Arrive AI (ARAI) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $14,700, down from $90,725 in Q2 2025, with net loss widening to $14.1M from $3.7M, mainly due to a $9.7M non-cash loss on convertible note conversion.

• Appointed Piyush Phadke as CFO, bringing over 20 years of capital markets and public company experience.

• Expanded commercial pipeline and partnerships in healthcare, manufacturing, specialty pharmacy, and university campus delivery.

• Operating expenses rose sharply due to hiring, legal, rent, IT, R&D, and marketing costs.

• Company operates as a single segment focused on autonomous last-mile logistics, with over 90% of revenue from one customer.

Financial highlights

• Q2 2026 revenue: $14,700; Q2 2025: $90,725.

• Q2 2026 net loss: $14.1M (GAAP), including $9.7M non-cash note conversion loss; non-GAAP net loss: $4.3M.

• Cash and investments at June 30, 2026: $5.2M; cash and cash equivalents: $3.0M.

• Operating cash outflow for Q2 2026: ~$3.3M; six-month operating outflow: $6.26M.

• Convertible notes payable principal outstanding: $5.3M; undrawn facility capacity: $19M.

Outlook and guidance

• Management expects continued operating losses and negative cash flows as investments in product development and commercialization continue.

• Expansion with Hancock Regional Hospital expected to drive incremental revenue in Q3 and Q4.

• Supply chain and product roadmap designed to scale to hundreds of units in 2027 and thousands in future generations.

• Substantial doubt exists about the ability to continue as a going concern without additional financing.

• Ongoing focus on converting commercial pipeline into scaled revenue and maintaining disciplined capital allocation.