Release Details

Arrive AI Announces First Quarter 2026 Results and Highlights Operational Progress Toward Commercial Scale

May 15, 2026
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INDIANAPOLIS, IN / ACCESS Newswire / May 15, 2026 / Arrive AI (NASDAQ:ARAI), an autonomous delivery network company built around patented, AI-powered Arrive Points™, today announced financial results for the first quarter ended March 31, 2026, and provided an update on operational milestones, product development, and strategic progress.

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.

"We continue to believe our most important metric right now is operational progress and milestone achievement," said Founder and CEO Dan O'Toole. "Over the last quarter, we strengthened our supply chain, advanced our software infrastructure, expanded internal development capabilities, progressed toward larger-scale deployment readiness, and continued building the foundation for long-term autonomous logistics infrastructure."

Recent Operational Highlights

During the quarter, Arrive AI:

  • Expanded and stabilized manufacturing operations through a new manufacturing partnership in India for the AP3, the company's current Arrive Point model.

  • Remained on track for an improved AP3 release in July, with broader availability expected beginning in October

  • Continued development of its next-generation APX platform

  • Advanced Arrive OS, the company's internally developed operating system and deployment software layer

  • Fully internalized software development operations to improve efficiency and reduce third-party costs

  • Continued preparations for a digital demonstration initiative planned for Texas later this year

  • Expanded its patent portfolio to 10 U.S. utility patents

  • Held its first Board meeting with newly appointed director Mike Fitz of T-Mobile for Business

Q1 2026 Financial Highlights

  • Revenue of approximately $14,925, consisting entirely of recurring subscription revenue

  • Net loss of approximately $6.4 million, compared to approximately $2 million in Q1 2025

  • Approximately $5.7 million in cash and $2.8 million in short-term investments at quarter end

  • Quarterly operating cash outflow of approximately $3 million, primarily related to team expansion and infrastructure development

The company also announced it recently reached a standstill agreement with Streeterville Capital that management believes will help reduce share price volatility associated with routine conversion activity while preserving capital flexibility moving forward. Under the standstill agreement, Streeterville Capital has agreed not to deliver any Purchase Notices through December 31, 2026, except on any trading day when the closing price of the Common Shares is at least 15% above the Nasdaq Minimum Price. Additional details will be included in a Form 8-K filing.

"As we continue executing, our focus remains straightforward: strengthen the platform, expand deployments, improve scalability, and maintain discipline on capital allocation, positioning Arrive AI for long-term growth within autonomous logistics," O'Toole added.

Earnings Call Details:

  • Title: Arrive AI Inc. Q1 2026 Earnings Call

  • Date: May 15, 2026

  • Time: 8:30 AM EDT (Live Event)

  • Duration: 60 minutes

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

Kylie Conway
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

March 31, 2026

December 31, 2025

(Unaudited)

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$

5,667,553

$

2,104,004

Investments at fair value

2,802,060

-

Accounts receivable, net of allowance

-

4,975

Prepaid expenses

280,102

189,878

Other current assets

12,325

12,325

Total current assets

8,762,040

2,311,182

OTHER ASSETS

Property and equipment, net

679,333

514,684

Right of use assets - operating leases

2,023,420

2,117,284

Patents, net of accumulated amortization of $3,120 and $2,603

271,580

272,097

Deferred offering costs

3,475,514

5,650,185

Other assets

279,187

65,633

Total other assets

6,729,034

8,619,883

TOTAL ASSETS

$

15,491,074

$

10,931,065

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable

$

227,909

$

183,993

Accrued expenses

1,490,720

538,234

Operating lease liability

408,345

392,950

Derivative liabilities

1,440,000

1,460,000

Convertible note payable, net of discount and debt issuance costs of $4,507,852 and $350,794, and $3,379,447 and $240,896, respectively

7,681,354

4,144,657

Note payable

8,336

9,140

Total current liabilities

11,256,664

6,728,974

LONG TERM LIABILITIES

Operating lease liability

1,616,553

1,725,073

Note payables, net of current portion

-

1,418

Total long term liabilities

1,616,553

1,726,491

Total liabilities

12,873,217

8,455,465

Commitments and Contingencies (See Note 16)

STOCKHOLDERS' EQUITY

Common stock, $0.0002 par value, 200,000,000 authorized, 37,731,391 and 34,213,387 issued and outstanding at March 31, 2026 and December 31, 2025

7,545

6,841

Additional paid-in capital

37,834,831

31,215,698

Deferred compensation

(107,334

)

-

Accumulated deficit

(35,117,185

)

(28,746,939

)

Total stockholders' equity

2,617,857

2,475,600

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

15,491,074

$

10,931,065

ARRIVE AI INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

Three Months Ended

Three Months Ended

March 31, 2026

March 31, 2025

REVENUE

$

14,925

$

-

OPERATING EXPENSES

General and administrative

4,210,066

1,894,981

Research and development

357,073

91,263

Sales and marketing

111,350

7,661

Total operating expenses

4,678,489

1,993,905

OTHER INCOME (EXPENSES)

Interest expense

(361,870

)

(1,175

)
Other income

177,789

16,915

Change in fair value of derivative liabilities

1,129,769

-

Accretion of debt discount

(250,969

)

-

Loss on conversion of convertible notes payable

(2,345,613

)

-

Realized gain on investments

446,324

-

Unrealized loss on investments

(502,112

)

-

Total other income (expenses)

(1,706,682

)

15,740

NET LOSS BEFORE TAXES

(6,370,246

)

(1,978,165

)

PROVISION (BENEFIT) FOR INCOME TAXES

-

-

NET LOSS

$

(6,370,246

)

$

(1,978,165

)

NET LOSS PER SHARE:

Basic and diluted

$

(0.18

)

$

(0.07

)

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:

Basic and diluted

36,167,200

29,721,248

ARRIVE AI INC.
CONDENSED STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31, 2026 and 2025 (Unaudited)

2026

2025

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss

$

(6,370,246

)

$

(1,978,165

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

Stock-based compensation

1,043,789

1,348,245

Depreciation and amortization

56,214

7,391

Credit loss expense

300

-

Operating lease liability - non-cash adjustment

739

-

Change in fair value of derivative liability

(1,129,769

)

-

Loss on conversion of convertible notes payable

2,345,613

-

Accretion of discount on convertible note payable

250,969

-

Accretion of issuance costs on convertible note payable

119,018

-

Realized gain on investments

(446,324

)

-

Unrealized loss on investments

502,112

-

Changes in operating assets and liabilities

(Increase) decrease in

Accounts receivable

4,675

-

Prepaid expenses

(90,224

)

7,081

Other current assets

-

1,412

Other assets

(213,554

)

-

Increase (decrease) in

Accounts payable

43,916

(66,262

)
Accrued expenses

952,486

133,627

Net cash used in operating activities

(2,930,286

)

(546,671

)

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditures

(220,346

)

(2,832

)
Proceeds from sales of investments

8,893,827

-

Purchase of investments

(11,751,675

)

-

Net cash used in investing activities

(3,078,194

)

(2,832

)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from sale of common stock, net

-

420,753

Taxes paid for shares withheld upon vesting of restricted stock units

(25,749

)

-

Proceeds from the exercise of warrants, net

-

296,875

Repayments of note payables

(2,222

)

(2,075

)
Proceeds from issuance of convertible notes payable

10,000,000

-

Debt issuance costs

(400,000

)

-

Net cash provided by financing activities

9,572,029

715,553

NET INCREASE IN CASH AND CASH EQUIVALENTS

3,563,549

166,050

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

2,104,004

129,318

CASH AND CASH EQUIVALENTS, END OF PERIOD

$

5,667,553

$

295,368

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Cash paid for:

Interest

$

1,064

$

321

Income taxes

$

-

$

-

SUPPLEMENTAL DISCLOSURE OF NONCASH INFORMATION

Common stock issued as payment of offering costs

$

-

$

6,927,869

Common stock issued for deferred compensation

$

161,000

$

-

Common stock issued for conversion of convertible notes payable

$

6,468,903

$

-

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

$

1,200,231

$

-

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

$

2,174,671

$

-

SOURCE: Arrive AI Inc.



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