Rivian Narrows Its Loss as R2 Becomes the Top Seller and Revenue Jumps 38% to $2.16B

Rivian (RIVN) beat third-quarter estimates as its new R2 SUV became its best-selling vehicle by volume in its first full quarter. Revenue rose 38% to $2.16 billion, ahead of the roughly $2.02 billion analysts expected, and the adjusted loss narrowed to $0.48 per share from $0.65 a year earlier, better than the $0.61 loss estimated. Shares rose 1.7% in after-hours trading after falling 41% so far this year through Wednesday, compared with a 10% decline for Tesla (TSLA). Rivian did not disclose R2 delivery volumes.

The quarter in numbers

Source: Rivian third-quarter 2026 results. Deliveries and production were records. Against estimates, adjusted EBITDA of $(435) million beat an expected loss of about $576 million, and free cash flow of $(1.12) billion was better than the roughly $(1.32) billion expected.

R2 takes over

R2 outsold both the R1 and the commercial delivery van in the quarter, and management said customer and media feedback has been exceptional. Software and services revenue rose 45%, with the Volkswagen joint venture providing about 59%, or $354 million, of it, and delivered a 42% gross margin on $256 million of gross profit. The R2 ramp added roughly $120 million of incremental cost of revenues in the quarter, and automotive results also benefited from a receivable tied to a tariff refund. Automotive gross profit remains negative, so the path to profitability depends on R2 volume and lower unit costs.

Guidance

The new deliveries range compares with about 42,000 vehicles in 2025. The adjusted EBITDA midpoint improved by $100 million, and the capital spending midpoint dropped by $300 million, which Rivian attributed to timing.

Cash and funding

Rivian ended the quarter with $5.5 billion in cash, cash equivalents and short-term investments, down from $7.1 billion a year earlier, and total liquidity of $6.1 billion. Including a $1.0 billion, 10-year term loan from Volkswagen Group received in October, liquidity is about $7.1 billion. Operating cash outflow was $758 million, driven mainly by working capital, including lower deferred revenue and inventory built for R2, compared with a small inflow a year ago.

Risks

Rivian lists the unavailability or reduction of government incentives and tax credits as a risk factor, and weaker EV demand since federal incentives were reduced is a headwind for the industry. Cost control also matters as R2 production expands. The shares have lagged, down 41% this year against a 10% decline for Tesla, so the market has been skeptical about the path to profit. For another look at consumer vehicle demand, see our Carvana earnings article.

What it means

The quarter showed the first real evidence that R2 can carry volume: deliveries rose 46%, gross margin reached 8%, and the losses narrowed on every headline measure. The open questions are the automotive gross margin, which was still negative, the cash burn, and whether fourth-quarter deliveries can reach the level the 67,000 to 70,000 range implies.

Sources: Rivian third-quarter 2026 earnings release and related filing (Oct. 29). Analyst estimates, after-hours moves and year-to-date performance are from market data. This is informational, not a recommendation to buy or sell.