Rivian revenue grows as software offsets automotive decline

Electric vehicle manufacturer Rivian reported total revenue of $5.38 billion for 2025, representing an 8% increase from $4.97 billion in 2024. However, the company’s automotive revenue fell 15% to $3.8 billion in 2025. According to the company, this decline was driven by lower vehicle deliveries and a $134 million drop in regulatory credit sales.

In contrast, Rivian’s software and services revenue grew more than threefold to $1.55 billion in 2025. This growth was primarily driven by the company’s technology joint venture with Volkswagen Group. The joint venture, formed in 2024 and worth up to $5.8 billion, yielded a $1 billion milestone-based payout for Rivian in 2025 through a share sale. This followed an initial $1 billion convertible note in 2024 and a $1 billion payment in July 2025. In 2026, Rivian is expected to receive an additional $2 billion of capital from the joint venture, according to CFO Claire McDonough. About $1 billion of this 2026 capital is subject to winter testing, while the remaining $1 billion will come as nonrecourse debt—a type of loan secured only by collateral—expected in October.

To improve its margins, Rivian is focusing on operational efficiency ahead of the market launch of its R2 SUV by June 2026. The company has reduced its cost of goods sold (COGS), which measures the direct costs of producing vehicles. In the fourth quarter of 2025, Rivian’s total automotive cost of revenue decreased to $898 million, down from $1.4 billion in the fourth quarter of 2024. According to McDonough, the company delivered $92,000 of COGS per unit in the fourth quarter of 2025, representing an improvement of about $4,000 per unit compared to the third quarter. This is also down from a COGS of $99,000 per unit in the fourth quarter of 2024.

For 2026, Rivian’s financial and operational guidance includes:

• Deliveries: The company expects to deliver between 62,000 and 67,000 vehicles, which could represent up to a 59% increase from the 42,247 vehicles delivered in 2025.
• Adjusted Net Loss: Rivian expects an adjusted net loss of between $1.8 billion and $2.1 billion, compared to a total net loss of $3.6 billion in 2025.
• Capital Expenditures: Projected capital expenditures are expected to be between $1.95 billion and $2.05 billion.

Rivian is also working to expand its commercial vehicle sales. CEO RJ Scaringe highlighted the company’s ongoing collaboration with Amazon, its primary customer for electric delivery vans. Rivian plans to launch an all-wheel-drive version and a larger battery pack variant of the van. “Both of those are to help unlock specific use cases within the Amazon network,” Scaringe said.

Why it matters

Rivian’s pivot toward software and services, bolstered by its strategic partnership with Volkswagen, is essential for offsetting the capital-intensive nature of its core automotive manufacturing business.