Rivian was saved by software in 2025

Rivian is, by every measure, a maker and seller of EVs. But in 2025, it was the company’s software and services that helped its annual revenue grow by 8%. 

Rivian reported Thursday $5.38 billion in total revenue in 2025, up from $4.97 billion from the prior year. That rosy picture dulls a bit when looking just at its automotive revenue, which fell 15% to $3.8 billion in 2025. The fall was fueled by a $134 million drop in regulatory credit sales and lower vehicle deliveries, which were partially offset by higher average selling prices, according to Rivian. 

Meanwhile, software and services revenue grew more than threefold to $1.55 billion for the year. And the joint venture with Volkswagen Group was behind most of that growth, according to Rivian. The “services” component of this line item, which Rivian doesn’t break out, includes a variety of items, including vehicle repair, vehicle trade-ins, and maintenance services. The remainder, and the bulk of the revenue, is from software, and specifically due to the joint venture with VW Group. 

VW and Rivian formed a technology joint venture in 2024 that is worth up to $5.8 billion. The joint venture is milestone-based and in 2025 Rivian hit the mark, which meant a $1 billion payout in the form of a share sale. Under the terms of the JV, Rivian will supply VW Group with its existing electrical architecture and software technology stack. 

Rivian received an initial $1 billion convertible note in 2024 and another $1 billion payment in July 2025. 

Rivian is expected to continue to receive payments from VW Group through 2027. Rivian is expected to receive an additional $2 billion of capital as part of the joint venture in 2026, CFO Claire McDonough said Thursday on the company earnings call. About $1 billion of that is subject to the successful completion of winter testing, which is underway. The remaining $1 billion is nonrecourse debt, which is expected to be received in October.

And while the funds provide a hefty stopgap, Rivian’s financial success in 2026 will hinge largely on the rollout of its next EV, the R2. 

Rivian confirmed in its earnings report Thursday that the R2 SUV, which is designed to be cheaper to build and less expensive for customers, will come to market by June 2026. That “cheaper to build” line item is particularly crucial for Rivian, which has historically lost money on every vehicle it makes.

Rivian has spent years trying to push the cost of goods sold figure down. And it has made progress with the rollout of its second-generation flagship R1T truck and R1S SUV. For instance, McDonough said “in the fourth quarter it was able to deliver $92,000 of cogs per unit and that was about a $4,000 per unit improvement relative to the third quarter.” Rivian’s cogs per unit was $99,000 in the fourth quarter of 2024.

The company saw its total automotive cost of revenue decrease year-over-year from $1.4 billion in the fourth quarter of 2024 to $898 million in the same quarter in 2025. Notably, the company’s cost of revenue for software steadily inched up throughout 2025.

The R2 SUV, which will initially launch as a dual motor all-wheel-drive model, is an opportunity to further reduce costs. The company is expected to release more information about the R2, including final specs, on March 12. 

Rivian’s guidance for 2026 suggests that it is banking on demand for R2 and its ability to ramp up production. The company said Thursday it expects to deliver between 62,000 and 67,000 vehicles in 2026 — which could provide up to a 59% bump from last year. Rivian delivered 42,247 vehicles in 2025, which includes its two R1 consumer vehicles and the electric delivery van (EDV).

Rivian CEO RJ Scaringe noted that the company expects some growth in EDV sales in 2026. Rivian plans to produce an all-wheel-drive version and a larger battery pack variant of the EDV, for which Amazon is its primary customer.

“Both of those are to help unlock specific use cases within the Amazon network,” Scaringe said. “We’re working really closely with Amazon in defining the requirements of those and excited to get those launched.”

The company isn’t signaling profitability — on an adjusted basis — just yet. But it is offering up considerable improvement on that front. Rivian reported a $3.6 billion net loss in 2025; it expects an adjusted net loss of between $1.8 billion and $2.1 billion for 2026. Rivian also projects capital expenditures will be between $1.95 billion and $2.05 billion this year.

View Bio