Serve Robotics (SERV) Stock Falls After EPS Miss Despite 578% Revenue Jump

TLDR

• Q1 revenue hit $3.0M, up 578% year-over-year and 238% sequentially, beating internal expectations
• EPS came in at -$0.65, missing consensus of -$0.51
• Company reiterates full-year 2026 revenue guidance of $26M
• No new sidewalk robot deployments planned in H1 2026; focus shifts to efficiency
• Cash position stands at $197.4M with ~2,000 robots currently active

Serve Robotics posted Q1 2026 revenue of $3.0 million, up 578% year-over-year and 238% sequentially. CEO Ali Kashani said results came in “above expectations,” driven by growth across fleet and software services.

Despite the revenue beat, EPS landed at -$0.65, missing Wall Street’s consensus estimate of -$0.51.

Software services made up roughly one-third of Q1 revenue. Just under half of total revenue is now recurring, a metric the company has been pushing to grow.

Serve Robotics Inc., SERV

Fleet revenue accounted for approximately $2 million of the quarter’s total, with software revenue contributing around $1 million. Recurring revenue alone was approximately $1.4 million.

Gross margin remains deeply negative at -302%, though the company noted software gross margin was positive. That gap reflects the cost-heavy nature of running a physical robot fleet at scale.

GAAP operating expenses were $42.8 million for the quarter. Net loss came in at $49 million, or -$0.65 per share. Non-GAAP net loss was $38 million, or -$0.50 per share.

Cash used in operations was $41.4 million. The company ended the quarter with $197.4 million in cash and marketable securities.

H1 Deployment Pause

Serve is deliberately holding its sidewalk robot fleet at around 2,000 units through the first half of 2026. The company says the focus has shifted from adding robots to making existing ones more productive.

Kashani framed Q2 as a setup quarter, saying the work on merchant activation, delivery platform integrations, and geographic coverage is building toward “the second half of the year when the growth picks up again.”

Multi-Domain Expansion

Serve entered the healthcare space through its acquisition of Diligent Robotics. The company now operates across 44 cities in 14 states, adding hospital networks to its existing sidewalk delivery footprint.

The combined fleet is approaching 2 million cumulative deliveries across indoor and outdoor environments.

CFO Brian Read outlined the financial priorities going forward: improve robot productivity, grow revenue per robot and per operating hour, and build a more durable recurring revenue base.

The company reaffirmed full-year 2026 revenue guidance of $26 million and non-GAAP operating expense guidance of $160 million to $170 million.

Moxie and Serve robots are currently providing over 10,000 robot supply hours to partners every day, with more than 800 robots active daily.

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