NEW YORK, July 31, 2026, 10:13 a.m. EDT — Shares of Rivian NASDAQ:RIVN dropped as the company’s second-quarter performance drew support from software sales and regulatory credits.
- Rivian shares dropped 4.3%, even as the Nasdaq began the session up 0.9%.
- Gross profit from software reached $215 million, while automotive posted a loss of $36 million.
- Sales generated from the Volkswagen joint venture and automotive credits accounted for 25% of total revenue.
Shares of Rivian Automotive, Inc. NASDAQ:RIVN were at $16.11 at about 9:58 a.m. EDT, declining 4.3% from the previous session’s close. During this time, U.S. markets were trading, and Nasdaq Composite advanced 0.9% at the open.
The pullback came after Rivian exceeded earnings estimates, yet also highlighted persisting margin concerns. The company’s vehicle segment remained unprofitable prior to accounting for operating expenses.
Market response
| Security or index | Price or level | Session move |
|---|---|---|
| Rivian Automotive, Inc. NASDAQ:RIVN | $16.11 | down 4.3% |
| Tesla, Inc. NASDAQ:TSLA | $306.46 | down 0.8% |
| Lucid Group, Inc. NASDAQ:LCID | $7.87 | off 3.1% |
| Nasdaq Composite | 25,340.71 at open | up 0.9% |
Stock prices noted as of 9:58 a.m. EDT. Nasdaq figures represent the initial trade.
Revenue for the second quarter increased by 27% to $1.658 billion, surpassing LSEG’s forecast by roughly 9.8%. The adjusted loss per share stood at 46 cents, compared to the anticipated 63 cents.
Gross profit on a consolidated basis totaled $179 million, compared to a loss of $206 million. Deliveries increased by 14% to 12,194 vehicles. However, the improvement did not become self-funded through vehicles.
Quarterly performance summary
| Metric | Q2 2026 result | Comparison | Difference |
|---|---|---|---|
| Revenue | $1.658 billion | $1.510 billion LSEG estimate | up 9.8% |
| Adjusted loss per share | $0.46 | $0.63 LSEG estimate | $0.17 less |
| Gross profit | $179 million | -$206 million in Q2 2025 | increase of $385 million |
| Deliveries | 12,194 | 10,661 in Q2 2025 | 14.4% higher |
Rivian provided actual figures in its filing. Consensus data was sourced from LSEG via Reuters.
Gross profit from software and services totaled $215 million, while automotive operations recorded a $36 million loss. As a result, software accounted for 120% of overall consolidated gross profit.
Software posted a gross margin of 41.7%, while automotive recorded a negative margin of 3.1%. That remains the key issue.
Segment profitability
| Segment | Revenue | Gross profit | Gross margin | Share of consolidated gross profit |
|---|---|---|---|---|
| Automotive | $1.143 billion | -$36 million | -3.1% | -20.1% |
| Software and services | $515 million | $215 million | 41.7% | 120.1% |
| Consolidated | $1.658 billion | $179 million | 10.8% | 100.0% |
Rivian’s disclosed segment data forms the basis for margins and profit shares. Because the automotive segment stayed negative, software accounted for over 100%.
Another factor is revenue concentration. Volkswagen AG ETR:VOW3 brought in $308 million via the joint venture. Regulatory credits for vehicles contributed an additional $106 million. Together, these segments made up 25.0% of total revenue.
A straightforward adjustment highlights the margin test. Excluding automotive credits, the division’s gross loss would expand to approximately $142 million. After including the specified $100 million R2 ramp cost, the result is about $42 million in the red. This early calculation is not official company guidance.
Chief Executive RJ Scaringe stated that the reservation-to-order conversion rate was “meaningfully above our own internal projections.” He anticipates the R2 gross margin will become positive in the second half. Reuters
Output growth will need to accelerate. Rivian shipped 22,559 vehicles in the first half. To meet its full-year goal of 65,000 to 70,000 units, it must deliver an additional 42,441 to 47,441 vehicles.
Challenge for deliveries in the second half
| Metric | Low end | High end |
|---|---|---|
| 2026 delivery goal | 65,000 | 70,000 |
| Deliveries in first half | 22,559 | 22,559 |
| Deliveries needed second half | 42,441 | 47,441 |
| Quarterly average needed | 21,221 | 23,721 |
| Rise from Q2 volume per quarter | 74.0% | 94.5% |
Figures are based on Rivian’s reported deliveries for the first half and its stated full-year goal.
Cash reserves provide flexibility. As of June 30, cash and short-term investments stood at $5.31 billion. A subsequent stock sale in July generated an additional $1.317 billion net. During the first six months, operating cash outflows combined with capital expenditures reached $1.924 billion.
Rivian lowered its 2026 capital expenditure forecast to $1.7 billion-$1.8 billion, down from the previous $1.95 billion-$2.05 billion outlook. The midpoint drops by $250 million.
Risks: R2 rollout could progress more slowly than anticipated. Regulatory-credit contributions may not reach previous levels. Rivian notes revenue concentration with Volkswagen and projects a drop in related software gross profit in 2028. Any future equity raising would dilute existing shareholders.
Automotive gross margin moves to the spotlight in the wake of Friday’s reversal. While software contributes to overall performance, it does not resolve the ongoing discussion over vehicle margins.
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