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

Summary

• Rivian beat Wall Street's third-quarter earnings expectations with an adjusted loss per share of 48 cents versus an expected 62 cents.
• Third-quarter revenue reached $2.16 billion compared to an expected $1.99 billion.
• Shares rose roughly 7% in afterhours trading to close at $11.45, despite hitting a 52-week low of $11.38 earlier in the day.
• The company revised its 2026 guidance to project a pre-tax adjusted loss between $1.75 billion and $1.85 billion, vehicle deliveries between 67,000 and 70,000 units, and capital expenditures between $1.4 billion and $1.5 billion.
• Improved pre-tax adjusted earnings guidance resulted from better-than-expected regulatory credit sales, an IEEPA tariff refund receivable, and increased vehicle deliveries.
• The R2 model became Rivian's best-selling vehicle, contributing significantly to quarter-over-quarter gains, with first deliveries arriving in June.
• Rivian delivered a record 19,248 units from July through September.
• Net loss attributable to common stockholders was $913 million, down from $1.17 billion in the third quarter of 2025.
• Gross profit increased to $176 million from $24 million a year earlier, while adjusted EBITDA loss narrowed to $435 million from $602 million previously.
• The software and services segment generated $605 million in revenue with a 42% gross margin, whereas automotive operations recorded nearly $1.55 billion in revenue with a gross loss of $80 million.
• CEO RJ Scaringe stated the R2 is expected to achieve a positive gross margin by the end of the year, noting that scaling production beyond 160,000 units is critical for overall profitability.
• Cash, cash equivalents, and short-term investments totaled $5.5 billion at the end of the quarter, up from $5.3 billion in the second quarter.