Gross profit turns positive amid revenue growth
Rivian Automotive reported stronger-than-expected third-quarter results, with revenue and adjusted earnings outperforming Wall Street estimates. The company posted a $24 million gross profit, marking its second positive quarter this year, driven by contributions from its joint venture with Volkswagen and its software and services division.
Adjusted loss per share came in at 65 cents, better than the 72-cent loss expected. Revenue reached $1.56 billion, up 78% from the $874 million recorded a year earlier and ahead of the $1.5 billion forecast.
Breakdown of profitability drivers
The $24 million gross profit beat analyst expectations of a $38.6 million loss. Rivian’s automotive operations posted a $130 million loss, but this was offset by $154 million in gross profit from the VW JV and software services. This marks a significant improvement from the same quarter last year when automotive losses reached $379 million.
Gross profit remains a critical metric for investors, as it reflects the company’s ability to scale operations before accounting for operating costs and taxes.
Outlook and R2 launch remain on track
Rivian reaffirmed its 2025 guidance, which includes an adjusted earnings loss of $2 to $2.25 billion, capital expenditures of $1.8 to $1.9 billion, and vehicle deliveries between 41,500 and 43,500 units. The company maintained its outlook for gross profit around breakeven for the full year.
Production of the R2 midsize SUV is scheduled for the first half of 2026 at the Illinois plant. CEO RJ Scaringe confirmed the supply chain for R2 is secured, with no expected delays from rare earth minerals or chips sourced from China, including those from Nexperia.
Liquidity and tariffs in focus
Rivian ended Q3 with $7.7 billion in total liquidity, including $7.1 billion in cash and equivalents. This positions the company well for its upcoming R2 launch, according to Scaringe.
Tariff concerns eased somewhat after the Trump administration extended offsets for certain U.S.-built components. As a result, Rivian lowered its estimated tariff impact from thousands to just hundreds of dollars per unit.
Despite broader headwinds in the EV market, including slowing demand and reduced federal incentives, Rivian is continuing to scale strategically while navigating trade and regulatory pressures.
