Skip to content
    RIVN
    Earnings call· Jun 2026(Q2 FY26)

    Rivian Automotive, Inc. / DE Q2 FY26 earnings call RIVN

    Jul 30, 2026 Source

    Executive summary

    Rivian Q2 FY26 — R2 Launch and Production Ramp Progress

    Rivian commenced R2 deliveries in Q2 FY26, reporting strong customer engagement and better-than-expected reservation conversion for the launch edition. The company increased its full-year delivery guidance and improved its adjusted EBITDA loss outlook, despite facing ramp-up inefficiencies for R2 and rising input costs. Management remains focused on scaling R2 production, advancing its autonomy roadmap, and leveraging its vertically integrated technology for long-term profitability.

    Highlights

    8

    • R2 deliveries began in June, with strong media reviews and positive early customer feedback.

    • 57,000 demo drives hosted in Q2, a Rivian record, indicating accelerating customer engagement.

    • Reservation conversion for the R2 launch edition is "meaningfully higher" than expected.

    • Consolidated revenue grew 27% YoY to $1.66 billion.

    • Automotive gross profit loss improved by $299 million YoY, from -$335 million to -$36 million.

    • Software & Services segment revenue increased 37% YoY to $515 million, with a 42% gross margin.

    • Total vehicle delivery guidance for FY26 increased by 3,000 units to 65,000-70,000.

    • Adjusted EBITDA loss guidance improved by $50 million at the midpoint to $1.8 billion-$2 billion.

    Concerns

    4

    • $100 million in incremental cost of revenue due to R2 production ramp inefficiencies in Q2.

    • Anticipated negative impact on automotive gross profit in Q3 due to R2 ramp complexity.

    • Raw material, memory, and logistics cost increases partially offset EBITDA improvements.

    • Macro and geopolitical factors creating added complexity, cost, and uncertainty.

    Guidance & targets

    10
    CategoryTargetConfidence
    Total Vehicle Deliveries
    65,000-70,000 units
    high materiality
    High
    Adjusted EBITDA Loss
    $1.8 billion-$2 billion
    high materiality
    High
    Capital Expenditure
    $1.7 billion-$1.8 billion
    medium materiality
    High
    R2 Production Scale
    2 shifts
    high materiality
    High
    Autonomy Point-to-Point Capabilities
    Rollout
    medium materiality
    High
    Autonomy Hands-off, Eyes-off Capabilities
    Delivery
    medium materiality
    High
    Autonomy Level 4 Capabilities (Consumer and Robotaxi)
    Delivery
    high materiality
    High
    Gen 3 Autonomy Hardware Launch (RAP1, LiDAR)
    Launch
    medium materiality
    High
    R2 Standard and Premium Trims Availability
    Introduction
    medium materiality
    High
    Robotaxi Program Deployment (Uber)
    Deploying in a couple of cities
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Automotive
    Revenue primarily driven by a 14% increase in vehicle deliveries and a $103 million increase in revenues related to automotive regulatory credits, partially offset by a decline in average selling prices from a higher mix of commercial van and R2 deliveries. Gross profit loss improved by $299 million YoY.
    Vehicle deliveries: 12,194 unitsVehicle production: 12,613 unitsRegulatory credits revenue increase: $103 millionAverage selling price: decline
    		$1.14 billion23%—-$36 million gross profit loss
    Software & Services
    Revenue primarily due to an increase in vehicle electrical architecture and software development services by the joint venture, repairs and maintenance, and Autonomy Plus, offset by lower remarketing sales. $8 million or 60% of segment revenue was attributable to the joint venture with Volkswagen Group.
    Revenue from JV with Volkswagen Group: $8 millionJV revenue as % of segment: 60%
    		$515 million37%—42% gross margin ($215 million)

    Operational metrics

    22
    Consolidated Revenue
    $1.66 billion27% increase
    Q2 FY26

    Year-over-year increase.

    Consolidated Gross Profit
    $179 million
    Q2 FY26

    Includes depreciation and amortization and stock-based compensation expense.

    Adjusted EBITDA Loss
    $379 million
    Q2 FY26

    Driven by gross profit and increased adjusted operating expenses for R2 scaling and autonomy roadmap investment.

    Depreciation and Amortization (Gross Profit)
    $138 million
    Q2 FY26

    Included in consolidated gross profit.

    Stock-Based Compensation Expense (Gross Profit)
    $31 million
    Q2 FY26

    Included in consolidated gross profit.

    Amazon EDVs in Fleet
    Over 40,000
    Q2 FY26

    Delivering packages across thousands of cities.

    Miles Driven on Commercial Van Platform
    Over 1 billion
    Q2 FY26

    Surpassed in the second quarter.

    Demo Drives Hosted
    57,000
    Q2 FY26

    A Rivian record, indicating accelerating customer touch points with products.

    Incremental Cost of Revenue (R2 Ramp)
    $100 million
    Q2 FY26

    Recognized due to the ramp of R2 production as compared to more normalized levels. Reflects ramp-related inefficiencies like expedited freight and short-term supplier premiums.

    Cash, Cash Equivalents, Short-Term Investments
    $5.3 billion
    end of Q2 FY26

    Balance sheet position.

    Follow-on Equity Offering Shares Sold
    86.25 million
    July 2026

    Sold in a follow-on equity offering.

    Follow-on Equity Offering Proceeds
    $1.3 billion
    July 2026

    Raised for general corporate purposes.

    Department of Energy Loan (Georgia Plant)
    $4.5 billion
    ongoing

    Associated with the construction of the Georgia plant, funding equity commitments and reserves.

    Non-Recourse Debt from Volkswagen Group
    $1 billion
    later this year

    Expected, subject to completion of certain conditions.

    Equity Investment from Uber
    $250 million
    later this year

    Expected, subject to completion of certain conditions.

    Total Available Liquidity and Targeted Future Capital
    Over $14 billion
    future

    Includes current liquidity, DOE loan, and additional targeted equity investments from Uber and Volkswagen Group.

    Regulatory Credits Benefit
    $164 million
    H1 FY26

    Benefited gross profit outlook in the first half of the year.

    COGS per unit
    $96,700
    Q2 FY26

    Cost of goods sold per unit.

    COGS per unit (ex-R2 ramp costs)
    $88,400$5,000 per unit improvement
    Q2 FY26

    Calculated by backing out the $100 million R2 ramp costs from the Q2 COGS per unit, showing a sequential improvement.

    IEEPA Tariff Refund Receivable
    Roughly half of total
    Q2 FY26

    Booked in Q2, related to the refund of anticipated proceeds not subject to existing DOJ appeal. Booked in COGS.

    R2 Launch Edition Price
    $58,000
    Q2 FY26

    The most expensive version of R2, currently available.

    California EV Incentive Program
    $3,500
    ongoing

    Incentive for new vehicles, with caps by OEM.

    Industry KPIs

    5
    MetricValueDetails
    Order book backlogmeaningfully higher
    Average transaction pricedecline
    Autonomous robotaxi metricstrending positively
    Vehicle deliveries wholesales12,194units
    Ev unit volumes mix segment economics12,613units

    Product announcements

    5
    ProductTypeDetails
    R2launch
    Autonomy Plusroadmap
    Gen 3 Autonomy Hardware (RAP1, LiDAR)launch
    Rivian Assistantlaunch
    New EDV Variantsroadmap

    Deals & partnerships

    3
    AmazonSupply of Electric Delivery Vans (EDVs)

    Amazon now has over 40,000 Rivian electric delivery vans active in its fleet across North America. Surpassed 1 billion miles driven on the Rivian commercial van platform. Developing new variants with a larger battery pack and all-wheel drive for Amazon's needs.

    Volkswagen GroupJoint venture for vehicle electrical architecture and software development services; non-recourse debt$1 billion

    Joint venture contributed $8 million (60%) to Software & Services revenue in Q2. Expect to receive $1 billion in non-recourse debt later this year, subject to certain conditions. This debt is part of the over $14 billion total available liquidity and targeted future capital.

    UberEquity investment; robotaxi program$250 million

    Expect to receive an additional $250 million equity investment from Uber later this year, subject to completion of certain conditions. This investment is part of the over $14 billion total available liquidity and targeted future capital. Partnering on a robotaxi program targeting deployment in a couple of cities in 2028.

    Risks & headwinds

    4
    R2 Production Ramp InefficienciesQ2 and Q3 FY26

    $100 million incremental cost of revenue in Q2; negative impact on automotive gross profit in Q3

    Mitigation: Scaling production, fixed cost leverage expected in Q4 as production ramps and second shift comes online. Focus on new team member training and process improvements.

    Input Cost IncreasesFY26

    Partially offset $50 million EBITDA improvement at midpoint

    Mitigation: Ongoing efforts to manage supply chain risks and increasing commodity and memory costs.

    Macro and Geopolitical FactorsOngoing

    Creating added complexity, cost, and uncertainty

    Mitigation: Steadfast plans to invest behind key growth drivers, including autonomy roadmap and sales/service footprint expansion.

    Chinese Cost Structure DisparityLong-term, structural

    Much lower labor, capital, energy, and land costs in China compared to the U.S.

    Mitigation: Navigating complexities around sourcing components and raw materials, recognizing frameworks established around trade and industrial policies.

    What to watch in Q3 FY26

    5

    R2 Production Ramp to 2 Shifts

    End of Q3 FY26
    CurrentSingle shift production, progressing well
    TargetScale to 2 shifts

    Why it matters

    Critical for achieving production volume targets, fixed cost leverage, and positive automotive gross profit.

    As a reminder, R2 production started with a single shift, and we expect to scale to 2 shifts by the end of the third quarter.

    Q&A highlights

    7

    How is the R2 production ramp progressing, and will demand or supply gate deliveries over the next year?

    RJ Scaringe detailed the complexity of ramping production, coordinating hundreds of suppliers, and the intentional phased approach. He noted that reservation conversion for the R2 launch edition (the most expensive variant) has been "meaningfully higher" than expected, indicating strong demand. Supply chain coordination is a key focus.

    “the conversion rate from reservation to orders has been meaningfully higher than what we expected, which is a great signal.”

    asked by Mark Delaney · answered by Robert Scaringe

    3 min read6 chapters

    Detailed Narrative

    01

    R2 Launch and Customer Reception

    Rivian commenced R2 deliveries in June, receiving outstanding media reviews and positive early customer feedback, with one journal calling it "one of the best new cars I've driven in years." The company hosted a record 57,000 demo drives in Q2, indicating accelerating customer engagement. Reservation conversion for the R2 launch edition, the most expensive variant, has exceeded internal projections, demonstrating strong market demand for the mid-size SUV segment. A significant number of first-time EV owners are choosing R2, mobilizing latent EV demand.

    02

    Production Ramp and Supply Chain Focus

    The R2 production ramp at the Normal plant is progressing, with a focus on new team member training and process improvements for the first shift. Rivian expects to scale to two shifts by the end of Q3 FY26. Supply chain teams are actively working on-site with suppliers to support the ramp in the back half⚖️ of the year and into next year, acknowledging the complexity of coordinating hundreds of partners. The company's experience from R1 and structured validation builds have led to fewer unexpected surprises in the R2 ramp.

    03

    Autonomy Roadmap and AI Integration

    Rivian is heavily investing in autonomy, with point-to-point capabilities expected by year-end, hands-off/eyes-off (Level 3) in 2027, and Level 4 for consumer and robotaxi variants in 2028. The company is launching its third-generation autonomy hardware, including the in-house designed RAP1 silicon and LiDAR, by the end of 2026. Autonomy Plus take rates are trending positively, with further increases expected as capabilities expand, driven by the transition to Level 3 making the feature more accessible for mass adoption. Rivian Assistant, an AI-powered voice assistant, rolled out on R1 in May and will launch on R2 later this year.

    04

    Amazon Partnership and Commercial Vans

    Amazon's fleet now includes over 40,000 Rivian electric delivery vans (EDVs) active across North America, having surpassed 1 billion miles driven on the platform. Rivian is developing new EDV variants with larger battery packs and all-wheel drive to meet Amazon's evolving needs. The significant ramping of EDV purchases by Amazon is seen as a strong signal of the platform's total cost of ownership (TCO) advantages, which Rivian expects will eventually attract other commercial operators.

    05

    Financial Position and Capital Allocation

    Rivian ended Q2 FY26 with $5.3 billion in cash, cash equivalents, and short-term investments. A July follow-on equity offering raised $1.3 billion by selling 86.25 million Class A shares. The company expects to receive $1 billion in non-recourse debt from Volkswagen Group and a $250 million equity investment from Uber later this year, bringing total available liquidity and targeted future capital to over $14 billion. Capital expenditure guidance for FY26 was reduced by $250 million at the midpoint to $1.7 billion-$1.8 billion, benefiting from project efficiencies.

    06

    Cost Structure and Competitive Landscape

    Management acknowledged the significant cost structure differences between US and Chinese EV manufacturing, primarily due to much lower labor, capital, energy, and land costs in China. This disparity influences Rivian's supply chain strategy and trade policy considerations, as the company navigates complexities to source components and raw materials while adhering to established trade frameworks. Rivian aims to optimize purely around cost in a world of open trade, but recognizes the current environment of intentional industrial policies.

    AI-generated summary of the company’s earnings call. Not investment advice.