Rivian Q4 Earnings Top Expectations, Revenues Decline Y/Y

Rivian Automotive RIVN incurred a loss of 54 cents per share in the fourth quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of 69 cents but wider than the year-ago period’s loss of 52 cents. Revenues of $1.29 billion beat the Zacks Consensus Estimate of $1.26 billion and decreased 25.8% on a year-over-year basis.

Key Q4 Highlights of RIVN

Rivian reported a total production of 10,974 units in the reported quarter, down from 12,727 units in the year-ago quarter.The company delivered a total of 9,745 units, declining from 14,183 units a year ago.

Gross profit amounted to $120 million compared with $170 million in the prior-year quarter. The gross margin for the reported quarter was 9%. Total adjusted operating expenses were $712 million, up from $620 million in the prior-year quarter. Adjusted loss before interest, taxes, depreciation and amortization was $465 million compared with a loss of $277 million in the fourth quarter of 2024.

Net cash used by operating activities for the reported quarter was $681 million compared to net cash provided by operating activities of $1.18 billion in the prior-year period. Capital expenditures for the fourth quarter were $463 million compared with $327 million a year ago. Free cash outflow in the fourth quarter was $1.14 billion.

Rivian's Q4 Segmental Performance

The Automotive segment recorded revenues of $839 million, down 45% year over year, primarily due to a decline in regulatory credit sales and lower vehicle deliveries and average selling price. The total cost of revenues for this segment was $898 million, down 36.3% on a year-over-year basis. The segment generated a gross loss of $59 million in the reported quarter compared with a gross profit of $110 million in the prior-year quarter.

The Software and Services segment recorded revenues of $447 million, more than doubling year over year, primarily due to new vehicle electrical architecture and software development services, as well as higher sales of vehicle trade-ins and vehicle repair and maintenance services. The total cost of revenues for this segment in the fourth quarter amounted to $268 million, up from $154 million in the prior-year quarter. The segment generated a gross profit of $179 million for the fourth quarter compared with $60 million in the same quarter in 2024.

Financial Position of RIVN

As of Dec.31, 2025, Rivian had cash and cash equivalents of $3.57 billion compared with $5.3 billion as of Dec. 31, 2024. Long-term debt was $4,440 million as of Dec. 31, 2025, compared with $4,441 million as of Dec. 31, 2024.

Rivian Provides 2026 Guidance

For 2026, Rivian expects to deliver 62,000-67,000 units compared with 42,284 in 2025. Adjusted EBITDA is expected to remain negative in the band of $1.80 billion to $2.10 billion. Capital expenditures are anticipated to be in the range of $1.95-$2.05 billion.

RIVN Zacks Rank & Key Picks

Rivian carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are Modine Manufacturing MOD, Michelin MGDDY, and Strattec Security STRT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 21.2% and 18.8%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved 18 cents and 72 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for MGDDY’s 2026 sales implies year-over-year growth of 6%. The EPS estimates for 2026 and 2027 have improved 6 cents and 10 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for STRT’s fiscal 2026 sales and earnings implies year-over-year growth of 2.1% and 16.2%, respectively. The EPS estimate for 2026 and 2027 has improved 85 cents and 48 cents, respectively, in the past seven days.

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This article originally published on Zacks Investment Research (zacks.com).

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