Rivian Automotive, Inc. Q1 FY2026 earnings call

• Started saleable R2 production in Normal, IL. R2's bill of materials expected to be ~half of R1 platform, non-bom COGS to reduce >50%. Key design changes include large die castings, structural battery pack, etc. - Partnered with US Dept of Energy to expand GA plant, increasing first phase capacity by 50% to 300k units annual. - Announced strategic partnership with Uber for autonomous vehicle goals. RAP1 chip development on track, expect point-to-point capabilities by end of year. - Launched Rivian Assistant on R1 and R2 vehicles.

Consolidated revenue in Q1 was ~$1.4B, up 11% y-o-y. Automotive revenue was $908M from producing 10,236 vehicles and delivering 10,365. Automotive gross profit loss was $62M vs $92M gross profit in same quarter last year. Software and services segment generated $473M revenue, +49% y-o-y, with $181M gross profit. $282M of software and services revenue was from joint venture with Volkswagen Group.

• Full-year deliveries expected 62,000-67,000. Q2 deliveries expected 9,000-11,000. - Adjusted EBITDA loss expected $2.1-$1.8B in 2026. - Capital expenditure guidance $1.95-$2.05B, related to R2 in Normal, sales/service/charging infrastructure, and GA plant construction. - Anticipate R2 ramp to positively impact automotive gross profit later in 2026.

• Economic and geopolitical conditions pose risks, including supply chain and international conflicts. - Macro and geopolitical factors create added complexity, cost, and uncertainty in managing supply chain risks and offsetting elevated costs.

Q: Comment on mitigating commodity cost increase and metal price magnitude.

A: Sourcing team focused on supply chain, proactive in supplier relationships and alternative sources.

Q: DOE loan change.

A: $4.5B loan for GA facility expansion, initial capacity increased to 300k.

Q: IEPA tariffs.

A: Did not book reimbursements this quarter, but recovery possible in tens of millions.

Q: Uber R&D spend.

A: Cash R&D expense increased 22% in Q1, acceleration in autonomy spend throughout 2026.

Q: R2 order trends.

A: Positive reception of R2, journalists enthusiastic.

Q: Autonomy testing for L4.

A: Self-driving system architected end-to-end, data from R1 and R2 vehicles feeding large driving model.

Q: R1 demand with gas prices.

A: Encouraged by R1's premium category position, gas price impact on demand is a consideration.

Q: RoboTaxi KPIs with Uber.

A: Milestones include deploying vehicles in SF and Miami with safety driver this year.

Q: Autonomy penetration and adoption.

A: Bullish on autonomy, customers likely to value time back, adoption rate expected to grow.

Q: RoboTaxi partnership exclusivity and market tap.

A: Partnership with Uber for density, technology applicable to personal vehicles too.

Q: Autonomy tech licensing.

A: Centralized compute architecture and autonomy technology have licensing opportunities, e.g., Volkswagen ID.1 and autonomy platform.

Q: Uber funding milestones.

A: Milestone of operating vehicles in SF and Miami with safety driver this year unlocks $250M.

Q: Auto gross margin for Q2-Q3.

A: Anticipate impact from R2 ramp complexity, but expect positive automotive gross profit by end of 2026.