Core Viewpoint - Rivian reported strong third-quarter earnings, significantly exceeding market expectations, which led to a notable increase in its stock price [1] Financial Performance - Revenue for the third quarter reached $1.56 billion, representing a substantial year-over-year growth of 78%, surpassing market expectations of $1.5 billion [1] - The company achieved a gross profit of $24 million, a significant improvement compared to the anticipated loss of $38.6 million [1] - Adjusted earnings per share showed a loss of $0.65, better than the expected loss of $0.72 per share [1] Delivery and Future Outlook - Rivian delivered 13,201 vehicles in the third quarter, marking a 32% increase year-over-year [1] - The company maintained its previously lowered full-year guidance, projecting an adjusted loss between $2 billion and $2.25 billion, capital expenditures between $1.8 billion and $1.9 billion, and deliveries between 41,500 and 43,500 vehicles [1]

Core Insights - Rivian Automotive reported a revenue of $1.56 billion for the quarter ended September 2025, marking a 78.3% increase year-over-year [1] - The company's EPS was -$0.70, an improvement from -$1.03 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.46 billion by 6.98%, while the EPS also surpassed the consensus estimate of -$0.72 by 2.78% [1] Financial Performance Metrics - Delivery volume reached 13,201 units, surpassing the average estimate of 12,750 units by four analysts [4] - Revenue from software and services was $416 million, exceeding the average estimate of $364.04 million based on five analysts [4] - Automotive revenue was $1.14 billion, compared to the average estimate of $1.09 billion from five analysts [4] - Gross profit from software and services was $154 million, higher than the estimated $125.08 million by three analysts [4] - Gross profit from automotive was -$130 million, better than the average estimate of -$175.4 million from three analysts [4] Stock Performance - Rivian Automotive's shares have returned -2.3% over the past month, contrasting with the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Market Overview - The U.S. stock market experienced a downturn, with major indices like the S&P 500 and Nasdaq showing negative futures [1] - The Dow Jones Industrial Average fell 0.5% to 47,085.24, the S&P 500 dropped 1.2% to 6,771.55, and the Nasdaq decreased 2.04% to 23,348.63 [2] Company Performance Advanced Micro Devices Inc. (AMD) - AMD reported third-quarter revenue of $9.25 billion, exceeding analyst expectations of $8.74 billion [3] - Adjusted earnings per share were $1.20, surpassing estimates of $1.16, driven by growth in the AI data center business [3] - AMD shares fell 3.70% to close at $250.05, with after-hours trading showing a further decline of 4.7% to $238.20 [2] Super Micro Computer, Inc. (SMCI) - Super Micro Computer reported earnings of 35 cents per share, missing the expected 40 cents, leading to a stock decline [4] - Quarterly revenue was $5.01 billion, below analyst estimates of $5.99 billion and down from $5.93 billion a year earlier [4] - The stock dropped 6.40% to $47.50, with after-hours trading showing a decline of 9.5% to $42.99 [3] Upstart Holdings, Inc. (UPST) - Upstart reported earnings of 52 cents per share, beating the estimate of 42 cents, but revenue fell short of expectations [6] - The company projected fourth-quarter revenue of $288 million, below the $303.61 million analyst estimate, and cut its fiscal 2025 revenue outlook to $1.03 billion from $1.05 billion [6] - Shares slid 2.73% to $46.24, plummeting 15.3% to $39.15 in extended trading [5] Pinterest Inc. (PINS) - Pinterest reported third-quarter revenue of $1.05 billion, aligning with analyst estimates, but adjusted earnings of 38 cents per share missed the expected 42 cents [8] - The company forecasted fourth-quarter revenue between $1.31 billion and $1.34 billion, slightly below estimates of $1.34 billion [8] - Shares decreased by 2.39% to $32.91, dropping sharply by 20.09% to $26.30 in after-hours trading [7] Rivian Automotive (RIVN) - Rivian reported third-quarter revenue of $1.56 billion, up 78% year-over-year and above the $1.50 billion estimate [11] - Automotive revenue rose 47% to $1.14 billion, while software and services revenue surged 324% to $416 million [11] - The stock fell 5.23% to $12.50, but gained 3.2% to $12.90 in extended trading [10]

Core Insights - Rivian Automotive's Q3 performance exceeded Wall Street expectations, achieving positive gross profit for the second time this year due to contributions from its joint venture with Volkswagen and its software and services business [1][2] - The company reported Q3 revenue of $1.56 billion, a 78% increase from $874 million in the same period last year, surpassing analyst estimates of $1.5 billion [1] - Rivian's net loss attributable to common shareholders increased slightly to $1.17 billion, or $0.96 per share, from $1.1 billion, or $1.08 per share, in the previous year [1] - The company achieved a gross profit of $24 million in Q3, significantly better than the expected loss of $38.6 million [1] Financial Performance - Q3 revenue reached $1.56 billion, up 78% year-over-year from $874 million, exceeding the average analyst estimate of $1.5 billion [1] - Net loss attributable to common shareholders was $1.17 billion, compared to $1.1 billion in the same quarter last year [1] - Adjusted loss per share was $0.65, better than the expected $0.72 [1] Vehicle Deliveries and Production Outlook - Rivian delivered 13,201 vehicles in Q3, a 32% increase year-over-year, driven by consumer demand ahead of the federal tax credit expiration [2] - The company slightly lowered its full-year production forecast to approximately 42,500 vehicles due to anticipated demand decline following the tax credit expiration [2] - CEO RJ Scaringe indicated that October might see unusual demand patterns due to the tax credit situation but expects long-term demand to stabilize [2] Future Production and Financial Guidance - Rivian maintained its previously lowered 2025 financial guidance, expecting adjusted losses between $2 billion and $2.25 billion and capital expenditures of $1.8 billion to $1.9 billion [5] - The company confirmed that production of the new R2 mid-size vehicle will begin in the first half of next year at its Illinois plant [6] - As of the end of Q3, Rivian had total liquidity of $7.7 billion, including nearly $7.1 billion in cash and cash equivalents, providing a solid foundation for the R2 launch [6] Industry Challenges and Regulatory Environment - The electric vehicle industry, including Rivian, faces challenges such as rising costs due to tariffs, slowing sales forecasts, and regulatory changes impacting sales and profits [7] - Rivian adjusted its expectations for tariff impacts on new vehicle production costs from "thousands of dollars per vehicle" to "hundreds of dollars" due to favorable changes in tax credit policies [7] - The company announced the establishment of its industrial robotics startup, Mind Robotics, which secured $110 million in external funding [7] Stock Performance - Rivian's stock closed down 5.23% at $12.50 per share on Tuesday but rose over 3% in after-hours trading [8] - The stock has seen a cumulative decline of approximately 6% year-to-date [8]

Core Insights - Rivian Automotive reported a quarterly loss of $0.7 per share, which was better than the Zacks Consensus Estimate of a loss of $0.72, and an improvement from a loss of $1.03 per share a year ago, indicating an earnings surprise of +2.78% [1] - The company generated revenues of $1.56 billion for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 6.98%, and showing significant growth from $874 million in the same quarter last year [2] - Rivian Automotive has surpassed consensus EPS estimates three times over the last four quarters and has topped revenue estimates four times in the same period [2] Future Outlook - The immediate price movement of Rivian's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is -$0.78 on revenues of $1.27 billion, and for the current fiscal year, it is -$2.73 on revenues of $5.27 billion [7] - The Zacks Rank for Rivian is currently 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Automotive - Domestic industry, to which Rivian belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Rivian's stock may also be influenced by the overall outlook for the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Performance - Rivian reported a smaller than expected loss of $0.65 per share, compared to the street's expectation of a $0.72 loss per share [1] - Revenue came in slightly better than expected at $1.56 billion [1] - Rivian reported a gross profit of $24 million for the third quarter [2] - Gross margin was 2%, compared to negative 45% in Q3 of last year [2] - Software and services revenue reached $154 million, a significant increase from a loss of $13 million in Q3 of the previous year [2] Guidance and Production - Rivian reaffirmed its delivery guidance between 41,500 and 43,500 vehicles [3] - The company maintains its Ibida loss guidance of $2.25 billion to $2.5 billion [3] - Rivian is on track to begin R2 production in the middle of next year [3] - Rivian has over $7 billion in cash or cash equivalents, positioning it well for the R2 launch [5] Supply Chain and External Factors - The next chip situation is a complex issue affecting every automotive manufacturer globally [7] - Rare earth metal sourcing is a complex long-term issue, and Rivian is focusing on finding alternative sources and developing solutions requiring less of these metals [8][9] - The company does not foresee the next chip or rare earth issues delaying the start of R2 production [9] EV Market - The EV market experienced a pull forward in September due to the end of IRA, followed by a lull in October [11] - Rivian believes that long-term, EVs will continue to grow in scale and market penetration [11]

Core Insights - Rivian reported better-than-expected financial results, with a smaller loss of $0.65 per share compared to the anticipated loss of $0.72 per share, and revenue of $1.56 billion, slightly above expectations [1][2] Financial Performance - The company achieved a gross profit of $24 million in Q3, marking three out of the last four quarters with positive gross profit, and a gross margin of 2%, a significant improvement from a negative 45% in Q3 of the previous year [2] - Software and services revenue reached $154 million, contrasting with a loss of $13 million in Q3 of the previous year [2] Production and Guidance - Rivian reaffirmed its delivery guidance for the year, expecting between 415,000 and 435,000 deliveries, and projected a loss of $2.25 billion to $2.5 billion [3] - The company is on track to begin production of the R2 model in the middle of next year, supported by over $7 billion in cash or cash equivalents [5][9] Operational Efficiency - The company reported low costs of goods sold (COGS) per unit produced, indicating improved operational efficiency in plant operations and material costs [4] - Rivian has invested in over 2 million square feet of new infrastructure at its Illinois facility to support the ramp-up of R2 production [5] Market Challenges - The company acknowledged concerns regarding rare earth materials and the ongoing discussions between the U.S. and China, but stated that these issues have not yet impacted production [6][8] - Rivian is actively seeking alternative sources for rare earth metals and developing solutions that require fewer rare earth materials [8][9] Market Outlook - The company observed a pull-forward in demand in September due to the end of the Inflation Reduction Act (IRA), followed by a lull in October, but remains optimistic about long-term growth in the electric vehicle (EV) market [10]

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 were approximately $1.6 billion, with a gross profit of $24 million, which included $125 million of depreciation and $24 million of stock-based compensation expense [9][10] - Adjusted EBITDA losses for Q3 were $602 million, with a quarter-over-quarter increase in overall operating expenses driven by elevated R&D investments and SG&A growth [9][10] - The company ended the quarter with approximately $7.1 billion in cash, cash equivalents, and short-term investments, showing improvements in working capital [11][12] Business Line Data and Key Metrics Changes - The automotive segment produced 10,720 vehicles and delivered 13,201 vehicles, generating $1.1 billion in automotive revenue, although automotive gross profit was negative $130 million due to low fixed cost absorption [10][11] - The software and services segment reported $416 million in revenue and $154 million in gross profit, with significant contributions from a joint venture with Volkswagen Group [11] Market Data and Key Metrics Changes - The average new vehicle purchase price in the U.S. is now just over $50,000, with the most popular configuration being a five-seat SUV or crossover, which aligns with the target market for the upcoming R2 model [4][17] Company Strategy and Development Direction - The company is focused on launching the R2 model and developing its technology roadmap, including autonomy and vertically integrated hardware and software [3][7] - The R2 is designed to address a significant market opportunity with a lower cost and improved performance, aiming to capture a wide range of customers [4][17] - The company plans to expand its manufacturing capacity significantly, with an additional 400,000 annual units expected from a new facility in Georgia [6][7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged near-term uncertainties from trade, tariff, and regulatory policies but remains focused on long-term growth and value creation [9] - The CEO expressed confidence in the company's technology and product offerings, positioning Rivian as a potential market share leader in the long term [8] Other Important Information - The company is reaffirming its 2025 delivery guidance range of 41,500-43,500 units and expects a capital expenditure range of $1.8 billion-$1.9 billion for 2025 [12] - The company is also expecting to receive additional capital of up to $2.5 billion from its joint venture with Volkswagen Group [11][12] Q&A Session Summary Question: Demand environment in the U.S. post-removal of consumer tax credit - Management noted a pull forward of demand into September due to the end of the IRA program, leading to a softer demand environment in October, but remains confident in the long-term demand for R2 [15][16] Question: Expectations for regulatory credits - Management does not expect meaningful revenues from regulatory credits and has removed them from forecasts due to uncertainty in policy changes [19] Question: COGS per vehicle - COGS for Q3 was approximately $96,300 per vehicle, with expectations for improvement as R2 ramps up production [22][23] Question: Update on Volkswagen relationship - The relationship remains strong, with ongoing collaboration on multiple programs, including the development of the Volkswagen ID.1 [30][31] Question: Role in the robotaxi market - The company sees potential in the robotaxi market but is currently focused on technology development for personally owned vehicles [33][34] Question: Plans for eRev vehicles - The company is not planning to offer eRev or hybrid vehicles, focusing instead on a fully electric future [39][40] Question: Update on tariffs and battery sourcing - Recent tariff policy changes are expected to reduce tariff costs per vehicle significantly, and the R2 program will utilize a specific battery cell produced in the U.S. [46][49] Question: OpEx trajectory and R2 launch production cadence - Elevated R&D spending is expected leading up to the R2 launch, with limited volumes in the first half of 2026 and increasing production in the second half [60][63] Question: Capacity saturation and market entry - The company is optimistic about the demand for R2 and R3, with plans to enter the European market, although specific timing has not been announced [68][72][98]

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 were approximately $1.6 billion, with a gross profit of $24 million, which included $125 million of depreciation and $24 million of stock-based compensation expense [9] - Adjusted EBITDA losses for Q3 were $602 million, with a quarter-over-quarter increase in overall operating expenses driven by elevated R&D investments and SG&A growth [9][10] - The company ended the quarter with approximately $7.1 billion in cash, cash equivalents, and short-term investments, showing improvements in working capital [11][12] Business Line Data and Key Metrics Changes - The automotive segment produced 10,720 vehicles and delivered 13,201 vehicles in Q3, generating $1.1 billion in automotive revenue, although automotive gross profit was -$130 million due to low fixed cost absorption [10][11] - The software and services segment reported $416 million in revenue and $154 million in gross profit, with significant contributions from a joint venture with Volkswagen Group [11] Market Data and Key Metrics Changes - The average new vehicle purchase price in the U.S. is now just over $50,000, with the most popular configuration being a five-seat SUV or crossover, which aligns with the target market for the upcoming R2 model [4][17] - The company is optimistic about capturing market share with R2, which is designed to be a cost-effective option starting at $45,000, appealing to a wide range of customers [17][18] Company Strategy and Development Direction - The company is focused on launching the R2 model and developing its technology roadmap, including autonomy and vertically integrated hardware and software [3][7] - A significant investment in Georgia is expected to create 7,500 jobs and provide billions in economic benefits, supporting the expansion of U.S. manufacturing and technology [7] - The company aims to differentiate its autonomous capabilities through an end-to-end AI-centric approach, leveraging data from its growing fleet of vehicles [7][8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged near-term uncertainties from trade, tariff, and regulatory policies but remains focused on long-term growth and value creation [9] - The company reaffirmed its 2025 delivery guidance range of 41,500-43,500 units and adjusted EBITDA loss guidance of $2 billion-$2.25 billion, with expectations for gross profit to be roughly break-even for the full year [12] Other Important Information - The company is not expecting meaningful revenues from the sale of regulatory credits and has removed those from its forecast due to uncertainty in policy changes [19] - The R2 program is set to launch with a 4695 cylindrical cell produced in the U.S. starting in late 2026, with ongoing partnerships to ensure favorable sourcing [49] Q&A Session Summary Question: Demand environment in the U.S. post-consumer tax credit removal - Management noted a pull forward of demand into September due to the end of the IRA program, leading to a softer demand environment in October, but remains confident in the long-term appeal of R2 [16][17] Question: Expectations for regulatory credits - Management does not expect meaningful revenues from regulatory credits and has conservatively removed them from forecasts [19] Question: COGS per vehicle - COGS per vehicle was approximately $96,300 in Q3, with expectations for improvement as R2 ramps up production [22][23] Question: Update on Mind Robotics - The company raised $110 million in seed funding for Mind Robotics, focusing on developing AI-enabled robotic solutions for manufacturing efficiency [25][42] Question: Update on Volkswagen relationship - The relationship remains strong, with ongoing collaboration on multiple programs, including the development of the Volkswagen ID.1 [30][31] Question: Tariff impacts and battery sourcing for R2 - The company expects a reduced tariff impact of a few hundred dollars per vehicle moving forward, with plans to source battery cells domestically [46][49] Question: OpEx trajectory for autonomy training - Elevated R&D spending is expected leading up to the R2 launch, with a normalization of expenses anticipated post-launch [60][61] Question: Production cadence for R2 - Limited volumes are expected in the first half of 2026, with a ramp-up in production in the second half [62] Question: Capacity saturation concerns - The company is optimistic about the demand for R2 and believes it will attract a wide range of customers, addressing a currently underserved market [69][70] Question: European market entry - The company is considering entering the European market sooner due to the removal of export tariffs, although no specific timing has been announced [97] Question: Timing between R2 and R3 launches - R3 will be produced only in the Georgia facility, with no specific timing announced for its launch [99]

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 2025 were approximately $1.6 billion, with a gross profit of $24 million, which included $125 million of depreciation and $24 million of stock-based compensation expense [8][10] - Adjusted EBITDA losses for Q3 were $602 million, with a quarter-over-quarter increase in overall operating expenses driven by elevated R&D investments and SG&A growth [8][10] - The company ended the quarter with approximately $7.1 billion in cash, cash equivalents, and short-term investments, showing improvements in working capital [10][11] Business Line Data and Key Metrics Changes - In the automotive segment, the company produced 10,720 vehicles and delivered 13,201 vehicles, generating $1.1 billion in automotive revenue, although automotive gross profit was negative $130 million due to low fixed cost absorption [9][10] - The software and services segment reported $416 million in revenue and $154 million in gross profit, with significant contributions from a joint venture with Volkswagen Group [10] Market Data and Key Metrics Changes - The average new vehicle purchase price in the U.S. is now just over $50,000, with the most popular configuration being a five-seat SUV or crossover, which aligns with the target market for the upcoming R2 model [4][17] - The company is optimistic about capturing market share with R2, which is designed to be a cost-effective option in the midsize SUV segment, starting at $45,000 [17][58] Company Strategy and Development Direction - The company is focused on launching the R2 model and developing its technology roadmap, including autonomy and vertically integrated hardware and software [3][6] - A significant investment in Georgia is expected to create 7,500 jobs and provide billions in economic benefits, supporting the expansion of U.S. manufacturing and technology [6][11] - The company aims to differentiate its autonomous capabilities through an end-to-end AI-centric approach, leveraging data from its growing fleet of vehicles [6][7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged near-term uncertainties from trade, tariff, and regulatory policies but remains focused on long-term growth and value creation [8] - The company reaffirmed its 2025 delivery guidance range of 41,500-43,500 units and expects to achieve positive gross profit and unit economics for R2 by the end of 2026 [11][12] Other Important Information - The company is not planning to offer an extended range electric vehicle (eRev) and remains committed to a fully electric future [35] - The relationship with Volkswagen Group remains strong, with ongoing collaboration on multiple programs [27][28] Q&A Session Summary Question: Demand environment in the U.S. post-consumer tax credit removal - Management expected a pull forward of demand into September due to the end of the IRA program, resulting in softer demand in October, but remains confident in the long-term demand for R2 [16][17] Question: COGS per vehicle and future cost expectations - COGS for Q3 was approximately $96,300 per vehicle, with expectations for improvement as R2 ramps up production and scales [21][22] Question: Update on the Volkswagen relationship - The relationship is strong, with ongoing collaboration and product development, including the Volkswagen ID.1 [27][28] Question: Tariff impacts and battery sourcing strategy for R2 - The company expects a reduced tariff impact moving forward and plans to source battery cells domestically in Arizona [42][44] Question: Free cash flow and working capital outlook - Working capital is expected to consume cash in Q4, with a normalization anticipated as production ramps up in 2026 [63][64] Question: R2 pricing strategy and market entry - The company plans to launch R2 with a well-appointed dual-motor variant, with additional trims to follow as production scales [70][71]