TLDR
- Rivian reported Q4 revenue of $1.29 billion, exceeding the $1.26 billion estimate, with adjusted loss of 54 cents per share versus 68 cents expected
- Shares climbed 15% in after-hours trading following 2026 delivery projection of 62,000-67,000 vehicles, representing 47-59% growth
- The EV maker achieved its first annual gross profit of $144 million in 2025, boosted by Volkswagen software collaboration
- The $45,000 R2 SUV launches in Q2 2026 and is designed to reduce manufacturing costs by 50%
- Company forecasts adjusted pre-tax losses of $1.8-$2.1 billion in 2026 while ramping R2 production
Rivian Automotive reported fourth-quarter results Thursday that surpassed analyst expectations. The company generated $1.29 billion in revenue against estimates of $1.26 billion.
The automaker recorded an adjusted loss of 54 cents per share. Wall Street had anticipated a loss of 68 cents per share.
The stock rallied more than 15% after hours. Regular trading ended at $14, down approximately 5%.
Annual 2025 revenue increased 8% to $5.39 billion from $4.97 billion in 2024. The company reached an important benchmark with its first annual gross profit of $144 million.
Q4 gross profit totaled $120 million. The software partnership with Volkswagen counterbalanced $432 million in automotive division losses throughout the year.
The 2025 net loss came in at $3.6 billion. That represented progress from the $4.75 billion loss recorded in 2024.
Cash reserves stood at $6.59 billion in total liquidity at quarter-end. Approximately $6.1 billion consisted of cash, equivalents, and short-term investments.
Strong Delivery Forecast Powers Stock Rally
Rivian’s 2026 projections captured investor attention. The company expects to deliver 62,000 to 67,000 vehicles throughout the year.
That implies year-over-year growth between 47% and 59%. The R2 SUV rollout in the second quarter will drive the bulk of volume increases.
CEO RJ Scaringe stated the R2 will comprise the “majority of the volume” by the end of 2027. Manufacturing will expand at the Normal, Illinois plant.
The vehicle carries a $45,000 starting price. Engineering improvements target a 50% reduction in material costs and streamlined assembly.
Production begins with a single factory shift. The company plans to add a second shift by December 2026.
Loss Expectations and Capital Plans
Rivian anticipates adjusted pre-tax losses between $1.8 billion and $2.1 billion for 2026. The company reported similar losses of roughly $2.1 billion in 2025.
Capital expenditure guidance sits at $1.95 billion to $2.05 billion. Rivian spent $1.7 billion on capex last year.
CFO Claire McDonough labeled 2026 a “transition year” as R2 production accelerates. Scaringe described 2025 as “foundational” while positioning this year as an “inflection point.”
The fourth-quarter loss of $804 million included reduced regulatory credit income. Federal emissions policy changes under the Trump administration affected credit valuations as anticipated.
The company maintains production of R1 vehicles, which start in the $70,000 range. Electric delivery vans for Amazon, the company’s biggest shareholder, remain in production.
Detailed R2 information including trim levels and pricing will be released March 12. The analyst community assigns a Hold rating with an average target of $17.75, implying 26.8% potential upside.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
