Meridian Robotics, Inc. — Q3 2025 Shareholder Letter

Dear shareholders,

The third quarter of 2025 was the strongest in Meridian's history. Total revenue reached $148.7 million, up 34% year over year, driven primarily by the industrial arm segment. Gross margin expanded to 61.2%, compared with 57.8% in the third quarter of 2024, reflecting improved component sourcing and the retirement of our legacy assembly line in Fremont.

Our industrial arm segment generated $92.3 million in revenue, an increase of 41% year over year. The logistics automation segment contributed $38.1 million, growing 22% year over year, while our services and support business added $18.3 million. We shipped 4,112 industrial units during the quarter, a new record, and our installed base now exceeds 61,000 units across 14 countries.

Operating expenses were $54.9 million, or 36.9% of revenue, down from 41.3% of revenue a year ago. Research and development spending rose 18% to $27.4 million as we accelerated work on the Atlas-9 platform, which remains on schedule for general availability in the second quarter of 2026. Net income was $19.8 million, or $0.42 per diluted share, compared with $6.1 million, or $0.13 per diluted share, in the prior-year period.

We ended the quarter with $412 million in cash and equivalents and no long-term debt. Deferred revenue grew to $71.5 million, up 29% year over year, giving us strong visibility into the fourth quarter.

Customer concentration continues to decline: our largest customer represented 11% of revenue this quarter, down from 19% two years ago. We added 87 new logos in the quarter, including three of the ten largest parcel carriers in Europe.

Looking ahead, we expect fourth-quarter revenue between $155 million and $162 million, implying full-year revenue growth of approximately 31%. We expect gross margin to remain above 60% despite modest tariff headwinds on precision gearboxes, which we estimate will reduce gross margin by 40 to 60 basis points in the fourth quarter.

We are also pleased to announce that the board has authorized a $100 million share repurchase program, effective November 1, 2025. This reflects our confidence in the durability of our cash generation and our commitment to disciplined capital allocation.

Thank you for your continued trust.

Elena Vasquez
Chief Executive Officer
