a $130 million loss—an improvement from the $392 million loss in Q3 2024.
Software and services revenue surged 324% YoY to $1.1 billion, generating $154 million in gross profit. This segment’s performance offset the automotive loss and underscored the company’s growing profitability in high‑margin services, while the automotive gross loss narrowed thanks to lower cost of goods sold per unit and better pricing power.
Management reaffirmed its 2025 outlook: 41,500‑43,500 vehicle deliveries, an adjusted EBITDA loss of $2.0‑$2.25 billion, and capital expenditures of $1.8‑$1.9 billion. The unchanged guidance signals confidence in sustained demand and disciplined cost management amid macro headwinds.
Production of the new R2 mid‑size SUV will begin in the first half of 2026. The Normal, Illinois plant’s new body shop and supplier park are fully installed and ready for validation builds by year‑end, positioning Rivian to scale production and capture a broader market segment.
Cash and short‑term investments totaled $7.1 billion at quarter end, providing a strong liquidity cushion to support the R2 ramp and ongoing software and services investments.
CEO RJ Scaringe emphasized confidence in Rivian’s technology and direct‑to‑consumer model, noting that the R2 launch will broaden the product portfolio. He acknowledged trade, tariff, and regulatory uncertainties but remained focused on long‑term growth.
Investors responded positively to the earnings beat, citing the first quarterly gross profit, revenue and EPS beats, and reaffirmed guidance as evidence of improving profitability and execution.
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