Serve Robotics Inc(SERV)
$3.17+0.06 (+1.77%)
SERV
Serve Robotics Inc earnings date
$3.17
At close:+0.06 (+1.77%)
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Serve Robotics Inc (SERV) Q3 2026 Earnings Report
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SERV Q3 2026 EPS Results
- Actual EPS
- -$0.68
- Consensus EPS
- -$0.70
- Beat/Miss
- Beat by +$0.02
- One Year Ago EPS
- -$0.40
SERV Q3 2026 Revenue Results
- Actual Revenue
- $2.83M
- Expected Revenue
- $1.63M
- Beat/Miss
- Beat by +$1.21M
- YoY Revenue Growth
- +312.66%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/05/2026
- Time
- After Close
- Conference Call
- Thursday, November 5, 2026
SERV Upcoming Earnings
Serve Robotics Inc's next earnings date is estimated for March 11, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
SERV Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Management reported revenue growth of over 300% year-over-year, raised full-year guidance by almost 30%, expanded delivery and healthcare operations, improved robot performance and fleet margins, reduced operating expenses, and launched Physical AI services. The main negatives were the continuing $7.6 million gross loss, negative 266% gross margin, $59.2 million net loss, software-services volatility, lower Uber volume and the nonrecurring portion of branding revenue. Highlights significantly outweighed the lowlights.
Company Guidance
Serve Robotics raised full year 2026 revenue guidance to $12 million from the previous guidance of $9 million to $10 million, implying fourth quarter revenue of approximately $3 million and putting the company on track for 4.5x its prior year revenue versus the previously expected 3.5x; it expects full year non-GAAP operating expenses of approximately $150 million, $20 million below expectations at the start of the year, full year capital expenditures in line with the prior $15 million to $17 million, and stock-based compensation to remain approximately $50 million. The company also reiterated $7 million on Diligent and said early micro-depot deployments are expected to launch cities with 1/5 the cost and in a fraction of the time required compared to legacy deployment formats.
- Revenue Growth and Raised 2026 GuidanceThird quarter revenue was $2.8 million, ahead of expectations and up over 300% year-over-year from roughly $700,000. Full-year 2026 revenue guidance was raised to $12 million from the previous range of $9 million to $10 million, an almost 30% increase. The updated outlook implies approximately $3 million of fourth-quarter revenue and puts the company on track for 4.5x prior-year revenue, compared with the previously expected 3.5x.
- Strong Growth From DoorDash and GrubhubDaily deliveries with DoorDash and Grubhub more than tripled from the end of Q2 to the end of Q3, while their share of all deliveries more than doubled. The number of merchants from the new platforms grew over 2.5x during the same period. Grubhub daily delivery growth was described as approximately 60% to 70% in the last month, while DoorDash daily volume had roughly tripled.
- Improved Robot Speed, Coverage and ReliabilityRobots were 13% faster than in Q2, representing a 13% speed increase in a few months. Robots traveled 7% more miles per delivery, allowing them to cover more business while making timely drop-offs. The Q3 delivery completion rate was 99.9%, unchanged from Q2, meaning 999 of every 1,000 deliveries were completed successfully.
- Fleet Cost Reductions and Margin ImprovementCost-reduction programs saved approximately $1 million during the quarter and benefited cost per delivery. Procurement, maintenance, repairs and replacement-parts improvements generated efficiencies, while a deployment redesign cut external deployment costs by 75%. Fleet margin improved by over 100 percentage points from Q2 to Q3, and total cost of revenues declined 14%.
- Progress in Autonomy and Operating EfficiencyAdvances in Level 4 autonomy helped robots move faster and reduced staffing costs needed to support them. Management said autonomy improvements lowered remote-operations cost per delivery, and further autonomy announcements were expected in the coming weeks.
- Expanded Access Through Network Partnerships and BeaconThe company added demand channels through its relationship with Wonder and Grubhub, including in the Washington, D.C. metropolitan area. Beacon, which enables direct merchant integration through a small tablet that provides delivery notifications, launched its first Beacon-enabled locations in San Antonio, Texas. The company reported that its first merchants are now using Beacon and expects adoption to increase over time.
- International Expansion and Market Deployment PlaybooksServe developed deployment, policy and AI playbooks after scaling to more than 20 U.S. cities and is using those learnings to enter international markets with less friction. The company launched in Gold Coast, Australia, its first international market, through an exclusive DoorDash partnership, with Clifford University hosting the local operations teams. Serve is also working with the province on a potential first Canadian city following Vancouver City Council approval of its pilot proposal.
- Micro Depot Deployment EconomicsMicro depots provide local bases for charging, staging and maintaining robots close to their operating areas. In early deployments using this format, the company expects to launch cities with 1/5 the cost and in a fraction of the time required by legacy deployment formats, and said it continues to invest heavily in the approach.
- Growing Fleet and Branding RevenueThe fleet reached 2,000 robots operating in 40 cities and 27 hospitals. Branding revenue grew nearly 80% from Q2 to Q3, and management reported a strong pipeline of upcoming opportunities and the return of major campaigns.
- Successful Underdog Sports Branding CampaignThe six-week Underdog sports campaign ran across Dallas, Atlanta, Miami and Los Angeles. It used 455 robots, generated 144 million impressions and covered nearly 100,000 miles.
- Healthcare Customer Retention and ExpansionHealthcare revenue was in line with expectations in Q3. Year-to-date, Serve signed multiyear contract extensions with 12 existing hospital clients, and three hospital clients expanded their robot fleets. The company added four hospitals in 2026 through the end of Q3 and now serves 27 hospitals across the U.S.
- Physical AI Data OpportunityInbound inquiries about Serve's foundation-model data are increasing, and the company is beginning to serve its first customer. Management said the company's experience operating robots in sidewalks and hospitals has generated proprietary data covering diverse real-world environments and edge cases.
- Launch of Physical AI ServicesServe announced Physical AI services built from technology already used to operate its fleets. The initial offering includes Serve Link, a high-performance data link connecting fleets to offboard intelligence; a catalog of real-world foundation-model data; and data-curation infrastructure for fleet-scale AI learning. Management said the offering requires no new robot build, no incremental capital expenditures and does not consume fleet supply hours.
- Initial Physical AI Customer and Broad PipelineBedrock Robotics, which builds autonomous construction systems, uses Serve Link for connectivity across LTE, 5G and satellites. Management said the customer and pipeline span construction, mining and defense, providing evidence and traction to establish Physical AI services as a new business line.
- Recurring Revenue Mix and Serve Link GrowthRecurring revenue accounted for 69% of total Q3 revenue, supported by Serve Link connectivity growth of 23%. Management said recurring revenue growth continues to outpace nonrecurring revenue, and described Serve Link as a software service with a recurring fee per device and good gross margin.
- Operating Expense DisciplineGAAP operating expenses were $53.6 million, down 7% from Q2. Non-GAAP operating expenses were $39.2 million, down $1.2 million sequentially and representing the first sequential decline of the year. Terminated consulting engagements and reduced nonessential spending removed nearly $8 million from second-half spending versus the prior plan. Headcount remained flat in Q3, with other functions flat or down and expected to remain so through Q4.
- Lower Full-Year Operating Expense OutlookFull-year non-GAAP operating expenses are expected to be approximately $150 million, which is $20 million below expectations at the start of the year. Full-year capital expenditures remain expected to be $15 million to $17 million, and stock-based compensation is expected to remain approximately $50 million.
- Liquidity and Capital PositionServe ended the quarter with more than $198 million in cash and marketable securities. Capital expenditures were approximately $5.3 million in Q3 before the benefit of an additional $1 million in tariff refunds received during the period.
- Continued Investment in Core Technology and Moxi 2.0R&D increased to $22.6 million, or $16.7 million on a non-GAAP basis, from $14.9 million. The investment is focused on core autonomy, the next-generation Physical AI services platform, Moxi 2.0 and engineering compute resources. Serve said Moxi 2.0 hardware is now rolling out, with plans to upgrade the current fleet and place robots in new hospitals.
- Diligent Healthcare PerformanceManagement reiterated $7 million for Diligent and described its performance throughout the year as strong. The company is evaluating ways to support further growth into 2027, supported by planned capital expenditures and investments.
SERV Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 11, 2027 | 2026 (Q4) | -0.68- | -0.46 | ― | ― |
| Nov 05, 2026 | 2026 (Q3) | -0.70-0.68 | -0.4 | -70.00% (-0.28) | |
| Aug 06, 2026 | 2026 (Q2) | -0.69-0.80 | -0.36 | -122.22% (-0.44) | |
| May 07, 2026 | 2026 (Q1) | -0.57-0.65 | -0.23 | -182.61% (-0.42) | |
| Mar 11, 2026 | 2025 (Q4) | -0.48-0.46 | -0.36 | -27.78% (-0.10) | |
| Nov 12, 2025 | 2025 (Q3) | -0.32-0.40 | -0.2 | -100.00% (-0.20) | |
| Aug 07, 2025 | 2025 (Q2) | -0.20-0.36 | -0.27 | -33.33% (-0.09) | |
| May 08, 2025 | 2025 (Q1) | -0.19-0.23 | -0.37 | 37.84% (+0.14) | |
| Mar 06, 2025 | 2024 (Q4) | -0.16-0.36 | -0.19 | -89.47% (-0.17) | |
| Nov 07, 2024 | 2024 (Q3) | -0.16-0.20 | -0.21 | 2.91% (+0.01) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
