Investment Thesis
Arrive AI is in severe financial distress with minimal revenue of $98.2K against operating losses of $8.9M, indicating a pre-revenue or early-stage company burning cash at an unsustainable rate. Negative operating cash flow of -$5.0M combined with only $816.7K in cash reserves creates an immediate solvency concern, with the company likely requiring significant capital infusion within quarters.
ARAI Strengths
- Adequate current ratio of 1.85x provides near-term liquidity buffer
- No long-term debt reduces fixed obligation burden
- Positive insider activity with 7 Form 4 filings suggests management confidence
ARAI Risks
- Catastrophic burn rate: -$5.0M operating cash flow against $816.7K cash reserves indicates <4 months runway
- Extreme operating losses (-$8.9M) on negligible revenue ($98.2K) suggests business model failure or pre-commercialization
- Negative ROE of -189.1% and ROA of -91.6% demonstrate severe capital inefficiency and value destruction
- Operating margin of -9070.2% indicates structural unprofitability with no clear path to breakeven
- Likely dilution risk if company requires emergency financing to survive
Key Metrics to Watch
- Monthly operating cash burn rate and cash runway months
- Revenue growth trajectory and customer acquisition metrics
- Path to profitability and cash flow breakeven timeline
- Dilution from equity financings or debt-to-equity conversions
ARAI Financial Metrics
Revenue
$98.2K
Net Income
$-8.9M
EPS (Diluted)
$-0.28
Free Cash Flow
$-5.0M
Total Assets
$9.7M
Cash Position
$816.7K
ARAI Profitability Ratios
Gross Margin
N/A
Operating Margin
-9,070.2%
Net Margin
-9,070.2%
ROE
-189.1%
ROA
-91.6%
FCF Margin
-5,142.3%
ARAI Balance Sheet & Liquidity
Current Ratio
1.85x
Quick Ratio
1.85x
Debt/Equity
0.00x
Debt/Assets
51.5%
Interest Coverage
N/A
Long-term Debt
N/A
ARAI Growth Metrics (YoY)
Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-5,142.3%
Free cash flow / Revenue
ARAI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $7.5K | -$823.8K | $-0.03 |
| Q2 2025 | $90.7K | -$916.8K | $-0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ARAI Capital Allocation
Operating Cash Flow
-$5.0M
Cash generated from operations
Dividends
None
No dividend program
ARAI SEC Filings
Access official SEC EDGAR filings for Arrive AI Inc. (CIK: 0001818274)
Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: Mar 20, 2026 |
Data as of: 2025-09-30 |
Powered by Claude AI