0001874178-25-000036
SEC filingRivian's Q2 2025 net loss narrowed to $1.12B as software/services revenue surged, offsetting automotive revenue declines from lower deliveries.
In Q2 2025, Rivian reported total revenue of $1.30B, up 12.5% from $1.16B in Q2 2024, driven by a 348% surge in Software and Services revenue to $376M, which more than offset a 14% decline in Automotive revenue to $927M. Automotive revenue fell due to a 23% drop in deliveries to 10,661 units, as higher average selling prices and a $143M increase in regulatory credit sales (over six months) partially cushioned the decline. Gross profit improved to a loss of $206M from a loss of $451M, as Automotive gross loss narrowed to $335M (from $441M) and Software and Services swung to a $129M profit from a $10M loss. Operating expenses declined slightly to $908M from $924M, with R&D down 4% and SG&A flat. Net loss attributable to common stockholders narrowed to $1,117M from $1,457M.
The Automotive segment faced headwinds from lower production volumes (5,979 vs 9,612, down 38%), driven by supply chain disruptions from shifting trade policies. Per-unit fixed costs increased by approximately $137M due to underutilized capacity, partially offset by reduced raw material costs. Software and Services became a key growth driver, with revenue surging to $376M, primarily from the Joint Venture with Volkswagen Group, which contributed vehicle electrical architecture and software development services. Remarketing and service revenue also grew. The segment turned gross profit positive at $129M, compared to a $10M loss a year ago, and management expects continued improvement as the Joint Venture progresses.
Rivian expects to start production of the R2 midsize SUV in the first half of 2026 at the Normal Factory, following a planned three-week shutdown in late Q3 2025 to integrate manufacturing processes. This shutdown will temporarily impact production and raise per-unit costs, but the expanded capacity to 215,000 units annually is expected to improve capital efficiency. The company anticipates automotive gross profit to improve over the medium-to-long term through material cost reductions, engineering efficiencies, and higher volumes from the MSP platform. Software and Services gross profit is expected to continue rising as the Joint Venture advances and as paid subscriptions (Connect+, FleetOS, future Autonomy Platform+) scale. The company believes its current liquidity of $8.5B, including $4.8B in cash and equivalents, is sufficient for at least the next 12 months. Risks include evolving tariffs, potential supply chain disruptions, and the need to improve incoming order rates for R1 vehicles.
As of June 30, 2025, Rivian held cash and cash equivalents of $4,812M and short-term investments of $2,696M, totaling $7,508M in liquid assets. Total debt stood at $4,436M (net of unamortized discounts), with the recent issuance of $1,250M 2031 Green Secured Notes used to refinance the 2026 Notes. Inventory decreased slightly to $2,103M from $2,248M at year-end 2024. Contract liabilities (deferred revenue) surged to $2,243M, primarily reflecting advance payments from Volkswagen Group for software development services.
Total unconditional purchase obligations amounted to $618M as of June 30, 2025, largely under an amended data services agreement with Amazon. The payment schedule is: $82M in 2025, $168M in 2026, $195M in 2027, and $173M for 2028 and thereafter. Additionally, the company has contingent liabilities of $110M accrued and up to $190M reasonably possible for legal proceedings and supply contracts.
No share repurchases or dividends were disclosed. Debt activity included the issuance of $1,250M in 2031 Green Secured Notes (10% fixed rate) and the repayment of $1,250M 2026 Notes (floating rate). The ABL Facility remained undrawn with $1,011M available. A DOE loan of up to $5,975M is conditionally committed but not yet funded. No capex figure was explicitly reported in the Notes.
Rivian reports two segments: Automotive and Software and Services. For Q2 2025, Automotive revenue was $927M with a gross loss of $335M (improved from $441M loss in Q2 2024). Software and Services revenue was $376M (up from $84M) with a gross profit of $129M (compared to a $10M loss). The turnaround in Software and Services reflects initial contributions from the Volkswagen Group joint venture, including a $182M revenue recognition in Q2 2025. No geographic breakdown was provided.