Richtech Robotics Reports Q3 2025 Financial Results, Revenue Declines Amid RaaS Transition

Richtech Robotics Inc. has reported its financial results for the third quarter of fiscal year 2025, revealing a net revenue of $3.6 million for the nine months ended June 30, 2025, a decrease of approximately 3.1% from $3.7 million in the same period last year. The company experienced a more significant decline in the most recent quarter, with revenue falling by 18.4% to $1.2 million compared to $1.4 million in the prior year. The decrease in revenue is attributed to a strategic shift towards a Robots-as-a-Service (RaaS) model, which focuses on long-term service agreements rather than one-time product sales, impacting short-term revenue recognition.

The company's gross profit for the nine months ended June 30, 2025, increased by 18.2% to $2.7 million, driven by a substantial reduction in the cost of revenue, which fell by 37.7% to $877,000. This reduction is primarily due to the transition to leasing arrangements, where costs are capitalized and depreciated over time rather than recognized as immediate expenses. However, for the three months ended June 30, 2025, gross profit decreased by 13.5% to $877,000, reflecting a sharper decline in revenue compared to the reduction in costs.

Richtech's operating expenses surged significantly, with total operating expenses for the nine months reaching $16.1 million, up 151% from $6.4 million in the previous year. This increase was largely driven by a rise in general and administrative expenses, which soared by 268.7% to $13.8 million, reflecting higher personnel costs and professional fees associated with compliance and legal matters. The company reported a net loss of $12.2 million for the nine months, compared to a loss of $5.2 million in the same period last year, with a loss per share of $0.11.

In terms of operational developments, Richtech Robotics has expanded its footprint in the RaaS market, signing a Master Services Agreement with a U.S. car dealership group and initiating installations of its Titan robots at multiple locations. The company also relocated its headquarters to a new facility in Las Vegas, which is expected to enhance its manufacturing capabilities. As of June 30, 2025, Richtech reported cash and cash equivalents of $32.9 million, a significant increase from $14.6 million at the end of the previous fiscal year, bolstered by proceeds from the issuance of Class B common stock.

Looking ahead, Richtech Robotics remains focused on expanding its RaaS model and enhancing its product offerings. The company anticipates that as its installed base grows, recurring revenue will increasingly cover operating costs, providing a more stable foundation for future growth. However, the company acknowledges potential risks, including economic uncertainties and competition, which could impact its operational performance.