Focused on Real-World Autonomy, Not Hype LAS VEGAS, NEVADA / ACCESS Newswire / December 22, 2025 / Arrive AI (NASDAQ:ARAI), an autonomous delivery network company focused on secure, AI-powered delivery solutions for healthcare and enterprise environments, announced today that members of its leadership, product, and engineering teams will attend CES 2026 to engage with industry stakeholders and evaluate emerging trends shaping the next phase of autonomous delivery. Arrive AI's delegation will include Chief O ...

Revenue and Income - Total revenues for the three months ended September 30, 2025, were $7,450, with $5,275 from subscription services and $2,175 from installation fees[136]. - The company recognized total revenues of $98,175 for the nine months ended September 30, 2025, with $89,000 from consulting services[145]. - For the nine months ended September 30, 2025, total revenue was $8,281,262, representing a 157% increase compared to $3,225,920 in the same period of 2024[148]. - Other income rose to $83,454, a 183% increase from $29,523, mainly from payroll tax refunds and state tax credits[152]. Expenses - Operating expenses for the same period increased by 100% to $1,657,731, driven by a 73% rise in general and administrative expenses to $1,370,347[138]. - General and administrative expenses for the nine months ended September 30, 2025, were $7,551,884, reflecting a 215% increase from $2,395,881 in the prior year[147]. - General and administrative expenses increased by $5,156,003 to $6,156,003, primarily due to a $4,359,704 rise in salaries and benefits, including $1,866,531 in one-time success bonuses[149]. - Research and development expenses rose significantly to $179,854, a 2,165% increase compared to the prior year[140]. - Research and Development expenses were $564,585, an increase of $15,706 from the prior year, driven by higher independent contractor spend[150]. - Marketing expenses decreased by $116,367 to $164,793, attributed to one-time television advertising costs in the prior year[151]. Cash Flow and Financing - Net cash used in operating activities was $5,048,431, an increase of $3,088,984 compared to $1,959,447 in the same period of 2024[161]. - Net cash provided by financing activities was $7,772,302, including $7,530,000 from convertible debt issuance[166]. - As of September 30, 2025, cash on hand was $816,715, and short-term investments totaled $1,918,995, providing approximately three and a half months of runway[156]. Shareholder Actions - The company has initiated a share repurchase program of up to $10 million from September 8, 2025, through March 31, 2026[132]. - As of September 30, 2025, the company had 34,213,387 shares outstanding, with potential dilution scenarios indicating a 22% increase if maximum Streeterville shares are issued[130][131]. Employee and Operational Growth - The company had 33 full-time salaried employees as of September 30, 2025, compared to 8 in the same period last year, reflecting significant hiring in product development and marketing[159]. Future Plans and Developments - The company installed third-generation Arrive Points ("AP3" units) in Q4 of 2024, which began revenue operation in 2025[124]. - The company plans to leverage machine learning and artificial intelligence for data monetization and insights generation[125][126]. - The ALM Marketplace is being developed to optimize access schedules and space availability for the Arrive Points network[127]. Net Loss - The company reported a net loss of $8,904,672 for the nine months ended September 30, 2025, offset by non-cash items including stock-based compensation of $3,134,655[162].

Financial Data and Key Metrics Changes - In Q3 2025, the company reported a net loss of $2.2 million, compared to a loss of $0.8 million in Q3 2024 and $4.7 million in Q2 2025, indicating improved financial performance year-over-year [11][12] - Cash and short-term liquid investments increased to $2.7 million at the end of Q3, up by $2.1 million from the previous quarter [12] - The company announced a $10 million share buyback program, with 19,700 shares repurchased, reflecting confidence in its intrinsic value [13] Business Line Data and Key Metrics Changes - The company operationalized two new ArrivePoints into monthly service, leading to an increase in recurring subscription revenue [11] - Project-based consulting revenue is expected to fluctuate, as these projects typically last three to four months and culminate in recurring subscriptions [11] Market Data and Key Metrics Changes - The company expanded partnerships with AllMart, ACT Antigua, and Skye Air Mobility in India for international module deployment, indicating growth in international markets [7][14] - Regulatory momentum from the FAA's proposed beyond visual line of sight rule is seen as a key enabler for autonomous operations in the U.S. [7] Company Strategy and Development Direction - The five-year roadmap positions the company as a critical autonomous logistics management network, aiming for a 20x valuation increase by year five [8] - The focus is on commercialization and operational excellence, productizing the third-generation AP3 units, and refining the platform for scale [19][20] - The company is pursuing an America-first manufacturing strategy to strengthen domestic production capacity and reduce dependency on foreign supply chains [15] Management's Comments on Operating Environment and Future Outlook - Management believes the company is at the precipice of several catalyzing events that could lead to substantial share price appreciation [19] - The transition from pilot programs to scalable deployments is emphasized, with ongoing projects serving as proof points for nationwide expansion [19] - The company is focused on executing strategic priorities, including team expansion and advancing the AP3 line for scalability and cost efficiency [20] Other Important Information - The company secured its ninth U.S. patent, reinforcing its leadership in autonomous delivery innovation [17] - The legal and compliance infrastructure has been expanded to manage data, privacy, and cybersecurity across domestic and international markets [18] Q&A Session Summary Question: What is the thought of the next expansion step after current hospital testing? - The next step involves linking Hancock's satellite facilities to the main hospital autonomously [26] Question: What competitive advantages does the company have in the drone space? - The company is future-proofed by a multimodal strategy that is agnostic to delivery methods, enhancing utility with regulatory support [31] Question: What is the detailed growth plan for Arrive AI in the next few years? - The growth strategy includes establishing a network paradigm with major partners and rolling out geographically, similar to Uber's approach [35] Question: How is the company balancing innovation with governance and transparency? - The company maintains a culture of transparency and regular updates, ensuring compliance and operational readiness [36] Question: What is the timeline for the availability of ArrivePoints for customers? - The rollout will take several years, focusing on establishing network capabilities with partners before reaching end users [40] Question: What is the target pricing for ArrivePoints? - The company is innovating on pricing models, aiming for low price points and potential sponsorships to make them affordable [43] Question: How is the growth being financed given the current revenue trajectory? - The company is using proceeds from its equity line to fund operations and R&D, with a runway extending into 2027 based on current forecasts [86]

Core Insights - Arrive AI reported its business results for Q3 2025, highlighting significant team expansion and hiring goals [1] Group 1: Business Performance - The company announced key highlights for Q3 2025, including the hiring of nearly 30 professionals during the quarter [1] - Arrive AI aims to achieve a total of 60 new hires by year-end, focusing on AI, software, and product engineering [1]

Core Viewpoint - Arrive AI is set to report its third quarter fiscal results on November 14, 2025, before the market opens, indicating a focus on transparency and communication with investors [1] Company Summary - Arrive AI operates an autonomous delivery network that utilizes patented AI-powered Arrive Points™ [1] - The company will conduct a conference call and webcast at 9:30 AM Eastern Time to discuss its results and strategic progress following the earnings release [1]

Group 1: Nvidia's Market Performance - Nvidia's shares rose over 4% on October 29, making it the first company to achieve a $5 trillion market capitalization [1] - The increase in Nvidia's stock price followed President Donald Trump's praise, which also positively impacted cryptocurrencies linked to decentralized AI projects [1] Group 2: Arrive AI's Market Activity - Arrive AI Inc., an AI-powered logistics company, saw its shares increase by 5.37% on October 29 [2] - The company, founded in April 2020, offers an Autonomous Last Mile platform for secure and efficient deliveries using various methods, including drones and ground robots [2] Group 3: Cryptocurrency Integration - Arrive AI announced plans to pivot towards cryptocurrency payments, intending to use Bitcoin for transactions with vendors, clients, and employees [3] - CEO Dan O'Toole stated that the company believes cryptocurrency is a better payment method and plans to expand its global footprint with this option [4] - Arrive AI aims to create its own token, "Arrive Coin," for use within its ecosystem, including employee compensation and customer rewards [5] Group 4: Future Plans for Cryptocurrency - Arrive AI plans to evaluate additional cryptocurrency use cases, such as holding cash reserves in Bitcoin and launching a Bitcoin-denominated ATM program for fundraising [6]

Core Insights - Arrive AI has been included in the Russell 2000® and Russell 3000® Indexes, enhancing its visibility in the institutional investment community [1] - The company's strategy focuses on revolutionizing last mile delivery through smart mailboxes and a Mailbox-as-a-Service (MaaS) platform [1] Company Overview - Arrive AI is an autonomous delivery network that utilizes patented AI-powered Arrive Points™ [1] - The founder and CEO, Dan O'Toole, emphasizes the company's disruptive approach to the delivery industry [1] Market Impact - Inclusion in the Russell indexes is expected to attract more institutional investors and increase the company's market presence [1]

Group 1 - Arrive AI is experiencing rapid hiring and expansion in the autonomous last-mile delivery sector [1] - TechPoint emphasizes the need for Indiana to capitalize on opportunities in artificial intelligence [1] - The report by TechPoint indicates a surge in demand for AI jobs in Indiana [1] Group 2 - TechPoint warns that Indiana risks losing ground in the AI sector without accelerated workforce training and adoption [1]

Core Viewpoint - Arrive AI's Board of Directors has authorized a share repurchase program of up to $10 million, indicating confidence in the company's long-term opportunities and belief that the current share price is attractive [1]. Company Summary - The share repurchase program will be effective from now until March 31, 2026, allowing the company to buy back its common stock [1].

Financial Data and Key Metrics Changes - The company recorded its first revenue of just over $90,000 in Q2 2025, marking a significant milestone in its history [22] - The net loss for the quarter was $4,690,000, compared to $1,460,000 for the same quarter in 2024 and $1,980,000 for Q1 2025 [22][23] - Operating expenses increased to $4,630,000 from $1,480,000 in the same quarter last year, largely due to costs associated with the public listing [22][23] - The cash balance at the end of the quarter was $607,000, an increase of $478,000 from the previous balance [23][24] Business Line Data and Key Metrics Changes - The company is focused on three key areas: commercialization and operational excellence, patents and partnerships, and building recurring value [10][12] - The partnership with Hancock Health is a multi-year project aimed at piloting the ArrivePoints in hospitals for secure robotic delivery [25][29] Market Data and Key Metrics Changes - The company is targeting the $191 billion US package delivery market, with a focus on integrating drones into the national airspace [8] - The pilot programs launched with hospitals, retail partners, and municipalities are validating the capabilities of the platform [6][29] Company Strategy and Development Direction - The company aims to transition from pilot projects to defining and dominating key market verticals, focusing on building a defensible mode of intellectual property and strategic partnerships [6][7] - The five-year plan includes scaling production to 10,000 units annually by year four and 100,000 units by year five, with a goal of a tenfold increase in company value [19][26] - The strategy emphasizes a platform as a service model, where revenue grows with every delivery and new ArrivePoint deployed [12][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current market conditions and the company's positioning within the autonomous delivery landscape [14][40] - The recent regulatory changes regarding drone operations are seen as a watershed moment for innovation in the logistics sector [8][29] Other Important Information - The company has filed two additional patent applications and secured a cornerstone patent for its intelligent chain of custody delivery network [32][35] - The management team is focused on building a scalable and defensible business model, with a disciplined approach to capital use [21][25] Q&A Session Summary Question: How does the company plan to transition from its current pilot-centric pre-revenue model to a scalable profitable business? - The COO outlined a strategic five-year plan focusing on product development and partnerships to achieve scalability [46] Question: How will your platform as a service model work? - The COO explained that the model will include a network as a service fee, a marketplace for demand resolution, and AI platform services [48][49] Question: Do you anticipate the new tariffs will materially affect your supply chain costs? - The Chief Strategy Officer mentioned plans to onshore production to the US to mitigate potential tariff impacts [81] Question: What would help Arrive AI succeed in the short term and long term? - The Chief Strategy Officer highlighted the importance of regulatory changes allowing beyond visual line of sight operations for drones [91] Question: What are the biggest risks you see in the next few quarters? - The CFO noted that success will depend on the number of pilots deployed and the learnings from those deployments [96] Question: How is Arrive AI positioned to weather economic downturns? - The CFO emphasized focusing on internal strategies and deployments rather than external market volatility [101] Question: What are your thoughts on potential partnerships with major delivery companies? - The CEO indicated ongoing conversations with various companies but could not disclose specifics due to NDAs [106]