Rivian reported $5.38 billion in total revenue for 2025, marking an 8% increase from $4.97 billion in 2024, driven by growth in software and services revenue despite a decline in automotive revenue.
The company’s automotive revenue fell 15% to $3.8 billion, largely due to a $134 million decrease in regulatory credit sales and lower vehicle deliveries, although higher average selling prices partially offset these declines. In contrast, software and services revenue more than tripled to $1.55 billion, primarily driven by the joint venture with Volkswagen Group. Services include vehicle repairs, trade-ins, and maintenance, while software revenue formed the largest portion, directly tied to the VW partnership.
The technology joint venture between VW and Rivian, established in 2024 and valued at up to $5.8 billion, involves Rivian supplying VW with its electrical architecture and software stack, with milestone-based payments. Rivian received an initial $1 billion convertible note in 2024 and secured another $1 billion payment in July 2025 after meeting targets, structured as a share sale. The company expects continued payments from VW through 2027, with an anticipated additional $2 billion in 2026.
CFO Claire McDonough stated on the earnings call that about $1 billion of the 2026 payment depends on completing winter testing, which is currently underway, while the remaining $1 billion is expected as nonrecourse debt in October. Rivian’s 2026 performance is heavily reliant on its next vehicle, the R2 SUV, confirmed to reach the market by June 2026. The model aims to reduce manufacturing and purchase costs, building on years of work to lower its cost of goods sold per unit.
Progress in reducing costs was evident with the second-generation R1T trucks and R1S SUVs. In the fourth quarter of 2025, the cost of goods sold per unit reached $92,000, marking a $4,000 improvement from the third quarter and a significant drop from $99,000 in the fourth quarter of 2024. Total automotive cost of revenue fell from $1.4 billion in the fourth quarter of 2024 to $898 million in the same period of 2025, while software cost of revenue increased steadily through 2025.
The R2 will launch first as a dual-motor all-wheel-drive model, with more details, including final specifications, to be released on March 12. Rivian’s 2026 delivery guidance calls for 62,000 to 67,000 vehicles, representing up to a 59% increase from the 42,247 vehicles delivered in 2025, which included R1 consumer models and the electric delivery van (EDV). The company expects EDV growth in 2026, with CEO RJ Scaringe announcing plans for all-wheel-drive and larger battery pack variants to unlock specific use cases within the Amazon network.
Rivian reported a $3.6 billion net loss for 2025 and projects an adjusted net loss of $1.8 billion to $2.1 billion for 2026, with capital expenditures ranging from $1.95 billion to $2.05 billion. Amazon remains the primary EDV customer, and Scaringe emphasized the company’s close collaboration with Amazon in defining the requirements for the new EDV variants.
