Rivian Automotive is showing signs of growth, but profitability remains elusive. In its second-quarter earnings report for fiscal year 2025, the electric vehicle startup revealed that it generated $1.3 billion in revenue—a 12% increase compared to the same period last year. While that top-line growth is encouraging, the company still posted a net loss of $1.1 billion, though that’s a marked improvement over the $1.5 billion it lost in Q2 of 2024.

For a company still considered a young player in the EV space, this mix of positive momentum and red ink is nothing unusual. The operational loss also narrowed, moving from $1.4 billion last year to $1.1 billion this quarter. Perhaps even more noteworthy for investors is the reduced loss per share, now at $0.97 compared to $1.46 in the same quarter of the prior year.

Rivian CEO RJ Scaringe attributed some of the quarter’s progress to ongoing development of the brand’s upcoming R2 platform, a more affordable SUV expected to launch in 2026. In a statement accompanying the earnings report, Scaringe noted, “This quarter we made significant progress in R2 development and testing. Along with R2, our autonomy platform continues to be one of our major focus areas, and we’re excited to share more of our roadmap later this year.”

The R2 lineup is viewed as a critical step forward for Rivian, giving the brand a better shot at scaling production and reaching new customer segments beyond its current R1T and R1S buyers. With EV competition heating up, affordability and volume will be key to long-term success.

However, Wall Street didn’t seem overly impressed with the Q2 results. Following the earnings release, Rivian’s stock dipped by more than 4% in after-hours trading, closing at $11.65 per share. The drop reflects continued investor caution around Rivian’s ability to turn the corner on profitability, despite improving revenue.

Looking ahead, Rivian expects to deliver between 40,000 and 46,000 vehicles for the full 2025 calendar year. That target is roughly in line with earlier guidance and shows that while demand remains steady, production ramp-up and cost control are still major hurdles.

Overall, Q2 shows a company that is growing but still heavily investing in its future. With the R2 platform and autonomous tech in development, Rivian has big ambitions. The question is how long it can keep absorbing billion-dollar quarterly losses while chasing them.