Arrive AI Q3 2026 Earnings Results & Report

Arrive AI EPS Results

• Actual EPS: -$3.37
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Arrive AI Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Arrive AI (NASDAQ:ARAI), Inc. is a technology company focused on improving last-mile delivery through autonomous delivery infrastructure. Its platform is designed to connect delivery providers, autonomous vehicles and recipients while reducing the need for attended handoffs.

The company’s primary product is the Arrive Point, an intelligent, secure delivery mailbox intended for homes, businesses and other locations. The system is designed to receive packages from a range of delivery methods, including conventional carriers, autonomous vehicles and drones, and to provide secure access for recipients.

Arrive AI is also developing a broader network and software platform to support autonomous deliveries and coordinate package drop-offs. The company is based in the United States and serves the emerging market for automated logistics and last-mile delivery solutions.

Arrive AI Q3 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Hancock Health expansion drove higher revenue: The hospital added an Arrive Point at a second building for scheduled and urgent specimen deliveries, providing a live use case the company hopes to replicate across other healthcare customers.
• Neutral Sentiment: Arrive AI is exploring applications beyond healthcare, including commercial offices, manufacturing, pharmacy and defense, and has partnered with Ottonomy on a potential supply of up to 50 ground robots. Most initiatives remain early-stage and carry no revenue commitments; the company has 16 Arrive Points available and is targeting 100 deployments in 2027.
• Negative Sentiment: Revenue remains very small relative to costs: Third-quarter revenue was $39,700, while operating expenses were $3.3 million and net loss was $3.7 million. Management said monthly cash burn is targeted at about $1 million or less.
• Negative Sentiment: The company reported $2.1 million in cash and investments at quarter-end and raised another $1.55 million afterward; management expects funding to last through year-end and into 2027, but said further fundraising and share issuance may be necessary. A 1-for-48 reverse split reduced shares outstanding to about 1.4 million, and Nasdaq’s minimum-bid-price requirement remains to be satisfied.

Presentation

[Operator]

Good morning, everyone, and thank you for joining us today. On the call are Dan O'Toole, Arrive AI's Chairman, CEO, and Founder; Piyush Phadke, Chief Financial Officer; Bill Karwoski, Chief Revenue Officer; John Ritchison, Chief Legal Officer; and Neerav Shah, Chief Strategy Officer. Other members of the leadership team are also here to answer questions during the Q&A portion of the call. The press release issued this morning is available in the investor relations section of the company's website at investors.arriveai.com. Before we begin, please note that today's remarks may include forward-looking statements about future financial results, operations, and performance. These statements are not guaranteed and are subject to risk and uncertainties that could cause actual results to differ materially. We encourage investors to review the risk factors in Arrive AI's SEC filings, which are available on the company's website. I will now turn the call over to Dan O'Toole.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Thanks, Shannon. Good morning, everyone. This is Dan O'Toole here. We'll keep our prepared comments short so that we can spend most of the time on answering questions. One development I'm particularly pleased with is our growing relationship with our great partners at Hancock Health. Hancock expanded its use of Arrive Points during the third quarter and added the connectivity of a second building, which drove our third-quarter revenue. That expansion shows how we plan to grow, demonstrate the value of our technology, and then build on that success across our customers' facilities. It also gives us a reference customer as we pursue other hospitals and healthcare systems. They have been great partners in opening up their facility to showcase what we have going at their facility, and we're really proud of that. Revenue remains modest but expanding as we would expect.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Relationships with existing customers is an important part of building a recurring revenue base. With that said, I will also be covering broader progress with customers and partners. Piyush, our CFO, will then cover our financial results, liquidity, and the steps we have taken to address our Nasdaq listing requirements. Neerav will then provide an update on the defense division that we just recently formed. Bill Karwoski, our recently appointed Chief Revenue Officer, is here and will introduce himself as well. The first part of our prepared remarks from Piyush and me will be delivered using the AI-assisted voice as always. Neerav and Bill will then speak live, and we will tell you when we switch back to live.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Now, let me add some more detail on the expansion at Hancock. We added a new Arrive Point at their Parkway Building to work with the hospital's existing delivery robot, supporting four to five scheduled specimen pickups a day for delivery to the laboratory with on-demand service for urgent specimens. This puts our technology to work in another part of the hospital's daily operations, and for the first time, it connects a separate building. Building on that work, we are expanding our partnership with Ottonomy, the autonomous delivery robot company supporting deliveries at Hancock. As part of our recently announced strategic investment in Ottonomy, we received three autonomous robots and entered into a supply agreement that contemplates bringing up to 50 ground robots to our partner locations. The partnership gives us a way to bring these technologies together at additional locations, extending the approach already in use at Hancock.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Outside of healthcare, on October 29th, we announced the installation of two Arrive Point AP3+ units in Central Indiana, marking our first installation in a commercial office setting. This will help us understand how people use a secure delivery point in their daily routines and refine our approach as we pursue opportunities in the commercial office market. Since July, we have also announced several initiatives that expand the potential applications of Arrive Point technology. In specialty pharmacy, we signed a non-binding letter of intent with LifeSpan Pharmacy to explore a drone pharmacy delivery program. In manufacturing, we announced a partnership with DXC Technology to bring Arrive Points into large manufacturing campuses. These give us opportunities in two distinct markets. We are also working with Modovolo on automated drone delivery. In parallel, we are in early discussions with Purdue University about testing Arrive Point technology with robot platforms on campus.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

These initiatives with LifeSpan, DXC, Modovolo, and Purdue are at varying stages of development and do not currently include revenue commitments, but they broaden the potential applications of our technology and complement the revenue-generating work already underway at Hancock. We are also in active conversations with a number of organizations, including venues and local governments. We are not naming them today as we treat an agreement as firm only once it is signed, and we will announce each one when it is. Supporting these efforts is the continued development of our Arrive Point technology. The AP3+ became available for shipping on October 7th, adding edge computing and onboard vision. These capabilities allow the unit to detect packages and track them through the chain of custody, supporting the secure automated handoffs at the center of our delivery model. To date, we have 16 units in our fleet available for deployment.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

With that, I will hand it over to Piyush.

[Piyush Phadke, CFO at Arrive AI]

Thanks, Dan, and good morning. I will start with the third-quarter results and liquidity, then cover our Nasdaq listing. Revenue for the third quarter was $39,700, made up of $25,000 in installation fees and $14,700 in monthly subscriptions, compared with $7,450 in the third quarter of last year. Net loss was $3.7 million, or $3.37 per share, compared with $4.4 million, or $6.39 per share in the third quarter of last year. Per-share amounts reflect the recently announced 1-for-48 reverse stock split. The smaller loss mainly reflects a lower non-cash loss on the conversion of convertible notes, partly offset by higher operating expenses. Cash and cash equivalents were $1.1 million, and investments at fair value were $1.0 million at September 30th, compared with cash and cash equivalents of $2.1 million and no investments at December 31st, 2025.

[Piyush Phadke, CFO at Arrive AI]

Total operating expenses for the quarter were $3.3 million, compared with $1.7 million in the third quarter of last year. We are managing spending carefully and focusing our resources on our commercial delivery and product development. During the quarter, we streamlined our staffing and cost structure to better align with those priorities. Since quarter end, we completed a $250,000 private placement with an accredited investor and raised $1.3 million through our at-the-market program. Based on our current operating plan, we expect our available cash and investments to fund operations through the end of the year and into 2027. on October 27th, we completed our redomiciliation from Delaware to Nevada, which we reported on Form 8-K. Now, turning to our Nasdaq listing. On October 22nd, we announced Nasdaq's approval of our transfer to the Nasdaq Capital Market, effective October 23rd.

[Piyush Phadke, CFO at Arrive AI]

The transfer resolved two listing deficiencies related to the market value of our listed securities and publicly held shares, leaving the Minimum Bid Price Requirement as the remaining deficiency. To address that requirement, we announced a 1-for-48 reverse stock split on November 10th. The split took effect at 12:01 A.M. on November 12th, and our shares began trading on a split-adjusted basis that morning under the same symbol, ARAI. This reduced our shares outstanding from approximately 68.8 million to approximately 1.4 million. The reverse split is intended to help us regain compliance with Nasdaq's Minimum Bid Price Requirement, which requires a closing bid price of at least $1 for a minimum of 10 consecutive business days. Throughout this process, our focus remains on building the business, managing costs, and growing revenue. Neerav, over to you.

[Operator]

I will now turn it back over to Neerav.

[Neerav Shah, Chief Strategy Officer at Arrive AI]

Thanks, Dan, and thanks, Piyush. We're back to speaking with you live. On October 12th, we announced the formation of the Arrive AI Defense Division, which I lead, to explore applications of our technology in military defense and national security markets. The idea builds on what we already do, and Arrive Point provides a secure place where a drone or robot can be stored, charged, and deployed, and where goods can be exchanged without requiring two people to be present at the same time. We believe those same capabilities apply to defense applications, including the secure storage and launch of unmanned systems, including counter-UAS. Our core business remains focused on commercial delivery. The defense division gives us an opportunity to explore another market for the same underlying technology. Dan, back to you.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Thanks, Neerav. I am happy to introduce today for the first time Bill Karwoski, our Chief Revenue Officer. This is the first time that we have had a CRO, Chief Revenue Officer, and I want to note that as a huge positive, because that shows our belief in the fact that we have revenue significant enough to support the formation of this role. I am counting on you, Bill, to bring it home and get us over to where we really want to be doing some big things here. So welcome to the team, and go take over here, man.

[Bill Karwoski, Chief Revenue Officer at Arrive AI]

Great, Dan. Thank you. Thank you so much. Hi, everyone. I am Bill Karwoski. I too am an investor in Arrive AI and recently came on board, as Dan mentioned, as Chief Revenue Officer. So I have got skin in the game, and I really want to see this work just as everyone in this room and everybody out there does as well. A little bit about me. I spent the last 40 years leading sales teams and working with Fortune 1000 companies in healthcare, pharma, manufacturing, and retail. The one thing that has kept me going all these years is delivering results you can actually measure, both for the clients and for the companies that I have worked for. That is why I am here. I am working with our team to target the right companies with the right solutions and drive revenue we can actually deliver on, and not just talk about.

[Bill Karwoski, Chief Revenue Officer at Arrive AI]

Right now, that means healthcare systems, pharma, and life sciences is primary. That is where we have got momentum, clients, and real opportunities in motions. We are pairing our secure Arrive Points with our robotics partners to solve everyday problems like lab movement, internal logistics, and keeping chain of custody tight on compliance-sensitive materials. Our job is to turn this into revenue now while we build our bigger pipeline in 2027 for all of us. Onward and upward.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Great. Thanks, Bill. To wrap up, this quarter, we grew revenue through our expanded relationship with Hancock Health and advanced our product and partnership efforts. Since the quarter end, we have also launched our Arrive AI Defense Division and taken steps to address our Nasdaq listing requirements. Our focus remains on building on that progress while managing our resources carefully. Thank you for your support and for your questions. I will now turn it over to Shannon to bring on analyst questions. Go ahead, Shannon.

[Operator]

Thank you. Now we will take questions from equity research analysts. To ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Jack Codera with Maxim Group LLC. Your line is now open.

[Jack Codera, Analyst at Maxim Group LLC]

Hi, this is Jack Codera calling in for Jack Vander Aarde. Thank you for taking my questions. It is good to see things keep progressing. Just overall, I think it would be good. Can you give us an update on how many Arrive Points you have in the field? Then given this 50 ground robot kind of pipeline, what does your total pipeline of deployment look across all your agreements, and how should that kind of get deployed across the next maybe 18 months?

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Thanks for the question, Jack. This is Dan O'Toole. I will take that one. As we mentioned earlier in the narrative, we have at our disposal currently 16 Arrive Points, and what we are doing is while we have units that are ready to go on hand, we are also iterating our next two generations of product, the AP4 and the APX. So to be prudent and cost-effective, what we are doing is we are doing limited deployments for different use cases with Arrive Points, and we are taking those learnings and we are spooling them into the development of those next two generations I mentioned. So while the numbers are very low, that is by design. We do not want to manufacture a ton of units at a high cost and have those be obsolete going out the door. So we are doing several different use cases.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

You may have seen we have recently done commercial deployments, our first residential deployment. We are doing a lot of healthcare and manufacturing, and we are getting great learnings, and we are looking to really leverage that starting in 2027. Then on the 50 robots, what we have learned is there is a huge differentiation in the market for both robots and Arrive Points.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

When they come together as a unified offering, it is a unified solution, and that is creating a big difference between the offerings that we have in this case with Ottonomy versus other robot standalone companies going out, making their offerings, or Arrive Points going out by themselves. The unified solution is what is rising to the top, and we are excited about that. That is why we are able to commit to a large number in the context of just having 16 Arrive Points right now. So I think that bodes well for the future.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

We're seeing a lot of traction with major companies that we're not at liberty to release at this time, but it's an exciting moment, and stay tuned for more updates on that.

[Jack Codera, Analyst at Maxim Group LLC]

Okay, that's helpful. Just touching on kind of streamlined cost structure, is this quarter's OpEx a good way to look at what the expected go-forward OpEx is? Or maybe how should I look at cash burn on kind of a quarterly and per year basis?

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Thanks, Jack. I'm going to have Piyush take that one, our CFO. Go ahead, Piyush.

[Piyush Phadke, CFO at Arrive AI]

Sure. Hey, Jack. Thank you. Thank you for joining and thank you for your support. So, I would say that the cash burn and the OpEx that's in our Q3 results is actually probably a little higher than what it's going to be moving forward, particularly in Q4 and beyond. Before I joined, our cash burn was roughly kind of $1.2 million-$1.5 million per month. We wanted to get that down below one or around one. The reduction in force that we announced in August helped us get to that state. So our goal is to, when we think of cash burn, our goal is to try to be around $1 million a month, if not lower. I do think for Q4, we'll be around that, and that's what we want to try and continue to optimize going forward.

[Jack Codera, Analyst at Maxim Group LLC]

Okay, that's helpful. Thank you for taking my questions.

[Operator]

Thank you. Our next question comes from the line of James Kisner with Water Tower Research. Your line is now open.

[James Kisner, Managing Director at Water Tower Research]

All right. Yeah, thanks for taking my questions. You've mentioned that you've got kind of strong inbound interest. Can you say more where it's coming from and perhaps kind of which markets are standing out there?

[Neerav Shah, Chief Strategy Officer at Arrive AI]

Yeah. Thanks for the question. We're seeing a lot of interest at a partnership level. We had mentioned DXC as a partner about a month ago or so. MSPs, people that cut across different industries, and as we'll talk about, as we've been talking about, healthcare and pharma manufacturing seem to be really the initial places we're seeing a ton of traction.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

That's Neerav Shah, Chief Strategy Officer.

[Neerav Shah, Chief Strategy Officer at Arrive AI]

Yeah. Thank you.

[James Kisner, Managing Director at Water Tower Research]

Yeah. That's helpful. You've obviously been streamlining costs. Can you say more kind of like where those costs are kind of coming from and where you're going to invest more in the future? I mean, I think you said you're going to invest in commercial, obviously, but just some more detail there on how you streamline your costs.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Yeah. This is Dan again. Thanks for that. I'm going to let Piyush handle this, but I do want to say one thing. You save a dollar, you make a dollar. We are looking at every front of this business. We recognize that we're very early and very low on the revenue curve. Frankly, this is what we budgeted from day one as a public company. We knew we weren't going to be cash flow positive day one. We knew we weren't going to be cash flow neutral day one. When you're iterating in a new space, developing new technology, there's a cost to that. What we try to do is be very judicious about every dollar we spend. Every dollar that comes in is linear to development. We're really proud of that. If you save a dollar, you make a dollar.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

I think we've got a nice tailwind right now. We're beating budget on our expenses, and I'm happy to report that. Piyush, why don't you jump in and take it from there, man?

[Piyush Phadke, CFO at Arrive AI]

Yeah. Thanks, Dan, and thanks for the question. Yeah, so just to talk a little bit more about costs. I mean, we did highlight this in our press release in Form 8-K. We did have a significant reduction in force in August. That was undergone by management to just look at where we can have the most effective team, and how do we Everyone's just become more productive. That was a key component of it. We also looked at every vendor relationship that we had, looked at things that were needed, not needed, maybe some excess, and just be really efficient in what we're spending our capital on. Because as Dan said, obviously, we're going to spend money on our salaries and benefits, but most importantly, we want to spend money in research and development and business development. Bringing Bill on is a big part of that.

[Piyush Phadke, CFO at Arrive AI]

As we continue to grow, our revenue has increased. As we continue to increase revenue, obviously, that's going to help us from a cash perspective. So that's how we look at it.

[James Kisner, Managing Director at Water Tower Research]

It's helpful. Just one last one. Just on your launch of the defense division, maybe just kind of say more about that. What led you to do that? Why is now the time to do that? Maybe say, kind of talk more about the sales cycle on those opportunities.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Yeah. Thanks for that too, James. One of the things is we are not super focused on what we think the market is. We are super focused on exploring every opportunity. And what we have seen is a lot of opportunities in the defense industry, not only in the U.S., but worldwide. We think it is low-hanging fruit. We think what we are doing and the technology we are developing lends itself very well to that. And there is also opportunity to bring non-dilutive funding into the company. And when you are looking at our share price where it is, that is important to all of us as shareholders. We want to maximize opportunities with capital at the lowest opportunity to give away or dilute ourselves. That is something that is really interesting to us.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

But I will turn it over to Neerav Shah, who has experience in the defense industry and government contracting, and that is what made him the natural choice, not to mention he comes out of the drone industry. Go ahead, Neerav.

[Neerav Shah, Chief Strategy Officer at Arrive AI]

Yeah. Thanks, Dan. Thanks, James. So, just to address, I think there was a couple of questions in there, James. Dan had mentioned some of the experience we have. So, we have spent the last five years developing a technology that is outdoors, climate-controlled, has a communication layer, and is able to essentially work in the wild. And so, we think that is going to really apply itself well in the defense space. So, regarding the sales cycles, I will talk a little bit about that. We have already had the experience of showing our technology and proving it out, and we had over 12 countries that we have talked to, including the United States, of course. And regarding the sales cycles, we are seeing what we call FMS, or foreign military sales, as a shorter cycle, things that they can put in quicker.

[Neerav Shah, Chief Strategy Officer at Arrive AI]

But again, looking at the U.S. and abroad, we are seeing that the foreign sales is more likely to happen fast. The U.S. may take a little bit of time, but once we prove that out overseas, I think that is going to be a really effective tool for us to show domestically. And I will just touch quickly on my experience. So, I had a military contracting business where I made electro-mechanical assemblies for Crane Naval Base, Raytheon, among others. And so, I did that for 10 years, so very experienced in that world. And so, I am happy to kind of dust off my knowledge there and bring it to Arrive.

[James Kisner, Managing Director at Water Tower Research]

All right. That's very helpful. Welcome to the new members of the team, Bill and Piyush.

[Operator]

Thank you. That's all the time we have for phone questions. I will now hand the call back over to the Arrive team for online questions.

[Tasha Jones, Head of Marketing at Arrive AI]

Okay. This is Tasha Jones. I'm Head of Marketing here at Arrive AI. I'm going to read the questions off so that the team can answer what we've received from the public. First question is from Darren and Nathan. They ask, "Can you explain in plain terms how the 1-for-48 reverse split works for a shareholder?

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Great. Thanks, guys, for asking the question. A reverse split is not the way you want to typically be splitting. This is Dan here. A lot of you are our legacy investor community, 5,000 shareholders before we went public. One of the unique things we did through our crowdfunding days, we did a 2-for-1 split, I always say the right way, forward split, during that crowdfunding campaign. That's something that I think has rarely, if ever, been done before, other than by us. So, as an old investor myself, those are the kind of stocks I want to invest in. Unfortunately, we had to go the other way this time. As many of you know through our correspondence that we put out, we hung on by our fingernails hoping to not have to do a reverse split.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

We were getting down to the wire on the time, so it became a binary choice. Do we do the reverse split and stay listed on Nasdaq, which is very important to all of us, or do we just go over the cliff and not do it? It became evident at the end of the day here that we were not going to get organically our share price above $1 on its own. We ended up having to facilitate a reverse split. Then, further to that, what is the rate amount? The one for 48 is a function of where we closed on a certain day and what that would drive our stock up to on the open.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

About three or four days ago, I cannot remember which exact day it was, but we made the determination to do the one for 48, and that would land us in the mid $2-$3 range. As it turned out, we ended up opening yesterday at $2.83 a share. That is important because we need to be above $1 a share for 10 days to regain compliance on Nasdaq. We had three deficiencies, as you guys may remember. We have resolved two of those, and this reverse split, it puts us in a position to resolve the last one. Happy to report, with 10 days of trading above $1, we should be back in full compliance, which I think will be a good tailwind for the company, and a proud day.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

We are just going to have to roll up our sleeves and move forward positively like we do every single day here. Thanks for that question. One analogy that I like to give is, people say, "That diluted me or changed my value." It does not change your value. If you had 100 pennies, and I said, "Hey, can I get 100 pennies from you, and I will give you a dollar bill?" That is essentially what we did here. We consolidated the shares and got the share price, the consolidated price up higher. Not a fun thing to talk about. We have owned this the whole way. We have addressed it proactively as a possibility. Transparency, communication are things you are always going to get here. You may not always like what you hear, but it is always going to be the truth, and that is what we stand by.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Thanks for those questions. What else we got?

[Tasha Jones, Head of Marketing at Arrive AI]

Thanks, Dan. That also covered our second question from Thomas and Nathan about after the reverse split, what protections exist against further dilution, including the Streeterville Capital. We will go ahead to question three. From Thomas, "What obligations remain under the Streeterville Capital agreement that could result in more shares being issued?

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Yeah. Thanks for those questions. I am going to ask Piyush, our CFO, to answer that. Piyush?

[Piyush Phadke, CFO at Arrive AI]

Sure. Thanks, Thomas, for the question. Yeah, so we entered into the Streeterville agreement at the time of, prior to our IPO last year. We have drawn on that agreement historically, and they have redeemed shares. As we stand right now, at the end of Q3, we have a little under 4 million outstanding under the agreement, and the same conversion terms as before. As we mentioned, we do have additional opportunity to draw more on that agreement, but we do not anticipate doing that just because we have seen, we do not need that capital. Yeah, it is on the same terms as it was last quarter.

[Tasha Jones, Head of Marketing at Arrive AI]

Okay. On question four, this one is from Nathan and Thomas. "Does management expect to issue additional shares after the split, and what is the company's general approach to managing shares as it grows?

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Yeah. This is Dan. I will take that, and then I will ask Piyush to chime in as well. Yeah, obviously, going public as a low to no revenue company requires capital. It has to come from somewhere. When you acquire capital, and you are pre-revenue, and you are not bringing anything in the door other than investment, it is obviously going to be dilutive. You are going to be issuing shares. That is what we have done historically. Even when we did crowdfunding, that is how we facilitated and perpetuated the company. So, it will be a part of it. If you want to get to the likes of a Google or an Amazon or NVIDIA, there is a lot of shares that are issued between now and then. Even myself, as a super majority holder in the stock when we started, I have been diluted significantly.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

I hate to say embrace the dilution, but I have kind of got my mindset to that point because, if I really want to grow this and get this to where it needs to be, it is going to be inevitable. If you watch "Shark Tank," I think Mark Cuban says, "Would you rather have 100% of a grape or a small percent of a watermelon?" I think that is a good analogy, and that is kind of how I look at things. So, I have embraced the dilution because I know we are headed to some bigger things here. I want to thank everybody for taking this journey with us and staying the course and being true. It is fun. I would say, I do not know what I want to say, but it is tough when things are great, everything is great, right?

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

When things are bad, I think that is when you earn your medal. Nothing has changed here. We are doing this every day. We come in with our sleeves rolled up. We are kicking butt. We have got new iterations every day. Today is the best day this company has ever been. If you do not look at the share price when you come in here every day, it is better every day than it was the day before, and I am focused on that. I have not lost any momentum or any drive or enthusiasm, and I hope that you guys have not either. Anyway, Piyush-

[Piyush Phadke, CFO at Arrive AI]

Sure, yeah.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

stop me from talking.

[Piyush Phadke, CFO at Arrive AI]

Sure. Nathan and Thomas, thank you for the questions. I mean, listen, as Dan mentioned, when the company went public, there was no revenue. Now we're slowly getting some revenue. We have had revenue increase this quarter. We've made some key hires to help that out, and Bill gave his background. Listen, we're focused on generating revenue. We know for small cap companies, revenue is king. We want to have revenue that leads to growth and eventually leads to cash flow and EBITDA and all those great things that some of the mega companies that Dan mentioned has. As a cash burning company, we're going to be raising cash in the market. I mean, we have to do that because we want to sustain, we want to build a business, we want to grow revenue.

[Piyush Phadke, CFO at Arrive AI]

Eventually, your revenue growth kind of outpaces that, and you don't need to raise as much capital. Listen, we're going to be very opportunistic. We're also going to be very cognizant of our investors. We don't want to do something super dilutive. We did a smaller deal in October, a small PIPE deal, and then we did have some ATM conversions. The way we look at it is, the ATM is probably our most efficient use of capital, right? It's a very low fee. There's no warrants. There's no kind of bells and whistles attached to it. I mean, listen, we're always going to be opportunistic to do a deal that's good for the shareholders and good for the company because we want to keep growing the business and keep growing revenue.

[Tasha Jones, Head of Marketing at Arrive AI]

Okay. The next question five, and this one's also from Nathan. "Does the company plan any later forward split, and would one bring back the earlier share count?

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Nathan, thanks for that question. I think I mentioned just organically in an earlier question, my mantra, my mindset is to always be splitting the shares the right way forward. That is how I like to invest, and I love to see that. Unfortunately, nobody hates more than I do what we just did, and I am sorry again to everybody. But when we get to a point where we are cranking and doing some great things, our share price is appreciating, we want to obviously look to not only restore back to everybody's, making them whole on the share count, but our goal would be to go further beyond that. These are forward-looking statements, but I just want to give you kind of a glimpse into how I want to run this company and what my vision is.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

I want the share price to go up, split, go back up, split, and have that be our recurring thing, not the opposite. We are finding our footing as a young company right now. We are finding product market fit. We are creating a brand new paradigm in an industry that people do not really even know about. So, it is a lot to tackle, but once that switch flips, I think you are going to see it is going to flip in a big way, and that is what we are really excited about. So, thanks for your question, and Tasha, what else we got?

[Tasha Jones, Head of Marketing at Arrive AI]

Number six is from Brandon and Thomas. They ask, "How many Arrive Points are currently generating revenue and from paying customers?

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Yeah. Thanks. I think we kind of alluded to that earlier too. In our ethos, we have 16 units right now. Those are interchangeably put out at different variables, different use cases. Our one static use case is Hancock Health, and we refer to them a lot because they are great partners, and they have stepped up big time. They have worked through issues that we have admittedly had, as you are trying to build a bulletproof product. I always say you are judged by your failures, not your successes. And couldn't have asked for a better partner to withstand those trials and tribulations. And that is one of the reasons that we are doing these use cases on a limited basis. We are putting them out. We have got internal people that are able to look at all the different interactions that we have in every use case.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

We've got video, how people interact with our units ergonomically, practically, functionally. The standard needs to be, every unit needs to operate with the reliability and redundancy of a 747 with 300 people on it. It needs to work every time, not some of the time. The other standard that I want to see, I'm not the biggest tech guy in the world, I admit that, and I want the standard to be, if I walked up to an Arrive Point, I didn't know what it was, I could quickly figure it out and then know how to use it. That's what I want the standard to be. These are things we're working at.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

We do not want to get ahead of ourselves on spending a ton of money and putting out units that are going to have one little tweak that could change them in a way that we have to redo every one. That would not be a good custodian of the dollars that we're spending to do these. That's why we're being so deliberate. Everything's built on a strong foundation, and then we can build it big from there. That's our strategy.

[Tasha Jones, Head of Marketing at Arrive AI]

Okay. Question seven, Thomas asks, "What are the company's recurring revenue, number of paying customers, and cash requirements today?

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Yeah. I'll take that quickly, and then I'm going to hand it to Piyush. But I think what I just said in the previous question kind of speaks to that. We got lumpy income, and what I mean by that is, if we're taking on a new customer, there may be a deployment cost that's a little lumpy at the beginning and then spreads out over the recurring part of it. I think speaking to the fact that we're not giddy to get a bunch of units out there that are going to create more issues, human resource requirements, capital requirements for support, all that. We want to get this thing standardized, and we're standardizing every part of it, from pricing to reliability to implementation, installation. There's a whole facet of things that come with our rollout and [AMR] and all these kind of things.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

But Piyush, take it from there, man.

[Piyush Phadke, CFO at Arrive AI]

Yeah. So, I got a couple questions from the research analysts regarding cash requirements and cash burn. We feel pretty good about our cash situation right now. We're fully funded through 2026 and into 2027. We had cash on the balance sheet at the end of Q3, and subsequent to that, we did two capital markets transactions. One was a small $250,000 investment in the company, and then raised about $1.3 million in our ATM. So, we're going to be opportunistic raising cash. We know that we do, from a cash burn perspective, we kind of targeted, hey, we want to try and be around $1 million a month, so that's $3 million a quarter. We're always working to be more efficient in terms of how can we reallocate vendor costs, vendor cost expenses, things like that.

[Piyush Phadke, CFO at Arrive AI]

So, listen, we want to save as much money as possible and raise capital to help this business grow. We want to deploy more Arrive Points, get our technology even better, have more customers, and that's how we're doing kind of targeted moves, like bringing Bill on board.

[Tasha Jones, Head of Marketing at Arrive AI]

Okay. Question eight, Thomas asks, "How many announced partnerships and pilots have become reoccurring commercial contracts?

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Yep. Thanks for the question. I keep hearing an overlying theme of recurring revenue. Obviously, when we started the company, that recurring revenue is something that we want to have. We know the market really celebrates that, and it is better than a one-and-done kind of thing. So, our pricing strategy is based on a recurring revenue model. Now, having said that, we are playing with other pricing strategies, coupled with the revenue sharing with partners. One might be just a simple model of pay per delivery. This is part of the testing that we are doing, so we can consistently roll out. It is interesting because in scenarios, we are finding that the users that are really embracing Arrive Points are the highest volume users, which makes sense.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

But if you went to a pure delivery strategy of charging per delivery, the revenue and margin numbers could even be bigger than we envisioned. So that is interesting to us. These are some of the things that we are thinking about. Neerav, I will have you answer back the other side of the question here.

[Neerav Shah, Chief Strategy Officer at Arrive AI]

Yeah, sure. Thanks, Dan. One of the things that we are really doing a lot of learnings on is dealing with large organizations. There is a lot of complexities. So, I will give you an example. We are working with a large healthcare company to put some units in there, a large hospital, I will say, and we are also working with a pharma company. One of the things that we have to deal with is something called SOC. So it is not SOX, like Sarbanes-Oxley, but it is called SOC, which is System and Organization Controls. These are things like security testing, penetration testing, and Doug Hineline on our engineering team is just doing a wonderful job balancing that.

[Neerav Shah, Chief Strategy Officer at Arrive AI]

But these things take time, and we are learning that it is not We can agree to a price, we can agree to a date, but the security stuff, the backend SaaS stuff, all the software stuff, Doug is working on and doing a great job, but we are just realizing it is taking time. So these are like 60, 90-day sprints that we are trying to get this stuff done. But again, with SOC 2 on board, it is just proving timely, taking a lot of time, and so that is just something we deal with. Thanks.

[Tasha Jones, Head of Marketing at Arrive AI]

Okay. Question nine from Brandon. "What measurable revenue milestones does management expect to reach in 2027?

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Thanks, Brandon. I think we've announced some public milestones that we put out over the past, but in 2027, our goal is going to be to put 100 Arrive Points out. We think that we have a clear path to that, both in supply and partnership opportunities that we see on the horizon right now, and that's what's really exciting to us. I think there's going to be a moment where the paradigm of where we are shifts 180 degrees, where we're going to be thinking, "How do we manage the growth opportunity that's in front of us?" I'm excited about that for when it gets here. I think that we're going to have some really blue sky opportunities in front of us. We think it's going to be a great year coming into 2027.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

I would say stay tuned, because nobody wants to share things faster and quicker than we do with our shareholders. That's not just the good stuff. I think you guys know that we're not a vanity company where you can go out and say, "Hey, we want to give you this great news," and then disappear. We own everything. Our commitment to our shareholders is you're always going to hear the good, the bad, and the ugly here first. You're not going to hear it on the street. You're going to hear it here. That's the company I want to invest in, and that's the paradigm that we set here every day. How do we be the company that we would want to invest in? That's an important part of it.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

I know, I hear a lot of our legacy shareholders, and I hear your frustration. I'm right there with you. I'm not determining the market. The market determines it. It's confounding because what I would say is, every time I think I put out something that's great news, it's construed the opposite way. Every time I think something is bad, it's even worse. So, it's hard to win. I know within these four walls, every day we're performing, we're doing great things. We're astounding people that come in here. They can't believe the tech, all the iterating, all the new advancements. I mean, there's so many things we could be doing. It's almost overwhelming, but it's exciting too, because it shows how open the market opportunity is for what we have and what we're doing here.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

One thing I also want to say is, to kind of conclude the call here, when we went public in May of 2025, we subsequently had our first earnings call, I wanted to set kind of a tone of how we do earnings calls. We're an exceptional company, I believe that. I call us a we the people story. We had 5,000 investors on our cap table before we even went public, which is just unheard of. I always thought that was a validation of how good the idea was, because people invest in things they see themselves being able to use. We had a lot of great investors, I love all you guys. Whether you've lost faith in us or not, I celebrate that you were here, I don't hold that against you. When we started out, I said, "You know what?

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

I want to do something to represent the spirit of this company." I told a kind of a silly dad joke for each earnings call, I haven't broken that streak. Today, when this earnings call came about, I thought to myself, "We had three deficiencies. Our share price is down. We did this terrible split." I mean, how in good faith can I do that? Are people going to frown on me for that? I thought, "You know what? I'm not going to buy into the gloom and doom. I am going to be the same company here, because that's what we believe every day." We're not gloom and doom. We're happy, excited, we're iterating every day. I just want to leave you with this. When does a joke become a dad joke? Does anybody know the answer to that?

[Neerav Shah, Chief Strategy Officer at Arrive AI]

I do.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

When it's a parent. You get it?

[Neerav Shah, Chief Strategy Officer at Arrive AI]

Oh, come on.

[Dan O'Toole, Chairman, CEO, and Founder at Arrive AI]

Okay. That is Arrive AI. We love you guys. We are going forward in a big way. I hope you are with us. Historically, people sell stock at the very low, and that is a very long time to do it. I will say what goes down must come up, so we are going to rock at this thing. Thanks, guys, for being with us. I am going to give it back to Shannon, because I know you want to hear her more than me. Shannon, are you going to take it back? Okay, Shannon, go ahead.

[Operator]

Thank you. This concludes today's conference call. Thank you all for your participation. You may now disconnect.

Participants

Executives

• Dan O'Toole, Chairman, CEO, and Founder
• Piyush Phadke, CFO
• Neerav Shah, Chief Strategy Officer
• Bill Karwoski, Chief Revenue Officer
• Tasha Jones, Head of Marketing

Analysts

• Jack Codera, Analyst at Maxim Group LLC
• James Kisner, Managing Director at Water Tower Research