SERV

Serve Robotics Inc. SERV reported weak second-quarter 2026 results on Aug. 6, with both earnings and revenues missing the Zacks Consensus Estimate by 15.9% and 8.5%, respectively. The company’s loss widened year over year, while revenues increased sharply from the prior-year quarter. Shares of Serve Robotics have declined 17.8% since the earnings release, reflecting negative investor sentiment toward the weaker-than-expected results and reduced 2026 revenue guidance. Loss per share stood at 80 cents, compared with 36 cents in the prior-year quarter, while revenues of $3.24 million increased 404.4% year over year. Fleet services revenues rose 598.5%, while software services revenues increased 199%. Daily active robots averaged 792 during the quarter, up 395% from the prior-year quarter.Furthermore, Serve Robotics lowered its 2026 revenue guidance, reflecting a weaker outlook for the year. The company also reduced its non-GAAP operating expense outlook as part of its efforts to align costs with the revised plan. (read more: SERV Q2 Loss Wider Than Expected, Revenues Increase Y/Y, Stock Down)Shares of Serve Robotics have tumbled 55% year to date (“YTD”), underperforming the Zacks Computers - IT Services industry, the broader Zacks Computer and Technology sector and the S&P 500 Index, as shown in the chart below. Image Source: Zacks Investment Research Let us take a closer look at the factors weighing on Serve Robotics’ prospects. Serve Robotics’ revised 2026 revenue outlook remains a key concern for the stock. The company lowered its revenue guidance to $9-$10 million from $26 million previously, after the delivery volume growth expected in the second half failed to materialize. The change also reflects the decline in delivery volumes during the second quarter, making the revised outlook a more important measure of near-term revenue visibility.The Uber partnership adds to the uncertainty. Delivery volumes through Uber declined during the second quarter after growing for 17 consecutive quarters. Serve Robotics attributed the change mainly to differences in the operating model and integration between the two companies. The company currently does not expect to renew the agreement after it expires in early 2027 unless the operating model improves. This could put greater importance on other delivery channels and direct merchant opportunities.Profitability remains another challenge as the company continues to invest in its robotics platform. The company reported a gross loss of about $8.8 million in the second quarter, while non-GAAP operating expenses stood at about $40.4 million. Although Serve Robotics is tightening spending, stronger robot utilization and revenue growth will remain important for improving the financial model. SERV stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-sales (P/S) ratio of 13.31, as evidenced by the chart below. Image Source: Zacks Investment Research Serve Robotics’ bottom-line estimates for 2026 and 2027 indicate losses per share of $2.71 and $2.22, respectively, which have widened over the past 30 days. The revised estimated figures for 2026 imply a year-over-year decline of 66.3%, while the same for 2027 indicates growth of 18.2%. Image Source: Zacks Investment Research Despite the near-term challenges, Serve Robotics is making progress in broadening its business beyond food delivery. Software and recurring revenues are expanding, while hospital robotics is adding a more stable revenue stream. The company is also seeing traction with other delivery channels, including DoorDash, and is pursuing new partnerships and direct merchant relationships. Continued investments in autonomy, artificial intelligence and fleet capabilities, along with a broader commercial footprint, could create additional opportunities for revenue growth and improve robot utilization over time.Let us take a closer look at the factors shaping Serve Robotics stock’s prospects. Serve Robotics is broadening its revenue base across delivery, advertising and hospital robotics, reducing reliance on a single channel. Software revenues were nearly $1 million in the second quarter, while recurring revenues accounted for more than 50% of total revenues. The healthcare business is also generating contracted, multi-year revenues at attractive margins.The broader mix is creating multiple monetization opportunities beyond food delivery. Advertising is contributing a meaningful share of robotic food delivery revenues, while hospital robotics adds a recurring revenue stream. This diversification could improve revenue quality and provide greater stability as the company expands its robotics platform. Serve Robotics is expanding its delivery network through additional marketplace partnerships as it seeks to improve robot utilization. Deliveries through DoorDash grew nearly 50% sequentially in the quarter, while the company expects to announce another major delivery marketplace partner. New commercial programs are also being developed to support denser order allocation and higher utilization.A broader partner base could reduce reliance on individual delivery platforms and allow the company to deploy its existing fleet across more demand channels. The focus on higher utilization and better unit economics could also improve the value generated from each robot as the network expands. Serve Robotics is working to reduce merchant integration barriers that have limited access to its robotic delivery network. The company is developing Beacon, a standalone device that can connect restaurants directly with Serve Robotics without relying on existing internet or point-of-sale systems.This could allow the company to work with more restaurants, including merchants that are not connected to third-party delivery platforms. Easier integration could expand direct merchant access and create more opportunities to improve robot utilization across the existing fleet. Although Serve Robotics, C3.ai, Inc. AI, NVIDIA Corporation NVDA and Symbotic Inc. SYM all operate within the automation industry, their business models are very different. C3.ai provides enterprise AI software for commercial and government organizations, while NVIDIA provides AI computing infrastructure and software for AI and robotics applications. Symbotic focuses on large-scale warehouse automation for retailers and distributors. Serve Robotics, on the other hand, is building autonomous robots for last-mile delivery while expanding into healthcare robotics, giving it exposure to multiple real-world service applications.What sets Serve Robotics apart is that its technology is already operating at commercial scale on public streets. A growing fleet integrated with Uber Eats and DoorDash allows the company to collect real-world operating data, improve autonomous performance and increase fleet utilization over time. This creates advantages that differ from C3.ai's enterprise software business and NVIDIA's broader AI infrastructure position. At the same time, Symbotic holds a stronger position in warehouse automation, supported by a large deployment pipeline, recurring software revenues, a sizable backlog and established customer relationships.Overall, Serve Robotics stands out as a differentiated player in autonomous delivery with an expanding presence in service robotics. While Symbotic remains the leader in warehouse automation because of its scale and financial strength, Serve Robotics offers more direct exposure to autonomous delivery than C3.ai and NVIDIA through its commercial fleet, strategic partnerships and growing real-world robotics platform. Serve Robotics faces several near-term challenges, including the sharp reduction in 2026 revenue guidance, lower delivery volumes and widening losses. The premium valuation and continued earnings losses also limit the near-term upside potential.At the same time, software and recurring revenues are expanding, while hospital robotics and new delivery partnerships are broadening the business. DoorDash growth and the Beacon device could further improve fleet utilization and expand merchant access. Given the mixed outlook, the Zacks Rank #3 (Hold) appears appropriate as investors await clearer signs of stronger utilization, revenue growth and profitability. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Serve Robotics Inc. (SERV) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report C3.ai, Inc. (AI) : Free Stock Analysis Report Symbotic Inc. (SYM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Serve Robotics (NASDAQ: SERV) believes robots and drones are ideal for delivering food, retail products, and other small commercial loads because they are more efficient and far less expensive than existing human-driven solutions. Serve has already deployed over 2,000 of its latest Gen 3 robots across America, where they are making deliveries through platforms like DoorDash and Uber Eats. The company's revenue soared by 400% year over year in the second quarter of 2026 (ended June 30), suggesting business is booming. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » However, management just significantly lowered its 2026 revenue forecast, sending Serve stock tumbling by around 15%. The stock is now down almost 80% from its 2024 peak. Here's why more downside might be ahead for shareholders. Serve says the median distance traveled for a food delivery order in the U.S. is about 2.5 miles, and it currently costs between $8 and $10 to deliver by car with a human driver. The company believes it can reduce that cost to just $1 per order by using its Gen 3 robots, because they can eliminate driver wages and operate for 14 hours straight on a single charge. The Gen 3 robots are powered by Nvidia's Jeston Orin platform, which provides all of the hardware and software necessary to achieve Level 4 autonomy. That means Serve's robots can safely drive on sidewalks within designated areas without any human assistance, and they are now successfully doing so in at least eight major U.S. cities, including Los Angeles, Miami, and Chicago, where they boast an impressive 99.8% order completion rate. Serve plans to grow its domestic and international presence to capture what it believes will be a $450 billion market for robotic and drone delivery. The company will have to expand beyond just food and retail delivery to build a formidable market share, which is why it acquired another robotics enterprise, Diligent, in January. Diligent developed its own Nvidia-powered robot for the healthcare sector called Moxi. It operates within hospitals, transporting medication, lab samples, and equipment across departments so nurses and doctors can spend less time running around and more time with their patients. So far, the move into healthcare has broadened Serve's footprint to 44 U.S. cities across 14 states. Serve generated $3.2 million in revenue during the second quarter of 2026, which was a 404% increase from the year-ago period. The company benefited from the inclusion of Diligent's revenue, which was absent in the same quarter last year because it pre-dated the acquisition. Serve came into 2026 expecting to generate $26 million in total revenue for the year, but management drastically reduced that forecast to $9 million to $10 million after the second quarter due to concerns about lower Uber Eats delivery volume than initially anticipated. Given that the company generated $6.2 million in revenue during the first half of 2026, that means it could bring in as little as $2.8 million in the second half -- a dramatic decline. That also has implications for Serve's bottom line. The company already lost over $113 million on a generally accepted accounting principles (GAAP) basis during the first half of this year, so unless management significantly cuts costs to offset its lower revenue forecast, there could be an even steeper loss in the second half. Serve only had $240 million in cash, cash equivalents, and marketable securities on hand as of June 30, so it simply can't afford to continue losing money at the current pace for much longer. If its bottom line doesn't improve soon, it might have to take on debt or raise money from investors, which would dilute every existing shareholder. Despite already plunging by 80% from its 2024 record high, Serve stock is still very expensive. It's trading at a price-to-sales (P/S) ratio of 46, a whopping seven times higher than the P/S ratio of the Nasdaq-100 index, which is 6.3. In other words, it looks heavily overvalued compared to a basket of America's best technology stocks. To make matters worse, investors who were willing to pay a premium for Serve stock because of its growth prospects just had their thesis shattered by management's reduced revenue forecast. If we assume Serve does bring in $10 million during 2026, its forward P/S ratio remains at a sky-high level of 42. Simply put, it might be a good idea to avoid Serve stock for the foreseeable future because its rich valuation opens the door to even more downside. Before you buy stock in Serve Robotics, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Serve Robotics wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,511!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,960!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 18, 2026. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends DoorDash, Nvidia, and Serve Robotics. The Motley Fool recommends Uber Technologies. The Motley Fool has a disclosure policy. Serve Robotics Grew Its Second-Quarter Revenue by 400%, but This Shocking News Sent Its Stock Plunging was originally published by The Motley Fool

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 5 p.m. ET Co-founder and Chief Executive Officer - Ali Kashani Chief Financial Officer - Brian Read Operator: Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to Serve Robotics, Inc. Second Quarter 2026 Financial Results and Conference Call. [Operator Instructions] I would now like to turn the call over to Steve Webb. Steve Webb: Thank you, Operator. Welcome to Serve Robotics' Second Quarter 2026 Earnings Call. With me today are Serve's co-founder and CEO, Ali Kashani; and our CFO, Brian Read. During today's call, we may present both GAAP and non-GAAP financial measures. If needed, a reconciliation of GAAP and non-GAAP measures can be found in our earnings release filed earlier today. Certain statements in this call are forward-looking statements. You should not place undue reliance on forward-looking statements. Actual results may differ materially from these forward-looking statements, and we do not undertake any obligation to update any forward-looking statements we make today, except as required by law. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release we issued today as well as the risks and uncertainty described in our most recent annual report on Form 10-K, as supplemented by our most recent quarterly report on Form 10-Q, and in our other reports and filings made with the SEC. We published our quarterly financial press release and our updated corporate presentation to our investor relations website earlier today, and we ask you to review those documents if you haven't already. With that, let me hand it over to Ali. Ali Kashani: Thank you, Steve, and good afternoon, everyone. We have important updates to share with you today. First, I want to give you an update about our Uber partnership and then share our Q2 results and update our full year 2026 guidance. We will discuss what took place in Q2 that has led to the new guidance and also what we are investing in and some of the exciting updates that are coming down the pipe. Let's start with the Uber partnership. From the first quarter of 2022 through the first quarter of this year, delivery volume through Uber grew for 17 consecutive quarters. In Q2, that trend reversed for the first time. This was caused by lower than expected robot utilization. While customer and merchant demand has remained steady, and our fleet performance has been improving, we believe the reversal in Q2 was largely due to the changes in the operating model and the integration between the two companies. Our extensive discussions with Uber since the emergence of this trend in Q2 have clarified that we really have differing views about the operating model to scale our shared autonomous fleet. This includes things like fleet coordination or merchant integration. Our experience across partners shows that having alignment on integration and operating models can really produce better outcomes from the same underlying technology and fleet. Case in point, in the same timeframe, we saw deliveries with another food delivery partner grow nearly 50% in a single quarter. So based on the volume decline and some of these recent broader discussions with Uber, we don't currently expect that it would make sense to renew our agreements when it expires in early 2027. That's unless we can improve the operating model meaningfully. This assessment was formed very recently and we are sharing it with you promptly. We will continue to engage with Uber and we are open to finding a path to continue working together, but I do want to be transparent with you about the conclusion that we have reached, at least with the information that we have today. Ultimately, we need to focus our resources where we see the clearest path to high utilization and operational leverage so that we can unlock the most value for the communities that we serve. We believe that Serve will be in a stronger position because we'll be able to allocate our resources to stronger, more beneficial partnerships and activities that we think will generate better long-term returns and values for the company. I want to take a moment and say Uber has been a really important anchor partner for Serve. It's been a real privilege working with a company that has really reshaped urban transportation. Together we helped validate this category and build critical operating experience, and we've scaled our fleet to a level that matters. Working with Uber was a great way to bootstrap our platform, and we really value that partnership and what it enabled over the last 5 years. Now this brings me to the financial impact of what changed in Q2. We did not meet our expectations in Q2 given that the delivery volume had declined. As a result, we are materially reducing our full-year revenue guidance. Our Q2 revenue was $3.2 million. That's a 9% increase sequentially over Q1 and over 400% increase year over year. It is however below the level that we required to support our prior outlook. As such, we are lowering our full year 2026 revenue guidance from $26 million to a range of $9 to $10 million. And we are matching this revenue update with real cost discipline across the second half operating and capital expenses. Brian will dig into that with you in more detail shortly. The principal driver of this change is the removal of the delivery volume growth that we had assumed for the second half. The Q2 results no longer support that expected ramp, so we have removed it from our outlook. Even the Q2 results as well as our success in diversifying our revenue, Uber represented a limited share of our Q2 revenue. The magnitude of the guidance change, therefore, reflects the removal of a substantial expected future ramp not the loss of a large existing revenue stream. Let me explain why we view this as a disciplined portfolio decision and not something that changes our conviction in automating last-mile delivery. Our revenue base is already diversified across delivery, advertising and hospital robotics. As mentioned, our other delivery marketplace channel, DoorDash, grew nearly 50% sequentially last quarter. I'm also happy to share that we'll be announcing another major delivery marketplace partner in the coming weeks. Our advertising revenues accounted for nearly 50% of our robotic food delivery revenues last quarter. This is despite the headwinds of geopolitical macro pressure on advertising spending. And last but not least, our hospital robotics business continues to generate contracted recurring revenue at attractive margins. So far this year, we have signed 7 multi-year contract extensions with our hospital customers and 2 new hospitals, demonstrating continued customer demand for our health care automation platform. We are therefore making a disciplined portfolio decision. We are a platform now operating at meaningful scale. We are allocating fleet capacity, capital and operating attention toward opportunities with clearer demand signals, higher expected utilizations and attractive unit economics and stronger alignment of visions and incentives. We believe this is going to make us a stronger company in the long term. We already have several commercial and product initiatives underway that broaden our distribution, increase our merchant accessibility, expand our direct demand and improve the capabilities of our autonomy platform. These initiatives were in development long before Q2 as part of our plan diversification strategy, and now they're starting to bear fruit. On August 17, we plan to provide our 2026 summer announcement, which includes updates across 4 areas: a new delivery marketplace partnership, 2 new market launches, a merchant integration products and new technology advances. Based on our analysis of our markets, back of house integration requirements really constrain a significant portion of otherwise addressable restaurant order volume. Almost 2/3 of delivery orders in our operating areas can't benefit from robotic last-mile delivery due to back of house integration barriers. So our new product, Beacon, is a standalone countertop device that connects customers and restaurants with Serve Robotics directly. Because it has its own cellular connectivity, it requires nothing from the restaurant beyond a consistent source of power. That means we are not dependent on a restaurant's internet or existing point-of-sale system anymore, which has historically been a source of integration friction across the industry. With Beacon, our aim is to work with most restaurants regardless of the infrastructure, including merchants that aren't connected to third-party delivery platforms. This is really exciting. Later this fall, we also expect to introduce an additional product designed to expand direct customer demand and broaden the types of goods and use cases that our network can serve. We are reimagining how things move around cities, not just food from restaurants, but anything from anywhere to anyone. Beyond our solutions for merchants and customers, we are also in late stages of exciting new partnerships that we believe can support materially higher robot utilization. That means the same robots generating multiple times the value for our partners and customers. In recent months we are seeing inbound interest from major companies across a range of industries from food services to logistics and beyond. We are advancing a number of commercial programs designed around denser order allocation, simpler merchant integration and materially higher seed utilization. We will announce each program as it reaches the appropriate contractual and launch milestones. Of course, I can't really share a preview of announcements without talking about our technology. We also have an announcement coming later this year about our autonomy stack. We wanna highlight some major milestones we have achieved in creating new powerful AI models that are making our robots safer, faster, smarter and more reliable and more capable than ever before. So let me leave you with 4 points. First, our previous guidance assumed continuous growth in Uber delivery volume during the second half of the year. The ramp we expected did not materialize in Q2, and we have removed it from our outlook. This was primarily caused by changes in the operating model and integration of our fleet in this particular partnership and not because of any sudden decrease in customer demand or our delivery quality. Second, Uber has been a really important anchor partner in building Serve, but absent a meaningful change in the operating model, we do not currently believe that we will renew the agreement after it expires in early 2027. We'll continue working constructively with Uber, of course, and remain open to a new path. Third, our conviction in last-mile autonomy is higher than ever given the diverse traction we are realizing. The momentum we are seeing across multiple delivery channels really reinforces that distribution, merchant integration and fleet operating models are really central to utilization and economics. And finally, we now have 2,000 robots distributed across more than 40 cities nationwide, a diversified revenue base, more than $240 million in liquidity at the end of Q2 and multiple commercial and product initiatives already underway. This includes a new delivery marketplace partnership, a new product that help us reach more merchants, our continued momentum in hospital robotics, and much more. We are focusing our platform and our capital on opportunities with the clearest path to higher utilization, attractive unit economics and durable growth. With the partnerships and initiatives in the pipeline, we feel really good about the potential for revenue to scale, and we will update you in due course as we continue executing on our roadmap. We want to bring the value of last-mile autonomy to more customers and merchants faster and share more of that value with them with compelling economics for all involved. This is a more focused route to the same large ambition we've always had: building last-mile autonomy that redefines urban logistics. With that, let me hand it over to Brian. Brian Read: Thank you, Ali. Good afternoon, everyone. This was a pivotal quarter for us, and I want to explain how it's reflected in the numbers and how we are running the business. I want to frame this as 2 things, a strategic update and the financial update. Strategically, we're positioning our offerings to pass more value directly to merchants and customers. That reduces our reliance on any single delivery channel, and it opens the door to other partnerships Ali described. Eventually, we're evaluating and updating our cost base to match, which I'll walk through in a moment. Together, these give us levers to run the business efficiently. Our priorities for the year have not changed: make each robot more productive, grow revenue per robot and per hour, grow the recurring part of our revenue and turn all of that into a stronger financial model. Total revenue for Q2 was $3.2 million compared to $3 million in Q1 and up 400% year over year. That total reflects 2 very different trends underneath it. Delivery revenue declined meaningfully in Q2 compared to Q1. That was a real in-quarter decline, not just a slower future ramp. At the same time, our other channels grew enough to more than offset it. Total revenue was still up sequentially, daily active robots were held steady and software revenue was once again nearly $1 million. All of this highlights the diversification we've built beyond food delivery. Recurring revenue was over 50% of total revenue this quarter. Our health care business continues to deliver contracted, multi-year revenue at strong margins, and that mix shift is the real contributor to where we see this business heading. Gross loss for the quarter was approximately $8.8 million, and gross margin was negative 271%. I'd point to one thing in particular. Fleet gross margin improved sequentially even as we absorbed the Uber decline Ali just walked through. That tells us this progress is coming from real cost discipline and operational efficiency, not from a clean gross quarter. I want to reinforce that this remains our focus. We believe the path to gross margin positivity is inevitable. More revenue per robot per operating hour, improved operational productivity and a growing mix of recurring software and platform revenues. GAAP operating expenses were $57.3 million in Q2, excluding stock-based compensation of $14.7 million and amortization of intangible assets and acquisition-related expenses of $2.2 million. Non-GAAP operating expenses were approximately $40.4 million. R&D remains our largest investment area, and that's by design. GAAP R&D expense was $20.3 million, or $14.9 million excluding stock-based compensation. This goes towards autonomy development, AI model training, fleet software, data infrastructure and integrating across our platform. G&A expense was $24.8 million, or $14.2 million non-GAAP, operations expense was $7.9 million, or about $7.4 million non-GAAP. Sales and marketing expense was $4.3 million or about $3.9 million non-GAAP. Our investment philosophy is anchored in ensuring that every dollar goes toward revenue quality, margin improvement and platform differentiation. GAAP net loss for the quarter was $64 million, or negative $0.80 per share. Non-GAAP net loss was $47.1 million, or negative $0.59 per share. Capital expenditures were approximately $1 million in the quarter before the benefit from approximately $3.6 million in tariff refunds received in the period. We ended the quarter with more than $240 million in cash and marketable securities. That's a real advantage and enables us to make the decisions we made this quarter from a position of strength. Turning to our outlook, we're revising our full year 2026 revenue guidance to approximately $9 million to $10 million, down from the $26 million we guided earlier this year. Even at this revised level, we expect annual revenues to grow nearly 3.5x year-over-year. Two things drove this update. First, the delivery decline wasn't just a future impact as our Q2 results already reflect the decline. Second, and larger, our prior guidance assumed a substantial increase in Uber delivery volume in the second half. That ramp is not materializing, and we've removed it from our outlook entirely. To be clear, our fleet size hasn't changed, and our robots can be deployed to direct merchant relationships, other verticals and the new delivery marketplace platform Ali mentioned, which we expect to have more to share on soon. Each of these channels represents an opportunity to reallocate that capacity toward better economics. Turning to advertising, even with the same macro pressure on ad budgets that Ali referenced, it accounted for nearly half of our robotic food delivery revenues this quarter and at an attractive margin. Our health care business continues to be durable, recurring revenue, with higher margin, high retention and longer-term contracts. We're taking action on cost and capital to match this revised plan. We've reduced planned 2026 capital expenditures from about $25 million down to approximately $15 million to $17 million. And we're lowering our 2026 non-GAAP operating expense outlook from $160 million to $170 million down to approximately from $140 million to $150 million. Reducing our OpEx guidance gives us the runway to execute our updated plan. You should expect this discipline to show up increasingly through the second half of the year. It's coming from a few places: headcount discipline, optimized deployment infrastructure spend and tighter discretionary spent. Overall, we're narrowing investment to what directly supports autonomy performance, utilization, recurring revenue and gross margin improvement. We're also working through the Diligent Robotics integration, looking for opportunities to consolidate overlapping G&A and shared services across the combined company. One thing we are deliberately investing in is core autonomy and software. These are the areas that most directly improve robot productivity, customer outcomes and long-term unit economics, which will remain our focus. This includes our next-generation autonomy platform, which we expect to meaningfully improve per-unit economics and expand the geography our fleet can serve. We are not stepping back from the core business. We're executing with tighter prioritization and a clear focus on operating leverage because we believe that's the right way to build the business and protect long-term shareholder value. Let me close here. The trend we saw in Q2 led us to make hard, clarifying decisions since the quarter closed. concentrating our capital where demand is the clearest and taking a hard look at low-margin, low-control channels to reduce the cost base to match. The near-term revenue number is lower because of that. Serve is building a robotics platform, not a single-use delivery fleet. Even with this update, we expect revenue to grow meaningfully this year, and the revenue base underneath that number is more diversified, higher quality and higher margin than it was a year ago. The investments we are making, anatomy, software and our proprietary data are the ones that compound and provide long-term enduring value. We believe that is what turns our early lead in physical AI into a durable operating and financial model. With that, we will open the lines for Q&A. Operator: [Operator Instructions] Our first question comes from the line of Michael Latimore with Northland Capital Markets. Mike Latimore: Ali, can you just elaborate on -- a little bit more on just like what happened in the second quarter? Why do you think utilization was not hitting goals? Was there some specific events that occurred? Maybe Uber stopped allocating resources to you for some reason? Was there any discussion or concern over rev share? Maybe a little more elaboration would be great. Ali Kashani: Yes, Mike. Yes, it's a good question. I mean -- but needless to say, I want to be respectful of partner confidentiality and all that. But I think primarily -- I mean, first thing I would say, there are a lot of investments happening on both sides into the platform. So Uber is investing in theirs, we are investing in ours. And at the same time, a lot of decisions are being made about how do you allocate orders, how do you organize fleets? Who makes which decisions? Like there're a lot of very interesting problems to solve when you start introducing autonomous fleets and mixing them with human fleets. So these are, I think, part of the process that's now taking place because these things are real and they're on the streets and doing their jobs. And when it came to those kind of decisions, I think we were not perfectly aligned and the decline kind of highlighted that it brought those discussions to surface, so we decided we should be transparent with everybody that we don't believe that this would be kind of renewed. But of course, we are still engaged and we will continue talking. And if there are better paths, we would look for it. Mike Latimore: And then in terms of just market reach going forward, I mean, you talked about DoorDash, sounds like there is another kind of overlay app you're going to be working with. I guess, which channel will be more important here? Will it be the DoorDash and this new company partnership,, or will it be direct to merchants? This direct to merchants, how do you kind of reach the end customer and market to them effectively? Ali Kashani: Yes, look, we want to have -- as I said, we want to have control over our destiny, which means we don't want to be kind of in the wake turbulence of bigger partners all the time. And I think the use of, for example, Beacon, the product that I mentioned, to be able to really work with any restaurant is one of those pieces. It's an investment we've been making for a while, so we're going to bring that and highlight that soon. But it's a really exciting product. There are other things in the pipeline in that same order. But we're also working with partners. So I mentioned DoorDash. It's not just that we grew 50% with them in Q1, in fact, between June and July, we grew another 50%. So it's doing really well. We would keep investing there, but we would also want to have channels that allows us to work with anybody directly and honestly enable new types of use cases. It's something that I think if we are just working with platforms we won't be able to do. I think we are much more incentivized to want to innovate and try new things. We are more incentivized to want to pass a lot of the value to restaurants and customers directly. So I think it's really important that we really invest in that. And I think the decision we made this quarter is going to allow us to put energy into that. Mike Latimore: And then just last one, so any guidance on software revenue in the second half? And also, is Diligent still on track for about $7 million this year? Brian Read: Yes, Mike. So obviously you would have seen the updated outlook for revenue at the $9 million to $10 million number. We saw strength in Q2 for the software continuing. I think in the back half of the year, right, we're going to see the continued headwinds that we observe in the back half of Q2. So from a software standpoint, it will be a little softer in the back half, but the strength of Diligent, as you mentioned, will continue. So we're not going to get into the split between Diligent, but they're definitely helping the positive mix, right, in the margin story from a top line perspective. So happy to provide some more clarity there, but I think software will be little softer as we get throughout the back half of the year. Operator: Our next question comes from the line of Colin Rusch with Oppenheimer & Company. Colin Rusch: Can you talk a little bit about the KPIs that you're looking at for the efficiency of the autonomy and how we should think about the cadence of learning that you guys have been able to engage in here in the first half? Ali Kashani: Yes. Great question. I think that's one of the areas that we really want to share more in the next couple months, hopefully. We talked about our new generation autonomy. You all know about the acquisition we made in that space. Ultimately, the most important KPI is are the robots getting better, are getting -- they're getting faster, they're safer than anything else out there, they are more reliable and they get the delivery done in such a way that it allows us to grow our revenue and also improve margins. So that's the top line. Once we share more about the new generation autonomy, we would have more color on what we are tracking and how do we measure progress. But there's a lot of areas of investment I'm really excited about. This new type of autonomy architecture with end-to-end models where you have a lot less Lossiness in the information where the models are making a lot smarter decisions, intuitive decisions. I think it's a pretty exciting area that we are going to talk about more. And we are already seeing the improvements in the fleet as a result. So we'll kind of share how we are looking at it again soon. Colin Rusch: And then with the hospital robots and Diligent, can you talk a little bit about the potential for accelerating deployments and potential optimization of the design of those bots in kind of a timeframe on how we should think about both of those dynamics? Ali Kashani: Yes, so in a way, and I think I've mentioned this in the past, it felt to us that Diligent was basically a [ clutch ] behind we were at Serve in terms of being ready for scale. So you make the robots work, you prove the model, you prove it with real customers, then you want to cost it down, make the hardware reliable, so that you can scale rapidly. And that's kind of when we got to our 2,000 robots, only after we made those investments. That's exactly what Diligent is doing right now with the new hardware that they're working on. So again, we are going to have a lot more to say about this very soon, but that's the kind of investment that has taken place in the last year, effectively, to position us to really push that growth in the following years. Operator: Next question comes from the line of Jeffrey Cohen with Leidenberg Thalmann. Jeffrey Cohen: I guess firstly, could you talk about the advertising business and advertising revenue a little bit and drill into that as far as are you wrapping the robots and some of the customers, are they more local or more national? And any pricing on that associated with the robots and any kind of forward-looking statements as far as what you would expect for the back half of the year? Ali Kashani: Yes, I'll let Brian chime in on some parts of the questions. I think on the advertising, we're seeing pretty good traction. I mentioned earlier in the year, after the war began, we noticed some softness in advertising spending, but we really worked hard to make up for it. That's why something like 50% of our sidewalk revenue came from advertising and it's looking really good. We are very kind of satisfied with what we're seeing. To answer your question, we see both local and national campaigns right now. So -- and again, this is something that I think you're going to hear about a lot soon. And Brian can take the rest of the question. Brian Read: Yes, Jeff. So I think with pricing, right, our teams have been doing a great job with the expanded fleet of looking at how we can do multi-city campaigns or multi-market, multi-neighborhood campaigns as well. So the opportunity continues to grow, and I think that's excellent from a top-line perspective for margin and the product mix that we're seeing as we move forward. To answer your direct question, right, they're mostly wraps. We're also seeing some growth within the experiential side of the business and a lot of inbound interest from clients that are interested in having the robots for various experiences. For a split on the revenue, not something we get into for guiding to advertising versus deliveries, but we'll anchor back to the updated guidance talked about in the script. Jeffrey Cohen: Okay. That's helpful. And then as a follow-up, I know you had some news out last month on NoScrubs and some introductions of non-food. So any update there that you could talk about at this point in time as far as any non-food updates, perhaps stuff to think about and geographies to think about? I appreciate it. Ali Kashani: Yes, so one of them that we announced recently was NoScrubs. This is laundry. It's kind of an obvious application. The product that I mentioned earlier, Beacon, it really allows us to work with any merchant. Any place that wants to work with robots would be to do that without any backend integration barriers the way we've had to deal with so far. I think that's one of the pieces of the puzzle that we've been working on to be able to really open the kind of use cases that we can do. Because ultimately we are not building robots to just deliver burritos. This is last-mile infrastructure for cities. And part of why we want to be able to put our resources beyond things like just food marketplaces is to open up those opportunities. I mentioned there's another product as well that we'll be announcing that actually allows customers to also reach out to us directly. So you can -- if you have direct integration ability with merchants and with customers, I think that those are the building blocks to open a lot of interesting other use cases. Now, I would say I think those things take time because food is something you eat 3 times a day. There's a lot of habits and demands for it that's already formed. We have to make these investments to open up these new use cases and opportunities. And that's what exactly we are doing. We want to kind of make the investments so that over time these things become a part of our, in a way, portfolio mix. Operator: [Operator Instructions] There are no more further questions at this time. Ladies and gentlemen, that concludes today's call. Thank you all for joining in. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Serve Robotics. The Motley Fool has a disclosure policy. Serve Robotics (SERV) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Serve Robotics Inc. SERV used its second-quarter 2026 earnings call to explain a sharp reset in its Uber relationship and 2026 revenue outlook after delivery volume declined for the first time in 17 quarters. CEO Ali Kashani and CFO Brian Read framed the shift as reallocating fleet capacity and capital toward stronger utilization, recurring revenue and operating alignment. Co-Founder and CEO Ali Kashani said lower-than-expected robot utilization through Uber reflected differences over fleet coordination, merchant integration and the operating model, rather than weaker customer or merchant demand. Kashani said Serve does not currently expect to renew the Uber agreement when it expires in early 2027 unless the operating model improves meaningfully. Discussions with Uber are continuing. Prior guidance assumed a substantial second-half Uber volume ramp, which Serve removed from the 2026 outlook. SERV’s second-quarter revenues were $3.24 million, up 404% year over year and 9% sequentially, but missed the $3.54 million Zacks Consensus Estimate. Non-GAAP net loss was $47.1 million, or 59 cents per share. The reported loss of 80 cents per share was wider than the 69-cent Zacks Consensus Estimate. Serve Robotics Inc. price-consensus-eps-surprise-chart | Serve Robotics Inc. Quote Serve cut full-year 2026 revenue guidance to $9 million-$10 million from $26 million. The company’s 2026 non-GAAP operating expense guidance fell to $140 million-$150 million from $160 million-$170 million. Planned capital expenditures were reduced to about $15 million-$17 million from roughly $25 million. Co-Founder and CEO Ali Kashani highlighted DoorDash as a counterpoint to Uber, saying partnership revenues grew nearly 50% sequentially in the second quarter. He also said another major delivery marketplace partnership was set to be announced. Kashani said advertising represented nearly half of robotic food-delivery revenues. CFO Brian Read added that campaigns span local and national customers, with robot wraps still the primary format. The CFO said recurring revenues exceeded 50% of total revenues, supported by hospital robotics. Serve signed seven multiyear hospital contract extensions and added two new hospitals in the first half of 2026. Ali Kashani said Serve is developing direct distribution to reduce dependence on any single delivery platform. Beacon, a cellular countertop device, is designed to connect restaurants directly with Serve. The CEO said almost two-thirds of delivery orders in Serve's operating areas cannot use robotic last-mile delivery because of back-of-house integration barriers. Beacon is intended to work without restaurant internet or point-of-sale integration. Kashani also said Serve plans another product later this fall aimed at generating direct customer demand and broadening the goods its network can move beyond food. A Northland Capital Markets analyst pressed management on the second-quarter utilization decline. Co-Founder and CEO Ali Kashani said Serve and Uber were not fully aligned on order allocation, fleet organization and operating responsibility. An Oppenheimer analyst asked how investors should track autonomy efficiency. Kashani said key measures are whether robots become faster, safer and more reliable while supporting revenue growth and margin improvement. A Ladenburg Thalmann analyst asked about advertising. Both the CEO and CFO said Serve is seeing local and national campaigns plus growing experiential use, but management did not provide separate advertising guidance. CFO Brian Read said spending will increasingly focus on autonomy performance, utilization, recurring revenues and gross-margin improvement. He also said Serve is reviewing overlapping G&A and shared services while integrating Diligent Robotics. Read emphasized that core autonomy and software remain investment areas. The CFO framed the updated plan around tighter prioritization, with capital focused on robot productivity and operating leverage. SERV currently carries a Zacks Rank #3 (Hold). Its Value Score is F, Growth Score is F, Momentum Score is C and VGM Score is F, leaving it without the A or B Style Scores that provide stronger complementary signals to top Zacks Ranks. The rank does not carry the same positive signal as Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks, while the Style Score hierarchy places C above F but below A and B. The Zacks Rank can change as estimates are revised after the just-reported results. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Serve Robotics Inc. (SERV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is materially reducing full-year revenue guidance following a reversal in Uber delivery volume growth, attributed to misaligned views on fleet coordination and merchant integration models. The company intends to let the Uber agreement expire in early 2027 unless the operating model improves, choosing to reallocate resources toward partnerships with higher utilization potential and better unit economics. Operational performance remains strong in other channels, evidenced by a 50% sequential growth in DoorDash deliveries and the continued expansion of the hospital robotics business. Management attributes the Q2 revenue miss to the removal of a substantial expected future ramp with Uber rather than the loss of a large existing revenue stream, as Uber represented a limited share of current revenue. Strategic focus is shifting toward 'Beacon,' a new standalone countertop device designed to bypass complex back-of-house point-of-sale integrations that currently block two-thirds of addressable restaurant volume. The company is evolving from a single-use delivery fleet into a broader last-mile infrastructure platform, exploring non-food use cases like laundry and logistics to increase robot productivity. Full-year 2026 revenue guidance is lowered to $9 million to $10 million, reflecting the complete removal of assumed second-half growth from the Uber partnership. Management is implementing aggressive cost discipline, reducing planned capital expenditures to $15 million to $17 million and lowering non-GAAP operating expense outlook by approximately $20 million. Future growth is predicated on a 'summer announcement' involving a new delivery marketplace partner, two new market launches, and advancements in end-to-end AI autonomy models. The company expects to maintain a strong liquidity position with over $240 million in cash to fund the transition toward direct merchant relationships and higher-margin recurring software revenue. Guidance assumes a softer advertising market in the second half due to geopolitical and macro pressures, despite advertising currently accounting for nearly half of robotic food delivery revenues. The potential non-renewal of the Uber contract in 2027 represents a significant shift away from a primary anchor partner that helped bootstrap the platform. Integration of Diligent Robotics is ongoing, with management seeking to consolidate overlapping G&A and shared services to improve the combined company's operating leverage. A $3.6 million tariff refund in Q2 partially offset capital expenditures, providing a one-time boost to the cash position. Management flagged that back-of-house integration friction remains a primary barrier, with 66% of delivery orders in operating areas currently inaccessible to robots without new hardware solutions. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Ali Kashani explained that utilization issues stemmed from friction in how autonomous and human fleets are co-managed and how orders are allocated within the Uber platform. Management noted a lack of alignment on decision-making authority regarding fleet organization, which led to the decision to be transparent about the likely end of the partnership. Serve aims to 'control its own destiny' by reducing reliance on large partners' 'wake turbulence' through direct-to-merchant tools like the Beacon device. While marketplace growth remains strong (50% growth with DoorDash between June and July), the company is prioritizing channels that allow for direct customer interaction and new use cases. Brian Read indicated that software revenue may face headwinds in the second half of the year compared to the $1 million generated in Q2. The Diligent Robotics business is currently in a 'cost-down' and hardware reliability phase, similar to Serve's earlier development, to prepare for rapid scaling in future years. Advertising currently accounts for approximately 50% of sidewalk delivery revenue, utilizing both local and national wrap-based campaigns. Management is seeing increased inbound interest for 'experiential' robotics advertising, which carries attractive margins and helps diversify the revenue base away from pure delivery fees.

Interested in Serve Robotics Inc.? Here are five stocks we like better. Serve Robotics cut its 2026 revenue forecast to $9 million–$10 million from $26 million after second-quarter revenue rose 9% sequentially to $3.2 million but delivery volume through Uber declined for the first time in 17 quarters. The company said it may not renew its Uber agreement when it expires in early 2027 unless the operating model improves, while pursuing diversification through DoorDash, advertising, healthcare robotics and a planned new delivery-marketplace partnership. Serve is reducing 2026 capital expenditure and non-GAAP operating-expense guidance, but plans to continue investing in autonomy and software. It ended the quarter with more than $240 million in cash and marketable securities and operates about 2,000 robots across more than 40 cities. 3 Stocks Under $20 to Buy Before a Broader Market Rally Serve Robotics (NASDAQ:SERV) reported second-quarter revenue growth but sharply reduced its full-year outlook after delivery volume through Uber declined for the first time in 17 quarters, prompting the company to reassess the future of the partnership and redirect resources toward other channels. Chief Executive Officer and Co-Founder Ali Kashani said delivery volume through Uber had increased for 17 consecutive quarters from the first quarter of 2022 through the first quarter of 2026. That trend reversed in the second quarter because of lower-than-expected robot utilization. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 5 Robotics Stocks to Watch as Physical AI Builds Momentum Kashani said customer and merchant demand remained steady and fleet performance improved, but the company attributed the volume decline largely to changes in the operating model and integration between Serve and Uber. He said the companies have differing views on issues including fleet coordination and merchant integration. “Based on the volume decline and some of these recent broader discussions with Uber, we don't currently expect that it would make sense to renew our agreement when it expires in early 2027,” Kashani said, unless the operating model improves meaningfully. He added that Serve remains engaged with Uber and is open to finding a path to continue working together. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High SERV Robotics Delivers Catalyst for Short-Squeeze Serve reported second-quarter revenue of $3.2 million, up 9% from the first quarter and more than 400% year-over-year. However, Kashani said the result was below the level needed to support the company’s previous full-year outlook. The company cut its full-year 2026 revenue guidance to $9 million to $10 million from a prior forecast of $26 million. CFO Brian Read said the revised range would still represent nearly 3.5 times year-over-year revenue growth. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling According to management, the guidance reduction reflects both the delivery decline that occurred during the second quarter and the removal of a previously expected substantial increase in Uber delivery volume during the second half of the year. Kashani emphasized that Uber represented a limited portion of second-quarter revenue. He said the size of the guidance cut reflected the removal of an anticipated future ramp rather than the loss of a large existing revenue stream. Read said total revenue increased sequentially because other business lines more than offset a meaningful quarter-over-quarter decline in delivery revenue. Daily active robots were steady, while software revenue was nearly $1 million. Second-quarter revenue: $3.2 million, compared with $3 million in the first quarter. Second-quarter gross loss: approximately $8.8 million. Second-quarter gross margin: negative 271%. GAAP operating expenses: $57.3 million. Non-GAAP operating expenses: approximately $40.4 million. GAAP net loss: $64 million, or $0.80 per share. Non-GAAP net loss: $47.1 million, or $0.59 per share. Read said fleet gross margin improved sequentially despite the Uber delivery decline, which he attributed to operational efficiency and cost discipline. He said the company’s path toward positive gross margin depends on higher revenue per robot operating hour, improved operational productivity, and a larger contribution from recurring software and platform revenue. Management pointed to growth in other delivery and non-delivery channels as evidence of the company’s diversification strategy. Kashani said deliveries with DoorDash grew nearly 50% sequentially in the second quarter, and grew another 50% between June and July. Serve also said it plans to announce another major delivery marketplace partnership in coming weeks. Kashani said the company is advancing commercial programs intended to support denser order allocation, simpler merchant integration and higher robot utilization. Advertising accounted for nearly half of Serve’s robotic food-delivery revenue during the quarter, management said. Kashani said advertising spending had shown softness following the start of a war, but the company worked to offset that pressure. The business is seeing both local and national advertising campaigns, according to management, primarily involving robot wraps, along with growth in experiential uses of robots. Recurring revenue exceeded 50% of total revenue in the quarter. The company’s healthcare robotics business, which includes Diligent Robotics, continued to provide contracted multiyear revenue, management said. Serve said it has signed seven multiyear contract extensions with hospital customers so far this year and added two new hospitals. Read said software revenue could be “a little softer” in the second half, though he said Diligent would continue to support the company’s revenue mix and margin profile. Kashani said Diligent is investing in new hardware designed to position the business for more rapid scaling in future years. Serve plans to provide a summer business update on Aug. 17 covering a new delivery marketplace partnership, two market launches, a merchant integration product and technology developments. One planned product, called Beacon, is a standalone countertop device intended to connect restaurants and customers directly with Serve robots. Kashani said nearly two-thirds of delivery orders in Serve’s operating areas cannot currently use robotic last-mile delivery because of back-of-house integration barriers. Beacon has cellular connectivity and requires only a consistent power source from restaurants, Kashani said. The company expects the product to allow it to work with restaurants regardless of their existing internet or point-of-sale infrastructure, including merchants not connected to third-party delivery platforms. Later in the fall, Serve expects to introduce another product intended to expand direct customer demand and support additional types of goods and delivery use cases beyond restaurant food. Kashani cited the company’s recently announced work with laundry business NoScrubs as an example of non-food delivery activity. The company also expects to discuss developments in its autonomy stack later this year. Kashani said Serve has reached milestones in developing AI models intended to make robots safer, faster, smarter, more reliable and more capable. With the lower revenue outlook, Serve is reducing planned capital expenditures and operating expenses. The company lowered its 2026 capital expenditure outlook to approximately $15 million to $17 million from about $25 million. It also reduced non-GAAP operating expense guidance to approximately $140 million to $150 million from $160 million to $170 million. Read said the company expects the cost discipline to come from headcount controls, optimized deployment infrastructure spending and tighter discretionary spending. Serve is also evaluating opportunities to consolidate overlapping general and administrative functions and shared services through the Diligent integration. The company said it will continue investing in autonomy and software, including its next-generation autonomy platform, which management expects to improve unit economics and expand the geography its fleet can serve. Serve ended the quarter with more than $240 million in cash and marketable securities. Kashani said the company has 2,000 robots distributed across more than 40 cities nationwide and intends to focus fleet capacity, capital and operating attention on channels with stronger demand signals, higher expected utilization and more attractive economics. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Serve Robotics Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Delivered over 400% revenue growth in Q2 year over year as diverse portfolio of revenue across delivery, branding, and software grew strong triple digits compared to a year ago. Further diversified revenue applications for Serve’s autonomous robot fleet with new delivery partnership with NoScrubs Laundry in addition to existing food, healthcare, and grocery delivery operations. Improved gross margin over prior quarter, as the mix of higher-margin recurring revenue jumped to over 50% of all revenues Ended Q2 with over $240 million in cash and marketable securities, reflecting strong balance sheet and operational flexibility. SAN FRANCISCO, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Serve Robotics Inc. (the “Company” or “Serve”) (Nasdaq: SERV), a leading autonomy and robotics company, today announced financial results for the second quarter ended June 30, 2026. “Serve is driving innovation in last-mile delivery as our scaled robot fleet is powering deliveries across multiple verticals,” said Dr. Ali Kashani, Serve’s Co-founder and CEO. “Our leadership in autonomy and commercial deployment has created advantages that compound with scale, enabling unique partnerships, more diversified revenue streams, and new monetization opportunities, all while maintaining a disciplined approach to growth.” “Our updated outlook reflects a deliberate decision to concentrate our fleet and capital behind the highest-return opportunities,” said Brian Read, Chief Financial Officer of Serve. “By lowering our expected operating expenses while maintaining one of the strongest balance sheets in our sector, we have the flexibility to continue expanding our autonomous network, investing in our technology platform, and driving sustainable long-term growth.” Business and Financial Highlights Revenue Diversification: advertising made up nearly 50% of food delivery revenue in Q2, and recurring revenue made up over 50% of total revenues in Q2. Healthcare Progress: delivered steady revenue in Q2 in line with expectations and signed 7 multiyear contract extensions with our hospital customers and added 2 new hospitals in 1H 2026, demonstrating continued customer demand for our healthcare automation platform. Delivery Partner Acceleration: revenue derived from our DoorDash partnership grew nearly 50% sequentially and exceeded our expectations. Revenue Growth: Revenue of $3.2 million, increasing 9% sequentially and 404% year-over-year. Balance Sheet: Maintained a strong liquidity position of $240.4 million as of June 30, 2026. Outstanding Shares: Approximately 86 million shares of common stock outstanding as of June 30, 2026. Outlook The Company revised its full year 2026 revenue guidance to a range of $9 million to $10 million. The revision reflects lower than expected delivery volume through the Company’s Uber Eats partnership, including a decline reflected in Q2 results and the removal of projected demand in the second half of 2026. Improved FY2026 Non-GAAP operating expense of $140 to $150 million, down from $160 to $170 million previously. Supplemental Financial Information The key metrics and financial tables outlined below are metrics that provide management with additional understanding of the drivers of business performance and the Company’s ability to deliver stockholder return. Investors should not place undue reliance on these metrics as indicators of future or expected results. The Company’s presentation of these metrics may differ from similarly titled metrics presented by other companies and therefore comparability may be limited. Table 1Key Metrics(unaudited) Table 2Disaggregation of Revenue(in thousands)(unaudited) Quarterly Conference Call Information Management will host a conference call and webcast today at 2:00 p.m. PT / 5:00 p.m. ET to discuss the financial results and provide a corporate update. A live webcast and replay can be accessed from the investor relations page of Serve’s website at investors.serverobotics.com. Individuals interested in listening to the conference call may do so by dialing 800-715-9871 and referencing conference ID 4965302. About Serve Serve (Nasdaq: SERV) designs and operates autonomous robots that navigate complex, human-centric environments. Since spinning off from Uber in 2021, Serve has deployed more than 2,000 robots across the U.S., reaching a population of approximately 3 million and supporting delivery for more than 4,000 restaurants. In 2026, Serve acquired Diligent Robotics, Inc., expanding its operations beyond sidewalk delivery into indoor service robots used in hospitals. Serve designs both the hardware and software behind its robots, enabling them to work safely in public and private environments at scale. For further information about Serve (Nasdaq: SERV), please visit www.serverobotics.com or follow us on social media via X (Twitter), Instagram, or LinkedIn @serverobotics. Forward Looking Statements This press release contains “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statement and generally arise when we or our management are discussing our beliefs, estimates or expectations. Such statements generally include the words “believes,” “plans,” “intends,” “targets,” “may,” “could,” “should,” “will,” “expects,” “estimates,” “suggests,” “anticipates,” “outlook,” “continues,” or similar expressions. These statements are not historical facts or guarantees of future performance, but represent management’s belief at the time the statements were made regarding future events which are subject to certain risks, uncertainties and other factors, many of which are outside of our control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. Forward-looking statements include statements regarding the Company’s future revenue generation, business and investment strategy, timing of robot manufacturing and deployment, ability to expand to additional markets, capabilities of the Company’s robots, outcomes of planned and completed acquisitions, partnerships with multiple delivery platforms, and timing and ability to scale to commercial production. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission (“SEC”), including in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025, as supplemented by the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, and in the Company’s subsequent SEC filings. The Company can give no assurance that the plans, intentions, expectations or strategies as reflected in or suggested by those forward-looking statements will be attained or achieved. The forward-looking statements in this press release are based on information available to the Company as of the date hereof, and the Company disclaims any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release. Non-GAAP Measures of Financial Performance To supplement the Company’s financial statements, which are presented on the basis of U.S. generally accepted accounting principles (“GAAP”), the following non-GAAP measures of financial performance are included in this release: adjusted EBITDA, non-GAAP cost of sales, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP operations expense, non-GAAP sales and marketing expense, non-GAAP operating expense, non-GAAP net loss before income taxes, non-GAAP net loss and non-GAAP earnings per share. The Company believes that providing this non-GAAP information in addition to the GAAP financial information allows investors to view the financial results in the way the company views its operating results. The Company also believes that providing this information allows investors to not only better understand the Company’s financial performance, but also, better evaluate the information used by management to evaluate and measure such performance. As such, the Company believes that disclosing non-GAAP financial measures to the readers of its financial statements provides the reader with useful supplemental information that allows for greater transparency in the review of the Company’s financial and operational performance. The Company defines its non-GAAP measures by excluding stock-based compensation. Reconciliations of GAAP to these adjusted non-GAAP financial measures are included in the tables presented. When analyzing the Company’s operating results, investors should not consider non-GAAP measures as substitutes for the comparable financial measures prepared in accordance with GAAP. To the extent that the Company presents any forward-looking non-GAAP financial measures, the Company does not present a quantitative reconciliation of such measures to the most directly comparable GAAP financial measure (or otherwise present such forward-looking GAAP measures) because it is impractical to do so. Contacts Investor [email protected] Table 3Serve Robotics Inc.Condensed Consolidated Balance Sheets(in thousands)(unaudited) Table 4Serve Robotics Inc.Condensed Consolidated Statements of Operations(in thousands, except share and per share data)(unaudited) Table 5Serve Robotics Inc.Condensed Consolidated Statements of Cash Flows(in thousands)(unaudited) Table 6Reconciliation of GAAP Net Losses to Adjusted EBITDA(In thousands)(Unaudited) Table 7Reconciliation of GAAP Measures to Non-GAAP Measures(in thousands, except share and per share data)(unaudited)

CDW (CDW) came out with quarterly earnings of $2.91 per share, beating the Zacks Consensus Estimate of $2.8 per share. This compares to earnings of $2.6 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.93%. A quarter ago, it was expected that this information technology company would post earnings of $2.28 per share when it actually produced earnings of $2.28, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates three times. CDW, which belongs to the Zacks Computers - IT Services industry, posted revenues of $6.57 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.07%. This compares to year-ago revenues of $5.98 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. CDW shares have added about 13.1% since the beginning of the year versus the S&P 500's gain of 13%. While CDW has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for CDW was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.91 on $5.99 billion in revenues for the coming quarter and $10.75 on $23.57 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Serve Robotics Inc. (SERV), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This company is expected to post quarterly loss of $0.69 per share in its upcoming report, which represents a year-over-year change of -91.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Serve Robotics Inc.'s revenues are expected to be $3.54 million, up 452.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CDW Corporation (CDW) : Free Stock Analysis Report Serve Robotics Inc. (SERV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Serve Robotics Inc. SERV is slated to report second-quarter 2026 results on Aug. 06, after market close. The company’s earnings performance has been mixed over the last four quarters, meeting the Zacks Consensus Estimate once, missing it twice and beating once. The company delivered an average negative surprise of 24.1%. The Zacks Consensus Estimate for Serve Robotics’ second-quarter 2026 loss per share is pegged at 69 cents. In the prior-year quarter, the company reported an adjusted loss per share of 36 cents. The consensus mark has been unchanged over the past 30 days. Serve Robotics Inc. price-eps-surprise | Serve Robotics Inc. Quote The Zacks Consensus Estimate for revenues is pegged at $3.54 million, indicating a 452.7% gain from the year-ago quarter's reported figure. Serve Robotics' top line in the second quarter of 2026 is likely to have been supported by higher utilization of its existing robot fleet and efforts to increase revenues generated from each robot. Rather than adding more sidewalk robots during the first half of the year, the company focused on improving operational efficiency by activating more merchants, integrating additional delivery platforms and expanding into new cities and neighborhoods. These initiatives are likely to have increased delivery activity and supported revenue growth in the to-be-reported quarter.In addition to operational improvements, Serve Robotics is likely to have benefited from a broader mix of recurring revenue streams. Software services, branding, data and healthcare automation have become larger contributors alongside food delivery, while the integration of Diligent Robotics has expanded the company's footprint and added another source of recurring revenues. Together with ongoing efforts to improve revenue per robot and operating hour, these developments are likely to have contributed meaningfully to top-line growth in the to-be-reported quarter.On the bottom line, however, Serve Robotics' ongoing investments are likely to have continued weighing on profitability. Spending on autonomy development, AI model improvements, fleet software, data infrastructure and platform integration remained elevated. At the same time, costs associated with supporting a larger fleet and integrating the healthcare robotics business are likely to have kept margin pressure high despite improving software margins. Our proven model does not conclusively predict an earnings beat for Serve Robotics this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here.SERV’s Earnings ESP: Serve Robotics has an Earnings ESP of 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.Serve Robotics’ Zacks Rank: The stock currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here. Here are some companies, which, according to our model, have the right combination of elements to post an earnings beat this season.Boise Cascade Company BCC has an Earnings ESP of +6.50% and a Zacks Rank of 2 at present. The company’s earnings beat estimates in two of the last four quarters, missed on one occasion, and met on the remaining occasion, the average surprise being 40.8%. Boise Cascade’s earnings for the second quarter of 2026 are expected to decline 25% year over year.Amentum Holdings, Inc. AMTM currently has an Earnings ESP of +3.18% and a Zacks Rank of 3.The company’s earnings beat estimates in the last four quarters, the average surprise being 4%. Amentum’s earnings for the second quarter of 2026 are expected to increase 12.5% year over year.Limbach Holdings, Inc. LMB has an Earnings ESP of +0.26% and a Zacks Rank of 3 at present.The company’s earnings beat estimates in three of the last four quarters and missed on the remaining one occasion, the average surprise being 37.3%. Limbach’s earnings for the second quarter of 2026 are expected to rise 5.4% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Serve Robotics Inc. (SERV) : Free Stock Analysis Report Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report Limbach Holdings, Inc. (LMB) : Free Stock Analysis Report Amentum Holdings, Inc. (AMTM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research