Serve Robotics (NASDAQ:SERV) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Serve Robotics (NASDAQ:SERV) released its quarterly earnings results on Wednesday. The company reported ($0.46) EPS for the quarter, beating the consensus estimate of ($0.49) by $0.03, Zacks reports. The firm had revenue of $0.88 million during the quarter, compared to analyst estimates of $0.77 million. Serve Robotics had a negative net margin of 4,121.58% and a negative return on equity of 38.52%.

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

• Serve activated a fleet of 2,000 robots across 20 cities (nearly 1,000 deployed in Q4) while maintaining a 99.8% delivery completion rate, which management frames as proof the technology works at scale.
• Q4 revenue was $0.9M (≈400% YoY) and full-year 2025 revenue was $2.7M, and management raised 2026 revenue guidance to approximately $26M, citing acquisitions and expanded deployments as drivers.
• Serve completed four strategic acquisitions (Phantom Auto, Vayu, Diligent Robotics, Weebo) to build a cross-domain data and autonomy platform that the company says strengthens its “flywheel” by adding indoor hospital data, connectivity, model-building, and partner channels.
• Despite top-line growth, GAAP operating expenses were $34.3M in Q4 and adjusted EBITDA was negative about $28M; management projects 2026 non‑GAAP operating expenses of $160M–$170M, signaling continued heavy spending and cash burn even with $260M in cash and marketable securities.
• Monetization is diversifying — advertising/branding grew 50% YoY in Q4, software/data revenue began in Q4 with ~70% of software recurring, and Diligent’s hospital contracts are expected to contribute roughly $7M in 2026 recurring revenue.

Serve Robotics Stock Performance

NASDAQ SERV traded down $0.93 on Thursday, reaching $9.73. 3,008,556 shares of the company’s stock traded hands, compared to its average volume of 5,929,371. The stock has a 50 day moving average price of $11.35 and a 200-day moving average price of $11.66. The firm has a market cap of $724.32 million, a price-to-earnings ratio of -6.57 and a beta of 0.90. Serve Robotics has a fifty-two week low of $4.66 and a fifty-two week high of $18.64.

Analyst Ratings Changes

A number of analysts have recently weighed in on SERV shares. Oppenheimer began coverage on shares of Serve Robotics in a report on Thursday, December 18th. They issued an “outperform” rating and a $20.00 target price on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Serve Robotics in a research note on Monday, December 29th. Freedom Capital upgraded shares of Serve Robotics to a “strong-buy” rating in a report on Wednesday, December 31st. Loop Capital set a $16.00 target price on Serve Robotics in a research note on Wednesday, December 31st. Finally, Northland Securities reaffirmed an “outperform” rating and issued a $26.00 price objective on shares of Serve Robotics in a research report on Friday, January 2nd. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Buy” and an average target price of $18.80.

Insider Activity

In other Serve Robotics news, insider Anthony Armenta sold 5,003 shares of the stock in a transaction dated Monday, December 15th. The stock was sold at an average price of $11.96, for a total value of $59,835.88. Following the sale, the insider owned 555,034 shares of the company’s stock, valued at $6,638,206.64. This trade represents a 0.89% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Brian Read sold 6,700 shares of the stock in a transaction on Friday, December 12th. The shares were sold at an average price of $13.15, for a total transaction of $88,105.00. Following the completion of the transaction, the chief financial officer directly owned 337,199 shares in the company, valued at $4,434,166.85. This trade represents a 1.95% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 108,740 shares of company stock valued at $1,245,810 in the last quarter. Company insiders own 5.50% of the company’s stock.

Hedge Funds Weigh In On Serve Robotics

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Invesco Ltd. boosted its position in shares of Serve Robotics by 43.1% in the fourth quarter. Invesco Ltd. now owns 35,433 shares of the company’s stock worth $368,000 after acquiring an additional 10,678 shares during the last quarter. Creek Drive Management Group LLC acquired a new position in shares of Serve Robotics in the 4th quarter valued at $4,912,000. Mercer Global Advisors Inc. ADV acquired a new stake in shares of Serve Robotics during the 4th quarter worth $106,000. VARCOV Co. acquired a new stake in shares of Serve Robotics during the 4th quarter worth $1,751,000. Finally, Sphera Management Technology Funds Ltd purchased a new position in shares of Serve Robotics in the 4th quarter worth $830,000.

More Serve Robotics News

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

• Positive Sentiment: Q4 beat and upgraded guidance — Serve reported Q4 revenue (~$0.9M) and EPS that topped estimates and raised 2026 revenue guidance to $26M, which materially improved near‑term growth visibility. Serve Robotics Announces Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: New merchant partnership — Serve added White Castle deliveries via Uber Eats, expanding merchant mix and consumer use cases alongside existing DoorDash and Uber Eats integrations. This supports revenue scaling if order density rises. Serve Robotics and White Castle Launch Autonomous Delivery via Uber Eats
• Positive Sentiment: Scale & acquisitions — Management says ~2,000 robots are deployed across ~20 cities, 4,500+ merchant partners and strategic buys (e.g., Diligent Robotics) that broaden addressable markets (sidewalk + indoor). Execution on these could accelerate revenue. Serve Robotics Q4 2025 Earnings Transcript
• Positive Sentiment: Technical squeeze/option flow — Heavy call‑option buying and ~29% short interest created short‑squeeze potential that amplified today’s rally independent of fundamentals. SERV Robotics Delivers Catalyst for Short-Squeeze
• Neutral Sentiment: Analyst & institutional activity — Several firms reiterating buy/outperform ratings and institutions have added shares; this bolsters liquidity and sentiment but doesn’t remove execution risk. Serve Robotics Up 13%: NVIDIA Loves It, Analysts See 67% More Upside
• Neutral Sentiment: Management commentary — CEO interviews and the earnings call highlight new verticals (hospitals/indoor robots) and roadmap color; useful for long‑term thesis but dependent on execution. Serve Robotics (SERV) CEO on White Castle Partnership & AI Expansion into Hospitals
• Negative Sentiment: Insider selling — Multiple recent Form 4 filings show CEO, COO and CFO selling shares; markets often view concentrated insider selling as a near‑term negative signal. SEC Form 4 (CEO sale)
• Negative Sentiment: Execution & cash‑burn risks — Q4 revenue (~$0.9M) is small relative to a 2,000‑robot fleet; critics note 2026 guidance ($26M) is below earlier implied targets and planned CapEx (~$25M) approaches projected revenue, highlighting dilution and funding risk. Serve Robotics: Immaterial Progress

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.