Rivian’s Full-Year Losses Widen in 2025, as Spotlight Turns to R2

Rivian’s financial picture improved in some areas in 2025, but the company’s full-year losses continued to grow as it ramps up spending ahead of its crucial R2 launch.

The EV maker announced its fourth quarter and full-year 2025 results this week, posting a $3.6 billion loss for 2025, slightly better than its $4.7 billion loss in 2024. Net loss in the fourth quarter was $804 million, and improvement over the $743 million loss in Q4 2024. The performance slightly beat analysts' expectations.

Rivian reported a major improvement in gross profit while still posting a wider net loss for the year — underscoring the ongoing cost of scaling production, expanding infrastructure, and investing heavily in autonomy and software development. Rivian delivered $144 million in consolidated gross profit for full-year 2025, a more than $1.3 billion improvement compared to 2024, when the company posted a $1.2 billion gross loss. However, Rivian remains deep in the red overall as it continues to build toward higher-volume growth.

CEO RJ Scaringe said Rivian spent 2025 focused on execution and laying the groundwork for expansion.

“In 2025 we focused on execution as we laid the foundation for dramatically scaling our business,” Scaringe said. “It’s incredibly exciting to see the early strong reviews of the R2 pre-production builds, and we can’t wait to get them to our customers next quarter.”

R2 Launch Still Set for Q2 2026

Rivian says it remains on track to launch the R2, with first customer deliveries expected in the second quarter of 2026.

In mid-January, the company completed its first R2 manufacturing validation builds using production tools and processes at its Normal plant. Rivian says the launch version will be a well-equipped Dual-Motor AWD model, with additional lineup details expected on March 12.

Autonomy and AI Investments Continue

Rivian also used late 2025 to spotlight its autonomy ambitions. At its first Autonomy & AI Day in December, the company unveiled its RAP1 autonomy processor, Rivian’s first in-house custom chip, and introduced its next-generation autonomous driving platform.

The automaker says its third-generation autonomy platform is expected to debut in the R2 in late 2026 and could eventually support “eyes-off” driving and personal Level 4 capability.

Rivian also launched Universal Hands-Free assisted driving for second-generation R1 vehicles, expanding coverage to more than 3.5 million miles across the U.S. and Canada.

Expanding Footprint Ahead of R2 Demand

In preparation for the R2 rollout, Rivian continues to grow its commercial and service network. The company now operates 36 Rivian Spaces, 97 service locations, and nearly 700 mobile service vehicles designed to handle service appointments at customer locations.

While Rivian’s gross profit turnaround is a notable milestone, the company’s widening full-year losses highlight the steep cost of its next phase — one that will depend heavily on the success of the R2 and the continued expansion of its software-driven revenue streams.

Automotive Revenue Drops as Incentives and Credit Sales Fade

Rivian reported $5.387 billion in consolidated revenue for the full year, up 8 percent from $4.970 billion in 2024. But its automotive business continued to weaken, with automotive revenue falling 15 percent year-over-year to $3.830 billion.

The company attributed the decline to lower regulatory credit sales and lower vehicle deliveries, partially offset by higher average selling prices and a stronger mix of R1 consumer deliveries.

Fourth quarter revenue dropped sharply compared to the same period last year, with Rivian posting $1.286 billion in Q4 revenue, down from $1.734 billion in Q4 2024. Automotive revenue in the quarter fell 45 percent to $839 million, a decline Rivian tied to reduced regulatory credit sales, lower deliveries following the expiration of tax credits, and a higher mix of lower-priced EDV commercial vehicle deliveries.

"While it's clear that Rivian as an organization is tech-forward and well-positioned to compete in an Auto 2.0

world, the aforementioned risks drive our UW rating and $12 price target on a 12-month forward view," said Morgan Stanley analyst Andrew Percoco in a note to clients

Deliveries Remain Flat Year-Over-Year

Rivian produced 42,284 vehicles in 2025 and delivered 42,247. In the fourth quarter alone, the company produced 10,974 vehicles and delivered 9,745.

While the company continues to maintain steady output at its Normal, Illinois facility, Rivian’s next growth phase hinges on launching the R2 — the smaller and more affordable SUV expected to significantly expand its customer base.

Software and Services Business Surges

One of Rivian’s biggest bright spots in 2025 was its growing software and services business.

The company reported $1.557 billion in software and services revenue for the full year, a massive jump from $484 million in 2024. Rivian credited the surge largely to vehicle electrical architecture and software development services tied to its joint venture with Volkswagen Group, along with higher revenue from remarketing, repairs, and maintenance.

That segment delivered $576 million in gross profit for the year, compared to just $7 million in 2024, helping offset continued losses in Rivian’s core vehicle business.

This article was co-written using AI and was then heavily edited and optimized by our editorial team.