Rivian Q4 2025 Earnings Report

Rivian Navigates Path to Profitability with R2 Launch and Delivery Growth

Rivian Automotive, the electric vehicle maker, has announced a stronger-than-anticipated fourth-quarter performance, exceeding Wall Street’s revenue and earnings estimates. The company has set an ambitious target for vehicle deliveries in the coming year, signaling a significant step forward. However, Rivian remains candid about the ongoing financial investments required to bring its pivotal R2 next-generation vehicle to market.

For 2026, Rivian projects a substantial increase in vehicle deliveries, forecasting a range of 62,000 to 67,000 units. This represents a potential year-over-year growth of 47% to 59% over 2025 figures. This projected surge is largely attributed to the anticipated launch of the R2 SUV in the second quarter. Rivian CEO RJ Scaringe highlighted the R2’s strategic importance, stating it is expected to constitute the “majority of the volume” of the business by the end of 2027, as production scales up at its manufacturing facility in Normal, Illinois.

Despite the optimistic delivery outlook, the company is bracing for continued financial losses in 2026. Rivian anticipates adjusted pre-tax losses between $1.8 billion and $2.1 billion, with capital expenditures projected to range from $1.95 billion to $2.05 billion. This follows nearly $2.1 billion in adjusted pre-tax losses and $1.7 billion in capital expenditures reported for the previous year. Scaringe characterized 2025 as a “foundational year” for Rivian, emphasizing that 2026 is poised to be an “inflection point” for the company’s trajectory.

Following the announcement, Rivian’s stock saw a notable surge, climbing over 20% in premarket trading.

In the fourth quarter, Rivian reported:
* Adjusted loss per share: 54 cents, an improvement over the 68 cents loss anticipated by analysts.
* Revenue: $1.29 billion, surpassing the consensus estimate of $1.26 billion.

Rivian’s full-year revenue for 2025 reached $1.7 billion in the fourth quarter alone, contributing to an 8% increase compared to the $4.97 billion recorded in 2024. A significant milestone for the company was achieving its first annual gross profit, totaling $144 million in 2025. This figure was bolstered by $120 million in the fourth quarter, largely driven by its software and services joint venture with Volkswagen, which offset $432 million in losses from its automotive segment.

Looking ahead, the company’s CFO, Claire McDonough, described this year as a “transition year” for gross profit due to the ramp-up of R2 production. Gross profit, a key metric investors monitor for a business’s operational profitability before accounting for expenses, interest, and taxes, will be under scrutiny.

Rivian’s net loss for the past year narrowed to $3.6 billion, an improvement from the $4.75 billion loss in 2024. This included an $804 million loss in the fourth quarter, partly influenced by a decrease in revenue from the sale of regulatory credits, a factor influenced by changes in federal fuel economy and emissions standards.

The company concluded the fourth quarter with substantial liquidity, reporting $6.59 billion in total, with approximately $6.1 billion held in cash, cash equivalents, and short-term investments.

This year represents a critical juncture for Rivian as it aims to fulfill its promises of technological innovation and enhanced profitability with the R2. This midsize vehicle, expected to retail around $45,000, is designed to significantly reduce build material costs by half, simplify production processes, and substantially expand market demand and sales volume. Rivian plans to initially produce the R2 with a single plant shift, with a second shift expected by the end of the year. Further details regarding R2 models, including pricing and available options, are slated for release on March 12.

While Rivian has made commendable progress with its R1 pickup and SUV, the market for these higher-priced EVs, which start in the $70,000 range, has experienced a slowdown. The company also continues to produce its all-electric delivery van, a product historically purchased by its largest shareholder, Amazon. The success of the R2 will be pivotal in Rivian’s ability to capture a broader market segment and navigate the increasingly competitive electric vehicle landscape.