Executive Summary

Revenue and EPS beat; EBITDA missed estimates. Q3 revenue was $1.558B vs S&P Global consensus $1.510B; Primary EPS (S&P “Primary EPS”) was -$0.65 vs -$0.71 est; EBITDA (S&P) was -$796M vs -$569M est, reflecting higher operating costs and a litigation settlement in “Other expense.” Management reported gross margin of 2% and Adjusted EBITDA of -$602M.
Software & Services surged to $416M (+324% YoY), aided by VW Group JV revenue recognition (~$214M in Q3); Automotive gross profit remained negative (-$130M) but improved YoY on ASP and cost reductions.
2025 outlook maintained with narrowed delivery range: 41.5–43.5k vehicles (from 40–46k earlier), Adjusted EBITDA loss of ($2.0B)–($2.25B), and capex of $1.8–$1.9B; management continues to target roughly break-even gross profit for FY25.
Near-term catalysts: Dec 11 Autonomy & AI Day and early-2026 R2 launch. R2 production lines and paint shop upgrades are on track; Normal plant capacity lifted to ~215k units, with Georgia greenfield to add 400k units in phases.

What Went Well and What Went Wrong

What Went Well
- Strong top-line and margin inflection: revenue +78% YoY to $1.558B; consolidated gross profit of $24M vs $(392)M YoY; software & services gross profit $154M.
- VW JV monetization and segment mix: $416M software & services revenue with ~$214M from Volkswagen JV recognition this quarter; management expects JV-related revenue to build over ~3 years as performance obligations progress.
- R2/R&D execution: R2 facilities (1.1M sq. ft. body shop/GA, 1.2M sq. ft. supplier park) are installed and commissioning; validation builds to start by year-end; Normal capacity increased to ~215k; Autonomy platform advancing with 70% increase in highway hands-free miles.
What Went Wrong
- Automotive gross profit still negative (-$130M) and operating expenses elevated ($1.007B), driven by R2 prototyping, autonomy training, and go-to-market build-out.
- “Other expense” of $(191)M tied to settlement of securities class action (subject to court approval), weighing on bottom line; net loss was $(1.166)B.
- Demand noise and policy headwinds: October softness after September pull-forward ahead of IRA program changes; tariffs impacted per-vehicle costs in Q3 (~$2k/vehicle), though expected to fall to a few hundred dollars per unit going forward under updated Section 232 rules.

Financial Results

Headline metrics vs prior quarters

Metric	Q1 2025	Q2 2025	Q3 2025
Total Revenue ($B)	$1.240	$1.303	$1.558
Gross Margin (%)	17%	(16)%	2%
Net Loss per Share (GAAP)	$(0.48)	$(0.97)	$(0.96)
Adjusted EBITDA ($M)	$(329)	$(667)	$(602)
Production (Units)	14,611	5,979	10,720
Deliveries (Units)	8,640	10,661	13,201
Cash & ST Investments ($B)	$7.178	$7.508	$7.088
Free Cash Flow ($M)	$(526)	$(398)	$(421)

Consensus vs actuals (S&P Global; Primary EPS per S&P may differ from GAAP EPS)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue Consensus	$1.020B*	$1.291B*	$1.510B*
Revenue Actual	$1.240B*	$1.303B*	$1.558B*
Primary EPS Consensus	$(0.74)*	$(0.64)*	$(0.71)*
Primary EPS Actual	$(0.41)*	$(0.80)*	$(0.65)*
EBITDA Consensus	$(547)M*	$(513)M*	$(569)M*
EBITDA Actual	$(455)M*	$(918)M*	$(796)M*

Values retrieved from S&P Global.
Note: Company-reported GAAP “Net loss per share” in Q3 was $(0.96), while S&P “Primary EPS” actual was $(0.65), reflecting differing definitions.

Segment revenue

Segment Revenue ($M)	Q1 2025	Q2 2025	Q3 2025
Automotive	$922	$927	$1,142
Software & Services	$318	$376	$416

Selected KPIs

KPI	Q1 2025	Q2 2025	Q3 2025
Consolidated Gross Profit ($M)	$206	$(206)	$24
Automotive Gross Profit ($M)	—	—	$(130)
Software & Services Gross Profit ($M)	—	—	$154
COGS per Vehicle Delivered (Automotive)	—	—	~$96.3k (incl. downtime)
Net Cash from Operating Activities ($M)	$(188)	$64	$26
Capital Expenditures ($M)	$338	$462	$447

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Vehicles Delivered	FY 2025	40,000–46,000 (Q2 guide)	41,500–43,500	Narrowed range, raised low end
Adjusted EBITDA	FY 2025	($2,000)M–($2,250)M (Q2)	($2,000)M–($2,250)M	Maintained
Adjusted EBITDA	FY 2025	($1,700)M–($1,900)M (Q1)	—	Lowered in Q2; maintained in Q3
Capital Expenditures	FY 2025	$1,800M–$1,900M (Q2)	$1,800M–$1,900M	Maintained
Gross Profit (Company view)	FY 2025	“Modest positive” (Q1)	“Roughly break-even” (CFO)	Slightly more conservative tone

Earnings Call Themes & Trends

Topic	Q1 2025 (Q-2)	Q2 2025 (Q-1)	Q3 2025 (Current)	Trend
R2 timing & capacity	Validation builds underway; Normal expansion on track; R2 1H26 target.	Normal expansion substantially complete; ~3-week September shutdown to lift capacity; commissioning in Q3.	R2 shops installed/commissioning; validation builds by year-end; Normal capacity ~215k; R2 capacity up to 155k at Normal.	Execution tracking to plan
Autonomy & AI	Roadmap emphasis grows.	Autonomy a major focus; roadmap to be shared later in year.	Dec 11 “Autonomy & AI Day”; 70% increase in hands-free highway miles; end-to-end AI approach.	Increasing capability and visibility
Supply chain, tariffs, policy	Tariff exposure embedded in guidance; delivery range cut.	Supply chain complexities and trade shifts constrained Q2 production.	Q3 tariff impact just under $2k/vehicle; policy changes expected to reduce to a few hundred per unit going forward.	Improving tariff outlook
Demand/macro	—	—	October softness after September pull-forward ahead of IRA changes; R2 aimed at ~$45k price point in largest segment.	Near-term noise; medium-term R2 opportunity
VW Group JV	—	$1B equity received 6/30; JV monetization path.	~$214M Q3 revenue recognized; remaining ~$1.96B recognized over ~3 years as JV ramps.	JV revenue recognition building
Liquidity & DOE loan	—	Cash & ST investments $7.5B; DOE loan up to $6.6B.	Cash & ST investments $7.1B; DOE loan first draw tied to GA vertical construction in 2026.	Strong liquidity runway
Go-to-market & charging	—	—	35 spaces, 95 service; >850 chargers across 131 sites; >90% network open to all EVs.	Network scaled and opening further

Management Commentary

“In Q3, we continued to make significant progress across our strategic priorities which includes R2 and our technology roadmap… Over the long term, we believe the automotive industry will be fully electric, autonomous and software-defined.” – RJ Scaringe, CEO.
“Adjusted EBITDA losses for the third quarter were $602 million… We ended the quarter with approximately $7.1 billion of cash, cash equivalents, and short-term investments… we are reaffirming our 2025 guidance.” – Claire McDonough, CFO.
“As you noted, we had about $96.3K of cost of goods sold per unit delivered in Q3… big driver of performance improvement… will be the volumes from R2’s ramp.” – Claire McDonough.
“About half of the [software & services] revenue was a result of the … joint venture we created with Volkswagen Group.” – Claire McDonough.
“We’re not planning to offer an eRev… we believe everything will be electric, software-defined, and have high levels of autonomy.” – RJ Scaringe.

Q&A Highlights

Demand and policy timing: Management saw expected September pull-forward ahead of IRA changes, with softer October; positioning R2 at ~$45k in the largest SUV/crossover segment.
Costs/unit: Automotive COGS per delivered vehicle ~$96.3k in Q3 despite downtime; path to positive unit economics by end of 2026 driven by R2 scale.
Tariffs: Q3 impact just under $2,000 per vehicle; with updated Section 232 offsets, moving to a few hundred dollars per unit on new builds.
VW JV: Relationship “very strong”; first of multiple programs (e.g., VW ID.1) leveraging Rivian’s tech; ~$214M recognized in Q3 with remaining consideration over ~3 years.
Capital & DOE loan: Expect up to $2.5B additional capital tied to JV (incl. $2B in 2026); DOE loan first advance aligned with 2026 Georgia vertical construction.

Estimates Context

Q3 beat/miss: Revenue $1.558B vs $1.510B est (beat); Primary EPS -$0.65 vs -$0.71 est (beat); EBITDA -$796M vs -$569M est (miss). Management’s Adjusted EBITDA was -$602M. All S&P values marked with asterisks; see note.
Trajectory: Q1 actuals exceeded revenue and Primary EPS estimates; Q2 revenue was in line while EPS missed; Q3 improved sequentially on revenue and Primary EPS beats, with EBITDA headwinds partly related to higher OpEx and settlement-driven “Other expense.”
Values retrieved from S&P Global.

Key Takeaways for Investors

Mix shift matters: High-margin Software & Services (VW JV revenue recognition) is a meaningful earnings lever; ~$214M recognized in Q3 with more over ~3 years.
Cost curve improving: Automotive COGS/unit fell to ~$96.3k despite downtime; sustained material cost and scale benefits from R2 ramp underpin 2026 unit economics inflection.
Guidance credible and narrowed: Delivery range tightened to 41.5–43.5k with EBITDA and capex reaffirmed; management still expects roughly break-even FY25 gross profit.
Tariff headwinds abating: Per-vehicle tariff burden expected to step down from ~$2k in Q3 to a few hundred dollars on new builds under Section 232 changes.
Liquidity runway: $7.1B cash & ST investments, DOE loan up to $6.6B, and additional VW JV equity expected in 2026 support R2/R3 investments.
Catalysts: Dec 11 Autonomy & AI Day (tech roadmap and ADAS/AV progress) and early-2026 R2 launch/pricing event.
Watch list: Operating expense discipline into 2026, execution on R2 ramp and U.S.-based cell sourcing (LG 4695 from AZ), and continued JV monetization.

Appendix: Additional Detail

Deliveries/Production pre-release: Q3 P/D were 13,201/10,720; delivery guidance narrowed to 41.5–43.5k in the Oct 2 pre-release.
Litigation/Other expense link: Q3 “Other expense” of $(191)M reflects settlement of securities litigation (subject to court approval), net of expected insurance; company announced settlement terms on Oct 23.

Rivian Automotive, Inc. / DE (RIVN)·Q3 2025 Earnings Summary