Serve Robotics (NASDAQ:SERV) Announces Quarterly Earnings Results, Beats Expectations By $0.09 EPS

Key Points

• Serve Robotics beat adjusted EPS expectations, reporting a loss of $0.59 per share versus the projected $0.68 loss. However, quarterly revenue of $3.24 million missed the $3.51 million consensus, while net losses widened to $64.1 million.
• 2026 revenue guidance was sharply reduced to $9 million–$10 million from $26 million, largely because of weaker Uber Eats volumes and the removal of an expected second-half ramp. Serve also said it may not renew its Uber agreement after it expires in early 2027 unless operations improve materially.
• The company is pursuing greater diversification, with DoorDash volume up nearly 50% sequentially and expanding hospital, advertising, software and other recurring revenue streams. Serve ended the quarter with $240.4 million in cash and marketable securities and lowered its operating-expense and capital-expenditure forecasts.

Serve Robotics (NASDAQ:SERV - Get Free Report) released its quarterly earnings data on Thursday. The company reported ($0.59) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.68) by $0.09, FiscalAI reports. The firm had revenue of $3.24 million during the quarter, compared to analysts' expectations of $3.51 million. Serve Robotics had a negative net margin of 2,639.98% and a negative return on equity of 47.31%.

Here are the key takeaways from Serve Robotics' conference call:

• 2026 revenue guidance was cut sharply to $9 million-$10 million from $26 million, following a Q2 decline in delivery revenue and the removal of an expected second-half Uber volume ramp.
• Serve said it currently does not expect to renew its Uber agreement when it expires in early 2027 unless the operating model and integration materially improve, although discussions remain ongoing.
• The company highlighted growing diversification: DoorDash delivery volume increased nearly 50% sequentially, advertising generated nearly half of robotic food-delivery revenue, and hospital robotics added recurring revenue through seven contract extensions and two new hospital wins.
• Management is reducing 2026 capital expenditure guidance to approximately $15 million-$17 million and non-GAAP operating expense guidance to $140 million-$150 million, while preserving investment in autonomy and software; Serve ended Q2 with more than $240 million in cash and marketable securities.
• Serve plans upcoming initiatives including a new marketplace partnership, two market launches, the Beacon merchant-integration product, direct-demand capabilities, and autonomy upgrades intended to improve fleet utilization and unit economics.

Serve Robotics Stock Up 0.4%

Serve Robotics stock traded up $0.02 during mid-day trading on Thursday, reaching $5.68. 4,825,018 shares of the company's stock were exchanged, compared to its average volume of 3,120,688. The company has a market cap of $439.46 million, a P/E ratio of -2.83 and a beta of 1.34. Serve Robotics has a twelve month low of $4.32 and a twelve month high of $18.64. The company has a fifty day moving average of $6.32 and a 200-day moving average of $8.46.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. Weiss Ratings upgraded shares of Serve Robotics from a "sell (e+)" rating to a "sell (d-)" rating in a report on Tuesday, July 21st. LADENBURG THALM/SH SH increased their price objective on Serve Robotics from $15.00 to $16.60 and gave the stock a "buy" rating in a research report on Wednesday, May 13th. Freedom Capital cut Serve Robotics from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, May 13th. Finally, Guggenheim initiated coverage on Serve Robotics in a research report on Monday, April 20th. They issued a "buy" rating and a $13.00 target price on the stock. Seven research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $17.51.

Insiders Place Their Bets

In other Serve Robotics news, COO Touraj Parang sold 4,219 shares of the business's stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $7.24, for a total value of $30,545.56. Following the completion of the transaction, the chief operating officer owned 1,298,244 shares in the company, valued at $9,399,286.56. The trade was a 0.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director David Michael Goldberg sold 10,600 shares of the company's stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $7.20, for a total value of $76,320.00. Following the sale, the director owned 35,125 shares in the company, valued at approximately $252,900. This trade represents a 23.18% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 32,200 shares of company stock worth $232,704 over the last 90 days. Corporate insiders own 5.00% of the company's stock.

Institutional Trading of Serve Robotics

Several hedge funds have recently added to or reduced their stakes in SERV. Creative Planning lifted its holdings in Serve Robotics by 14.5% during the 3rd quarter. Creative Planning now owns 14,800 shares of the company's stock worth $172,000 after buying an additional 1,877 shares during the last quarter. Russell Investments Group Ltd. increased its holdings in shares of Serve Robotics by 38.0% in the 4th quarter. Russell Investments Group Ltd. now owns 7,003 shares of the company's stock valued at $73,000 after acquiring an additional 1,927 shares during the last quarter. Police & Firemen s Retirement System of New Jersey raised its position in shares of Serve Robotics by 18.2% during the 4th quarter. Police & Firemen s Retirement System of New Jersey now owns 16,773 shares of the company's stock worth $174,000 after acquiring an additional 2,579 shares in the last quarter. Advisory Services Network LLC lifted its stake in Serve Robotics by 6.4% during the third quarter. Advisory Services Network LLC now owns 46,448 shares of the company's stock worth $540,000 after purchasing an additional 2,797 shares during the last quarter. Finally, Quadrant Capital Group LLC purchased a new stake in Serve Robotics during the fourth quarter worth approximately $31,000.

Key Serve Robotics News

Here are the key news stories impacting Serve Robotics this week:

• Positive Sentiment: Serve reported Q2 revenue of $3.24 million, up 404% year over year and 9% sequentially. Revenue from the DoorDash partnership grew nearly 50% sequentially, while advertising, software and other recurring revenue streams helped diversify the business. Serve Robotics Announces Second Quarter 2026 Results
• Positive Sentiment: The company expanded beyond food delivery by adding NoScrubs Laundry and highlighting healthcare, grocery and hospital operations. More than 50% of Q2 revenue came from recurring sources, and Serve said gross margins improved from the prior quarter.
• Positive Sentiment: Serve ended June with $240.4 million in cash and marketable securities, giving it substantial liquidity to fund robot deployment, technology investment and partnerships. Management also lowered its full-year non-GAAP operating-expense forecast to $140 million-$150 million. Serve Robotics Reports Q2 2026 Results
• Neutral Sentiment: Analysts maintain a generally constructive view, with the company carrying a consensus “Moderate Buy” rating. However, the limited coverage and high price targets reflect a speculative, high-volatility investment profile rather than near-term earnings strength. Serve Robotics Given Consensus Rating of Moderate Buy
• Negative Sentiment: Serve cut full-year 2026 revenue guidance to $9 million-$10 million from a level far below the roughly $25.8 million analyst consensus. The reduction reflects weaker-than-expected Uber Eats delivery volume and the removal of anticipated second-half demand. Serve Robotics Trims 2026 Outlook Amid Strong Growth
• Negative Sentiment: Although adjusted EPS of negative $0.59 beat the consensus estimate of negative $0.68, GAAP EPS was a loss of $0.80 versus an expected loss of $0.69, and revenue missed estimates. Net loss widened to $64.1 million, while operating expenses reached $57.3 million, underscoring ongoing profitability and cash-burn risks. Serve Robotics Reports Q2 Loss, Lags Revenue Estimates

Serve Robotics Company Profile

Serve Robotics develops and operates autonomous sidewalk delivery robots designed to transform last-mile logistics for restaurants, retailers and grocery brands. By combining proprietary hardware, sensor suites and dispatch software, the company enables on-demand deliveries of food, beverages and consumer goods while minimizing reliance on traditional vehicle fleets.

The core Serve robot integrates four-wheeled mobility, LiDAR and vision cameras with AI-driven navigation algorithms to detect obstacles, traverse urban sidewalks and interact safely with pedestrians.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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