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

Serve Robotics (NASDAQ:SERV) issued its quarterly earnings data on Wednesday. The company reported ($0.46) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.49) by $0.03, Zacks reports. The firm had revenue of $0.88 million during the quarter, compared to analysts’ expectations 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 Down 8.6%

SERV stock traded down $0.92 during mid-day trading on Thursday, reaching $9.73. 2,188,731 shares of the stock traded hands, compared to its average volume of 5,911,323. The firm has a market capitalization of $724.69 million, a PE ratio of -6.49 and a beta of 0.90. The business has a 50-day moving average of $11.35 and a two-hundred day moving average of $11.66. Serve Robotics has a 52 week low of $4.66 and a 52 week high of $18.64.

Analysts Set New Price Targets

A number of brokerages have weighed in on SERV. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Serve Robotics in a research report on Monday, November 17th. Freedom Capital raised Serve Robotics to a “strong-buy” rating in a research note on Wednesday, December 31st. LADENBURG THALM/SH SH upgraded Serve Robotics to a “strong-buy” rating in a report on Thursday, December 18th. Northland Securities reaffirmed an “outperform” rating and set a $26.00 target price on shares of Serve Robotics in a research report on Friday, January 2nd. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Serve Robotics in a report on Monday, December 29th. Two equities research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Buy” and a consensus price target of $18.80.

Insiders Place Their Bets

In other Serve Robotics news, COO Touraj Parang sold 5,998 shares of Serve Robotics stock in a transaction that occurred on Wednesday, February 4th. The stock was sold at an average price of $10.33, for a total value of $61,959.34. Following the transaction, the chief operating officer directly owned 1,323,685 shares of the company’s stock, valued at $13,673,666.05. The trade was a 0.45% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Brian Read sold 6,700 shares of the company’s stock in a transaction that occurred on Friday, December 12th. The stock was sold at an average price of $13.15, for a total value of $88,105.00. Following the transaction, the chief financial officer owned 337,199 shares of the company’s stock, valued at approximately $4,434,166.85. This trade represents a 1.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 108,740 shares of company stock valued at $1,245,810. Company insiders own 5.50% of the company’s stock.

Institutional Investors Weigh In On Serve Robotics

Hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its stake in Serve Robotics by 25.2% during the 3rd quarter. Vanguard Group Inc. now owns 2,594,869 shares of the company’s stock valued at $30,178,000 after purchasing an additional 521,945 shares during the last quarter. Geode Capital Management LLC grew its position in Serve Robotics by 29.1% in the 4th quarter. Geode Capital Management LLC now owns 1,457,965 shares of the company’s stock worth $15,137,000 after purchasing an additional 328,405 shares during the last quarter. State Street Corp increased its holdings in shares of Serve Robotics by 29.5% during the 4th quarter. State Street Corp now owns 1,245,411 shares of the company’s stock worth $12,927,000 after purchasing an additional 283,497 shares during the period. First Trust Advisors LP increased its holdings in shares of Serve Robotics by 34.5% during the 4th quarter. First Trust Advisors LP now owns 1,022,459 shares of the company’s stock worth $10,613,000 after purchasing an additional 262,348 shares during the period. Finally, Legal & General Group Plc raised its position in shares of Serve Robotics by 8.3% during the third quarter. Legal & General Group Plc now owns 751,834 shares of the company’s stock valued at $8,816,000 after buying an additional 57,905 shares during the last quarter.

Key Serve Robotics News

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

• Positive Sentiment: Q4 results beat and management raised FY‑2026 revenue guidance to $26M, which topped street expectations and helped lift sentiment. Serve Robotics Announces Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: New merchant partnership: Serve launched autonomous White Castle deliveries via Uber Eats, expanding its merchant mix and consumer use cases (adds to existing DoorDash & Uber Eats relationships). Serve Robotics and White Castle Launch Autonomous Delivery via Uber Eats
• Positive Sentiment: Scale milestones: Serve says it ended 2025 with ~2,000 robots deployed across ~20 cities, 4,500+ merchant partners and completed strategic acquisitions (including Diligent Robotics) that broaden addressable markets. These operational updates support the revenue guidance path. Serve Robotics Q4 2025 Earnings Transcript
• Positive Sentiment: Market dynamics: high short interest and elevated call‑option activity have amplified the price move and created short‑squeeze potential after the better‑than‑expected report. That technical pressure can accelerate rallies. SERV Robotics Delivers Catalyst for Short-Squeeze
• Neutral Sentiment: Institutional/analyst context — several firms have recently issued bullish coverage and price targets above current levels; institutions have been adding shares, which supports liquidity but doesn’t guarantee sustained fundamentals. Serve Robotics Up 13%: NVIDIA Loves It, Analysts See 67% More Upside
• Neutral Sentiment: Management commentary and interviews (CEO earnings interview/transcript) provide color on expansion plans and new verticals (hospitals/indoor robots) but require execution to translate into material revenue. Serve Robotics CEO on White Castle Partnership & AI Expansion into Hospitals
• Negative Sentiment: Insider selling: multiple recent Form 4 filings show executives (including the CEO, COO and CFO) selling shares, which some investors view as a negative signal about near‑term conviction. SEC Form 4 (CEO sale)
• Negative Sentiment: Execution & profitability concerns: critics note Q4 revenue remains small (~$0.9M) relative to fleet size and management’s $26M guidance is well below earlier implied targets — plus planned CapEx (~$25M) is roughly equal to projected 2026 revenue, raising cash‑burn, dilution and execution risk. Serve Robotics: Immaterial Progress

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.