Serve Robotics (NASDAQ:SERV) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Serve Robotics (NASDAQ:SERV) posted its quarterly earnings data on Thursday. The company reported ($0.68) earnings per share for the quarter, topping the consensus estimate of ($0.70) by $0.02, Zacks reports. The business had revenue of $2.83 million during the quarter, compared to analysts’ expectations of $1.63 million. Serve Robotics had a negative return on equity of 55.34% and a negative net margin of 2,315.80%.

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

• Serve reported third-quarter revenue of $2.8 million, up more than 300% year over year, and raised its 2026 revenue outlook to $12 million from $9 million–$10 million. The new forecast implies about $3 million of fourth-quarter revenue.
• Delivery operations showed growth and efficiency gains: daily deliveries through DoorDash and Grubhub more than tripled from the end of Q2 to the end of Q3, while robots became 13% faster and maintained a 99.9% delivery completion rate. Management said fleet margin improved by more than 100 percentage points sequentially, helped by about $1 million in quarterly cost savings.
• The company launched Serve Physical AI Services, offering connectivity, real-world data, and data-curation tools to other robotics companies; Bedrock Robotics is a launch customer. Management cited interest across industries including construction, mining, and defense, but the offering is new and its revenue opportunity remains early.
• Despite improving costs, gross margin remained deeply negative at -266%, with a $7.6 million gross loss and a $59.2 million GAAP net loss for the quarter. Serve ended Q3 with more than $198 million in cash and marketable securities, while forecasting about $150 million in full-year non-GAAP operating expenses.

Serve Robotics Stock Performance

Shares of SERV traded up $0.90 on Friday, reaching $3.22. 9,685,525 shares of the stock traded hands, compared to its average volume of 3,180,078. Serve Robotics has a 12 month low of $2.26 and a 12 month high of $16.08. The stock’s 50-day moving average price is $3.99 and its 200-day moving average price is $7.07.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on SERV shares. Yorkville Ives began coverage on Serve Robotics in a report on Monday, October 5th. They set an “outperform” rating and a $8.00 price target for the company. Oppenheimer reissued an “outperform” rating on shares of Serve Robotics in a research report on Friday. Cantor Fitzgerald downgraded shares of Serve Robotics from an “overweight” rating to a “neutral” rating in a research note on Friday, August 7th. Zacks Research lowered shares of Serve Robotics from a “hold” rating to a “strong sell” rating in a research report on Tuesday, October 13th. Finally, Guggenheim dropped their target price on shares of Serve Robotics from $13.00 to $7.00 and set a “buy” rating on the stock in a research report on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $13.80.

Key Serve Robotics News

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

• Positive Sentiment: Serve reported third-quarter revenue of about $2.83 million, more than 300% above the year-earlier period and well ahead of analyst estimates of $1.63 million. Its loss of $0.68 per share was also narrower than estimates of roughly $0.70–$0.77. Serve Robotics Q3 results
• Positive Sentiment: The company raised its 2026 revenue guidance to $12 million, signaling improved expectations for growth. It also said daily average deliveries tripled in Q3, with new delivery partners, and that it launched its first international city in Australia in October. 2026 revenue guidance
• Neutral Sentiment: Serve launched physical-AI services, opening technology used by its robot fleet to other companies developing robots. This could create a business beyond deliveries, though the financial contribution and adoption are not yet established. Serve Robotics launches new business
• Negative Sentiment: Despite beating estimates, the quarterly loss widened to $0.68 per share from $0.54 a year earlier. The company also continues to report substantial negative margins, underscoring that rapid revenue growth has not yet translated into profitability. Serve Robotics Q3 loss

Insider Activity at Serve Robotics

In other Serve Robotics news, CFO Brian Read sold 9,700 shares of the company’s stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $4.80, for a total transaction of $46,560.00. Following the sale, the chief financial officer directly owned 276,002 shares of the company’s stock, valued at approximately $1,324,809.60. This represents a 3.40% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Touraj Parang sold 37,993 shares of the firm’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $4.55, for a total value of $172,868.15. Following the sale, the chief operating officer directly owned 1,260,251 shares of the company’s stock, valued at $5,734,142.05. This represents a 2.93% decrease in their ownership of the stock. 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 124,220 shares of company stock valued at $585,554 over the last quarter. 5.00% of the stock is owned by company insiders.

About Serve Robotics

Serve Robotics develops and operates autonomous, electric sidewalk delivery robots designed to transport goods over short distances. Its robots use cameras, sensors, artificial intelligence and remote human assistance to navigate sidewalks, cross streets and interact with customers while delivering items such as restaurant meals, groceries and other local orders.

The company’s services are primarily aimed at on-demand delivery platforms, restaurants and retailers. Serve has deployed its robots for commercial deliveries in the United States, including the Los Angeles area, and has worked with partners such as Uber Eats to support local delivery operations.