Rivian was saved by software in 2025

Source: TechCrunch

Revenue Overview

Rivian reported total revenue of $5.38 billion in 2025, up from $4.97 billion the previous year, a growth of 8%. However, automotive revenue fell 15% to $3.8 billion, driven by a $134 million decline in regulatory credit sales and lower vehicle deliveries. Higher average selling prices partially offset the drop.

Software and Services Growth

Software and services revenue more than tripled to $1.55 billion in 2025. The bulk of this increase came from software, largely due to Rivian’s joint venture with Volkswagen Group. The “services” portion— which includes vehicle repair, trade‑ins, and maintenance— was not broken out separately.

Joint Venture with Volkswagen

• In 2024, Rivian and Volkswagen formed a technology joint venture valued at up to $5.8 billion.
• The JV is milestone‑based; Rivian met the 2025 target, triggering a $1 billion payout via a share sale.
• Under the JV terms, Rivian supplies Volkswagen with its electrical architecture and software stack.
• Rivian received an initial $1 billion convertible note in 2024 and a $1 billion payment in July 2025 (TechCrunch source).

Rivian is expected to receive additional payments through 2027, including $2 billion in 2026— $1 billion contingent on successful winter testing and $1 billion as non‑recourse debt expected in October.

Funding and Future Outlook

The capital from the Volkswagen partnership provides a substantial stopgap, but Rivian’s 2026 success will hinge on the rollout of its next EV, the R2 SUV.

R2 SUV and Cost Reductions

• The R2 SUV, designed to be cheaper to build and purchase, is slated for market launch by June 2026.
• Rivian aims to lower cost of goods sold (COGS) per unit. In Q4 2024, COGS were $99,000 per unit; by Q4 2025, they fell to $92,000, a $4,000 improvement.
• Total automotive cost of revenue dropped from $1.4 billion (Q4 2024) to $898 million (Q4 2025).
• Software cost of revenue increased modestly throughout 2025.

The R2 will initially be offered as a dual‑motor all‑wheel‑drive model, with final specifications expected on March 12.

Guidance for 2026

• Rivian projects delivery of 62,000–67,000 vehicles in 2026, a potential 59% increase over the 42,247 vehicles delivered in 2025 (including R1 trucks, R1S SUV, and the electric delivery van).
• The company anticipates growth in EDV (electric delivery van) sales, planning an all‑wheel‑drive version and a larger‑battery variant for its primary customer, Amazon.

Financial Outlook

• 2025 net loss: $3.6 billion.
• Expected adjusted net loss for 2026: $1.8 billion–$2.1 billion.
• Projected capital expenditures for 2026: $1.95 billion–$2.05 billion.

These figures indicate significant improvement, though Rivian is not yet signaling profitability on an adjusted basis.