Rivian (RIVN) continued to inch closer to profitability in the third quarter as the electric carmaker delivered 32% more vehicles, boosting revenue by 78% and driving shares higher in after-hours trading.
The Irvine, California-based company generated $24M of consolidated gross profit for the quarter versus a loss of $392M in the same quarter last year. Adjusting for increased operating expenses, the company reported a loss $0.96 per share which improved from a loss of $1.08 per share a year ago but was 10 cents below expectations. Gross margin, however, improved to positive 10% from negative 45%.
Total revenue of $1.56B nearly doubled from a year ago and beat expectations by $50M, led by a 324% gain in software and services and 47% increase in automotive revenue.
Looking ahead to FY25, Rivian (RIVN) reaffirmed its previous guidance for anticipated delivery of 41,500 to 43,500 vehicles, straddling the consensus estimate for 42,544 vehicles, and adjusted EBITDA loss of $2B to $2.25B, with the midpoint of $2.125B slightly better than expectations. Capital expenditure expectations remains at $1.80B to $1.90B versus $1.83B estimates.
Additionally, the company remains on track to begin R2 deliveries in the first half of 2026.