Rivian has reported an annual revenue of $5.38 billion for 2025, reflecting an 8% increase from the previous year’s $4.97 billion. However, the figures present a mixed picture when evaluating the company’s automotive revenue, which saw a notable decline of 15%, dropping to $3.8 billion. This downturn was attributed to a decrease of $134 million in regulatory credit sales and lower vehicle deliveries, although higher average selling prices provided some relief.
In contrast to its automotive revenue decline, Rivian’s software and services revenue surged dramatically, increasing more than threefold to $1.55 billion. Significant growth in this segment was largely driven by Rivian’s joint venture with the Volkswagen Group established in 2024. This venture, valued at up to $5.8 billion, allowed Rivian to provide VW with its electrical architecture and software technology. Rivian achieved a milestone in this joint venture in 2025, resulting in a $1 billion payout through a share sale.
The financial arrangement includes an initial convertible note of $1 billion in 2024, followed by another $1 billion payment in July 2025, with expectations of further payments continuing through 2027. Rivian’s CFO highlighted plans for an additional $2 billion in funding related to the joint venture for 2026, contingent on successful completion of winter testing and other milestones.
Looking ahead, Rivian aims to launch its R2 SUV—a model designed to be more cost-efficient—by June 2026. This vehicle is expected to play a crucial role in improving Rivian’s financial situation, as the company has typically faced losses on its vehicles. Progress has been made in reducing the cost of goods sold, with Rivian achieving a reduction in automotive cost of revenue from $1.4 billion in Q4 2024 to $898 million in Q4 2025.
The R2 SUV will initially debut as a dual motor all-wheel-drive model, with further details expected to be revealed in March. The company is optimistic about escalating production levels, projecting deliveries of 62,000 to 67,000 vehicles in 2026, which would represent a possible 59% increase from the 42,247 vehicles delivered in 2025.
CEO RJ Scaringe also mentioned expectations for growth in electric delivery van (EDV) sales, highlighting the development of an all-wheel-drive version and a larger battery pack variant. These enhancements are tailored to meet specific needs within Amazon’s delivery network, signaling a strong collaboration between the two companies.
Despite these optimistic projections, Rivian does not anticipate profitability in the near future, projecting a net loss ranging from $1.8 billion to $2.1 billion for 2026, following a $3.6 billion net loss in 2025. The company has set capital expenditure expectations for the year between $1.95 billion and $2.05 billion, underscoring its ongoing investments in growth and development.
