Free cash flow burn is accelerating, reaching -$3.6M in 2026Q1, while capital expenditure intensity remains elevated at 14.8% of revenue despite the lack of a proven, scalable commercial model.
| Cash from Operations | -11.03M | -8.25M | -2.29M | -2.82M | -1.84M | -1.48M |
| Operating CF Margin % | - | -7287.72% | - | - | - | - |
| Operating CF Growth % | -1819.18% | -260.52% | 18.73% | -53.28% | -23.88% | - |
| Net Income | -17.22M | -12.83M | -4.54M | -7.32M | -2.39M | -1.53M |
| Depreciation & Amortization | 39.59K | 66.89K | 29.11K | 13.39K | 9.76K | 0 |
| Stock-Based Compensation | 865.98K | 2.5M | 1.39M | 1.73M | 446.36K | 123.13K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 4.89M | 2.24M | 0 | 1.82M | 0 | 0 |
| Working Capital Changes | 390.26K | -236.18K | 830.65K | 935.07K | 94.78K | -79.81K |
| Change in Receivables | 88.78K | -4.97K | 0 | 0 | 9.2K | -9.2K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -369.78K | -479.96K | 843.68K | 918.56K | 86.36K | -19.56K |
| Cash from Investing | -3.44M | -362.08K | -114.66K | -104.99K | -426.14K | -370.5K |
| Capital Expenditures | -712.7K | -495.19K | -38.16K | -104.99K | -227.94K | -370.5K |
| CapEx % of Revenue | 556.04% | 437.25% | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | 0 | 0 | -76.5K | 0 | -198.2K | 0 |
| Cash from Financing | 19.84M | 10.59M | 2.21M | 1.69M | 1.14M | 4.25M |
| Debt Issued (Net) | 20.99M | 10.99M | -7.95K | -6.65K | -6.56K | 0 |
| Equity Issued (Net) | -370.06K | 947.21K | 2.64M | 1.7M | 1.15M | 4.25M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -100.49K | -74.74K | 0 | 0 | 0 | 0 |
| Other Financing | -774.67K | -1.35M | -427.9K | 0 | 1.15K | 0 |
| Net Change in Cash | 5.37M | 1.97M | -196.15K | -1.23M | -1.12M | 2.4M |
| Free Cash Flow | -11.74M | -8.75M | -2.4M | -2.92M | -2.26M | -1.85M |
| FCF Margin % | -9162.99% | -7724.97% | - | - | - | - |
| FCF Growth % | -416.37% | -263.93% | 17.72% | -29.06% | -22.11% | - |
| FCF per Share | -0.32 | -0.27 | -0.08 | -0.10 | -0.08 | -0.06 |
| FCF Conversion (FCF/Net Income) | 0.68x | 0.64x | 0.50x | 0.38x | 0.77x | 0.97x |
| Interest Paid | 1.62K | 0 | 1.64K | 2.94K | 1.57K | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Severe liquidity and dilution
According to recent financial statements, Arrive AI's operating cash flow consistently trails net losses, with an OCF/NI ratio peaking at 0.82 in 2025Q4, indicating that the company's reported earnings are not being converted into cash and that accruals are masking underlying operational cash deficits.
The persistent gap between net income and operating cash flow suggests that the company is relying on non-cash adjustments to bridge its financial reporting. Investors should monitor this divergence, as it implies that the business model is not yet generating the organic cash required to sustain its current operating scale.
As reported in quarterly filings, Arrive AI's free cash flow has remained deeply negative, reaching a low of -$3.6M in 2026Q1, which underscores a deteriorating trajectory where cash outflows are expanding significantly faster than any potential revenue growth from the company's pilot-stage autonomous delivery infrastructure.
The consistent negative FCF margins, which hit -237.9% in 2026Q1, suggest that the company is in a high-burn phase with no immediate path to self-funding. This trajectory warrants further investigation into how long the current cash position can support operations before requiring additional dilutive capital raises.
Based on reported figures, Arrive AI's capital expenditure reached 14.8% of revenue in 2026Q1, with a peak intensity of 49.6% in 2025Q2, signaling that the company is heavily investing in physical infrastructure despite the lack of a proven, scalable commercial revenue stream to justify these hardware costs.
The high capital intensity relative to negligible revenue suggests that the company is front-loading its infrastructure deployment. This strategy appears risky, as it commits significant capital to hardware assets that may become obsolete before the company achieves the necessary network effect to reach profitability.
Data from recent SEC filings reveals erratic working capital changes, including a $697.3K inflow in 2026Q1 followed by a $299.8K outflow in 2025Q4, suggesting that the company lacks a stable cycle for managing its receivables and payables as it attempts to scale its pilot operations.
The volatility in working capital changes may indicate inconsistent collection cycles or irregular inventory management practices. Such fluctuations often suggest that the company's operational processes are not yet standardized, which could lead to further cash flow unpredictability in future quarters.
Based on the provided cash flow data, stock-based compensation adjustments have historically been used to manage the appearance of cash burn, with $1.5M in SBC recorded in 2025Q2, which effectively masks the true economic cost of talent acquisition in a pre-revenue environment.
The reliance on non-cash compensation to manage the bottom line suggests that the company is attempting to preserve its limited cash reserves. Investors should be wary of this practice, as it dilutes existing shareholders while failing to address the fundamental issue of the company's inability to generate positive operating cash flow.
Quick answers to the most common questions about buying ARAI stock.
Arrive AI Inc. (ARAI) generated $-8.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Arrive AI Inc. (ARAI) reported negative free cash flow of $8.7M in 2025, indicating capital requirements exceeded cash from operations.
Arrive AI Inc. (ARAI) spent $0.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Arrive AI Inc. (ARAI) spent $0.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.