It has been about a month since the last earnings report for Rivian Automotive (RIVN). Shares have added about 13.7% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Rivian Automotive due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Rivian Automotive, Inc. before we dive into how investors and analysts have reacted as of late.
Rivian Q3 Earnings Beat Expectations, Revenues Increase Y/Y
Rivian incurred a loss of 70 cents per share in the third quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of 72 cents and the year-ago period’s loss of $1.03. Revenues of $1.56 billion beat the Zacks Consensus Estimate of $1.46 billion and increased 78.2% on a year-over-year basis, fueled by year-over-year growth in vehicle delivery.
Key Q3 Highlights
Rivian recorded a total production of 10,720 units in the reported quarter, down from 13,157 units in the year-ago quarter. The company delivered a total of 13,201 units, up from 10,018 units a year ago.
Total gross profit amounted to $24 million against a gross loss of $392 million in the prior-year quarter. The gross margin for the reported quarter was 2%. Total adjusted operating expenses were $1 billion, up from $777 million in the prior-year quarter. Adjusted loss before interest, taxes, depreciation and amortization was $602 million, marking a major improvement from the $757 million loss incurred in the third quarter of 2024.
Net cash provided by operating activities for the reported quarter was $26 million compared to $876 million used in the prior-year quarter of 2024. Capital expenditures for the third quarter were $447 million compared with $277 million for the same period last year. Free cash outflow in the third quarter was $421 million.
Segmental Performance
The Automotive segment recorded revenues of $1.14 billion, up 47.2% year over year, primarily due to increased vehicle deliveries and average selling prices. The total cost of revenues for this segment was $1.27 billion, up 10.1% on a year-over-year basis. The segment generated a gross loss of $130 million in the reported quarter compared with a gross loss of $379 million in the prior-year quarter.
The Software and Services segment recorded revenues of $416 million and more than tripled year over year, primarily due to new vehicle electrical architecture and software development services. The total cost of revenues for this segment in the third quarter amounted to $262 million and increased more than two-fold on a year-over-year basis. The segment generated a gross profit of $154 million for the third quarter against the loss of $13 million in the same quarter in 2024.
Financial Position
Rivian had $7.09 billion in cash and cash equivalents as of Sept. 30, 2025, compared with $7.7 billion as of Dec. 31, 2024. Long-term debt was $4,438 million as of Sept. 30, 2025, compared with $4,441 million as of Dec. 31, 2024.
Rivian Revises 2025 Guidance
Rivian has updated its guidance for the full-year 2025. It now expects to deliver 41,500-43,500 units compared with the prior estimate of 40,000-46,000 vehicles in 2025. Adjusted EBITDA is expected to remain negative in the band of $2 billion to $2.25 billion. Capital expenditures expectations are reaffirmed to be between $1.8 billion and $1.9 billion.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 10.59% due to these changes.
VGM Scores
Currently, Rivian Automotive has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a score of F on the value side, putting it in the fifth quintile for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Rivian Automotive has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Rivian Automotive belongs to the Zacks Automotive - Domestic industry. Another stock from the same industry, Paccar (PCAR), has gained 7.7% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Paccar reported revenues of $6.11 billion in the last reported quarter, representing a year-over-year change of -20.7%. EPS of $1.12 for the same period compares with $1.85 a year ago.
Paccar is expected to post earnings of $1.05 per share for the current quarter, representing a year-over-year change of -36.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -3.5%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for Paccar. Also, the stock has a VGM Score of C.
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Rivian Automotive, Inc. (RIVN): Free Stock Analysis Report PACCAR Inc. (PCAR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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