Rivian Q3 revenue hits $2.16 billion as R2 sales drive record deliveries

Rivian Automotive reported third-quarter results on Thursday that exceeded Wall Street forecasts, driven by increased production of its R2 vehicle and growth in its software division. The company delivered a record 19,248 units between July and September, a figure that helped narrow its quarterly losses.

The electric vehicle manufacturer generated $2.16 billion in revenue, surpassing the $1.99 billion average estimate compiled by LSEG. Adjusted loss per share came in at 48 cents, better than the expected loss of 62 cents. Rivian also revised its 2026 financial guidance upward, projecting a pre-tax adjusted loss of between $1.75 billion and $1.85 billion. This represents a $100 million improvement at the midpoint compared with its previous forecast.

The company expects total vehicle deliveries for 2026 to range between 67,000 and 70,000 units, up from a prior expectation of at least 65,000. Capital expenditures are now projected at $1.4 billion to $1.5 billion, a $300 million reduction at the midpoint. Rivian attributed the improved earnings outlook to higher revenue from regulatory credit sales, a tariff refund receivable, and increased unit volume.

The R2, which began customer deliveries in June, has become the company's best-selling model. Executives noted that the vehicle accounted for much of the quarter-over-quarter gain in performance. The R2 is a smaller, less expensive alternative to the company's existing luxury R1S SUV. CEO RJ Scaringe stated that scaling production beyond the current plan of 160,000 units is necessary to reach overall profitability.

Scaringe told CNBC that the production ramp-up is critical for achieving positive gross margins on the R2. He added that the unit economics will continue to grow through the end of the quarter and into the first quarter of 2027. The company expects the R2 to reach positive gross margin by the end of the current year.

Rivian's net loss attributable to common stockholders was $913 million, down from a loss of $1.17 billion in the same period a year earlier. Gross profit rose to $176 million from $24 million in the prior year. The software and services segment generated $605 million in revenue with a 42% gross margin, while automotive operations recorded nearly $1.55 billion in revenue and an $80 million gross loss.

The company ended the quarter with $5.5 billion in cash, cash equivalents, and short-term investments, an increase from $5.3 billion at the end of the second quarter. Rivian shares rose approximately 7% in afterhours trading following the report, after hitting a 52-week low of $11.38 during regular trading hours.