Kodiak AI Books Net Income on Warrant Fair-Value Gain

The Tip Desk · November 11, 2026 · 3 min read

Revenue was $2.97 million in the third quarter as Kodiak advanced its Autonomy Readiness Measure to 99% and locked a 75-truck DTL Transport deal.

Kodiak AI, Inc. (KDK) reported net income of $27.4 million for the three months ended September 30, 2026, versus a net loss of $269.9 million a year earlier, after a $78.2 million non-cash gain on the change in fair value of common stock warrants. Net income attributable to common stockholders was $20.5 million, or $0.11 a share on a basic basis.

The Physical AI autonomous-truck company said the quarter reflected continued commercial progress as it built a more predictable, recurring revenue business. Revenue grew 286% year-over-year, which the company attributed primarily to expanding Driver-as-a-Service operations and a one-time Defense contribution.

That year-over-year gain followed a different quarter-over-quarter path. Revenue was $2.97 million in the third quarter, down from $3.5 million in the second quarter, after the second quarter had grown 91% from $1.8 million in the first quarter.

GAAP loss from operations widened to $50.4 million from $29.97 million a year earlier. Non-GAAP loss from operations was $41.6 million. Operating expenses rose to $53.3 million from $30.7 million a year earlier, with research and development at $25.4 million, general and administrative at $14.5 million, truck and freight operations at $11.5 million, and sales and marketing at $1.9 million.

Operations scaled even as the top line receded from the second-quarter peak. Kodiak transported more than 396,000 tons of freight in the third quarter, more than double the tons in the prior quarter. Cumulative paid driverless hours surpassed 58,000 and cumulative loads delivered neared 30,000 by quarter-end.

The Autonomy Readiness Measure advanced to 99% in the third quarter, up from 91% as of July after the second quarter, as the company neared its targeted year-end unsupervised autonomous long-haul launch. Founder and Chief Executive Officer Don Burnette said Kodiak was approaching a defining moment as it advanced toward that launch.

Commercial commitments expanded. Kodiak secured a binding definitive agreement with DTL Transport to deploy the Kodiak Driver in 75 customer-owned and operated unsupervised autonomous trucks, a Driver-as-a-Service commitment the company called a landmark. It named IKEA Supply as its first long-haul launch partner for unsupervised autonomous operations, with plans to begin regular freight service along the Dallas-to-Houston corridor. International LT was selected as a third OEM platform, with unsupervised autonomous deployments targeted for the second half of 2027.

Atlas Energy Solutions’ customer-owned unsupervised autonomous truck fleet reached 37 by quarter-end after Kodiak delivered the first two Kodiak-powered Western Star trucks. The company also launched commercial freight operations with Charger Logistics along the Dallas-to-Laredo corridor, received a California autonomous-truck testing permit and made the first autonomous delivery in the state, completed the West Fraser trial in Alberta, and completed the U.S. Marine Corps ROGUE-Fires demonstration.

Cash and cash equivalents and marketable securities ended the third quarter at $113.6 million, down from $151.1 million at the end of the second quarter. Net cash used in operating activities was $35.2 million. Free cash flow (non-GAAP) was negative $38.0 million, which the company said exceeded its guidance expectations. Chief Financial Officer Surajit Datta said priorities remain growing recurring revenue, reducing the cost of the Kodiak Driver, and improving operating leverage as deployments scale.

Kodiak said it is building a scalable Driver-as-a-Service business across long-haul trucking, industrial and defense, with the Kodiak Driver deployed across multiple truck platforms. The company also brought simulation capabilities fully in-house, including its AI-powered BreakPoint technology, to accelerate development and reduce costs.