Rivian’s Software Drives $1.55B Revenue and 79% Upside Target
Rivian’s software and services revenue reached $1.55 billion in 2025, growing 200% year-over-year with 37% gross margins and underpinned by a $5.8 billion Volkswagen licensing JV and its 30,000-van FleetOS deployment for Amazon. Benchmark’s $25 price target implies 79% upside after Q1 revenue rose 11% and deliveries climbed 20%.
1. Software and Services Growth
Rivian generated approximately $1.55 billion in software and services revenue in 2025, up over 200% year-over-year, with segment gross margins near 37%. This performance is anchored by a joint venture with Volkswagen worth up to $5.8 billion for licensing Rivian’s electrical architecture and operating system globally.
2. FleetOS Deployment
Rivian’s FleetOS platform currently manages routing, charging, diagnostics and telematics for over 30,000 electric delivery vans deployed at Amazon, under an original 100,000-van order. The company has opened commercial van sales to external fleets, creating a recurring SaaS-style revenue stream.
3. Analyst Outlook and Q1 Results
Benchmark set a $25 price target on Rivian, implying 79% upside, after Rivian reported Q1 revenue growth of 11% and delivery increases of 20%. The company also launched its mass-market R2 model and secured a $1.25 billion autonomous vehicle partnership with Uber, highlighting expanding software and EV capabilities.