Arrive AI (ARAI) investor relations material

Executive summary

• Achieved key milestones in team expansion, product deployment, and strategic partnerships, including a major hiring initiative, new headquarters in Fishers, Indiana, and completion of phase one of autonomous robotic delivery at Hancock Health.

• Secured ninth U.S. patent, expanded to 80 foreign patent applications with eight approved, and broadened protection for Arrive Point technology to include drones, robots, and humans.

• Completed a direct listing on Nasdaq in May 2025, raising $9 million, and launched a $10 million share repurchase program, with $74,743 spent to repurchase 19,700 shares by quarter-end.

• Integrated advanced sensors and edge AI, expanded international partnerships in India and Antigua, and benefited from regulatory momentum with the FAA's proposed beyond visual line of sight rule.

• Transitioned from pilot programs to scalable deployments in healthcare, retail, and municipalities, serving as templates for nationwide expansion.

Financial highlights

• Q3 2025 revenue was $7,450, marking the first period of recognized revenue, primarily from subscriptions and installation fees; nine months 2025 revenue was $98,175.

• Q3 2025 net loss was $2.24 million, compared to $0.8 million in Q3 2024; net loss for the nine months ended September 30, 2025, was $8.9 million.

• Operating expenses for Q3 2025 were $1.66 million, up 100% year-over-year, but approximately $1 million lower than planned due to strict cost management.

• Cash and short-term investments totaled $2.7 million at quarter-end, up $2.1 million sequentially, supported by a $4 million draw from a $40 million capital facility.

• Announced a $10 million share buyback program, with 19,700 shares repurchased to date.

Outlook and guidance

• Five-year roadmap targets a 20x valuation increase, with revenue split between network as a service, marketplace, and AI services.

• Plans to scale production from 10,000 Arrive Points in year four to 100,000 in year five, aiming to reach at least half of 170 million U.S. addresses long-term.

• Ongoing focus on commercialization, operational excellence, and recurring revenue growth through network usage and data monetization.

• Current capital facility and cash provide operational runway into 2027, but ongoing losses and a high burn rate require additional capital for long-term sustainability.

• Near-term focus on commercializing AP3 units, developing AP5, expanding IP, and building a recurring revenue model.