Serve Robotics (NASDAQ:SERV) Issues Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Serve Robotics (NASDAQ:SERV) announced its quarterly earnings data on Thursday. The company reported ($0.68) EPS for the quarter, topping the consensus estimate of ($0.70) by $0.02, Zacks reports. Serve Robotics had a negative net margin of 2,315.80% and a negative return on equity of 55.34%. The company had revenue of $2.83 million during the quarter, compared to the consensus estimate of $1.63 million.

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

• Serve reported third-quarter revenue of $2.8 million, up more than 300% year over year, and raised its 2026 revenue outlook to $12 million from $9 million–$10 million. The new forecast implies about $3 million of fourth-quarter revenue.
• Delivery operations showed growth and efficiency gains: daily deliveries through DoorDash and Grubhub more than tripled from the end of Q2 to the end of Q3, while robots became 13% faster and maintained a 99.9% delivery completion rate. Management said fleet margin improved by more than 100 percentage points sequentially, helped by about $1 million in quarterly cost savings.
• The company launched Serve Physical AI Services, offering connectivity, real-world data, and data-curation tools to other robotics companies; Bedrock Robotics is a launch customer. Management cited interest across industries including construction, mining, and defense, but the offering is new and its revenue opportunity remains early.
• Despite improving costs, gross margin remained deeply negative at -266%, with a $7.6 million gross loss and a $59.2 million GAAP net loss for the quarter. Serve ended Q3 with more than $198 million in cash and marketable securities, while forecasting about $150 million in full-year non-GAAP operating expenses.

Serve Robotics Trading Up 38.8%

Shares of SERV traded up $0.90 during midday trading on Friday, reaching $3.22. The stock had a trading volume of 9,685,525 shares, compared to its average volume of 4,478,668. The company has a market capitalization of $279.21 million, a price-to-earnings ratio of -1.31 and a beta of 1.91. The company’s 50-day moving average is $3.99 and its 200 day moving average is $7.07. Serve Robotics has a 12-month low of $2.26 and a 12-month high of $16.08.

Insider Activity

In related news, CEO Ali Kashani sold 45,158 shares of the firm’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $4.56, for a total value of $205,920.48. Following the sale, the chief executive officer directly owned 3,232,933 shares of the company’s stock, valued at $14,742,174.48. This trade represents a 1.38% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Brian Read sold 25,240 shares of the firm’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $5.24, for a total value of $132,257.60. Following the completion of the sale, the chief financial officer directly owned 291,831 shares of the company’s stock, valued at $1,529,194.44. The trade was a 7.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 124,220 shares of company stock valued at $585,554. 5.00% of the stock is currently owned by insiders.

Trending Headlines about Serve Robotics

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

• Positive Sentiment: Serve reported third-quarter revenue of about $2.83 million, more than 300% above the year-earlier period and well ahead of analyst estimates of $1.63 million. Its loss of $0.68 per share was also narrower than estimates of roughly $0.70–$0.77. Serve Robotics Q3 results
• Positive Sentiment: The company raised its 2026 revenue guidance to $12 million, signaling improved expectations for growth. It also said daily average deliveries tripled in Q3, with new delivery partners, and that it launched its first international city in Australia in October. 2026 revenue guidance
• Neutral Sentiment: Serve launched physical-AI services, opening technology used by its robot fleet to other companies developing robots. This could create a business beyond deliveries, though the financial contribution and adoption are not yet established. Serve Robotics launches new business
• Negative Sentiment: Despite beating estimates, the quarterly loss widened to $0.68 per share from $0.54 a year earlier. The company also continues to report substantial negative margins, underscoring that rapid revenue growth has not yet translated into profitability. Serve Robotics Q3 loss

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the stock. Weiss Ratings upgraded shares of Serve Robotics from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Friday, October 30th. Freedom Capital upgraded shares of Serve Robotics from a “hold” rating to a “strong-buy” rating in a research note on Friday, August 14th. Oppenheimer restated an “outperform” rating on shares of Serve Robotics in a research report on Friday. Guggenheim dropped their target price on Serve Robotics from $13.00 to $7.00 and set a “buy” rating on the stock in a research report on Monday, August 10th. Finally, Zacks Research lowered Serve Robotics from a “hold” rating to a “strong sell” rating in a report on Tuesday, October 13th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $13.80.

Serve Robotics Company Profile

Serve Robotics develops and operates autonomous, electric sidewalk delivery robots designed to transport goods over short distances. Its robots use cameras, sensors, artificial intelligence and remote human assistance to navigate sidewalks, cross streets and interact with customers while delivering items such as restaurant meals, groceries and other local orders.

The company’s services are primarily aimed at on-demand delivery platforms, restaurants and retailers. Serve has deployed its robots for commercial deliveries in the United States, including the Los Angeles area, and has worked with partners such as Uber Eats to support local delivery operations.