Key financial results
- Consolidated revenue for the third quarter was $2.155 billion, representing a 38% increase over the same quarter last year.
Our consolidated revenue was $2.155 billion, a 38% increase over the same quarter last year.
- Consolidated gross profit was $176 million with a gross profit margin of 8%, which included $166 million of depreciation and amortization and $28 million of stock-based compensation expense.
Consolidated gross profit was $176 million, and our gross profit margin was 8%.
- Adjusted EBITDA losses for the third quarter were $435 million, driven by gross profit and increased operating expenses to support R2 volumes and the autonomy road map.
Adjusted EBITDA losses for the third quarter were $435 million, driven by our $176 million of gross profit and increased adjusted operating expenses
- The company ended the third quarter with approximately $5.5 billion in cash, cash equivalents and short-term investments.
We ended the third quarter with approximately $5.5 billion in cash, cash equivalents and short-term investments.
Business segment results
- Automotive: Automotive revenue was $1.55 billion, marking a 36% increase year-over-year, driven by a 46% increase in vehicle deliveries and $81 million of regulatory credits.
Our $1.55 billion of automotive revenue, a 36% increase over the same quarter last year
- Automotive: Automotive gross profit loss was $80 million compared to a loss of $130 million in the same quarter last year, reflecting a $50 million improvement.
Automotive gross profit loss was $80 million compared to gross profit loss of $130 million in the same quarter last year
- Automotive: The company recognized approximately $120 million in incremental cost of revenue due to the ramp of R2 production compared to more normalized levels.
In the quarter, we recognized approximately $120 million in incremental cost of revenue due to the ramp of R2 production
- Software and Services: Software and Services revenue was $605 million, a 45% year-over-year increase, with $354 million attributable to the joint venture with Volkswagen Group.
During the third quarter, the segment generated $605 million of revenue, a 45% year-over-year increase
- Software and Services: Software and Services gross profit was $256 million, achieving a 42% margin due to a better-than-expected mix of more profitable revenue streams.
Software and Services gross profit was $256 million, a 42% margin
Capital allocation
- On October 7, the company announced the funding of a $1 billion 10-year term loan facility with Volkswagen Group at a fixed interest rate of 6%.
on October 7, we announced the funding of our $1 billion 10-year term loan facility with Volkswagen Group at a fixed interest rate of 6%.
- Rivian received $5.3 billion of the $5.8 billion in expected capital commitments associated with the Volkswagen joint venture, with the remaining $460 million anticipated in late 2027.
To date, we've received $5.3 billion of the $5.8 billion in expected capital commitments associated with the joint venture
- Total available liquidity and targeted future capital would be approximately $13 billion when factoring in current liquidity, expected capital from Uber and Volkswagen, and the Department of Energy loan.
our total available liquidity and targeted future capital would be approximately $13 billion.
- Capital expenditure guidance for full year 2026 was lowered by $300 million to a revised range of $1.4 billion to $1.5 billion due to a shift in timing of certain capital spend.
This brings our revised 2026 CapEx range to $1.4 billion to $1.5 billion.
Industry trends and dynamics
- Management noted that current macroeconomic and geopolitical factors are creating added complexity, cost, and uncertainty, particularly regarding rising commodity and memory costs.
While current macro and geopolitical factors are creating added complexity, cost and uncertainty, our team continues to work hard to manage supply chain risks and increasing commodity and memory costs.
- The company is experiencing rising pricing when leasing AI compute capacity for training models.
We are seeing some increased pricing as we think about leasing compute.
Competitive landscape
- Management views autonomy as a primary product differentiator, market share driver, and long-term value creator, noting that Tesla is currently one of the few competitors offering similar point-to-point capabilities.
We believe Autonomy is a primary product differentiator, market share driver and long-term value creator.
- The upcoming Volkswagen ID.1 vehicle utilizing Rivian's technology will compete directly against European and Chinese manufacturers in Europe.
this is a vehicle that is going to be competing directly against not only European manufacturers, but also Chinese manufacturers.
Macroeconomic environment
- Management highlighted inflation in core components such as memory, PCBs, other electronics, steel, and copper as ongoing factors impacting vehicle costs.
rising costs of core components have and we anticipate will continue to impact our profitability
Growth opportunities and strategies
- R2 has become Rivian's best-selling vehicle by volume, outselling both R1 and commercial delivery vans in the third quarter during its first full quarter of sales.
In fact, R2 is already our best-selling vehicle by volume, outselling both R1 and EDV in the third quarter.
- The company expects to achieve its second milestone under the partnership with Uber later this year, unlocking an additional $250 million equity investment.
we expect to achieve our second milestone under the Uber partnership later this year, which will trigger an additional $250 million equity investment.
- Rivian announced the acquisition of Third Dimension AI to support autonomy development and associated closed-loop simulation efforts.
last week, we announced the acquisition of Third Dimension AI to support our Autonomy development and our associated closed-loop simulation efforts.
- A limited rollout of the Point to Point autonomy feature is expected to begin later this year via an invitation-only Autonomy Early Access Program, with a general release in 2027.
Financial guidance and outlook
- Full year delivery guidance was improved from a range of 65,000 to 70,000 units to a range of 67,000 to 70,000 units.
We are improving our full year delivery guidance from 65,000 to 70,000 units to 67,000 to 70,000 units.
- Management expects R2 to represent the majority of total delivery volume in the fourth quarter.
in the fourth quarter, we expect R2 to represent the majority of our total delivery volume.
- The company expects R2 to help achieve a positive automotive gross margin exit rate for the year.
we expect that R2 will help us achieve a positive Automotive gross margin exit rate for the year.
- Adjusted EBITDA losses for full year 2026 are expected to be between $1.85 billion and $1.75 billion, representing a $100 million improvement at the midpoint.
For full year 2026, we now expect our adjusted EBITDA losses to be between $1.85 billion and $1.75 billion.
- For 2027, the company expects a meaningful year-over-year step-up in capital expenditures as construction activity ramps up at the Georgia manufacturing facility.
Looking ahead to 2027, we expect a meaningful year-over-year step-up in CapEx as construction activity ramps in our Georgia manufacturing facility.
Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Consolidated revenue | $2.155 billion | 38% increase over the same quarter last year |
| Consolidated gross profit | $176 million | Not stated |
| Gross profit margin | 8% | Not stated |
| Adjusted EBITDA losses | $435 million | Not stated |
| Automotive revenue | $1.55 billion | 36% increase over the same quarter last year |
| Software and Services revenue | $605 million | 45% year-over-year increase |
How management sounded
Balanced (+25 on our -100 to +100 scale). Management expressed high confidence in the R2 launch and autonomy road map, though adjusted EBITDA losses and supply chain complexity remain. Management sounded more upbeat than on 6% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- The progress of the R2 production ramp and supply chain scaling at the Normal facility.
- The limited rollout of the Point to Point autonomy feature via the Early Access Program.
- Construction progress and capital expenditure spending at the Georgia manufacturing facility.
Earlier calls
- Q2 2026 (Jul 30, 2026), tone Balanced: Rivian reported consolidated revenue of $1.66 billion and gross profit of $179 million, alongside the launch of R2 deliveries.
