Rivian’s third quarter was marked by a strong market response, which management attributed to robust sales growth and improved unit economics. CEO RJ Scaringe highlighted that the company’s progress was driven by continued momentum in its R1 and commercial van deliveries, alongside early investments in next-generation products like the R2 SUV. Management credited cost reductions in materials and operational improvements for the quarter, with CFO Claire McDonough noting "one of the best quarters ever in automotive cost of goods sold per unit delivered." The team also pointed to expanding contributions from software and services, particularly through its partnership with Volkswagen Group.
Is now the time to buy RIVN? Find out in our full research report (it’s free for active Edge members).
Rivian (RIVN) Q3 CY2025 Highlights:
- Revenue: $1.56 billion vs analyst estimates of $1.49 billion (78.3% year-on-year growth, 4.9% beat)
- Adjusted EPS: -$0.65 vs analyst estimates of -$0.71 (9.1% beat)
- Adjusted EBITDA: -$602 million vs analyst estimates of -$567.9 million (-38.6% margin, 6% miss)
- EBITDA guidance for the full year is -$2.13 billion at the midpoint, above analyst estimates of -$2.12 billion
- Operating Margin: -63.1%, up from -134% in the same quarter last year
- Sales Volumes rose 31.8% year on year (-35.6% in the same quarter last year)
- Market Capitalization: $20.12 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Rivian’s Q3 Earnings Call
- Emmanuel Rosner (Wolfe Research) asked about the U.S. demand environment post-tax credit expiration. CEO RJ Scaringe explained they observed a demand pull-forward in September, followed by softer demand in October, but expressed confidence in long-term customer interest for the R2.
- Mark Delaney (Goldman Sachs) questioned improvements in cost of goods sold per vehicle. CFO Claire McDonough detailed that material cost reductions and improved operational efficiency drove the gains, and anticipated further improvement from R2 scaling.
- George Gianarikas (Canaccord) inquired about progress and stability in the Volkswagen partnership. Scaringe assured the relationship remains strong and highlighted joint product development as a positive for future revenue streams.
- Dan Levy (Barclays) asked about the impact of recent tariff changes and sourcing strategy. McDonough and Scaringe explained that policy shifts reduced per-unit tariff costs, and contracts prioritized domestic and USMCA-compliant sourcing to limit future exposure.
- Ben Kallo (Baird) asked about R2 pricing strategies and awareness campaigns. Scaringe indicated an event will detail the R2 configuration and pricing, and described a measured approach to marketing as R2 launches to maximize visibility and accessibility.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will be monitoring (1) progress toward production and delivery milestones for the R2 launch, (2) updates on the rollout and monetization of Rivian’s autonomy and software platforms, and (3) execution on cost reduction and manufacturing efficiency initiatives. The pace of expansion into new markets and the evolving regulatory landscape will also be key factors to watch.
Rivian currently trades at $16.38, up from $12.51 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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