Rivian (RIVN) Stock: Third Quarter Earnings Beat Estimates with $24 Million Gross Profit

TLDR

• Rivian reported Q3 revenue of $1.56 billion, beating analyst estimates of $1.5 billion with a 78% year-over-year increase.
• The EV maker posted a $24 million gross profit, its second this year, exceeding expectations of a $38.6 million loss.
• Volkswagen joint venture and software services generated $154 million, offsetting $130 million automotive losses.
• The company reaffirmed 2025 delivery guidance of 41,500 to 43,500 vehicles and EBITDA loss projections of $2 billion to $2.25 billion.
• R2 midsize SUV production remains scheduled for first half of 2026 with manufacturing equipment installation complete.

Rivian Automotive delivered better-than-expected third quarter results on Tuesday. The electric vehicle manufacturer posted revenue of $1.56 billion compared to Wall Street’s $1.5 billion estimate.

The company’s adjusted loss per share reached 65 cents. Analysts projected a 72 cent loss.

Shares jumped over 3% in after-hours trading following the earnings release. The stock closed regular trading down 5.2% at $12.50.

Rivian reported a $24 million gross profit for the quarter. This crushed FactSet estimates calling for a $38.6 million loss.

The result marks the company’s second quarterly gross profit in 2025. CEO RJ Scaringe attributed revenue growth partly to buyers accelerating purchases before federal EV tax credits expired.

Revenue climbed 78% from $874 million in the year-ago quarter. The company delivered 13,201 vehicles while producing 10,720 units during Q3.

Joint Venture Offsets Automotive Losses

Rivian’s automotive operations lost $130 million during the quarter. The Volkswagen joint venture and software services division contributed $154 million to offset these losses.

This partnership proved crucial in pushing Rivian into positive gross profit territory. The $154 million from VW and services exceeded the automotive segment’s losses by $24 million.

The company’s net loss widened slightly to $1.17 billion from $1.1 billion last year. That equals 96 cents per share versus $1.08 per share in the prior year period.

Rivian ended the quarter with $7.7 billion in total liquidity. Cash, cash equivalents, and short-term investments totaled nearly $7.1 billion.

2025 Guidance and R2 Timeline

The company maintained its full-year guidance across key metrics. Vehicle deliveries are expected between 41,500 and 43,500 units for 2025.

This range narrowed from an earlier projection of 40,000 to 46,000 vehicles. The original 2025 target stood at 46,000 to 51,000 units.

Adjusted EBITDA loss guidance remained at $2 billion to $2.25 billion. Capital expenditures should range from $1.8 billion to $1.9 billion.

The R2 midsize SUV stays on schedule for first-half 2026 production. All equipment installation is underway at Rivian’s Illinois manufacturing facility.

Body shop equipment is fully installed with robots commissioned. Manufacturing validation builds will begin by year end.

Paint shop upgrades boosted annual capacity to 215,000 units. This increase prepares the plant for R2 production ramp-up.

Scaringe told CNBC that supply chain concerns around Chinese rare earth minerals and chips won’t delay R2 production. The company designed its supply chain with contingency plans for these components.

Tariff impacts on new vehicles dropped from thousands of dollars per unit to hundreds. Trump administration adjustments to tariffs on American-made vehicles drove this reduction last month.

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