REVENUEBeat +10.4%
EPSBeat +25.9%
Actuals vs. estimates
| Metric | Actual | Consensus | Surprise |
|---|---|---|---|
| RevenueTotal revenues | $2.15B | $1.95B | ▲ Beat +10.4% |
| EPS(non-GAAP adjusted basic and diluted) | $(0.48) | $(0.65) | ▲ Beat +25.9% |
Revenue — API Ninjas actual does not reconcile with a unique Quartr consolidated revenue
EPS — API Ninjas actual does not reconcile with a unique Quartr EPS basis
Highlights & what matters
- Total revenues of $2.155 billion beat the $1.952 billion estimate by 10.4%, and adjusted net loss per share of $(0.48) beat the $(0.65) expected by 25.9%.
- Full-year guidance improved on all three metrics: deliveries to 67,000-70,000 units from 65,000-70,000, adjusted EBITDA to $(1.85)-(1.75) billion, up $100 million at the midpoint, and capital expenditures down $300 million at the midpoint to $1.40-1.50 billion.
- R2 arrived at scale: record production of 19,751 vehicles and record deliveries of 19,248, up 46% year over year, with R2 outselling both R1 and EDV.
- Consolidated gross profit of $176 million improved $152 million year over year, but automotive gross profit was still a $(80) million loss and free cash flow worsened to $(1,124) million from $(421) million.
- The one thing that matters: the profitable part of Rivian is still a contract, not a car business - software and services contributed $256 million of gross profit at a 42% margin, with $354 million of its $605 million revenue from the Volkswagen joint venture, while automotive ran a $(80) million gross loss.
Key metrics
| Metric | Reported | Prior year | Change |
|---|---|---|---|
| Vehicles delivered | 19,248 | 13,201 | Deliveries up 46 percent year-over-year |
| Consolidated gross profit | $176 million | $ 24 | a $152 million improvement over the same quarter of the prior year |
| Automotive gross profit (loss) | $(80) million | $(130) million | a $50 million improvement |
| Adjusted EBITDA | $(435) million | $(602) million | — |
| Free cash flow | $(1,124) million | $(421) million | — |
| Regulatory credit revenues in the quarter | $81 million | — | an $80 million increase in revenues related to regulatory credits |
Guidance changes
| Item | New guidance | Prior guidance |
|---|---|---|
| FY2026 vehicles delivered | 67,000 - 70,000 | 65,000 - 70,000 units |
| FY2026 adjusted EBITDA | $(1.85)B - $(1.75)B | improving by $100 million at the mid-point |
| FY2026 capital expenditures | $1.40B - $1.50B | decreasing by $300 million at the mid-point |
Quality of earnings
- The gross-profit improvement is not coming from the vehicles. Software and services delivered $256 million of gross profit at a 42% margin, 59% of its revenue from the Volkswagen joint venture, against an automotive gross loss of $(80) million - together $176 million consolidated.
- Two items of limited durability flatter the automotive line: $81 million of regulatory-credit revenue, an $80 million year-over-year increase, and an IEEPA tariff refund receivable, both named as drivers of the $50 million automotive improvement.
- Cash moved the other way from earnings. Free cash flow of $(1,124) million against adjusted EBITDA of $(435) million, as $(758) million of operating cash use reflected a reduction in deferred revenues and inventory build for R2.
Gotchas & watch items
- The R2 ramp carries a visible cost: approximately $120 million of incremental cost of revenues in the quarter against production at more normalised levels.
- The improved delivery guide only lifted the floor - 67,000-70,000 from 65,000-70,000 - and deliveries of 19,248 trailed production of 19,751.
- The capital expenditure cut is timing, not reduction: guidance falls $300 million at the midpoint due to timing of spend, which moves the outlay rather than removing it.
- Liquidity is better than the balance sheet shows: $6.095 billion of total liquidity at quarter end, or $7.095 billion pro forma for the $1.000 billion non-recourse Volkswagen term loan received in October.