Rivian is clearly an EV manufacturing and sales company. However, in 2025, the company’s software and services supported 8% annual revenue growth.
Rivian on Thursday reported total revenue of $5.38 billion in 2025, up from $4.97 billion a year earlier. Looking at the company’s auto revenue alone, Rivian said, that rosy picture is a little less bright, with auto revenue down 15% in 2025 to $3.8 billion. Rivian said the decline was driven by a $134 million decrease in regulatory credit sales and lower vehicle deliveries, partially offset by higher average selling prices.
Meanwhile, software and services revenue more than tripled over the year to $1.55 billion. Much of that growth was driven by a joint venture with the Volkswagen Group, Rivian said. The “Services” component of this line item does not include Rivian, but includes a variety of items such as vehicle repair, vehicle trade-in, and maintenance services. Most of the remaining revenue comes from software, particularly from the joint venture with the VW Group.
VW and Rivian have set up a technology joint venture worth up to $5.8 billion in 2024. The joint venture would be done on a milestone basis, with Rivian achieving its goal in 2025 and implying a $1 billion payment in the form of a stock sale. Under the terms of the joint venture agreement, Rivian will supply VW Group with its existing electrical architecture and software technology stack.
Rivian received an initial $1 billion convertible note in 2024 and an additional $1 billion payment in July 2025.
Rivian will continue to receive payments from the VW Group until 2027. Rivian will receive an additional $2 billion in capital as part of the joint venture in 2026, CFO Claire McDonough said on an earnings call Thursday. Approximately $1 billion of this amount is contingent on the successful completion of ongoing winter testing. The remaining $1 billion is non-recourse debt and is expected to be received in October.
While the funding is a significant stopgap, Rivian’s financial success in 2026 will largely depend on the rollout of its next electric vehicle, the R2.
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Rivian confirmed in its earnings call Thursday that the R2 SUV, which is designed to be cheaper to manufacture and less costly for customers, will be on the market by June 2026. This “build cheaper” item is especially important for Rivian, which has historically lost money on every vehicle it makes.
Rivian has spent years trying to lower its cost of goods sold numbers. And we made progress with the rollout of our second-generation flagship trucks, the R1T truck and R1S SUV. For example, McDonough says, “In the fourth quarter, we were able to ship gears at a cost of $92,000 per unit, which was an improvement of approximately $4,000 per unit compared to the third quarter.” Rivian’s gear per unit in Q4 2024 was $99,000.
The company saw a year-over-year decline in its total cost of vehicle revenue from $1.4 billion in the fourth quarter of 2024 to $898 million in the same quarter of 2025. Notably, the company’s cost of software revenue increased steadily throughout 2025.
The R2 SUV will initially be launched as a dual-motor all-wheel drive model, providing an opportunity for further cost savings. The company is expected to announce detailed information about R2, including final specifications, on March 12th.
Rivian’s 2026 guidance suggests the company is relying on R2’s demand and ability to increase production. The company said Thursday it expects to deliver between 62,000 and 67,000 vehicles in 2026, which could be up to 59% more than last year. Rivian delivered 42,247 vehicles in 2025. This includes two R1 consumer vehicles and an electric delivery van (EDV).
Rivian CEO RJ Scaringe said the company expects to see some growth in EDV sales in 2026. Rivian plans to produce an all-wheel-drive version of the EDV, of which Amazon is a major customer, as well as a version with a larger battery pack.
“Both of these things help unlock specific use cases within the Amazon network,” Scaringe said. “We have worked closely with Amazon to define these requirements and are excited to release them.”
The company has not yet announced profitability on an adjusted basis. However, there has been considerable improvement on that front. Rivian reported a net loss of $3.6 billion in 2025. The company expects its adjusted net loss in 2026 to be between $1.8 billion and $2.1 billion. Rivian also expects capital expenditures to be between $1.95 billion and $2.05 billion this year.
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