Rivian Automotive Inc. reported fourth‑quarter and full‑year 2025 results that included $1.286 billion in revenue and an adjusted loss of $0.54 per share, beating consensus estimates of $-0.69 by $0.15. The company also posted its first annual consolidated gross profit of $144 million, a milestone driven largely by a 109% jump in software and services revenue to $447 million, while the automotive segment recorded a $432 million loss for the year.
The software and services segment’s explosive growth was fueled by the joint venture with Volkswagen Group, which expanded Rivian’s market reach and product portfolio. In contrast, the automotive segment’s revenue fell 45% YoY to $839 million, a decline largely attributable to a sharp drop in regulatory credit sales and lower vehicle deliveries. The loss in the automotive segment reflects the company’s ongoing investment in the new R2 SUV and the cost pressures associated with scaling production of a new model.
Comparing to the same quarter last year, Q4 2024 revenue was $1.73 billion and automotive revenue was $1.52 billion, underscoring the significant contraction in the automotive business and the relative strength of the software and services arm. The Q4 2025 revenue decline of 3% from $1.309 billion in Q4 2024 is therefore a modest drop in the context of a larger year‑over‑year decline in automotive sales.
Management guided 2026 deliveries to 62,000–67,000 vehicles, a 47%–59% increase from 42,247 in 2025, and forecast an adjusted EBITDA loss of $1.8 billion to $2.1 billion. Capital expenditures are expected to be $1.95 billion to $2.05 billion as the company ramps production of the R2 SUV and expands its Normal, Illinois plant. CEO RJ Scaringe said, "In 2025 we focused on execution as we laid the foundation for dramatically scaling our business." CFO Claire McDonough added, "On a full year‑over‑year basis, we delivered nearly $5,500 of improvement in average sales price."
Investors reacted positively to the earnings beat and the first annual gross profit milestone, citing the strong software and services growth and the optimistic 2026 delivery outlook. The company faces headwinds from declining regulatory credit sales and the cost intensity of launching a new vehicle, but tailwinds include the Volkswagen partnership, improved average selling prices, and the anticipated demand for the R2 SUV. The guidance signals management’s confidence in scaling the R2 platform while acknowledging the continued need for capital investment to achieve profitability.
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