Serve Robotics (NASDAQ:SERV) Issues Earnings Results

Serve Robotics (NASDAQ:SERV) announced its earnings results on Thursday, May 7th. The company reported ($0.65) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.57) by ($0.08), Zacks reports. Serve Robotics had a negative return on equity of 47.31% and a negative net margin of 2,639.98%.The business had revenue of $2.98 million for 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 Stock Down 5.7%

Shares of Serve Robotics stock opened at $6.41 on Wednesday. The firm has a market cap of $495.94 million, a PE ratio of -3.19 and a beta of 0.53. Serve Robotics has a 52 week low of $6.34 and a 52 week high of $18.64. The business’s fifty day simple moving average is $8.51 and its 200-day simple moving average is $9.94.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. LADENBURG THALM/SH SH raised their price target on shares of Serve Robotics from $15.00 to $16.60 and gave the stock a “buy” rating in a research note on Wednesday, May 13th. Cantor Fitzgerald dropped their price objective on shares of Serve Robotics from $17.00 to $16.00 and set an “overweight” rating for the company in a research note on Tuesday, March 17th. Weiss Ratings upgraded shares of Serve Robotics from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday, June 17th. Freedom Capital downgraded shares of Serve Robotics from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 13th. Finally, Guggenheim started coverage on shares of Serve Robotics in a research note on Monday, April 20th. They issued a “buy” rating and a $13.00 target price on the stock. Seven investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $17.51.

Insiders Place Their Bets

In related news, COO Touraj Parang sold 4,219 shares of the business’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $7.24, for a total value of $30,545.56. Following the sale, the chief operating officer directly owned 1,298,244 shares in the company, valued at approximately $9,399,286.56. The trade was a 0.32% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ali Kashani sold 15,885 shares of the company’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $7.24, for a total transaction of $115,007.40. Following the completion of the transaction, the chief executive officer directly owned 3,278,091 shares in the company, valued at $23,733,378.84. The trade was a 0.48% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 91,250 shares of company stock valued at $768,253 over the last 90 days. Company insiders own 5.00% of the company’s stock.

Institutional Investors Weigh In On Serve Robotics

Institutional investors and hedge funds have recently made changes to their positions in the stock. Quadrant Capital Group LLC purchased a new position in shares of Serve Robotics during the 4th quarter worth approximately $31,000. Kestra Advisory Services LLC purchased a new stake in Serve Robotics in the fourth quarter valued at approximately $39,000. Russell Investments Group Ltd. purchased a new stake in Serve Robotics in the third quarter valued at approximately $59,000. Mercer Global Advisors Inc. ADV purchased a new stake in Serve Robotics in the fourth quarter valued at approximately $106,000. Finally, BNP Paribas Financial Markets lifted its stake in Serve Robotics by 74.1% during the third 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 in the last quarter.

About Serve Robotics

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.