Rivian Q2 Earnings Miss Expectations, Revenues Rise 12.5% Y/Y

Rivian's Q2 earnings miss expectations, with a loss of 80 cents per share, but revenues rise 12.5% YoY to $1.3 billion, driven by growth in software and services revenues. The company produced 5,979 units, down from 9,612 units YoY, and delivered 10,661 units, down from 13,790 units YoY. Total gross loss was $206 million, compared to $451 million YoY, and adjusted operating expenses were $681 million, up from $676 million YoY.

Electric vehicle (EV) manufacturer Rivian Automotive (RIVN) reported mixed financial results for the second quarter of 2025. The company's earnings per share (EPS) came in at $0.80, missing analysts' expectations of $0.64. However, Rivian's revenue rose 12.5% year-over-year (YoY) to $1.3 billion, driven by strong growth in its software and services segment [1].

Key highlights of Rivian's Q2 performance include:
- Revenue: $1.3 billion, up 12.5% YoY, exceeding analyst estimates of $1.28 billion.
- Adjusted EPS: -$0.80, down 25.4% from analyst expectations of -$0.64.
- Adjusted EBITDA: -$667 million, up 29.9% from analyst estimates of -$513.5 million.
- Production: 5,979 units, down 22.7% YoY.
- Deliveries: 10,661 units, down 19.9% YoY.
- Gross Loss: $206 million, down 51.2% from $451 million YoY.

Rivian's Q2 was marked by a negative market reaction, reflecting investor concerns about profitability despite modest revenue growth. The company attributed its performance to lower production volumes caused by supply chain issues and shifts in trade policy, which led to weaker fixed cost absorption and higher unit costs [1].

Rivian's software and services segment performed well, with revenues more than tripling YoY to $376 million, primarily driven by new vehicle electrical architecture, software development services, higher remarketing sales, and a rise in repair and maintenance services [2].

Looking ahead, Rivian's guidance for the full year is shaped by mounting policy headwinds, including increased tariffs and changes to regulatory credit programs. The company expects to deliver 40,000 to 46,000 vehicles in 2025 and has updated its adjusted EBITDA guidance to remain negative, in the band of $2 billion to $2.13 billion [2].

References:
[1] https://finance.yahoo.com/news/rivn-q2-deep-dive-tariff-041026468.html
[2] https://finance.yahoo.com/news/rivians-q2-earnings-miss-expectations-133000581.html