Rivian is in every respect a manufacturer and seller of electric cars. But in 2025, it was the company’s software and services that helped its annual revenue growth of 8%.
Rivian on Thursday reported total 2025 revenue of $5.38 billion, up from $4.97 billion a year earlier. That rosy picture is dulled a bit when you look at just its auto sales, which fell 15% to $3.8 billion in 2025. The decline was fueled by a $134 million drop in regulatory credit sales and lower vehicle deliveries, which Rivian said were partially offset by higher average sales prices.
Meanwhile, software and services revenue more than tripled for the year to $1.55 billion. And the joint venture with the Volkswagen Group was behind most of that growth, according to Rivian. The “services” component of this line item, which is not excluded by Rivian, includes a variety of items, including vehicle repairs, vehicle exchanges, and maintenance services. The rest and the bulk of the revenue comes from software, specifically thanks to the joint venture with the VW Group.
VW and Rivian have formed a technology joint venture in 2024 that is worth up to $5.8 billion. The joint venture is based on a milestone, and in 2025 Rivian reached the mark, which meant a payout of $1 billion in the form of the sale of shares. Under the terms of the joint venture, Rivian will supply VW with its existing electrical architecture and suite of software technologies.
Rivian received the first convertible note of $1 billion in 2024 and another payment of $1 billion in July 2025.
Rivian is expected to continue receiving payments from VW Group through 2027. Rivian is expected to receive an additional $2 billion in capital as part of the joint venture in 2026, Chief Financial Officer Claire McDonough said on the company’s earnings call on Thursday. About $1 billion of that is subject to the successful completion of winter testing, which is currently underway. The remaining $1 billion is non-recourse debt, which is expected to be received in October.
And while the funds provide considerable stopping distance, Rivian’s financial success in 2026 will largely depend on the launch of its next EV, the R2.
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Rivian confirmed in its earnings report Thursday that the R2 SUV, which is designed to be cheaper to produce and less expensive for customers, will hit the market by June 2026. That “cheaper to produce” line item is especially key for Rivian, which has historically lost money on every vehicle it makes.
Rivian has been trying to drive down its cost of goods sold for years. And it went ahead with the launch of its second-generation flagship R1T truck and R1S SUV. For example, McDonough said that “in the fourth quarter, it was able to deliver $92,000 per unit, which was about a $4,000 per unit improvement compared to the third quarter.” Rivian’s gears per unit were $99,000 in the fourth quarter of 2024.
The company saw a year-over-year decline in its total automotive cost of revenue from $1.4 billion in the fourth quarter of 2024 to $898 million in the same quarter of 2025. Notably, the company’s cost of software revenue continued to rise throughout 2025.
The R2 SUV, which will initially be launched as a twin-engine model with all-wheel drive, is an opportunity to further reduce costs. The company is expected to release more information about the R2, including final specifications, on March 12.
Rivian’s 2026 guidance indicates the company is banking on demand for R2 and its ability to ramp up production. The company said Thursday it expects to deliver between 62,000 and 67,000 vehicles in 2026 — which could represent up to a 59% increase from last year. Rivian has delivered 42,247 cars in 2025, which includes its two R1 consumer cars and an electric van (EDV).
Rivian CEO RJ Scaringe noted that the company expects some growth in EDV sales in 2026. Rivian plans to produce an all-wheel drive version and a larger battery variant of the EDV, for which Amazon is its primary customer.
“Both are meant to help unlock specific use cases on the Amazon network,” Scaringe said. “We’re working really closely with Amazon to define what those users want, and we’re excited to bring them to market.”
The company is yet to signal profitability – on an adjusted basis –. However, it offers significant improvement in this area. Rivian posted a net loss of $3.6 billion in 2025; for 2026, it expects an adjusted net loss of between $1.8 billion and $2.1 billion. Rivian also expects capital expenditures to be between $1.95 billion and $2.05 billion this year.