Rivian was saved by software in 2025

Rivian is, by each measure, a shaper and seller of EVs. But successful 2025, it was the company’s bundle and services that helped its yearly gross turn by 8%. 

Rivian reported Thursday $5.38 cardinal successful full gross successful 2025, up from $4.97 cardinal from the anterior year. That rosy representation dulls a spot erstwhile looking conscionable astatine its automotive revenue, which fell 15% to $3.8 cardinal successful 2025. The autumn was fueled by a $134-million driblet successful regulatory recognition income and little conveyance deliveries, which were partially offset by higher mean selling prices, according to Rivian. 

Meanwhile, bundle and services gross grew much than threefold to $1.55 cardinal for the year. And the associated task with Volkswagen Group was down astir of that growth, according to Rivian. The “services” constituent of this enactment item, which Rivian doesn’t interruption out, includes a assortment of items including conveyance repair, conveyance trade-ins, and attraction services. The remainder, and the bulk of the revenue, is from software, and specifically owed to the associated task with VW Group. 

VW and Rivian formed a technology associated venture successful 2024 that is worthy up to $5.8 billion. The associated task is milestone-based and successful 2025 Rivian deed the mark, which meant a $1 cardinal payout successful the signifier of a stock sale. Under the presumption of the JV, Rivian volition proviso VW Group with its existing electrical architecture and bundle exertion stack. 

Rivian received an archetypal $1 cardinal convertible enactment successful 2024 and different $1 cardinal payment successful July 2025. 

Rivian is expected to proceed to person payments from VW Group done 2027. Rivian is expected to person an further $2 cardinal of superior arsenic portion of the associated task successful 2026, CFO Claire McDonough said Thursday connected the institution net call. About $1 cardinal of that is taxable to the palmy completion of wintertime testing, which is underway. The remaining $1 cardinal is non recourse debt, which is expected to beryllium received successful October.

And portion the funds supply a hefty stopgap, Rivian’s fiscal occurrence successful 2026 volition hinge mostly connected the rollout of its adjacent EV, the R2. 

Rivian confirmed successful its net study Thursday that the R2 SUV, which is designed to beryllium cheaper to physique and little costly for customers, volition travel to marketplace by June 2026. That “cheaper to build” enactment point is peculiarly important for Rivian, which has historically mislaid wealth connected each conveyance it makes.

Rivian has spent years trying to propulsion outgo of goods sold fig down. And it has made advancement with the rollout of its second-generation flagship R1T motortruck and R1S SUV. For instance, McDonough said “in the 4th fourth it was capable to present $92,000 of cogs per portion and that was astir a $4,000 per portion betterment comparative to the 3rd quarter.” Rivian’s cogs per portion was $99,000 successful the 4th fourth of 2024.

The institution saw its full automotive outgo of gross alteration year-over-year from $1.4 cardinal successful 4th fourth of 2024 to $898 cardinal successful the aforesaid 4th successful 2025. Notably, the company’s outgo of gross for bundle steadily inched up passim 2025.

The R2 SUV, which volition initially motorboat arsenic a dual centrifugal all-wheel thrust model, is an accidental to further trim costs. The institution is expected to merchandise much accusation astir the R2, including last specs, connected March 12. 

Rivian’s guidance for 2026 suggests that it is banking connected request for R2 and its quality to ramp up production. The institution said Thursday it expects to present betwixt 62,000 and 67,000 vehicles successful 2026 — which could supply up to a 59% bump from past year. Rivian delivered 42,247 vehicles successful 2025, which includes its 2 R1 user vehicles and the electrical transportation van (EDV).

Rivian CEO RJ Scaringe noted that the institution expects immoderate maturation successful EDV income successful 2026. Rivian plans to an all-wheel thrust mentation and a larger artillery battalion variant of the EDV, for which Amazon is its superior customer.

“Both of those are to assistance unlock circumstantial usage cases wrong the Amazon network,” Scaringe said. “We’re moving truly intimately with Amazon successful defining the requirements of those and excited to get those launched.”

The institution isn’t signaling profitability — connected an adjusted ground — conscionable yet. But it is offering up sizeable betterment connected that front. Rivian reported a $3.6 cardinal nett nonaccomplishment successful 2025; it expects an adjusted nett nonaccomplishment of betwixt $1.8 cardinal and $2.1 cardinal for 2026. Rivian besides projects superior expenditures volition beryllium betwixt $1.95 cardinal and $2.05 cardinal this year.