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Rivian’s third-quarter 2026 revenue rose 38% year over year to $2.155 billion, while vehicle production and deliveries set company quarterly records. Its R2 became its best-selling model, and Volkswagen-related work generated $354 million in software and services revenue. Rivian also narrowed its net loss and raised its delivery and adjusted EBITDA forecasts, though it remains loss-making.
Rivian’s third-quarter 2026 revenue rose 38% year over year to $2.155 billion, with growth from its new R2 SUV, higher vehicle deliveries and software and services work tied to Volkswagen. The company also raised its full-year delivery and adjusted EBITDA forecasts, even as it reported a $913 million net loss.
Rivian produced 19,751 vehicles and delivered 19,248 in the quarter, increases of 84% and 46%, respectively, compared with the same period in 2025. The company said both figures were quarterly records. The R2 was Rivian’s best-selling model during the period, ahead of its larger R1 vehicles and electric delivery vans. Production of the R2 is ramping up at the company’s Normal, Illinois, plant, where a second shift for the model began.
The automotive segment generated $1.55 billion in revenue, up 36% from a year earlier, but recorded an $80 million gross loss. That was narrower than the $130 million loss in the year-earlier quarter. Rivian attributed the improvement to higher deliveries, better per-vehicle margins and regulatory-credit revenue. It also said R2 production ramp-up added about $120 million in manufacturing costs compared with a normalized production level.
Software and Services revenue increased 45% to $605 million, with gross profit of $256 million and a 42% gross margin. Rivian’s total company gross profit was $176 million. Volkswagen’s share of the joint venture contributed $354 million, or 59% of the division’s revenue, compared with $308 million in the second quarter. The companies are developing vehicle architecture and software for future Volkswagen models; Rivian also began licensing components of its AI voice assistant to the venture.
R2 Growth Meets Partnership Income
The results show Rivian drawing revenue from two different sources at a time when it is expanding production: vehicle sales, led by the R2, and software and services work, much of it linked to Volkswagen. The partnership’s $354 million contribution represented a substantial portion of the division’s quarterly sales, while the division’s gross profit exceeded the company’s overall gross profit. That highlights the value of the higher-margin business, although it does not by itself establish that Rivian can sustain those results as the joint project develops.
The R2’s early sales position matters because Rivian is increasing output of the model at its Illinois factory. But the launch is also adding costs: the company recorded approximately $120 million in additional R2 manufacturing costs during the quarter. Rivian remains unprofitable, with a $913 million net loss attributable to common shareholders, so revenue growth and a narrower automotive gross loss are not the same as company-wide profitability.
Volkswagen’s role extends beyond quarterly development revenue. Rivian said a previously agreed $1 billion credit facility was fully drawn on October 7, and Volkswagen plans a further $460 million equity investment, subject to conditions. Together, the commercial work and financing provide support, but the scheduled investment is not yet a completed payment.
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How the Rivian-VW Deal Fits
Rivian’s Software and Services business includes vehicle architecture and software development, repair and maintenance services, and its paid Autonomy+ software package, which became available in April 2026. The company said declining revenue from used-vehicle resales partly offset growth in the division. Volkswagen-related revenue is generated through a joint venture tasked with developing a zonal electronic architecture and software for future Volkswagen vehicles.
Rivian said it expects payments for further development, adaptation and improvement of the joint project’s architecture and software to continue until around mid-2028. The partners expanded the work in the third quarter to include licensing components of Rivian’s AI voice assistant. Volkswagen’s planned additional equity investment of $460 million is due by January 2028 at the latest, or earlier if the first Volkswagen vehicle equipped with Rivian hardware and software reaches the road. The source report identifies that vehicle as the planned ID. EVERY1; the investment remains conditional.
For the full year, Rivian now expects 67,000 to 70,000 deliveries, compared with its previous range of 65,000 to 70,000. It also lifted its adjusted EBITDA forecast by $100 million, to a loss of $1.85 billion to $1.75 billion. Planned capital spending is now expected to be $1.4 billion to $1.5 billion, $300 million lower than previously planned.
“The R2 was the company’s best-selling model in the third quarter.”
— Rivian, in its third-quarter results as summarized in the report
Costs and Forecast Risks Remain
Rivian’s updated outlook is still a forecast, and the company remains on track for a substantial adjusted EBITDA loss. The report does not provide model-specific R2 delivery figures or a detailed timetable for the model’s production ramp beyond noting that a second shift began at the Normal plant. It is also unclear how quickly the R2’s added manufacturing costs may ease as output increases.
The conditions attached to Volkswagen’s planned $460 million equity investment have not been detailed in the supplied report, and the investment has not yet been made. While the $1 billion credit facility was fully drawn on October 7, the report does not specify the facility’s repayment terms beyond identifying it as a ten-year loan. The scale and timing of future Volkswagen-related revenue also remain uncertain beyond Rivian’s expectation that payments will continue until around mid-2028.
R2 Ramp and VW Milestones
Rivian’s near-term focus is increasing R2 production while working toward its revised annual delivery range of 67,000 to 70,000 vehicles. Future quarterly results should show whether the second shift supports higher output and whether the extra manufacturing costs associated with the ramp change as production grows.
The Volkswagen joint venture is expected to continue generating development-related revenue until around mid-2028, according to Rivian. Volkswagen’s planned $460 million equity investment is expected by January 2028 at the latest, or earlier if the first vehicle using Rivian’s hardware and software reaches the road, subject to conditions. Rivian’s next financial updates will provide further evidence on vehicle demand, partnership income, costs and progress against its revised forecasts.
Key Questions
How much did Rivian’s revenue increase?
Revenue reached $2.155 billion in the third quarter of 2026, a 38% increase from the same quarter in 2025.
What role did the R2 play in the results?
Rivian said the R2 was its best-selling model in the quarter as production ramped up at its Normal, Illinois, plant. The company did not provide R2-specific delivery figures in the report.
How much revenue came from Volkswagen-related work?
The Volkswagen joint venture contributed $354 million, or 59% of Rivian’s $605 million Software and Services revenue, during the third quarter.
Is Rivian profitable?
No. Rivian reported a $913 million net loss attributable to common shareholders for the quarter. Its automotive segment also recorded an $80 million gross loss, although that was narrower than a year earlier.
What is Rivian’s updated full-year outlook?
Rivian now expects 67,000 to 70,000 deliveries in 2026 and adjusted EBITDA of between minus $1.85 billion and minus $1.75 billion. Its planned capital spending range is $1.4 billion to $1.5 billion.
Source: electrive.com
