Rivian Automotive beat third-quarter earnings estimates as it ramped up production of its R2 entry-level SUV, which the company says will lead it to profitability.
The company delivered a record 19,248 units from July through September. Shares rose roughly 7% in after-hours trading Thursday after closing at $11.45, down 1.9% for the day.
Rivian reported a net loss of $913 million, compared with a loss of $1.17 billion in the third quarter of 2025. Gross profit was $176 million, up from $24 million a year earlier. Adjusted EBITDA was a loss of $435 million, a $167 million improvement from the same period last year.
The company revised its 2026 guidance to a pre-tax adjusted loss between $1.75 billion and $1.85 billion, a $100 million improvement at the midpoint. It raised vehicle delivery guidance to between 67,000 and 70,000 units, up from at least 65,000. Capital expenditure guidance fell to between $1.4 billion and $1.5 billion, $300 million less at the midpoint.
Rivian attributed the guidance improvement to regulatory credit sales, an IEEPA tariff refund, and expected higher vehicle deliveries. The R2, which began first deliveries in June, became the company's best-selling model and drove much of the quarterly gain.
Software and services revenue reached $605 million with gross profit of $256 million, a 42% margin. Automotive operations recorded $1.55 billion in revenue and a gross loss of $80 million.
CEO RJ Scaringe told CNBC the R2 should have positive gross margin by year-end. He said the company needs to scale beyond current R2 production plans of 160,000 units to achieve overall profitability. Cash, cash equivalents and short-term investments totaled $5.5 billion, up from $5.3 billion at the end of the second quarter.