Rivian Automotive reported $5.38 billion in total revenue for 2025, an 8% increase from $4.97 billion in 2024, with software and services revenue offsetting a decline in automotive sales.
The company’s automotive revenue decreased 15% to $3.8 billion in 2025. This decline resulted from a $134 million reduction in regulatory credit sales and fewer vehicle deliveries. Higher average selling prices partially compensated for these drops, as stated in Rivian’s earnings report.
Software and services revenue expanded more than threefold to $1.55 billion over the year. The joint venture with Volkswagen Group accounted for most of this increase. Services in this category encompass vehicle repairs, trade-ins, and maintenance, though Rivian does not provide a separate breakdown. Software contributions dominated, stemming directly from the VW partnership.
VW Group and Rivian established a technology joint venture in 2024, valued at up to $5.8 billion. This arrangement is milestone-based. Rivian supplies VW with its electrical architecture and software technology stack. In 2024, Rivian received an initial $1 billion convertible note. Following achievement of a milestone in 2025, Rivian obtained another $1 billion payment in July through a share sale. Payments from VW are set to continue through 2027.
Rivian anticipates an additional $2 billion from the joint venture in 2026. CFO Claire McDonough detailed this during the earnings call on Thursday. Approximately $1 billion depends on completing winter testing, which is currently in progress. The other $1 billion consists of nonrecourse debt, scheduled for receipt in October.
Rivian’s financial position in 2026 will depend substantially on launching the R2 SUV. The company confirmed in its Thursday earnings report that the R2 will reach the market by June 2026. This model incorporates design elements to reduce manufacturing costs and lower prices for buyers. Such cost efficiencies address Rivian’s past per-vehicle losses.
Rivian has worked over multiple years to lower its cost of goods sold per unit. Progress appeared with the second-generation R1T truck and R1S SUV. In the fourth quarter of 2025, cost of goods sold per unit stood at $92,000. McDonough stated on the earnings call, “in the fourth quarter it was able to deliver $92,000 of cogs per unit and that was about a $4,000 per unit improvement relative to the third quarter.” This figure compares to $99,000 in the fourth quarter of 2024.
Total automotive cost of revenue fell year-over-year from $1.4 billion in the fourth quarter of 2024 to $898 million in the fourth quarter of 2025. In contrast, software cost of revenue increased steadily across 2025 quarters.
The R2 SUV offers further opportunities for cost reduction. It will debut as a dual-motor all-wheel-drive model. Rivian plans to disclose additional details, including final specifications, on March 12.
Rivian’s 2026 delivery projections reflect reliance on R2 demand and production ramp-up. The company forecasts 62,000 to 67,000 vehicles delivered, representing up to a 59% increase from 2025’s total of 42,247 units. That prior-year figure includes deliveries of the two R1 consumer models and the electric delivery van.
CEO RJ Scaringe indicated expectations for electric delivery van sales growth in 2026. Rivian intends to introduce an all-wheel-drive version and a variant with a larger battery pack. Amazon remains the primary customer for this van. Scaringe remarked, “Both of those are to help unlock specific use cases within the Amazon network. We’re working really closely with Amazon in defining the requirements of those and excited to get those launched.”
Rivian shows no indication of adjusted profitability in the immediate term. The company recorded a $3.6 billion net loss for 2025. For 2026, it projects an adjusted net loss between $1.8 billion and $2.1 billion. Capital expenditures are expected to range from $1.95 billion to $2.05 billion in 2026.
