Rivian Automotive exceeded Wall Street’s third-quarter earnings expectations, driven largely by increased production and deliveries of its R2 entry-level SUV model, which the company has positioned as critical to achieving profitability.
The company delivered a record 19,248 units during the quarter ended Sept. 30. Rivian revised its full-year 2026 guidance upward, projecting vehicle deliveries between 67,000 and 70,000 units, up from at least 65,000 previously. The pre-tax adjusted loss guidance was narrowed to between $1.75 billion and $1.85 billion, representing a $100 million improvement at the midpoint. Capital expenditure guidance was also reduced to between $1.4 billion and $1.5 billion, $300 million less at the midpoint.
The EV manufacturer continued narrowing its losses despite remaining unprofitable overall. Net loss attributable to common stockholders reached $913 million compared with $1.17 billion during the same quarter the previous year. Gross profit expanded significantly to $176 million from $24 million year-over-year. Adjusted earnings before interest, taxes, depreciation and amortization improved by $167 million to a loss of $435 million.
Rivian’s software and services segment emerged as a particularly strong performer, generating $605 million in revenue with a 42% gross margin and $256 million in gross profit. The automotive operations segment recorded nearly $1.55 billion in revenue but posted a gross loss of $80 million. The company reiterated expectations for the R2 to achieve positive gross margin by year-end, with CEO RJ Scaringe emphasizing that scaling production beyond current plans of 160,000 units annually remains essential for overall company profitability.
Rivian’s cash and short-term investments position strengthened to $5.5 billion from $5.3 billion at the end of the prior quarter. Stock shares rose roughly 7% in afterhours trading following the announcement, though shares had declined 1.9% to close at $11.45 a share during regular trading after hitting a new 52-week low of $11.38 earlier in the day.
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