ARAI AR ASSOCIATES INC

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Arrive AI Reports Second Quarter 2026 Results and Highlights Growing Commercial Pipeline

Thursday, August 13, 2026 · 8:00 AM ET ACCESS Newswire

Accomplished Wall Street Executive, Piyush Phadke, Appointed CFO, bringing 20+ Years of Capital Markets Experience to Help Drive Arrive AI's Growth

INDIANAPOLIS, IN / ACCESS Newswire / August 13, 2026 / Arrive AI (NASDAQ:ARAI) (the "Company"), an autonomous delivery network company built around patented, AI-powered Arrive Points™, today reported financial results for the second quarter ended June 30, 2026, and provided an update on its commercial pipeline progress, product development, and operational milestones. In addition, the Company announced the appointment of Mr. Piyush Phadke as Chief Financial Officer.

The Company will host a conference call and webcast today at 8:30 AM Eastern Time to review results, discuss recent developments, and answer investor questions.

Operational Highlights

During the second quarter, Arrive AI:

  • Strengthened its partnership with Nexus AMR, whose site introduces hospitals to new delivery technology, including Arrive AI's, throughout the year.

  • Continued its partnership with DXC, supporting deployment of the company's technology into pharmaceutical manufacturing environments.

  • Expanded engagement with Avride, which became the continuity partner for university campus delivery when Starship exited that space and expects to operate on more than 20 campuses by year end.

  • Upgraded infrastructure at Hancock Regional Hospital, the company's anchor healthcare deployment, in preparation for a unit upgrade.

  • Advanced its improved AP3 Plus platform and is on track to have over a dozen units to ship in September, pulling forward Arrive OS and NIQ technology from the company's next-generation platform.

  • Continued development of AP4, which is on track for a first quarter 2027 launch, supporting multi-tenant pickup and delivery by autonomous mobile robots.

  • Continued development of its next-generation APX platform, targeting a technology-showcase prototype by the end of 2027.

Capital Markets Executive Piyush Phadke Appointed CFO

Arrive AI appointed Piyush Phadke as its new Chief Financial Officer, effective August 17, 2026, succeeding Todd Pepmeier. Mr. Phadke brings a proven track record as a public-company CFO, built on more than two decades of capital markets experience, including senior roles at Bank of America, BTIG, and Jefferies before moving into executive finance leadership. His progression from Wall Street capital markets to executive leadership roles gives Arrive AI a senior finance leader who understands both sides of the table as the company converts its growing commercial pipeline into durable financial momentum.

"Arrive AI is at an important inflection point," said Dan O'Toole, Founder and CEO of Arrive AI. "We are seeing commercial interest build across healthcare, manufacturing and specialty pharmacy delivery, and we are continuing to strengthen the technology platform behind it all. Piyush understands both the opportunity in front of us and the work required to capture it. He is highly aligned with our vision, and his capital markets experience will help the company build on this momentum and create long-term shareholder value."

Q2 2026 Financial Highlights

  • Revenue was $14,700 for the second quarter, compared to $90,725 in the second quarter of 2025; revenue in the prior-year period included a non-recurring consulting contribution.

  • Net loss was $14.1 million for the second quarter, compared to a net loss of $3.7 million in the second quarter of 2025. The increase was driven primarily by a $9.7 million non-cash loss on conversion of convertible notes payable.

  • Cash and cash equivalents were $3.0 million at quarter end, with an additional $2.2 million in investments at fair value, for a combined $5.2 million. This compares to $2.1 million in cash at year end 2025.

  • Operating cash outflow was approximately $3.3 million for the second quarter, in line with the same period of 2025.

"Our operating cash use this quarter reflects deliberate investment in the team, technology, and infrastructure required to convert our commercial pipeline into scaled recurring revenue," said Dan O'Toole. "As we execute against this opportunity, we have meaningful financing optionality and will remain disciplined in evaluating paths that best support the company's long-term strategy and shareholder interests."

Earnings Call Details

Title: Arrive AI Inc. Q2 2026 Earnings Call
Date: August 13, 2026
Time: 8:30 AM EDT (Live Event)
Duration: 60 minutes
Webcast Link: https://edge.media-server.com/mmc/p/rjf42jfk

If you are an analyst and would like to join the call to ask questions, please contact Alliance IR at ARAI.IR@allianceadvisors.com.

A replay of the call will be available after the event on Arrive AI's website at arriveai.com/investor-relations.

Following opening remarks from Founder and CEO Dan O'Toole, portions of the prepared comments will be delivered using AI-assisted voice technology as part of the company's continued exploration of practical AI applications in business communications.

About Arrive AI

Arrive AI (NASDAQ:ARAI) is building the infrastructure for autonomous logistics through a network of intelligent delivery endpoints that enable secure, asynchronous exchange of goods. The company's platform supports drones, ground robotics, and human couriers, solving the "last inch of the last-mile" challenge across logistics, healthcare, and enterprise delivery.

Media Contact

Tasha Jones
media@arriveai.com

Investor Relations Contact

Alliance Advisors IR
ARAI.IR@allianceadvisors.com

Cautionary Note Regarding Forward-Looking Statements

This news release and statements of Arrive AI's management in connection with this release or related events may contain "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995.

Forward-looking statements relate to future events and expected business and financial performance and often include words such as "expects," "anticipates," "intends," "plans," "believes," "potential," "will," "should," "could," "would," "optimistic," or "may," and similar expressions.

These statements are based on information available as of the date of this release and reflect management's current views and assumptions. They are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors that may be beyond the company's control.

Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this release. Potential investors should review Arrive AI's SEC filings, including risk factors, available at www.sec.gov.

Arrive AI undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date of this release, except as required by law.

ARRIVE AI INC.
CONDENSED BALANCE SHEETS

June 30, 2026

December 31, 2025

(Unaudited)

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$

2,976,535

$

2,104,004

Investments at fair value

2,160,954

-

Accounts receivable, net of allowance

9,800

4,975

Inventory

29,378

-

Prepaid expenses

462,859

189,878

Other current assets

12,325

12,325

Total current assets

5,651,851

2,311,182

OTHER ASSETS

Property and equipment, net

817,337

514,684

Right of use assets - operating leases

1,926,885

2,117,284

Patents, net of accumulated amortization of $3,636 and $2,603

271,064

272,097

Deferred offering costs

3,475,514

5,650,185

Other assets

301,257

65,633

Total other assets

6,792,057

8,619,883

TOTAL ASSETS

$

12,443,908

$

10,931,065

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable

$

249,611

$

183,993

Accrued expenses

1,669,322

538,234

Operating lease liability

424,215

392,950

Derivative liabilities

348,830

1,460,000

Convertible note payable, net of discount and debt issuance costs of $1,842,184, and $3,620,343, respectively

3,460,834

4,144,657

Note payable

15,088

9,140

Total current liabilities

6,167,900

6,728,974

LONG TERM LIABILITIES

Operating lease liability

1,504,887

1,725,073

Note payables, net of current portion

31,563

1,418

Total long term liabilities

1,536,450

1,726,491

Total liabilities

7,704,350

8,455,465

Commitments and Contingencies (See Note 16)

-

-

STOCKHOLDERS' EQUITY

Common stock, $0.0002 par value, 200,000,000 authorized, 51,859,347 and 34,213,387 issued and outstanding at June 30, 2026 and December 31, 2025

10,371

6,841

Additional paid-in capital

53,949,594

31,215,698

Deferred compensation

(26,834

)

-

Accumulated deficit

(49,193,573

)

(28,746,939

)

Total stockholders' equity

4,739,558

2,475,600

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

12,443,908

$

10,931,065

ARRIVE AI INC.
CONDENSED STATEMENTS OF OPERATIONS (Unaudited)


Three Months
Ended June 30,

Six Months
Ended June 30,

2026

2025

2026

2025

REVENUE

$

14,700

$

90,725

$

29,625

$

90,725

OPERATING EXPENSES

General and administrative

4,048,851

3,474,059

8,258,917

5,369,038

Research and development

346,541

293,468

703,614

384,731

Sales and marketing

72,064

49,602

183,414

57,263

Total operating expenses

4,467,456

3,817,129

9,145,945

5,811,032

OTHER INCOME (EXPENSES)

Interest expense

(153,476

)

(168,080

)

(515,346

)

(169,257

)

Other income

150,878

43,151

328,668

60,066

Change in fair value of derivative liabilities

93,053

190,000

1,222,822

190,000

Accretion of debt discount

(128,946

)

(27,738

)

(379,915

)

(27,738

)

Loss on conversion of convertible notes payable

(9,696,797

)

-

(12,042,410

)

-

Realized gain (loss) on investments

(123,506

)

-

322,818

-

Unrealized gain (loss) on investments

241,136

-

(260,976

)

-

Loss on disposal of fixed assets

(5,974

)

-

(5,974

)

-

Total other income (expenses)

(9,623,632

)

37,333

(11,330,313

)

53,071

NET LOSS BEFORE TAXES

(14,076,388

)

(3,689,071

)

(20,446,633

)

(5,667,236

)

PROVISION (BENEFIT) FOR INCOME TAXES

-

-

-

-

NET LOSS

$

(14,076,388

)

$

(3,689,071

)

$

(20,446,633

)

$

(5,667,236

)

NET LOSS PER SHARE:

Basic and diluted

$

(0.28

)

$

(0.12

)

$

(0.47

)

$

(0.18

)

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:

Basic and diluted

50,057,185

31,543,921

43,150,562

30,637,620

ARRIVE AI INC.
CONDENSED STATEMENTS OF CASH FLOWS

For the Six Months Ended June 30, 2026 and 2025 (Unaudited)

2026

2025

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss

$

(20,446,633

)

$

(5,667,236

)

Adjustments to reconcile net loss to net cash used in operating activities

Stock-based compensation

1,846,078

2,032,723

Depreciation and amortization

121,553

17,118

Credit loss expense

300

-

Operating lease liability - non-cash adjustment

1,478

-

Change in fair value of derivative liabilities

(1,222,822

)

(190,000

)

Loss on conversion of convertible notes payable

12,042,410

-

Accretion of discount on convertible note payable

379,915

27,738

Accretion and immediate expensing of issuance costs on convertible note payable

133,927

165,869

Realized gain on investments

(322,818

)

-

Unrealized loss on investments

260,976

-

Other non-cash item

16,515

-

Changes in operating assets and liabilities

(Increase) decrease in

Accounts receivable

(5,125

)

(89,075

)

Inventory

(29,378

)

-

Prepaid expenses

(272,981

)

(141,431

)

Other current assets

-

971

Other assets

(235,624

)

-

Increase (decrease) in

Accounts payable

65,618

61,131

Accrued expenses

1,408,768

(17,302

)

Net cash used in operating activities

(6,257,843

)

(3,799,494

)

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditures

(439,688

)

(47,827

)

Proceeds from sales of investments

24,258,747

-

Purchase of investments

(26,299,029

)

-

Net cash used in investing activities

(2,479,970

)

(47,827

)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from sale of common stock, net

-

444,360

Taxes paid for shares withheld upon vesting of restricted stock units

(25,749

)

Proceeds from the exercise of warrants, net

-

573,896

Proceeds from note payables

40,579

-

Repayments of note payables

(4,486

)

(4,187

)

Proceeds from issuance of convertible notes payable

10,000,000

4,000,000

Debt issuance costs

(400,000

)

-

Deferred offering costs

-

(688,570

)

Net cash provided by financing activities

9,610,344

4,325,499

NET INCREASE IN CASH AND CASH EQUIVALENTS

872,531

478,178

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

2,104,004

129,318

CASH AND CASH EQUIVALENTS, END OF PERIOD

$

2,976,535

$

607,496

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Cash paid for:

Interest

$

4,310

$

1,939

Income taxes

$

-

$

-

SUPPLEMENTAL DISCLOSURE OF NONCASH INFORMATION

Common stock issued as payment of offering costs

$

-

$

6,927,869

Common stock issued in exchange for services

$

161,000

$

1,204,737

Common stock issued for conversion of convertible notes payable

$

20,807,755

$

-

Derivative liabilities reclassified as additional paid-in capital upon conversion of convertible notes payable

$

2,257,179

$

-

Deferred offering costs recognized as additional paid-in capital upon financing drawdown

$

2,174,671

$

871,882

Cashless exercise of stock options

$

-

$

8,970

SOURCE: Arrive AI Inc.



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