Serve Robotics Stock Declines Following Missed EPS Despite 578% Revenue Surge

TLDR

• Q1 revenue reached $3.0M, marking a 578% increase compared to the previous year and a 238% rise from the prior quarter, surpassing internal forecasts.
• Earnings per share (EPS) were reported at -$0.65, falling short of the consensus estimate of -$0.51.
• The company maintains its full-year 2026 revenue guidance at $26 million.
• No new sidewalk robot deployments are planned for the first half of 2026; efforts will focus on operational efficiency instead.
• The company holds $197.4 million in cash, with approximately 2,000 robots currently deployed.

(SeaPRwire) –   Serve Robotics recorded Q1 2026 revenue of $3.0 million, reflecting a 578% year-over-year increase and a 238% sequential growth. CEO Ali Kashani stated that results exceeded expectations, driven by expansion across both fleet operations and software services.

$SERV (Serve Robotics) #earnings are out: pic.twitter.com/NU5hXPKHxi

— The Earnings Correspondent (@earnings_guy) May 7, 2026

Despite beating revenue projections, EPS came in at -$0.65, below Wall Street’s consensus forecast of -$0.51.

Software services accounted for roughly one-third of total Q1 revenue, while nearly half of all revenue is now recurring—a key metric the company aims to expand further.

Serve Robotics Inc., SERV

Fleet operations generated around $2 million in revenue, with software services contributing approximately $1 million. Recurring revenue totaled about $1.4 million.

Gross margin remains significantly negative at -302%, although the company noted that software gross margin was positive. This disparity stems from the high costs associated with operating a large-scale physical robot fleet.

GAAP operating expenses amounted to $42.8 million for the quarter. The net loss stood at $49 million, or -$0.65 per share. On a non-GAAP basis, the net loss was $38 million, or -$0.50 per share.

Cash used in operations totaled $41.4 million. At the end of the quarter, the company held $197.4 million in cash and marketable securities.

Deployment Pause in H1

Serve has intentionally maintained its sidewalk robot fleet at approximately 2,000 units through the first half of 2026. The company has shifted its focus away from expanding the fleet toward improving productivity of existing units.

Kashani described Q2 as a foundational period, emphasizing that advancements in merchant activation, platform integrations, and geographic reach will set the stage for accelerated growth in the second half of the year.

Expansion Across Multiple Sectors

Through its acquisition of Diligent Robotics, Serve has entered the healthcare sector. The company now operates in 44 cities across 14 states, integrating hospital networks into its existing outdoor delivery infrastructure.

Together, the indoor and outdoor fleets have completed nearly 2 million cumulative deliveries.

CFO Brian Read outlined strategic financial priorities: enhance robot productivity, boost revenue per robot and per operating hour, and strengthen the sustainability of recurring revenue streams.

The company reaffirmed its full-year 2026 revenue target of $26 million and expects non-GAAP operating expenses to range between $160 million and $170 million.

Moxie and Serve robots are delivering over 10,000 supply hours daily to partners, with more than 800 robots active each day.