Rivian third-quarter earnings beat estimates as software revenue, R2 deliveries rise

Rivian Automotive beat Wall Street's third-quarter earnings expectations as it ramped up production of its new R2 entry-level SUV, according to CNBC. The company said the R2 will lead it to profitability.

Rivian delivered a record 19,248 units from July through September. The company does not disclose deliveries by vehicle. CNBC reports that the R2, whose first deliveries reached customers in June, has become Rivian's best-selling model. Rivian said the R2 was responsible for "much of the gain quarter-over-quarter."

Rivian reported a net loss attributable to common stockholders of $913 million, compared with a loss of $1.17 billion in the third quarter of 2025. Gross profit was $176 million, up from $24 million a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization was a loss of $435 million, an improvement of $167 million.

The software and services segment generated $605 million in revenue and a gross profit of $256 million, a 42% margin. The automotive segment recorded nearly $1.55 billion in revenue and a gross loss of $80 million.

Rivian revised its 2026 guidance. It now expects a pre-tax adjusted loss of between $1.75 billion and $1.85 billion, a $100 million improvement at the midpoint. It expects deliveries of 67,000 to 70,000 units, up from at least 65,000, and capital expenditures of $1.4 billion to $1.5 billion, $300 million less at the midpoint. Rivian attributed the earnings improvement to better-than-expected revenue from regulatory credit sales, an IEEPA tariff refund receivable in the third quarter, and higher expected deliveries.

Rivian reiterated that it expects the R2 to reach a positive gross margin by the end of the year. CEO RJ Scaringe told CNBC's Phil LeBeau that the company needs to scale beyond planned R2 production of 160,000 units to reach overall profitability. Rivian's cash, cash equivalents and short-term investments totaled $5.5 billion, up from $5.3 billion at the end of the second quarter.

Shares were up roughly 7% in after-hours trading Thursday, after hitting a 52-week low of $11.38 earlier in the day. The stock closed at $11.45, down 1.9%.