ARAI

• Executive Updates

  • Piyush Bhadki joined Arrive AI as new CFO effective August 17th, bringing over two decades of Wall Street capital markets and public company CFO experience, aligned with the company's autonomous logistics vision.
  • Ian Geise, new Head of Commercialization, joined the earnings call for the first time to lead discussion of the company's commercial pipeline.

• Product and Supply Chain Progress

  • Over a dozen AP3 Plus Arrive Points are expected to be in stock and ready to ship by mid-September, marking the first wave of expanded product availability and solidified supply chain.
  • The next-generation AP4 product is in development, targeted for launch in Q1 2027, to build on AP3 Plus capabilities and leverage growing commercial traction in H2 2026. The AP4 supply chain is designed to scale to hundreds of units in 2027.
  • Future-generation AP5 (APX) product prototyping is planned for the end of 2027, with a supply chain designed to scale to tens of thousands of units.

• Commercial Traction & Partnerships

  • Strongest pipeline momentum is across three target industries: healthcare, manufacturing, and specialty pharmacy delivery.
  • Healthcare: Strategic partnership with Nexus AMR to integrate Arrive AI solutions into Nexus' automation portfolio, showcased at the TechNexus Innovation Center. Anchor customer Hancock Regional Hospital expanded its network by adding an additional Arrive Point for cross-building secure material movement.
  • Manufacturing: Partnership with DXC to deploy Arrive AI technology in large global pharmaceutical manufacturing facilities (500,000+ square feet), leveraging DXC's systems integration expertise for faster enterprise onboarding.
  • Specialty Delivery: Signed a letter of intent with Lifespan Pharmacy and Cardon to explore an autonomous drone pharmacy delivery program, and hold early discussions with multiple Fortune 500 companies for pharmaceutical delivery opportunities.
  • Partner AvRide (autonomous delivery robot firm) is taking over vacated US campus delivery operations from Starship Technologies, expects to operate on over 20 campuses by end of 2026. Arrive AI is in early discussions to deploy ArrivePoint networks for AvRide pilot programs to enable efficient unattended delivery.
  • A growing number of commercialization conversations are underway, with a meaningful subset progressing to second and third round discussions; the company only counts signed contracts as formal agreements.

• Intellectual Property

  • 10 issued patents in the US, with 4 additional applications pending; 13 issued patents internationally, most in major Asian markets (India, Singapore, Australia, Japan), plus patents in South Africa and Brazil. The company recently secured its first approved EU patent, opening the entire European market.
  • Arrive AI secured first-to-file patent positioning ahead of large competitors including Amazon, UPS, and FedEx, with 19 new invention ideas in the patent development pipeline, and a unique on-site IP counsel structure to capture new engineering innovations.

• Financing Update

  • The company filed an S3 registration statement for up to $100 million, and finalized terms for an at-the-market (ATM) offering with maximum capacity of ~$15 million. The company retains $19 million in available future prepaid advances under its 2025 equity line facility. Management states the company is not at risk of running out of funds and has multiple financing options.

• Product launch and scaling guidance is maintained as planned: AP3 Plus units will ship by mid-September 2026, AP4 will launch in Q1 2027 with supply chain scaled to support hundreds of units in 2027, and AP5 prototyping will be completed by the end of 2027 with supply chain designed for thousands to tens of thousands of units.
• Commercial growth guidance: Management expects continued pipeline expansion across healthcare, manufacturing, and specialty pharmacy delivery, with growing inbound inquiries and exponential growth in lead volume, and anticipates increasing formal partner and customer agreements in coming quarters.
• No upward or downward revisions to core long-term growth targets were provided in the call.

Arrive AI reports total revenue of $14,700 for Q2 2026. Excluding non-recurring consulting revenue from the year-ago quarter, revenue was slightly up year-over-year. Reported net loss for the quarter was $14.1 million, compared to a $3.7 million net loss in Q2 2025. The Q2 2026 net loss includes $9.7 million in non-cash expenses from note conversions; on a non-GAAP basis, excluding these non-cash items, net loss was $4.3 million. Cash and liquid investments totaled $5.1 million at the end of Q2, up from $2.1 million at December 31, 2025. The company's current monthly cash burn rate is approximately $1.1 million. The company does not break out separate financial performance for distinct product segments in this call.

• The company is an early-stage growth firm, continues to invest heavily in product development and commercialization, and is currently operating at a net loss, relying on external financing to fund operations.
• The company faces potential NASDAQ compliance risk related to its low stock price, with investor concerns about possible delisting and liquidity issues.
• Scaling revenue and production depends on successfully converting growing pipeline discussions into formal signed agreements, and meeting product ramp milestones to meet anticipated partner demand.

Q: How many Arrive Points are currently operating, how does the 12+ ready-to-ship units compare to past deployments, and how do the 20 planned AvRide campuses connect to Arrive Point deployment?

A: The 12+ AP3 Plus units represent a large multiplier of the company's past total deployments, marking significant new traction. The 20 campuses referenced are AvRide's planned operational locations, and Arrive AI is only in early discussions about potential Arrive Point pilot deployments at these campuses for unattended delivery efficiency.

Q: What are the main sticking points to scaling to hundreds or thousands of Arrive Points, whether related to adoption or manufacturing capacity?

A: The company is ramping supply chain capacity in a phased progression aligned with product development: the September 2026 AP3 Plus deployment is the first new product installment, AP4 launching in Q1 2027 has a supply chain designed to scale to hundreds of units in 2027, and the future AP5 model will have a supply chain scaled for tens of thousands of units. Go-to-market expansion will follow this supply chain ramp.

Q: What is management's response to investor concerns about NASDAQ delisting risk and low stock price?

A: Management confirms that going public did not plan for early profitability, as early-stage growth requires deliberate investment. Inbound commercial inquiries have grown dramatically in the last 30 days, exceeding the total volume from the company's entire prior history. Management notes the company owns critical intellectual property for autonomous delivery handoff infrastructure, which is a missing piece the broader market is increasingly recognizing as required for full autonomy.

Q: Why is Arrive AI brand awareness low in the industry, and what is the company's marketing strategy?

A: The company is currently focused on a targeted, rifle-shot approach to enterprise accounts and strategic partners, rather than broad consumer advertising, similar to B2B industrial component manufacturers. Marketing resources are focused on educating target potential purchasers on the operational and efficiency benefits of the Arrive AI network, rather than general consumer brand building.