RR Stock: What is RaaS and Can It Reboot Richtech’s Revenue?

With the focus of the robotics sector expanding beyond manufacturing into services, Richtech Robotics [RR] could be well-positioned to benefit, thanks both to its diverse product lines and something it calls “robotics-as-a-service”, or RaaS.

Founded in 2016, Las Vegas, Nevada, Richtech designs, manufactures and sells artificial intelligence-driven (AI) robots for use cases across the service industry. 

Its current products include Titan, a parts delivery robot; Scorpion and Matradee Plus, robots with bartending and food delivery function for the food and beverage sector; Adam, a two-armed productivity robot; Medbot, a medical device delivery robot; and the DUST-E S models, intended for sanitation services. The company also manages a coffee and tea brand, as well as several Walmart-located [WMT] restaurants alongside Ghost Kitchens America.

In addition to sales of its robots, Richtech is exploring a revenue model it has termed RaaS, in which the company provides clients with access to its robotic solutions through long-term contracts, providing recurring revenue streams. In this article, we take a closer look at the latest developments at Richtech and the potential of its RaaS revenue model, as well as the overall investment case for RR stock. 

The Potential of Physical AI

While AI-powered efficiency gains lie at the core of the investment case for many software-as-a-service stocks, “physical AI” — the deployment of AI models in robotic bodies for use across a range of sectors — is seeing increased attention from big tech and policy-makers alike. Following an extended electric vehicle sales slump, in early September Tesla [TSLA] CEO Elon Musk announced that 80% of the company’s future value will come from Optimus, its humanoid robot model.  

The world’s largest company also has stake in the game. 

In May, Nvidia [NVDA] released a slew of products to support physical AI, including an update to its Isaac GROOT foundational model for humanoid reasoning and skills, a blueprint for synthetic motion data, and Blackwell systems to support humanoid robots. CEO Jensen Huang has previously touted the potential of the space, claiming that “physical AI and robotics will bring about the next industrial revolution.” 

Richtech’s Adam and Scorpion models are equipped with Nvidia’s AI systems. 

In the wider sector, US robotics firms are pushing for a national robotics strategy as China has made the development of intelligent robots a priority. Industry leaders expect AI and its integration into physical robotics systems to be the deciding factor in the robotics race.

On June 30, Boyu Artificial Intelligence Technology, Richtech’s Chinese joint venture partner, signed a $4m sales agreement with Beijing Tongchuang Technology Development Co, expanding its footprint in China’s dynamic robotics market in line with global expansion goals. 

On August 21, the company signed a two-year master service agreement with an undisclosed retail giant to support its robotics and automation needs, sending the stock up some 23%.

More recently, on August 29, Richtech completed a pilot program with the top five automotive dealerships by revenue in the US, with at least one dealership deciding to proceed with additional statements of work for the robotics firm. 

RR Stock Surges, But Not Enough

In its most recent quarterly filling, released on August 11, Richtech met analyst expectations with a loss of $0.04 per share. Net loss attributable to the company widened from $1.31m a year ago to $4.07m in the quarter ending June 30, 2025. Revenue also decreased 18.4% to $1.18m.     

Richtech debuted on the Nasdaq on November 21, 2023 at $5.00 per share. The stock reached an all-time high of $12.29 on January 24, 2025, and began a steep slump that saw it trade at or below the $1.00 mark for most of 2024. 

An impressive product showing at CES 2025 and the announcement of the Richtech Accelerator Program targeting robotics research at major US universities saw the stock rise in early 2025. As of September 12, RR shares were trading at $3.29, up 21.67% in the year to date and up an impressive 218.93% in the past 12 months. Its July inclusion in the US small-cap Russell 2000 Index has highlighted RR stock’s growth potential. However, due to its small size, RR stock is significantly volatile, and was trading at 34.3% below its IPO price as of September 12.

Robot Wars: RR vs ISRG vs ROK

Despite a significant difference in market cap, the potential of robotics across a wide range of sectors can be illustrated by comparing Richtech to competitors servicing different spaces: Intuitive Surgical [ISRG] in the medical space and Rockwell Automation [ROK] in the industrial space.

Where Richtech offers robots for a range of applications, Intuitive Surgical has profited significantly from specialization, with its product revenue — most notably sales of its da Vinci surgical robotic system — representing 84% of the company’s $8.35bn revenue in 2024. ISRG has seen a major selloff in recent months, trading near April 2025 lows due to continuing tariff pressures. Regardless, Intuitive recorded a 21% expansion in its surgical revenue in Q2 2025, with 17% da Vinci procedure growth and a 14% larger installed base suggesting a resilient revenue stream for coming quarters.

Milwaukee-based Rockwell Automation, meanwhile, designs and manufactures automation solutions for industrial applications, most notably in the automotive, semiconductor and logistics sectors. The company beat Q3 2025 estimates with EPS of $2.82 and revenue of $2.1bn, but saw shares fall on weakness in its Lifecycle Services sales and Intelligent Devices Operating earnings. 

Source: Yahoo Finance

The Investment Case for Richtech Robotics

The Bull Case for RR Stock

Given its current portfolio and its exposure across the service industry, Richtech could end up being a winner in the physical AI race. 

H.C. Wainwright analyst Scott Buck initiated coverage of the stock with a ‘buy’ rating in April 2025, pointing to tailwinds such as improving technologies and labor shortages. Buck also highlighted the company’s RaaS model as providing steady returns and improving the adoption of service robots over the next few years. His target price of $3.50 represents an upside of 6.38% from the September 12 close.

Of the three analysts covering RR stock on Yahoo Finance in September, one rated it a ‘strong buy’ and one rated it a ‘buy’.

The Bear Case for RR Stock

Richtech’s small size — and the fact that it remains unprofitable ­— may ring alarm bells with some investors. The company is also trading at a steep P/S ratio of 79.47, reflecting its relatively long runway to financial stability. Research and product development are likely to weigh on the company’s books in the near term. 

US TV personality Jim Cramer highlighted Richtech during a lightning round with a caller on September 8, noting that investors should “recognize that it’s your spec … And accept the fact that you could lose everything.”

Similarly, on August 27, Freedom Broker downgraded the stock from a ‘buy’ to a ‘sell’, noting that the recent rally has pushed the stock ahead of its fundamentals. The investment firm’s target price of $2.50 represents a pullback of 24.01% from the September 12 close. 

One analyst surveyed by Yahoo Finance rated the stock an ‘underperform’; additionally, the average price target of $3.00 represents a downside of 8.81% from its September 12 price. 

Conclusion

As the focus of the robotics industry expands from industrial automation to services, Richtech’s diversified product portfolio could provide it with key exposure to a burgeoning boom, while its RaaS model could help support more consistent revenue flows. That said, the speculative nature of robotics and Richtech’s shaky financials suggest the company may not be able to turn key agreements into significant earnings in the near to medium term.