📊 AI Stock Rating — Summary

Rivian reported Q3 2025 revenues of $1.56 billion and an EPS of -$0.96, indicating strong sales yet substantial net losses, reflected in a net margin of -75.3%. Its free cash flow remains negative at -$421 million, illustrating high capital expenditure and ongoing operating challenges. Despite a challenging year, with stock price pressures, Rivian's revenue growth shows potential, driven primarily by its expansion in electric vehicle deliveries. However, profitability remains elusive, as seen in the widening EPS loss, reflecting both industry pressures and high investment in future growth. Operating cash flow turned positive this quarter at $26 million, but capital allocation towards R&D and infrastructure continues to keep free cash flow negative. Rivian maintains a manageable net debt of $526 million with substantial cash reserves of $4.44 billion, offering some financial resilience. While Rivian does not pay dividends, and there are no recent buybacks, the company's market journey has been volatile. Analyst targets suggest a potential upward move, with a consensus target of $17. The balance between high growth potential and significant losses places Rivian in a risky but potentially rewarding investment category, highlighted by its strategic positioning in a growing EV market.

AI Score Breakdown

Revenue Growth — Score: 7/10

Rivian's revenue growth is robust with quarterly sales of $1.56 billion, driven by expanding vehicle deliveries. However, profitability remains a challenge.

Profitability — Score: 3/10

Rivian's net margin is deeply negative, and EPS shows significant losses. High investments and production costs are pressing on the margins.

Cash Flow Quality — Score: 4/10

Negative free cash flow of -$421 million due to high capital expenditure, despite positive operational cash flow. No dividends or buybacks.

Leverage & Balance Sheet — Score: 6/10

Net debt is moderate at $526 million, backed by strong cash reserves of $4.44 billion. Financial resilience is maintained through a healthy equity ratio.

Shareholder Returns — Score: 4/10

No dividends or buybacks, combined with volatile stock performance. Analyst consensus indicates a potential price target above current levels, suggesting possible future appreciation.

Analyst Sentiment & Valuation — Score: 6/10

Analyst targets range up to $25 with a consensus of $17, indicating potential upside. Valuation remains a concern amidst substantial losses, though growth potential is recognized.

⚠ AI-generated — informational only, not financial advice.