Richtech Robotics Reports 6.7% Revenue Growth but Increased Net Loss in Latest Financial Results

Richtech Robotics Inc. reported its financial results for the six months ending March 31, 2025, revealing a net revenue of $2.424 million, a 6.7% increase from $2.272 million in the same period last year. The company’s gross profit also saw a significant rise, reaching $1.847 million, up 43.2% from $1.290 million in the prior year. However, the company recorded a net loss of $8.126 million, compared to a loss of $3.868 million in the previous year, reflecting increased operational expenses and strategic investments.

The financial performance indicates a notable shift in the company's revenue streams, particularly with the implementation of its Robots-as-a-Service (RaaS) model. Product revenue surged by 111% to $1.414 million, while service and rental revenue decreased significantly by 64.3% to $433,000, highlighting the transition towards leasing models that allow for more consistent revenue recognition over time. The decrease in cost of revenue, which fell by 41.2% to $577,000, further contributed to the improved gross profit margins.

Operationally, Richtech Robotics has expanded its footprint, with its robotic solutions now implemented in over 80 cities across the United States. The company has also made strategic moves, including the formation of a new subsidiary, Richtech Holdings LLC, aimed at acquiring a new office in Las Vegas, and the establishment of a joint venture in China to tap into the Asian market for service robots. Additionally, the company has increased its employee headcount to support its growth initiatives, particularly in research and development, which saw a decrease in expenses due to the completion of major projects.

Looking ahead, Richtech Robotics is focused on enhancing its RaaS offerings and expanding its market presence. The company has signed a Master Services Agreement with a major car dealership group, which is expected to accelerate deployment and revenue in the latter half of the fiscal year. Despite the challenges posed by rising operational costs and market competition, Richtech remains committed to innovation and strategic partnerships to drive future growth. The company anticipates continued investment in R&D and marketing to support its evolving business model and capitalize on emerging opportunities in the robotics sector.