0001874178-26-000008
SEC filingRivian's FY25 revenue rose 8% to $5.4B, achieving first positive gross profit of $144M, driven by cost cuts and software services growth.
Rivian Automotive, Inc. describes itself as an American automotive technology company that develops and manufactures category-defining electric vehicles and vertically integrated technologies and services. The Company believes its competitive advantage stems from product and brand differentiation through vertically integrated technologies as well as its direct-to-customer sales and service model. Rivian's products are manufactured in the United States and sold directly to consumer and commercial customers.
The Company analyzes its business through two reportable segments: Automotive and Software and Services. The Automotive segment encompasses consumer vehicles (R1T, R1S, and future R2, R3, R3X), commercial vehicles (Electric Delivery Van and Rivian Commercial Van), and automotive regulatory credits. The Software and Services segment includes the joint venture with Volkswagen Group, Autonomy+ advanced driver assistance features, remarketing, vehicle repair and maintenance, charging infrastructure (Rivian Adventure Network), software subscriptions (Connect+, FleetOS), and other services such as insurance and financing. The Joint Venture is equally owned by Rivian and Volkswagen Group and focuses on creating next-generation electrical architecture and software.
Rivian's product lineup includes the R1T pickup truck and R1S SUV on the R1 platform, with plans to launch the midsize platform (MSP) underpinning the R2 midsize SUV (expected customer deliveries in Q2 2026), R3 crossover, and R3X performance variant. Commercial vehicles include the Electric Delivery Van (EDV) developed with Amazon and the Rivian Commercial Van. Key technology platforms include the Rivian Autonomy Platform, which features the Universal Hands Free driver assistance system, and the zonal network architecture shared with the Joint Venture. Software offerings include Connect+ for enhanced media and connectivity and FleetOS for fleet management. The Rivian Adventure Network provides DC fast charging, with over 95% open to non-Rivian EVs.
Rivian sells vehicles directly to customers through its website and physical service centers, bypassing traditional dealerships. State dealer licenses are required; the Company holds licenses in most states where permitted. Commercial sales are direct as well. Amazon is the first commercial customer, having ordered an initial 100,000 EDVs globally. Regulatory credits are sold to other regulated entities. The geographic focus is currently the United States and Canada, with future expansion into international markets.
Rivian faces competition from the millions of traditional internal combustion engine vehicles and electric vehicles sold annually in consumer and commercial markets. Downstream competitors include third-party providers of vehicle remarketing, repair and maintenance, charging, software, autonomous vehicle technology, and fleet management. Rivian believes it can compete effectively due to product and brand differentiation, vertically integrated technology, and direct-to-customer relationships.
Rivian's strategic pillars include: (1) vertical integration of technologies such as electrical architecture, software, autonomy, AI, and propulsion to control and enhance vehicle performance; (2) a direct-to-customer sales and service model; (3) an AI-centric end-to-end approach to autonomy, leveraging real-world driving data; (4) the Joint Venture with Volkswagen Group to develop industry-leading software and electrical architecture; (5) expanding the product portfolio with the midsize platform (R2, R3) to address global market segments and improve cost efficiency; and (6) a focus on sustainability, including life cycle assessments, responsible sourcing, circularity, and carbon-free energy initiatives.
As of December 31, 2025, including the consolidated Joint Venture, Rivian employed 15,232 people across North America and Europe. The workforce includes operations and go-to-market teams, engineering and technology teams, and general and administrative functions. The Company emphasizes its Compass Values: Ask Why, Stay Open, Zoom Out, Build Together, and Over Deliver.
Rivian's FY25 total revenue grew 8% to $5.387B, driven by a 222% surge in Software and Services to $1.557B, partially offset by a 15% decline in Automotive revenue to $3.830B. Automotive revenue fell due to an 18% drop in deliveries (42,247 units), partly because of the expiration of 45W tax credits, though higher average selling prices and a richer mix of R1 deliveries provided some offset. Gross profit swung from a ($1.200B) loss to a $144M profit, marking the first positive gross profit in company history. The improvement was driven by cost reductions in raw materials and conversion costs, higher ASP, and a significant increase in high-margin Software and Services gross profit ($576M vs $7M). Operating loss narrowed 24% to ($3.585B), and net loss improved to ($3.626B) from ($4.747B).
Automotive gross loss improved 64% to ($432M), with cost of revenues declining 25% due to lower volumes and efficiency gains, including depreciation and stock-based compensation of $484M and $43M respectively. Software and Services gross margin reached 37.0% ($576M on $1.557B revenue), primarily from joint venture development services, remarketing, and repair services. The segment's growth is expected to continue but may taper in 2028 upon satisfaction of the joint venture's performance obligation.
Management expects R2 customer deliveries to begin in Q2 2026, which is foundational to long-term profitability. Near-term headwinds include higher conversion costs and warranty expenses during the R2 ramp. Tariffs on imported parts (25% Section 232) are being partially offset by domestic assembly credits. Software and Services gross profit is expected to rise further through Autonomy+, Connect+, and FleetOS, though joint venture revenue may decline after 2028. Liquidity stands at $6.588B including $3.579B cash and $2.503B short-term investments, with access to $506M under the ABL facility and a $1B joint venture term loan available in late 2026. Capital expenditures will focus on Normal Factory expansion and the new Stanton Springs North Facility (DOE loan up to $6B). Despite ongoing operating losses, management believes existing cash will fund operations for at least 12 months.
As of December 31, 2025, Rivian held $3.6B in cash and equivalents and $2.5B in short-term investments, totaling $6.1B in liquid assets, down from $7.7B a year earlier. Total debt remained nearly flat at $4.4B (net of discounts), as the $1.25B 2026 Notes were fully repaid and replaced with $1.25B of 2031 Green Secured Notes at 10% interest. Inventory declined to $1.6B from $2.2B, reflecting improved production efficiency. Deferred revenue grew to $2.3B, largely driven by $1.8B from Volkswagen Group for the joint venture.
Rivian's unconditional purchase obligations totaled $563M, primarily for inventory supply and data services from Amazon. Payments are scheduled as: $164M in 2026, $194M in 2027, $116M in 2028, $52M in 2029, and $37M thereafter. Additionally, the company faces litigation contingencies with an accrued $350M for estimated losses, including a $233M settlement for securities class actions, funded in January 2026. The DOE loan facility of up to $6B remains undrawn but subject to conditions.
No share buybacks or dividends were authorized or paid. The only capital allocation activity was a debt refinancing: the $1.25B 2026 Notes were replaced with $1.25B 2031 Green Secured Notes at 10% fixed rate. The ABL facility ($1.5B revolving) had no borrowings and $506M available after letters of credit. Capex is not explicitly disclosed in the Notes, but the property, plant, and equipment balance increased to $8.5B (gross) from $6.7B, indicating ongoing investment.
Rivian operates two reportable segments: Automotive and Software and Services. Automotive revenue fell 15% to $3.8B in 2025, with a gross loss of $432M. In contrast, Software and Services revenue soared to $1.6B from $484M, driven by the Volkswagen Group joint venture, generating a $576M gross profit. The segment shift reflects Rivian's strategy to monetize its technology platform. All revenues are primarily from the United States; no geographic breakdown is provided.
No cash flow statement data was provided in the filing excerpt. The document only includes the auditor's report and an index to financial statements, but the actual Consolidated Statements of Cash Flows (page 77) were not included. Therefore, no analysis of CFO, capex, or FCF can be performed. Based on the audit opinion, the financial statements are fairly presented, but specific cash flow figures are unavailable in this input.