Serve Robotics (NASDAQ:SERV) Releases Quarterly Earnings Results, Misses Estimates By $0.08 EPS

Key Points

• Serve Robotics reported Q1 EPS of -$0.65, missing the consensus estimate of -$0.57 by $0.08, even though revenue came in at $2.98 million and slightly beat expectations.
• Revenue growth was strong, with management saying Q1 revenue was nearly $3 million, up sharply year over year and sequentially, and that the company remains on track for its $26 million 2026 revenue target.
• Losses and weak margins remain a major issue, as the company posted a large gross loss and negative net margin, though it ended the quarter with $197.4 million in cash and marketable securities.

Serve Robotics (NASDAQ:SERV - Get Free Report) released its earnings results on Thursday. The company reported ($0.65) earnings per share for the quarter, missing the consensus estimate of ($0.57) by ($0.08), Zacks reports. The company had revenue of $2.98 million for the quarter, compared to the consensus estimate of $2.83 million. Serve Robotics had a negative net margin of 3,821.98% and a negative return on equity of 38.54%.

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

• Q1 revenue nearly $3 million, up ~7x year‑over‑year and ~3.5x sequentially, and management reiterated it is on track to meet its $26 million 2026 revenue guidance.
• Revenue mix is shifting toward higher‑margin streams — fleet revenue was about $2M and software services roughly $1M, with software contributing positive gross margins and ~1/3 of Q1 revenue coming from software services.
• Operational scale and safety: the combined footprint is nearly 2,000 robots deployed across 44 cities (14 states), with >800 daily active robots and >10,000 daily supply hours, and the company reports no incidents causing serious injury.
• Financials remain loss‑heavy: Q1 gross loss was ~ $90M (gross margin -302%), GAAP net loss $49M (non‑GAAP $38M), and management expects ~ $160–$170M non‑GAAP operating expenses for 2026, though the company ended Q1 with $197.4M of cash and marketable securities.

Serve Robotics Stock Performance

SERV stock traded down $0.32 during midday trading on Friday, reaching $8.77. The company's stock had a trading volume of 5,537,114 shares, compared to its average volume of 4,885,194. The stock has a fifty day simple moving average of $9.25 and a two-hundred day simple moving average of $10.68. Serve Robotics has a 1 year low of $6.60 and a 1 year high of $18.64. The firm has a market capitalization of $678.14 million, a price-to-earnings ratio of -5.52 and a beta of 0.96.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on SERV shares. LADENBURG THALM/SH SH raised Serve Robotics to a "strong-buy" rating in a research report on Wednesday. Guggenheim started coverage on Serve Robotics in a research report on Monday, April 20th. They set a "buy" rating and a $13.00 target price on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Serve Robotics in a research report on Friday, March 27th. Finally, Cantor Fitzgerald reduced their target price on Serve Robotics from $17.00 to $16.00 and set an "overweight" rating on the stock in a research note on Tuesday, March 17th. Two equities research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Serve Robotics presently has a consensus rating of "Buy" and an average price target of $17.67.

More Serve Robotics News

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

• Positive Sentiment: Serve reported first-quarter revenue of $2.98 million, well above estimates, with revenue up 578% year over year and 238% sequentially, showing rapid top-line growth. Serve Robotics Announces First Quarter 2026 Results with 3X Sequential Revenue Growth
• Positive Sentiment: The company raised optimism around its long-term addressable market, citing physical AI and autonomous delivery upside, which may support the investment thesis. Serve Robotics points to its physical AI, autonomous delivery upside
• Positive Sentiment: Serve’s expanding operating footprint and new vertical exposure from the Diligent Robotics acquisition could improve growth prospects over time. Serve Robotics Announces First Quarter 2026 Results with 3X Sequential Revenue Growth
• Positive Sentiment: Analyst sentiment improved after the report, with LADENBURG THALM/SH upgrading Serve Robotics to “strong-buy.” Zacks.com
• Neutral Sentiment: Vancouver approved a 6-month delivery robot pilot program, which is supportive of industry adoption but is not a direct financial catalyst yet. Vancouver approves 6-month delivery robot pilot program
• Neutral Sentiment: Coverage around delivery robots expanding in cities like Vancouver and Los Angeles suggests broader market acceptance, but the impact on SERV’s near-term earnings is uncertain. No tip required: food-delivery robots to roll on Vancouver sidewalks
• Negative Sentiment: Despite strong revenue growth, Serve posted a Q1 loss of $0.65 per share, wider than a year ago and below expectations, highlighting continued profitability pressure. Serve Robotics Inc. (SERV) Reports Q1 Loss, Beats Revenue Estimates
• Negative Sentiment: Management’s FY 2026 revenue guidance of about $26 million only slightly topped consensus, suggesting investors may still be waiting for a bigger upside surprise. Serve Robotics stock page
• Negative Sentiment: The company continues to report very weak margins and negative return on equity, reinforcing concerns that scaling the business remains expensive. Serve Robotics stock page

Insiders Place Their Bets

In other Serve Robotics news, insider Anthony Armenta sold 3,567 shares of the stock in a transaction on Friday, March 13th. The stock was sold at an average price of $9.82, for a total value of $35,027.94. Following the sale, the insider owned 540,919 shares in the company, valued at $5,311,824.58. This trade represents a 0.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, COO Touraj Parang sold 3,861 shares of the stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $8.62, for a total value of $33,281.82. Following the completion of the sale, the chief operating officer owned 1,312,344 shares in the company, valued at approximately $11,312,405.28. The trade was a 0.29% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 61,978 shares of company stock worth $586,826 over the last quarter. Company insiders own 5.00% of the company's stock.

Institutional Investors Weigh In On Serve Robotics

Several hedge funds have recently made changes to their positions in the company. Invesco Ltd. lifted its holdings in shares of Serve Robotics by 43.1% in the 4th quarter. Invesco Ltd. now owns 35,433 shares of the company's stock worth $368,000 after buying an additional 10,678 shares during the period. Creek Drive Management Group LLC purchased a new stake in shares of Serve Robotics in the 4th quarter worth $4,912,000. Mercer Global Advisors Inc. ADV purchased a new stake in shares of Serve Robotics in the 4th quarter worth $106,000. VARCOV Co. purchased a new stake in shares of Serve Robotics in the 4th quarter worth $1,751,000. Finally, Sphera Management Technology Funds Ltd purchased a new stake in shares of Serve Robotics in the 4th quarter worth $830,000.

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.