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Rivian reported record third-quarter production and deliveries, with 19,751 vehicles produced and 19,248 delivered. Its newly launched R2 became the company’s highest-volume model, prompting management to raise 2026 delivery guidance to 67,000–70,000 vehicles.
Revenue increased 38% year over year to $2.155 billion, while gross profit reached $176 million. Software and services revenue grew 45% to $605 million, although Rivian still expects a 2026 adjusted EBITDA loss of $1.75 billion–$1.85 billion.
Management expects to exit the fourth quarter with positive automotive gross profit, supported by higher R2 production and improved margins. Rivian ended the quarter with approximately $5.5 billion in liquidity and expects additional funding from Volkswagen, Uber and a potential Department of Energy loan.
Rivian Automotive (NASDAQ:RIVN) reported record third-quarter production and deliveries as its newly launched R2 became the company’s highest-volume vehicle, while management raised its full-year delivery outlook and reiterated plans to reach a positive automotive gross-profit exit rate by year-end.
Founder and CEO RJ Scaringe said Rivian produced 19,751 vehicles and delivered 19,248 vehicles during the quarter. R2, which launched in June, outsold both the R1 consumer vehicles and the company’s electric delivery vans during its first full quarter of sales. Rivian hosted more than 103,000 R1 and R2 demo drives during the period, surpassing its second-quarter record, while conversion rates for R2 Launch Edition reservations remained above expectations, Scaringe said.
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“We had a great third quarter,” Scaringe said, citing record production at Rivian’s Normal, Illinois, plant as the company ramps R2 manufacturing. The second R2 production shift has begun, and the company expects its manufacturing run rate to increase over coming quarters.
Revenue Rises as Software and Services Expand
Rivian reported consolidated revenue of $2.155 billion, up 38% from a year earlier. Gross profit was $176 million, representing an 8% gross margin. The company recorded an adjusted EBITDA loss of $435 million, reflecting expanded sales, marketing and service operations supporting R2 volumes, along with investments in autonomy.
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Automotive revenue totaled $1.55 billion, up 36% year over year. Rivian said the increase was driven primarily by a 46% increase in vehicle deliveries and $81 million in regulatory-credit revenue. Those gains were partly offset by lower average selling prices because of a larger mix of R2 and commercial-van deliveries, though R1 average selling prices increased due to product mix improvements.
Automotive gross profit loss narrowed to $80 million from a $130 million loss in the prior-year quarter. Rivian attributed the improvement to higher delivery volumes at better per-unit margins, regulatory-credit revenue and an IEEPA tariff refund receivable. These benefits were partially offset by R2 launch-related costs.
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Chief Financial Officer Claire McDonough said the company recognized about $120 million of incremental cost of revenue related to ramping R2 production, compared with more normalized production levels. The amount includes the effect of operating below expected two-shift production rates, as well as costs such as expedited freight that management expects to decline as production scales.
Software and services revenue rose 45% year over year to $605 million. Rivian said $354 million, or about 60%, of segment revenue was attributable to its joint venture with Volkswagen Group. The segment generated gross profit of $256 million and a 42% margin, aided by a more favorable mix of higher-margin revenue streams, including vehicle electrical architecture and software development services.
Higher Delivery Outlook and Capital Plans
Interim CFO-designate Derek Mulvey raised Rivian’s 2026 delivery guidance to between 67,000 and 70,000 vehicles, from a previous range of 65,000 to 70,000. R2 is expected to account for a majority of total deliveries in the fourth quarter.
Rivian now expects adjusted EBITDA losses for 2026 of $1.75 billion to $1.85 billion. At the midpoint, the revised outlook represents a $100 million improvement, which Mulvey attributed to favorable regulatory-credit revenue, the tariff receivable and anticipated higher deliveries.
The company expects to exit the fourth quarter at positive automotive gross profit, but Mulvey clarified that this does not imply positive automotive gross profit for the full quarter. He said the anticipated improvement should establish a foundation for further margin expansion as R2 production rises through 2027.
Rivian reduced its 2026 capital-expenditure guidance by $300 million at the midpoint to a range of $1.4 billion to $1.5 billion. Mulvey said the change was driven primarily by timing shifts in spending, particularly for the company’s Georgia manufacturing facility, where large equipment purchases and contracts can move between reporting periods.
The company ended the quarter with approximately $5.5 billion of cash equivalents and short-term investments. Rivian also announced the funding of a $1 billion, 10-year Volkswagen Group term loan at a fixed 6% interest rate. It has received $5.3 billion of the expected $5.8 billion in capital commitments tied to the Volkswagen joint venture, with the remaining $460 million expected in late 2027.
Rivian also expects to reach the second milestone in its Uber partnership by the end of the year, which would trigger an additional $250 million equity investment. Including current liquidity and expected future capital from Uber, Volkswagen and a Department of Energy loan, subject to conditions, Rivian estimated total available liquidity and targeted future capital at about $13 billion.
Autonomy Investment and Commercial-Van Opportunity
Scaringe said Rivian’s Autonomy+ offering has posted take rates above management’s expectations, though the company did not disclose an attach rate. The offering is available on every R2 and 2025-model-year-or-newer R1 vehicle and currently supports hands-free driving on millions of miles of roads.
Rivian expects to begin a limited release of its supervised Point to Point driving feature later this year through an invitation-only Autonomy Early Access Program. The feature is intended to navigate a vehicle along an entered route, including city streets, stoplights, highway interchanges and other driving scenarios, while requiring driver supervision. A broader release for Autonomy+ subscribers is planned for 2027.
The company also recently acquired Third Dimension AI to support closed-loop simulation efforts for autonomy development. Scaringe said the company’s Large Driving Model is designed to be adaptable across R1, R2 and commercial-vehicle applications, including Rivian’s planned robotaxi work with Uber.
Separately, Rivian said Amazon continues to expand its electric delivery-van fleet and has begun receiving new van variants designed for rural routes, including an all-wheel-drive configuration and a larger battery pack with 30% more range. Scaringe said Amazon’s increased demand reflects operational and cost advantages from the platform, while Rivian continues discussions with potential commercial customers beyond Amazon.
McDonough said she will step down as CFO to return to the East Coast and pursue a new opportunity. Mulvey, currently vice president of finance, will become interim CFO effective the following day.
About Rivian Automotive (NASDAQ:RIVN)
Rivian Automotive, Inc is an electric vehicle manufacturer that designs, develops and produces all-electric trucks, sport utility vehicles and commercial delivery vans. The company focuses on vehicles intended for outdoor recreation, everyday transportation and fleet use, combining battery-electric powertrains with software and connected-vehicle technologies.
Rivian’s consumer vehicle lineup includes the R1T pickup truck and R1S sport utility vehicle. The company also develops electric commercial vans for business and delivery fleets, including vehicles produced through its relationship with Amazon.
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The article “What Rivian Automotive (RIVN) Said on Its Q3 Earnings Call” was originally published by MarketBeat.
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