Rivian Automotive exceeded Wall Street's third-quarter earnings expectations as it stepped up production of its R2 entry-level SUV, which the company has told investors will drive it toward profitability. The electric vehicle maker's share price rose roughly 7% in after-hours trading on Thursday, though the stock closed down 1.9% at $11.45 a share, having hit a new 52-week low of $11.38 earlier in the day.
The company narrowed its losses during the third quarter, reporting a net loss attributable to common stockholders of $913 million, compared with a loss of $1.17 billion in the same period of 2025. Gross profit, closely watched by investors, reached $176 million in the third quarter, up from $24 million a year earlier. Adjusted earnings before interest, taxes, depreciation and amortisation improved by $167 million from the prior year period to a loss of $435 million.
Rivian delivered a record 19,248 units from July through September, with the R2, which first reached customers in June, becoming its best-selling model and accounting for much of the quarter-on-quarter gain. The company revised its 2026 guidance, now expecting vehicle deliveries of between 67,000 and 70,000 units, up from at least 65,000, and a pre-tax adjusted loss of between $1.75 billion and $1.85 billion, a $100 million improvement at the midpoint from prior guidance. Capital expenditure guidance was also reduced to between $1.4 billion and $1.5 billion, $300 million less at the midpoint.
The company attributed the improved guidance to better-than-expected revenue from regulatory credit sales, an inflation-adjusted tariff refund receivable in the third quarter, and expected increases in vehicle deliveries. Rivian's software and services segment generated $605 million in revenue with a gross profit of $256 million, representing a 42% margin, while automotive operations recorded nearly $1.55 billion in revenue but posted a gross loss of $80 million. Chief Executive RJ Scaringe told CNBC that scaling R2 production beyond current plans of 160,000 units is necessary to achieve overall company profitability, with the R2 expected to reach positive gross margin by year end.
Cash, cash equivalents and short-term investments totalled $5.5 billion at the end of the third quarter, up from $5.3 billion at the end of the second quarter. For borrowers and investors, Rivian's improved guidance and narrowed losses suggest a company making progress toward profitability, though significant losses remain and execution on expanded R2 production will be critical to achieving stated goals.