Rivian (RIVN.US) Q2 Earnings: Mixed Results as Gross Profit Turns Positive and Outlook Improves, but Ongoing Cash Burn Persists

Zhitong Finance APP has learned that Rivian (RIVN.US) released its second-quarter financial report after the US stock market closed on Thursday, showing improvements in both full-year adjusted EBITDA and capital expenditure guidance. The data shows that the company's Q2 revenue grew 27% year-on-year to $1.66 billion, exceeding the market expectation of $1.51 billion; adjusted loss per share was $0.47, better than the expected loss of $0.63 per share.

By segment, automotive revenue grew 23% year-on-year to $1.143 billion, driven by a 14% increase in vehicle deliveries and $103 million in regulatory credit-related revenue; software and services revenue grew 37% year-on-year to $515 million, of which $308 million came from a joint venture with the Volkswagen Group.

In the second quarter, Rivian produced 12,613 vehicles at its Normal, Illinois manufacturing plant and delivered 12,194 vehicles to customers.

The closely-watched gross profit was $179 million, compared to a loss of $206 million in the same period last year. Of this, the automotive segment had a loss of $36 million, compared with a loss of $335 million a year earlier; gross profit from software and services increased to $215 million, with a gross margin of 42%.

Net loss attributable to Rivian’s common shareholders in the second quarter was $837 million, compared to a net loss of $1.115 billion a year earlier.

Multiple indicators expected to improve Deliveries of the new R2 model begin

Looking ahead, Rivian has narrowed its full-year 2026 adjusted EBITDA guidance, now expecting a loss of $1.8 billion to $2 billion, compared with previous expectations of $1.8 billion to $2.1 billion; the company also lowered its full-year capital expenditure guidance from the previous $1.95 billion to $2.05 billion to $1.7 billion to $1.8 billion. The company reaffirmed its previously raised full-year delivery target of delivering 65,000–70,000 vehicles to customers.

Rivian stated that the $250 million mid-term capital expenditure reduction was the result of “project efficiency and spending timing.” The automaker had previously increased its capital expenditures to make additional investments in new technologies such as hands-free driving systems.

Rivian previously stated that the raised delivery guidance was due to increased deliveries of its electric delivery vans and flagship R1 product in the second quarter.

The company also began deliveries of the midsize R2 SUV model in the second quarter. The company is ramping up production of this model at its only production facility in Normal, Illinois, which has an annual capacity of 160,000 units.

Rivian CEO RJ Scaringe said on Thursday: “The R2 is finally in the hands of customers now, and we are incredibly excited. The overall feedback and response to the product have been outstanding. Therefore, this is an important milestone on our path to profitability.”

It is reported that the R2 is the smaller and more affordable sibling to Rivian's current luxury SUV, the R1S. Rivian has high hopes for the R2, aiming for this affordable model to help the company transition from a niche electric vehicle maker of luxury cars to a mainstream automaker.

Scaringe stated that Rivian will achieve per-vehicle profitability with the R2. However, he noted that the company will need greater scale than the current planned production capacity of 160,000 units to reach overall profitability.

Concerns remain over cash “bleeding”

Rivian reiterated on Thursday that its cash, cash equivalents, and short-term investments balance stood at $5.3 billion, up from $4.8 billion at the end of the first quarter.

The company stated it expects to receive $1 billion in non-recourse debt financing later this year from its software deal with Volkswagen Group, and to gain an additional $250 million equity investment from another partnership with Uber.

However, Rivian posted an operating cash outflow of $487 million this quarter, resulting in free cash flow widening to negative $849 million from negative $398 million in the same period last year.

After the financial results were announced, Rivian's share price rose 3% in after-hours trading, as the accelerated cash burn tempered market enthusiasm.