Rivian is, by every measure, an EV manufacturer and seller. But by 2025, software and services companies that help annual revenue grow by 8%.
Rivian reported Thursday $5.38 billion in total revenue in 2025, up from $4.97 billion from the previous year. The rosy picture is somewhat dull when looking only at automotive revenue, which fell 15% to $3.8 billion in 2025. The fall was driven by a $134 million decline 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 more than tripled to $1.55 billion for the year. And the joint venture with Volkswagen Group was behind most of that growth, according to Rivian. The “service” component of this line item, which Rivian does not exclude, includes a variety of items, including vehicle repairs, vehicle trade-ins, and maintenance services. The rest, and most of the revenue, is from software, and specifically because of the joint venture with the VW Group.
VW and Rivian formed a technology joint venture in 2024 which is worth up to $5.8 billion. The joint venture is based on historical milestones and in 2025 Rivian achieves a mark, which means paying $1 billion in the form of a share sale. Under the terms of the JV, Rivian will provide the VW Group with its existing electrical architecture and software technology stack.
Rivian receives $1 billion of early convertible notes in 2024 and more payment of $1 billion in July 2025.
Rivian is expected to continue receiving payments from the VW Group through 2027. Rivian is expected to receive an additional $2 billion in capital as part of the joint venture in 2026, CFO Claire McDonough said on the company’s earnings call. About $1 billion is subject to the success of winter tests, which are underway. The remaining $1 billion is a nonrecourse loan, which is expected to be received in October.
And while the funds provide a substantial stopgap, Rivian’s financial success in 2026 will depend heavily on its next EV launch, the R2.
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Rivian confirmed in its earnings report that the R2 SUV, which is designed to be cheaper to build and less expensive for customers, will come to the market in June 2026. The line item “cheaper to build” is particularly important for Rivian, which has historically lost money on every vehicle it makes.
Rivian has been trying to reduce the cost of goods sold for years. And it has gone ahead with the launch of the R1T truck and R1S SUV. For example, McDonough said “in the fourth quarter we were able to deliver $92,000 cogs per unit and about a $4,000 per unit improvement relative to the third quarter.” Rivian wheels are priced at $99,000 per unit in the fourth quarter of 2024.
The company sees the total cost of automotive revenue decrease year-on-year from $1.4 billion in the fourth quarter of 2024 to $898 million in the same quarter in 2025. In particular, the company’s revenue cost for software will continue to increase in 2025.
The R2 SUV, which will initially be launched as a dual motor all-wheel-drive model, is an opportunity to cut costs. The company is expected to release more information about the R2, including final specs, on March 12.
Rivian’s guidance for 2026 indicates that the bank will need R2 and the ability to increase production. The company said Thursday it expects to deliver between 62,000 and 67,000 vehicles in 2026 – which could provide 59% from last year. Rivian will deliver 42,247 vehicles by 2025, including two R1 consumer vehicles and an electric delivery van (EDV).
Rivian CEO RJ Scaringe noted that the company expects some growth in EDV sales in 2026. Rivian plans to build an all-wheel-drive version and a larger battery pack variant of the EDV, for which Amazon is a major customer.
“Both are to help unlock specific use cases in the Amazon network,” Scaringe said. “We are working closely with Amazon to define these terms and are very excited to launch.”
The company has not signaled profitability – on an adjusted basis – yet. But it offers considerable improvement on that front. Rivian reports net loss of $3.6 billion in 2025; it expects adjusted net loss 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.