Serve Robotics (NASDAQ:SERV) Posts Quarterly Earnings Results, Misses Estimates By $0.11 EPS

Serve Robotics (NASDAQ:SERV) posted its earnings results on Thursday. The company reported ($0.80) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.69) by ($0.11), Zacks reports. Serve Robotics had a negative net margin of 2,315.80% and a negative return on equity of 56.83%. The business had revenue of $3.24 million for the quarter, compared to analysts’ expectations of $3.51 million.

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 Trading Down 10.4%

SERV traded down $0.59 during trading on Friday, reaching $5.09. The stock had a trading volume of 10,051,363 shares, compared to its average volume of 3,269,376. The company has a market capitalization of $393.83 million, a price-to-earnings ratio of -2.08 and a beta of 1.34. The stock’s 50 day moving average is $6.23 and its two-hundred day moving average is $8.44. Serve Robotics has a one year low of $4.32 and a one year high of $18.64.

Key Headlines Impacting Serve Robotics

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

• Positive Sentiment: Second-quarter revenue rose 404% year over year to $3.24 million, while recurring revenue exceeded 50% of total revenue. Serve also reported stronger gross margins compared with the prior quarter. Serve Robotics Announces Second Quarter 2026 Results
• Positive Sentiment: Serve expanded its autonomous delivery network through partnerships spanning food, grocery, healthcare and laundry services. DoorDash-related revenue increased nearly 50% sequentially, and the company added hospital customers and multiyear contract extensions. Serve Robotics Reports Q2 2026 Results
• Positive Sentiment: The company ended June with $240.4 million in cash and marketable securities and lowered its projected 2026 non-GAAP operating expenses to $140 million-$150 million from $160 million-$170 million, supporting financial flexibility.
• Neutral Sentiment: Management said it is concentrating its fleet and capital on higher-return opportunities. This could improve efficiency over time, but also signals a more cautious near-term expansion strategy.
• Negative Sentiment: Serve reported a second-quarter loss of $0.80 per share, wider than the $0.69 consensus estimate, on revenue below the $3.51 million forecast. The net loss reached $64.1 million, while operating expenses climbed to $57.3 million. Serve Robotics Reports Q2 Loss, Lags Revenue Estimates
• Negative Sentiment: The company cut full-year 2026 revenue guidance to $9 million-$10 million from a level implying approximately $25.8 million in sales. The reduction reflects lower-than-expected Uber Eats delivery volumes and the removal of anticipated second-half demand. Serve Robotics drops after cutting 2026 revenue outlook
• Negative Sentiment: Cantor Fitzgerald downgraded SERV from “overweight” to “neutral,” adding pressure after the earnings disappointment and guidance reduction.

Analyst Ratings Changes

A number of brokerages have issued reports on SERV. Freedom Capital downgraded shares of Serve Robotics from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, May 13th. Oppenheimer dropped their target price on shares of Serve Robotics from $20.00 to $7.00 and set an “outperform” rating for the company in a research report on Friday. Guggenheim initiated coverage on shares of Serve Robotics in a research report on Monday, April 20th. They set a “buy” rating and a $13.00 price target on the stock. Weiss Ratings raised shares of Serve Robotics from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, July 21st. Finally, LADENBURG THALM/SH SH raised their price objective on shares of Serve Robotics from $15.00 to $16.60 and gave the stock a “buy” rating in a report on Wednesday, May 13th. Six investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Serve Robotics presently has an average rating of “Moderate Buy” and an average price target of $15.66.

Insider Activity

In other news, Director David Michael Goldberg sold 10,600 shares of the company’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $7.20, for a total value of $76,320.00. Following the sale, the director directly owned 35,125 shares of the company’s stock, valued at $252,900. This represents a 23.18% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ali Kashani sold 15,885 shares of Serve Robotics stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $7.24, for a total transaction of $115,007.40. Following the transaction, the chief executive officer directly owned 3,278,091 shares of the company’s stock, valued at approximately $23,733,378.84. This trade represents a 0.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 32,200 shares of company stock worth $232,704. Corporate insiders own 5.00% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SERV. First Trust Advisors LP bought a new position in shares of Serve Robotics during the third quarter valued at $8,840,000. Vanguard Group Inc. boosted its stake in Serve Robotics by 25.2% in the 3rd quarter. Vanguard Group Inc. now owns 2,594,869 shares of the company’s stock worth $30,178,000 after purchasing an additional 521,945 shares in the last quarter. Creek Drive Management Group LLC bought a new position in Serve Robotics in the 4th quarter worth about $4,912,000. Geode Capital Management LLC grew its position in Serve Robotics by 29.1% during the 4th quarter. Geode Capital Management LLC now owns 1,457,965 shares of the company’s stock valued at $15,137,000 after purchasing an additional 328,405 shares during the last quarter. Finally, State Street Corp raised its holdings in Serve Robotics by 29.5% in the fourth quarter. State Street Corp now owns 1,245,411 shares of the company’s stock worth $12,927,000 after buying an additional 283,497 shares during the last quarter.

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.