Core Insights - Richtech Robotics Inc. (NASDAQ:RR) is recognized as a promising small-cap AI stock by hedge funds, with a Buy rating and a price target of $3.50 set by H.C. Wainwright analyst Scott Buck [1][3] - The company reported a loss of $4.1 million, or $0.04 per share, for Q3 2025, which is a decline from a loss of $0.02 per share in the same quarter last year [2][3] - Richtech's revenue for the quarter was $1.2 million, falling short of estimates, but the company secured several business deals that are expected to enhance Q4 revenue [2][3] Financial Performance - The quarterly loss of $0.04 per share is consistent with the trend of not surpassing consensus EPS estimates over the past four quarters [2] - The revenue of $1.2 million for the period indicates a challenging financial environment, but the company is optimistic about future growth due to new business agreements [2] Business Developments - A significant sales agreement valued at over $4 million was secured with Beijing Tongchuang Technology Development Co., Ltd., which is anticipated to positively impact Q4 revenues [3] - Richtech Robotics focuses on developing, manufacturing, and selling robotic solutions for automation in the service industry, including indoor transport, sanitation, and food & beverage automation [4]

Core Viewpoint - Rolls-Royce share price has experienced a significant rally this year, reaching a record high of 1,150, marking it as one of the top gainers in the FTSE 100 Index with an increase of nearly 100% this year [1] Company Performance - The share price of Rolls-Royce has soared by almost 100% in 2023, indicating strong market performance and investor confidence [1] - The current trading price of 1,150 represents a record high for the company, reflecting its robust recovery and growth trajectory [1] Market Context - Rolls-Royce is positioned as one of the leading gainers in the FTSE 100 Index, highlighting its competitive performance relative to other companies in the index [1]

Core Insights - Richtech Robotics Inc. (NASDAQ:RR) is recognized as a promising investment opportunity among penny stocks, particularly following the completion of a pilot program with leading U.S. automotive dealerships [1][2] Group 1: Business Developments - The pilot program has successfully led to a client confirming their intention to proceed with additional work for their dealership locations, resulting in a Master Service Agreement (MSA) signed in April [2] - The MSA will remain active as long as at least one statement of work is in effect and will automatically renew for an additional 12-month period [3] - Richtech Robotics has secured a sales agreement valued at over $4 million with Beijing Tongchuang Technology Development Co., Ltd., which is expected to positively impact fourth-quarter revenues [3] Group 2: Product Offerings - Richtech Robotics develops and sells AI-powered autonomous service robots targeting the hospitality, healthcare, and commercial sectors [4] - The company's product portfolio includes delivery robots like Matradee and Titan, sanitation robots such as DUST-E, and beverage automation robots [4]

Core Viewpoint - The recent launch of NVIDIA's Jetson Thor is seen as a significant advancement in robotics, enhancing AI computing power and enabling higher capabilities in humanoid robots [1] Group 1: Stock Performance - Several US robotics stocks experienced notable gains, with Serve Robotics rising over 15%, Richtech Robotics increasing nearly 14%, and iRobot up more than 3% [1] Group 2: Technological Advancements - NVIDIA's Jetson Thor features a Blackwell GPU and 128 GB of memory, achieving 2070 FP4 TFLOPS of AI computing power, which is 7.5 times that of the previous Jetson Orin model [1] - This technological leap allows robots to process large amounts of sensory data and large language models (LLM) in real-time, enhancing their ability to see, think, and act [1]

Core Insights - Richtech (RR) reported a quarterly loss of $0.04 per share, matching the Zacks Consensus Estimate, compared to a loss of $0.02 per share a year ago [1] - The company's revenues for the quarter ended June 2025 were $1.18 million, missing the Zacks Consensus Estimate by 17.11% and down from $1.44 million year-over-year [2] - Richtech shares have declined approximately 32.2% year-to-date, contrasting with the S&P 500's gain of 8.6% [3] Financial Performance - The company has consistently failed to meet consensus EPS estimates over the last four quarters [1] - Richtech's revenue performance has also not surpassed consensus estimates in the same timeframe [2] - Current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $1.64 million, and for the current fiscal year, it is -$0.15 on revenues of $5.49 million [7] Market Outlook - The sustainability of Richtech's stock price movement will largely depend on management's commentary during the earnings call [3] - The estimate revisions trend for Richtech was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - The Technology Services industry, to which Richtech belongs, is currently in the top 37% of Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Financial statements for the nine months ended June 30, 2025, reflect significant asset growth, slight revenue decline, and a widened net loss driven by increased expenses [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets surged to $107.3 million, driven by cash and short-term investments, with stockholders' equity increasing significantly from stock issuances Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (Unaudited) | September 30, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $32,893 | $14,566 | | Short term investment | $52,616 | $15,940 | | Total current assets | $88,851 | $33,046 | | Total assets | $107,329 | $42,651 | | **Liabilities & Equity** | | | | Total current liabilities | $739 | $455 | | Total liabilities | $1,378 | $913 | | Total stockholders' equity | $105,951 | $41,738 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For the nine months ended June 30, 2025, revenue slightly decreased, gross profit improved, but a significant surge in general and administrative expenses led to a widened net loss of $12.2 million Statement of Operations Summary (in thousands) | Metric | Nine Months ended June 30, 2025 | Nine Months ended June 30, 2024 | | :--- | :--- | :--- | | Revenue, net | $3,601 | $3,715 | | Gross profit | $2,723 | $2,304 | | Total operating expenses | $16,067 | $6,407 | | Loss from operations | $(13,344) | $(4,103) | | Net loss attributable to the Company | $(12,160) | $(5,181) | | Basic and diluted net loss per share | $(0.11) | $(0.07) | Quarterly Statement of Operations Summary (in thousands) | Metric | Three Months ended June 30, 2025 | Three Months ended June 30, 2024 | | :--- | :--- | :--- | | Revenue, net | $1,177 | $1,443 | | Gross profit | $876 | $1,014 | | Loss from operations | $(4,507) | $(895) | | Net loss attributable to the Company | $(4,063) | $(1,313) | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended June 30, 2025, cash and cash equivalents increased by $18.3 million, primarily driven by $71.1 million from financing activities, offsetting operational and investing outflows Cash Flow Summary (in thousands) | Cash Flow Activity | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $(11,197) | $(2,121) | | Net cash used in investing activities | $(41,532) | $135 | | Net cash used in financing activities | $71,056 | $10,754 | | **Net change in cash and cash equivalents** | **$18,327** | **$8,768** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail the company's service robotic solutions business, key accounting policies including RaaS revenue recognition, and successful At-The-Market (ATM) offerings raising significant capital - The company provides service robotic solutions, including delivery, cleaning, and food & beverage services, deployed in over **80 U.S. cities**[29](index=29&type=chunk) - The company executed an At-The-Market (ATM) offering, issuing **23,682,395 shares** of Class B common stock for net proceeds of approximately **$50.8 million**[48](index=48&type=chunk)[51](index=51&type=chunk) - Revenue from Robots-as-a-Service (RaaS) is recognized over time on a monthly basis as services are provided[55](index=55&type=chunk) - Subsequent to quarter end, as of August 11, 2025, the company issued an additional **11,226,521 shares** under the ATM program, receiving net proceeds of approximately **$21.8 million**[70](index=70&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes revenue decline to a RaaS model shift, explains widened net loss by increased G&A expenses, and highlights improved liquidity from successful stock offerings [Overview and Recent Developments](index=17&type=section&id=Overview%20and%20Recent%20Developments) Recent developments include joining the NVIDIA Connect program, purchasing a new 20,000 sq. ft. headquarters for $4.1 million, and inclusion in the Russell 2000® and 3000® Indexes - In July 2025, the company joined the NVIDIA Connect program, gaining access to developer resources and training[73](index=73&type=chunk) - On May 15, 2025, the company purchased a new **20,000 sq. ft.** property in Las Vegas for **$4.1 million** to serve as its new headquarters and expand assembly operations[75](index=75&type=chunk) - The company was added to the FTSE Russell 2000® and Russell 3000® Indexes in June 2025[76](index=76&type=chunk) [Results of Operations](index=18&type=section&id=Results%20of%20Operations) For the nine months ended June 30, 2025, revenue decreased due to a RaaS model shift, gross profit increased, but surging G&A expenses led to significant operating and net losses - The year-over-year revenue decrease is attributed to a strategic shift to a Robots-as-a-Service (RaaS) model, focusing on recurring revenue over one-time sales[82](index=82&type=chunk) Revenue Breakdown (in thousands) | Revenue Stream | Nine Months ended June 30, 2025 | Nine Months ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Product revenue | $1,567 | $1,252 | $315 | | Service/rental revenue | $1,151 | $1,510 | $(359) | | Leasing revenue | $380 | $604 | $(224) | | **Total Revenue** | **$3,601** | **$3,715** | **$(114)** | - Cost of revenue for the nine-month period decreased by **37.7%** year-over-year, primarily due to capitalizing robot costs under the leasing model instead of expensing them as COGS[88](index=88&type=chunk) - General and administrative expenses for the nine-month period increased by **$10.1 million (268.7%)** year-over-year, driven by higher personnel costs, professional fees, and new office costs[99](index=99&type=chunk)[106](index=106&type=chunk) - Investment income of **$1.1 million** was generated in the first nine months of fiscal 2025, compared to zero in the prior year, due to investing proceeds from stock issuances in short-term CDs and U.S. Treasury bills[103](index=103&type=chunk)[104](index=104&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, liquidity significantly improved, with cash and cash equivalents totaling $32.9 million, primarily due to $48.6 million from stock issuances and $9.2 million from warrant exercises Cash and Cash Equivalents (in millions) | Date | Amount | | :--- | :--- | | June 30, 2025 | $32.9 | | September 30, 2024 | $14.6 | - The increase in cash was driven by **$71.1 million** in net cash from financing activities, partially offset by **$11.2 million** used in operations and **$41.5 million** used in investing[109](index=109&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=23&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Richtech Robotics Inc. is not required to provide this disclosure - Disclosure is not required for smaller reporting companies[116](index=116&type=chunk) [Item 4. Controls and Procedures](index=24&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The company's Certifying Officers concluded that disclosure controls and procedures were effective as of June 30, 2025[118](index=118&type=chunk) - No material changes occurred during the fiscal quarter ended June 30, 2025, affecting internal control over financial reporting[120](index=120&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=25&type=section&id=Item%201.%20Legal%20Proceedings) A civil action was filed against the company in June 2025, seeking over $600,000 for breach of contract and fraud, which management believes is without merit - A civil lawsuit was filed against the company in June 2025, seeking damages in excess of **$600,000** for claims including breach of contract and fraud[123](index=123&type=chunk) - Management believes the claims lack merit and does not anticipate a material adverse impact on the company's financials[124](index=124&type=chunk) [Item 1A. Risk Factors](index=25&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, this section is not required, and no material changes to previously disclosed risk factors have occurred - As a smaller reporting company, disclosure of risk factors in the 10-Q is not required, and no material changes to previously disclosed risk factors have occurred[125](index=125&type=chunk) [Other Items (Items 2, 3, 4, 5)](index=25&type=section&id=Other%20Items%20(Items%202,%203,%204,%205)) The company reported no unregistered sales of equity securities, no defaults upon senior securities, no mine safety disclosures, and no Rule 10b5-1 trading arrangement changes - Item 2: No unregistered sales of equity securities[126](index=126&type=chunk) - Item 3: No defaults upon senior securities[127](index=127&type=chunk) - Item 5: No directors or Section 16 officers adopted or terminated a Rule 10b5-1 trading arrangement[129](index=129&type=chunk) [Item 6. Exhibits](index=26&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the report, including agreements for property purchase, ATM offering, product sales, and officer certifications - Exhibits filed include the At The Market Offering Agreement, a Purchase and Sale Agreement for property, and officer certifications required by the Sarbanes-Oxley Act[132](index=132&type=chunk)

Company Overview - Richtech Robotics designs, develops, and commercializes service robots for businesses in the service sector[3] - The company has installed over 400 robots globally and aims to reach 1,000+ locations by 2026[10, 19, 55] - Richtech is positioned as the world's first AI-driven total robotic solutions provider in hospitality & service sectors[10, 83] Market Opportunity - The serviceable addressable market is highly diversified at $230 billion[10, 83] - The projected service robotics market is expected to reach $17546 billion by 2030[14] - The service robotics market was $7191 billion in 2025 and $5787 billion in 2024[14] - North America holds the largest global share of the service robotics market at 35%[14] - Average hourly earnings in private service-providing industries rose by approximately 37% from March 2024 to March 2025[19] Financial Performance - The company reported revenues of $44 million for the trailing 4 quarters (ended 3/31/2025)[56] - Secured RaaS (Robot-as-a-Service) contracts amount to $65 million, contributing incrementally over lease terms[56] - The company has $318 million in cash & equivalents as of 3/31/2025[56]

Group 1 - Richtech Robotics Inc. has been added to the US small-cap Russell 2000 Index, effective after the market closed on June 27, 2025, as part of the 2025 Russell Indexes reconstitution [1][2] - The Russell 2000 Index represents approximately 98% of the investable US equity market, including around 2,000 of the smallest securities based on market capitalization and current index membership [1] - The inclusion in the Russell 2000 Index is expected to enhance investor confidence and provide a platform for Richtech Robotics to accelerate innovation and expand market presence [2] Group 2 - Richtech Robotics specializes in AI-driven service robots, focusing on the hospitality and healthcare sectors, aiming to transform the service industry through collaborative robotic solutions [4] - The company’s mission is to enhance customer experience and empower businesses by integrating cutting-edge automation [4] - Richtech Robotics' stock will also be automatically added to the appropriate growth and value indexes due to its membership in the Russell 3000 Index [2]

Core Insights - Richtech Robotics has signed a multi-million-dollar sales agreement with Beijing Tongchuang Technology Development Co., Ltd. through its joint venture, Boyu Artificial Intelligence Technology Co., Ltd. [1][2] - The agreement is valued at over $4 million and includes the purchase, service, and software licensing of products from three key product lines: ADAM, Scorpion, and Titan [2][3] - This deal is expected to enhance the company's revenue in the fourth quarter and drive recurring revenue in the future [2] Company Strategy - The agreement is a significant milestone in Richtech Robotics' international growth strategy, aiming to expand its AI-driven solutions across Asia [3] - The company focuses on high-demand sectors such as hospitality, retail, manufacturing, and healthcare, enhancing operational efficiency and customer experiences [3] Market Presence - Richtech Robotics has deployed over 400 robot solutions across various sectors in the U.S., including restaurants, retail stores, hotels, healthcare facilities, casinos, and factories [4] - Current clients include notable names such as Texas Rangers' Globe Life Field, Golden Corral, Hilton, and Boyd Gaming [4] Company Overview - Richtech Robotics specializes in collaborative robotic solutions for the service industry, particularly in hospitality and healthcare [5] - The company's mission is to transform the service industry through automation, enhancing customer experience and operational efficiency [5]

Core Insights - Richtech Robotics has signed a multi-million-dollar sales agreement with Beijing Tongchuang Technology Development Co., Ltd. through its joint venture, Boyu Artificial Intelligence Technology Co., Ltd. [1][2] - The agreement is valued at over $4 million and includes the purchase, service, and software licensing of products from three key product lines: ADAM, Scorpion, and Titan [2][3] - This partnership is expected to enhance Richtech Robotics' revenue in the fourth quarter and drive recurring revenue in the future [2] Company Strategy - The agreement is a significant milestone in the company's international growth strategy, aiming to expand its AI-driven solutions across Asia [3] - Richtech Robotics focuses on high-demand sectors such as hospitality, retail, manufacturing, and healthcare, enhancing operational efficiency and customer experiences [3] Market Presence - The company has deployed over 400 robot solutions across various sectors in the U.S., including restaurants, retail stores, hotels, healthcare facilities, and casinos [4] - Current clients include notable names such as Texas Rangers' Globe Life Field, Golden Corral, Hilton, and Boyd Gaming [4] Company Overview - Richtech Robotics specializes in collaborative robotic solutions for the service industry, particularly in hospitality and healthcare [5] - The company's mission is to transform the service industry through automation, enhancing customer experiences and operational efficiency [5]