Rivian — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenue reached $2.155 billion, a 38% increase year-over-year, driven by a 46% increase in delivery volumes, $81 million in regulatory credit revenues, and strong software and services performance.
• Automotive revenue was $1.550 billion, up 36% year-over-year, primarily due to increased deliveries and an $80 million rise in regulatory credit revenues, partially offset by a decline in average vehicle selling price from a higher mix of R2 and commercial van deliveries.
• Software and services revenue was $605 million, up 45% year-over-year, driven by vehicle electrical architecture, software development services, repair and maintenance, and Autonomy+; $354 million (59%) was attributable to the joint venture with Volkswagen Group.
• Consolidated gross profit was $176 million, an improvement of $152 million year-over-year.
• Automotive gross profit loss narrowed to $(80) million from $(130) million year-over-year, a $50 million improvement driven by volume increases, improved per-unit margins, regulatory credits, and an IEEPA tariff refund, partially offset by $120 million in incremental costs related to the R2 production ramp.
• Software and services gross profit was $256 million, representing a 42% margin, an improvement of $102 million year-over-year.
• Total operating expenses increased to $1.057 billion from $1.007 billion year-over-year; R&D expenses rose to $485 million from $453 million, while SG&A remained relatively consistent at $572 million from $554 million.
• Loss from operations was $(881) million, an improvement of $102 million compared to $(983) million in the prior year quarter.
• Net loss attributable to common stockholders was $(913) million, compared to $(1.173) billion in the prior year quarter.
• Adjusted EBITDA was $(435) million, an improvement from $(602) million in the prior year quarter.
• Net cash used in operating activities was $(758) million, compared to $26 million provided in the prior year quarter, driven by a reduction in deferred revenues and inventory buildup for the R2 launch.
• Free cash flow (non-GAAP) was $(1,124) million, compared to $(421) million in the prior year quarter.
• Capital expenditures were $(366) million, compared to $(447) million in the prior year quarter.
• Cash, cash equivalents, and short-term investments ended the quarter at $5.502 billion.
• Total liquidity, including the asset-based revolving-credit facility, was $6.095 billion; pro forma liquidity including a $1.000 billion term loan from Volkswagen Group received in October 2026 would be $7.095 billion.
• Long-term debt increased slightly to $4,446 million from $4,440 million as of December 31, 2025.

Guidance and Future Outlook:

• Full year 2026 delivery guidance improved to 67,000–70,000 units from the previous 65,000–70,000 units.
• Full year 2026 Adjusted EBITDA guidance improved by $100 million at the midpoint, driven by better-than-expected regulatory credit revenue, an IEEPA tariff refund receivable, and expected delivery volume increases.
• Full year 2026 Capital Expenditures guidance decreased by $300 million at the midpoint due to timing of spend.
• Updated 2026 Annual Guidance: Vehicles Delivered (67,000–70,000), Adjusted EBITDA ($(1.85)B–$(1.75)B), and Capital Expenditures ($1.40B–$1.50B).
• Point to Point autonomy feature general release to all Autonomy+ subscribers is expected in 2027.
• A limited rollout of Point to Point via the invitation-only Autonomy Early Access Program is expected later in 2026.

Business Segments and Product Lines:

• Production reached a record 19,751 vehicles at the Normal, Illinois facility, continuing the R2 manufacturing ramp.
• Deliveries reached a record 19,248 units, up 46% year-over-year, with R2 deliveries contributing significantly to the quarter-over-quarter gain.
• R2 became the best-selling Rivian vehicle by volume in the third quarter, outselling both R1 and EDV models.
• R2 won Top Gear's SUV of the Year for 2027.
• The company launched an October OTA update adding Gmail integration to Rivian Assistant and "Halloween Mode."
• Autonomy+ is available on every R2 and R1 starting with the 2025 model year; all vehicles with Autonomy+ are capable of Universal Hands-Free on millions of miles of roads.
• Rivian acquired Third Dimension AI to support closed-loop simulation efforts.
• Software and services revenue growth was driven by the joint venture with Volkswagen Group and Autonomy+.

Market and Competitive Landscape:

• Rivian views Point to Point capabilities as an important purchase criterion for customers and a driver of market share.
• The company continues to innovate with AI and software, positioning its vehicles as "AI-defined."
• The joint venture with Volkswagen Group contributed $354 million to software and services revenue in the quarter.

Risks and Challenges:

• R2 production ramp incurred approximately $120 million in incremental cost of revenues in the quarter.
• Average vehicle selling price declined due to a higher mix of R2 and commercial van deliveries.
• Net cash used in operating activities was negatively impacted by a reduction in deferred revenues and inventory purchases to support the R2 launch.
• The company continues to report net losses and negative free cash flow.

Management Commentary and Tone:

• CEO RJ Scaringe described the results as "great" and noted exceptional customer and media feedback on the R2.
• Management expressed excitement regarding the rapid progress of the autonomy platform and the future vision of a fully electric, autonomous, and AI-defined landscape.
• The tone was confident, citing the R2 as a volume leader and highlighting the strategic importance of the Autonomy+ and Point to Point features.

Other Key Points:

• Rivian announced the acquisition of Third Dimension AI to support closed-loop simulation efforts.
• The company received a $1.000 billion non-recourse 10-year term loan facility from Volkswagen Group in October 2026.
• Rivian will host an audio webcast on October 29, 2026, at 2:00 pm PT / 5:00 pm ET to discuss results.
• An Autonomy and AI Day is scheduled for December 9, 2026.
• The company recognized a $506 million gain in "Other (expense) income, net" during the nine months ended September 30, 2026, related to the Series A capital raise and deconsolidation of Mind Robotics.