Serve Robotics (NASDAQ:SERV) Releases Earnings Results, Misses Expectations By $0.08 EPS

Serve Robotics (NASDAQ:SERV) released its quarterly earnings results on Thursday. The company reported ($0.65) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.57) by ($0.08), Zacks reports. Serve Robotics had a negative return on equity of 48.88% and a negative net margin of 2,639.98%.The firm had revenue of $2.98 million during the quarter, compared to analyst estimates of $2.83 million.

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

• Q1 revenue nearly $3 million, up ~7x year‑over‑year and ~3.5x sequentially, and management reiterated it is on track to meet its $26 million 2026 revenue guidance.
• Revenue mix is shifting toward higher‑margin streams — fleet revenue was about $2M and software services roughly $1M, with software contributing positive gross margins and ~1/3 of Q1 revenue coming from software services.
• Operational scale and safety: the combined footprint is nearly 2,000 robots deployed across 44 cities (14 states), with >800 daily active robots and >10,000 daily supply hours, and the company reports no incidents causing serious injury.
• Financials remain loss‑heavy: Q1 gross loss was ~ $90M (gross margin -302%), GAAP net loss $49M (non‑GAAP $38M), and management expects ~ $160–$170M non‑GAAP operating expenses for 2026, though the company ended Q1 with $197.4M of cash and marketable securities.

Serve Robotics Price Performance

Shares of NASDAQ SERV traded up $0.28 during mid-day trading on Monday, hitting $9.05. The company had a trading volume of 2,721,004 shares, compared to its average volume of 4,855,379. Serve Robotics has a 12 month low of $7.66 and a 12 month high of $18.64. The firm’s 50 day simple moving average is $9.25 and its two-hundred day simple moving average is $10.68. The stock has a market cap of $699.79 million, a price-to-earnings ratio of -4.50 and a beta of 0.96.

Insider Transactions at Serve Robotics

In other news, CEO Ali Kashani sold 14,644 shares of the stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $9.26, for a total transaction of $135,603.44. Following the completion of the sale, the chief executive officer owned 3,293,976 shares in the company, valued at approximately $30,502,217.76. This represents a 0.44% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Anthony Armenta sold 3,567 shares of the company’s stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $9.82, for a total transaction of $35,027.94. Following the completion of the sale, the insider owned 540,919 shares of the company’s stock, valued at approximately $5,311,824.58. This trade represents a 0.66% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 101,247 shares of company stock valued at $951,073. 5.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Serve Robotics

A number of institutional investors have recently modified their holdings of SERV. Quadrant Capital Group LLC acquired a new position in Serve Robotics in the fourth quarter worth approximately $31,000. Kestra Advisory Services LLC acquired a new stake in Serve Robotics in the 4th quarter valued at approximately $39,000. Russell Investments Group Ltd. acquired a new position in shares of Serve Robotics during the third quarter worth approximately $59,000. Mercer Global Advisors Inc. ADV bought a new stake in Serve Robotics in the 4th quarter valued at $106,000. Finally, BNP Paribas Financial Markets increased its holdings in shares of Serve Robotics by 74.1% during the 3rd quarter. BNP Paribas Financial Markets now owns 9,278 shares of the company’s stock worth $108,000 after purchasing an additional 3,950 shares during the period.

Analyst Ratings Changes

Several analysts have commented on SERV shares. LADENBURG THALM/SH SH raised shares of Serve Robotics to a “strong-buy” rating in a research note on Wednesday, May 6th. Guggenheim initiated coverage on shares of Serve Robotics in a report on Monday, April 20th. They issued a “buy” rating and a $13.00 target price for the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Serve Robotics in a report on Friday, March 27th. Finally, Cantor Fitzgerald dropped their price objective on Serve Robotics from $17.00 to $16.00 and set an “overweight” rating for the company in a report on Tuesday, March 17th. Two investment analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Buy” and a consensus price target of $17.67.

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.