Rivian Automotive Inc - Class A
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.54%.
Did RIVN Beat Earnings? Q2 2025 Results
Rivian delivered a mixed second quarter, posting revenue that narrowly beat expectations while swinging to a wider-than-anticipated loss as a severe production collapse weighed heavily on results. The electric vehicle maker reported Q2 2025 revenue of $1.30 billion, edging above the $1.29 billion consensus by 0.91% and rising 12.5% year-over-year, but earnings per share of -$0.97 fell well short of the -$0.78 estimate, a miss of 24.71%. The central culprit was a dramatic production shortfall, with just 5,979 vehicles manufactured during the quarter amid supply chain disruptions tied to shifting trade policy, driving roughly $137 million in incremental fixed cost absorption and reversing the prior quarter's positive gross profit into a $206 million gross loss. Deliveries of 10,661 units were sustained by inventory drawdowns, while a surge in software and services revenue to $376 million, partly reflecting the Volkswagen joint venture, helped offset declining automotive revenue. Rivian held its 2025 delivery guidance of 40,000 to 46,000 vehicles but widened its adjusted EBITDA loss outlook to $2.00 billion to $2.25 billion, citing regulatory credit changes, with R2 production targeted for the first half of 2026.
- Software and services revenue surged to $376M from $84M YoY driven by VW joint venture development services and remarketing sales
- Approximately $182M recognized from VW joint venture combined performance obligation
- Operating cash flow turned positive at $64M aided by $250M deferred revenue from VW equity investment premium
- Net loss improved to $(1,115)M from $(1,457)M YoY
- Adjusted EBITDA loss improved to $(667)M from $(857)M YoY
- 34% gross margin from software and services
- R1 general assembly line rate increased by 36%
“This quarter we made significant progress in R2 development and testing. We also substantially completed the expansion of our Normal, Illinois facility and have begun installing manufacturing equipment in preparation for our start of production. Along with R2, our autonomy platform continues to be one of our major focus areas, and we're excited to share more of our roadmap later this year.”
Rivian CEO, on the earnings call
Forward Guidance & Outlook
Rivian maintained its 2025 delivery guidance of 40,000–46,000 vehicles. Due to recent changes associated with regulatory credits and Q2 performance, the company widened its adjusted EBITDA loss guidance to ($2,000) million – ($2,250) million. Capital expenditure guidance was reaffirmed at $1,800 million – $1,900 million. Q3 is expected to be the highest delivery quarter of the year. The company expects a three-week factory shutdown in September to increase manufacturing capacity to approximately 215,000 units annually. R2 saleable production is expected in the first half of 2026, with the R2 line commissioning expected in Q3 2025. R2 is expected to launch at an advantaged cost structure compared to R1 with a quick path to positive gross profit. Up to $2.5 billion of incremental capital from Volkswagen Group and up to $6.6 billion from the Department of Energy are expected in future periods.
RIVN YoY Financials
RIVN Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.