The margin story remains the focus. Rivian’s February 12 press release highlighted $120 million in consolidated gross profit for Q4 2025 and $144 million for the full year—a $1.3 billion improvement over 2024. But with revenue down 25.8% year-over-year and operating margins still deeply negative at -64.8%, the company continues burning cash while ramping production. Analysts maintain a “hold” rating with an average price target of $17.96, suggesting 16.8% upside from current levels if the company can sustain its margin improvements.
R2 launch timing becomes critical. The real question is whether Rivian can maintain momentum ahead of its consumer-focused R2 vehicle rollout. Management noted “outstanding reviews of pre-production R2 with customer deliveries expected in the second half of 2026” in the earnings release. With the stock trading at a $19.1 billion market cap while burning through operating losses, investors need tangible proof that R2 can drive volume without sacrificing the hard-won margin gains.
This article was generated using AlphaStreet’s proprietary financial analysis technology and reviewed by our editorial team.