Rivian third-quarter earnings beat estimates as software revenue, R2 deliveries rise

Rivian performed better than Wall Street expected in the third quarter. Analysts had forecast revenue of $1.99 billion and an adjusted loss of 62 cents per share. Rivian instead reported $2.16 billion in revenue and a 48-cent adjusted loss per share. Both results were favorable surprises.

The comparison matters because revenue shows how much business Rivian generated, while adjusted loss per share shows the loss allocated to each share after specified adjustments. Beating both measures suggested stronger quarterly performance than investors had anticipated. Rivian also reported a record 19,248 vehicle deliveries during the period.

The company remained unprofitable, but its net loss narrowed to $913 million from $1.17 billion a year earlier. Gross profit rose to $176 million from $24 million. Shares climbed roughly 7% after hours, despite closing the day down 1.9% at $11.45.

The R2 is Rivian’s smaller, less expensive sibling to its current luxury R1S SUV. Its first customer deliveries arrived in June. Rivian says the model became its best-selling vehicle and drove much of the quarter-over-quarter gain in deliveries. That makes the R2 central to the company’s growth plan.

Higher production can spread the costs of developing and manufacturing a vehicle across more units. It can also improve the economics of each vehicle as Rivian gains scale. The company delivered a record 19,248 vehicles from July through September, although it does not disclose how many were R2s.

Rivian expects the R2 to reach a positive gross margin by year-end. CEO RJ Scaringe said unit economics should keep improving into the first quarter of next year. He also said Rivian must scale beyond current plans for 160,000 R2 units to achieve overall profitability.

Rivian delivered 19,248 vehicles from July through September, its highest quarterly total. The company does not disclose deliveries by model, so the article does not provide a separate R2 delivery figure. The record matters because vehicle volume is a direct measure of how quickly Rivian is scaling.

Rivian’s automotive operations produced nearly $1.55 billion in revenue during the quarter. Its software-and-services segment generated another $605 million. Together, those figures show that Rivian’s business extends beyond selling electric vehicles, although the reported segment figures are presented separately.

The two segments performed differently financially. Software and services produced $256 million in gross profit, equal to a 42% margin. Automotive operations recorded an $80 million gross loss. Rivian’s increasing deliveries and software growth therefore both matter as it works toward stronger overall financial results.

Gross profit is revenue left after the direct costs of producing or delivering a business’s offering. A segment produces gross profit when its revenue exceeds those direct costs. It reports a gross loss when those costs are higher than revenue. Rivian’s two businesses reached different outcomes in the quarter.

Software and services generated $605 million in revenue and $256 million in gross profit. That equals a 42% gross margin. Automotive operations generated nearly $1.55 billion in revenue but recorded an $80 million gross loss. The figures indicate that automotive direct costs still exceeded automotive revenue.

This split is important because Rivian’s overall results depend heavily on vehicle economics. Software and services helped support the company’s $176 million total gross profit, but automotive losses remained a drag. Rivian is therefore focused on raising R2 production and improving its unit economics, with positive R2 gross margin expected by year-end.

Regulatory credits are compliance credits that an automaker can sell when another company needs them to meet rules. A tariff is a charge on certain imported goods, while a refund receivable is money a company expects to receive back. In Rivian’s case, the article identifies an IEEPA tariff refund receivable recorded in the third quarter.

Rivian said its improved 2026 pre-tax adjusted earnings guidance reflected better-than-expected revenue from regulatory-credit sales, the tariff refund receivable, and expected higher vehicle deliveries. These items raise expected financial results without changing the basic need to improve vehicle economics.

The revised guidance calls for a pre-tax adjusted loss of $1.75 billion to $1.85 billion. That is a $100 million improvement at the midpoint from the prior outlook. Rivian also raised its delivery range to 67,000 to 70,000 vehicles and lowered planned capital spending to $1.4 billion to $1.5 billion.

Gross margin is the percentage of revenue left after direct costs tied to producing a product or delivering a service. It is calculated by dividing gross profit by revenue. A positive margin means the offering earns more than its direct costs. A negative margin means it loses money before other expenses are included.

For the R2, a positive gross margin would mean its sales price exceeds the direct cost of making and delivering each vehicle. Rivian’s automotive operations still reported an $80 million gross loss in the third quarter. The company therefore needs the R2’s unit economics to improve as production increases.

Rivian reiterated that it expects positive R2 gross margin by year-end. CEO RJ Scaringe said the production ramp is critical and that unit economics should continue improving into the first quarter of next year. However, he also said Rivian must scale beyond 160,000 planned R2 units to achieve overall profitability.

Electric-vehicle companies generally face large costs before sales reach a profitable scale. These include vehicle development, manufacturing capacity, technology, and operating expenses. When production is low, those costs are spread across fewer vehicles. That can leave the cost per vehicle too high for sales revenue to cover.

Producing and selling more vehicles can improve the economics of each unit. A company may spread certain fixed costs across a larger number of vehicles, while higher volume can support more efficient production. Rivian’s own results show the challenge: automotive revenue was nearly $1.55 billion, yet the automotive segment recorded an $80 million gross loss.

Rivian expects the R2 to help solve that problem. The company delivered 19,248 vehicles in the quarter and expects 67,000 to 70,000 deliveries in 2026. Scaringe said Rivian must scale beyond 160,000 R2 units to achieve overall profitability.