Press Release: Serve Robotics Announces Second Quarter 2026 Results

Dow Jones08-07 04:40
   -- 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 1

Key Metrics

(unaudited)

 
                    Three Months Ended             Six Months Ended 
                                                ---------------------- 
             June 30,   March 31,    June 30,    June 30,    June 30, 
               2026        2026        2025        2026        2025 
            ----------  ----------  ----------  ----------  ---------- 
Daily 
 Active 
 Robots 
 (1) (3)           792         812         160         811         116 
Daily 
 Supply 
 Hours (2) 
 (3)             9,809      10,295       1,723      10,051       1,189 
 
 
(1)  Daily Active Robots: The Company defines daily active 
      robots as the average number of robots performing 
      deliveries during the period. 
(2)  Daily Supply Hours: The Company defines daily supply 
      hours as the average number of hours the Company's 
      robots are available to perform daily deliveries during 
      the period. 
(3)  The key metrics reported for the periods ended June 
      30, 2026 and March 31, 2026 are inclusive of the outdoor 
      and indoor robot fleet. 
 
 

Table 2

Disaggregation of Revenue

(in thousands)

(unaudited)

 
                   Three Months Ended             Six Months Ended 
            ---------------------------------  ----------------------- 
            June 30,   March 31,    June 30,    June 30,    June 30, 
              2026        2026        2025        2026        2025 
            ---------  ----------  ----------  ----------  ----------- 
Fleet 
 services    $  2,305    $  1,958   $     330    $  4,263    $     541 
Software 
 services         933       1,026         312       1,959          541 
                -----  ---  -----      ------  ---  -----  ---  ------ 
  Total 
   revenue   $  3,238    $  2,984   $     642    $  6,222    $   1,082 
                =====  ===  =====      ======  ===  =====  ===  ====== 
 
 

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 Relations

investor.relations@serverobotics.com

Table 3

Serve Robotics Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 
 
                                             June 30,     December 31, 
                                               2026           2025 
                                            ----------  ---------------- 
ASSETS 
Current assets: 
   Cash and cash equivalents                $  79,112    $    106,239 
   Short-term marketable securities           156,295         127,170 
   Accounts receivable, net                     2,883             851 
   Prepaid expenses                             6,177           6,042 
   Other receivables                            2,605             696 
   Other current assets                           219              77 
                                             --------       --------- 
     Total current assets                     247,291         241,075 
  Long-term marketable securities               5,001          26,344 
  Property and equipment, net                  50,507          47,013 
  Intangible assets, net                       34,505          31,313 
  Goodwill                                     27,998          15,530 
  Operating lease right-of-use assets          10,050           5,369 
  Other non-current assets                      3,272           1,107 
                                             --------       --------- 
   Total assets                             $ 378,624    $    367,751 
                                             ========       ========= 
 
LIABILITIES AND STOCKHOLDERS' EQUITY 
Current liabilities: 
   Accounts payable                         $   5,505    $      5,014 
   Accrued liabilities                          9,430           6,482 
   Deferred revenue                             1,975               2 
   Operating lease liabilities, current         2,362           1,800 
                                             --------       --------- 
     Total current liabilities                 19,272          13,298 
   Operating lease liabilities, 
    non-current                                 7,335           3,454 
   Deferred tax liabilities                       225             255 
                                             --------       --------- 
     Total liabilities                         26,832          17,007 
 
  Stockholders' equity: 
      Preferred stock, $0.0001 par value, 
      10,000,000 shares authorized, 0 
      shares issued or outstanding as of 
      both June 30, 2026 and December 31, 
      2025                                         --              -- 
      Common stock, $0.0001 par value; 
       300,000,000 shares authorized, 
       86,536,203 and 74,781,782 shares 
       issued and 86,496,060 and 
       74,734,949 shares outstanding as of 
       June 30, 2026 and December 31, 
       2025, respectively                           9               7 
   Additional paid-in capital                 673,832         559,485 
   Accumulated other comprehensive income 
    (loss)                                        (32)            138 
   Accumulated deficit                       (322,017)       (208,886) 
                                             --------       --------- 
     Total stockholders' equity               351,792         350,744 
                                             --------       --------- 
     Total liabilities and stockholders' 
      equity                                $ 378,624    $    367,751 
                                             ========       ========= 
 
 

Table 4

Serve Robotics Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share data)

(unaudited)

 
 
                               Three Months Ended             Six Months Ended 
                      June 30,     March 31,      June 30,      June 30, 
                        2026          2026          2025          2026      June 30, 2025 
                                  ------------  ------------  ------------  -------------- 
Revenues            $     3,238   $     2,984   $       642   $     6,222   $     1,082 
Cost of revenues         12,017        11,985         3,501        24,002         5,410 
     Gross loss          (8,779)       (9,001)       (2,859)      (17,780)       (4,328) 
Operating 
expenses: 
  Research and 
   development           20,279        19,037         9,120        39,316        16,000 
  General and 
   administrative        24,844        14,916         8,078        39,760        12,828 
  Operations              7,862         6,955         2,124        14,817         3,793 
  Sales and 
   marketing              4,301         1,873           463         6,174           702 
     Total 
      operating 
      expenses           57,286        42,781        19,785       100,067        33,323 
                     ----------    ----------    ----------    ----------    ---------- 
Loss from 
 operations             (66,065)      (51,782)      (22,644)     (117,847)      (37,651) 
Other income 
 (expense), net           1,902         2,130         1,794         4,032         3,583 
Net loss before 
 income taxes           (64,163)      (49,652)      (20,850)     (113,815)      (34,068) 
Benefit from 
 income taxes               (36)         (648)           --          (684)           -- 
Net loss            $   (64,127)  $   (49,004)  $   (20,850)  $  (113,131)  $   (34,068) 
                     ----------    ----------    ----------    ----------    ---------- 
 
Weighted average 
 common shares 
 outstanding - 
 basic and 
 diluted             80,310,583    75,302,980    57,514,808    77,820,615    56,953,711 
Net loss per 
 common share - 
 basic and 
 diluted            $     (0.80)  $     (0.65)  $     (0.36)  $     (1.45)  $     (0.60) 
                     ==========    ==========    ==========    ==========    ========== 
 
 

Table 5

Serve Robotics Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 
 
                                                  Six Months Ended 
                                                       June 30, 
                                               ----------------------- 
                                                  2026       2025 
                                                            ------- 
Cash flows from operating activities: 
Net loss                                       $(113,131)  $(34,068) 
Adjustments to reconcile net loss to net cash 
used in operating activities: 
   Stock-based compensation                       22,038      8,277 
   Depreciation                                    7,107      1,269 
   Amortization                                    5,725         23 
   Deferred income taxes                            (770)        -- 
   Accretion of discount on 
    available-for-sale securities                   (781)      (398) 
   Changes in operating assets and 
   liabilities, net of effects of businesses 
   acquired: 
    Accounts receivable, net                      (1,168)      (499) 
    Prepaid expenses                                (152)      (650) 
    Other receivables                             (1,058)      (283) 
    Other current assets                             (32)        -- 
    Accounts payable                              (1,765)      (485) 
    Accrued liabilities                              472      1,208 
    Deferred revenue                                  48         (8) 
    Operating lease liabilities                   (1,271)       188 
                                                --------    ------- 
      Net cash used in operating activities      (84,738)   (25,426) 
                                                --------    ------- 
Cash flows from investing activities: 
  Proceeds from maturities and sales of 
  marketable securities                           99,722         -- 
  Purchases of marketable securities            (107,068)   (66,308) 
  Acquisitions, net of cash acquired             (21,447)    (5,634) 
  Purchases of property and equipment             (2,417)    (9,498) 
  Proceeds from tariff refunds                     3,567         -- 
  Security deposits                                  (71)       (69) 
  Capitalized software implementation costs           --       (425) 
                                                --------    ------- 
   Net cash used in investing activities         (27,714)   (81,934) 
                                                --------    ------- 
Cash flows from financing activities: 
  Proceeds from issuance of common stock 
   pursuant to at-the-market public 
   offerings, net of offering costs               84,922     13,521 
  Proceeds from exercise of options                  404        224 
  Proceeds from issuance of common stock in 
   registered direct offering, net of 
   offering costs                                     --     75,847 
  Proceeds from exercise of warrants                  --     11,376 
  Repayments of financing lease liability             --       (186) 
  Proceeds from short-swing profit 
   disgorgement                                       --         48 
  Payments of deferred offering costs                 --        (35) 
                                                --------    ------- 
    Net cash provided by financing activities     85,326    100,795 
                                                --------    ------- 
Effect of exchange rate changes on cash and 
 cash equivalents                                     (1)        (1) 
Net change in cash and cash equivalents          (27,126)    (6,565) 
Cash and cash equivalents at beginning of 
 period                                          106,239    123,266 
                                                --------    ------- 
Cash and cash equivalents at end of period     $  79,112   $116,700 
                                                ========    ======= 
 
 

Table 6

Reconciliation of GAAP Net Losses to Adjusted EBITDA

(In thousands)

(Unaudited)

 
 
                     Three Months Ended            Six Months Ended 
               ------------------------------- 
               June 30,   March 31,  June 30,    June 30,    June 30, 
                 2026       2026       2025        2026        2025 
               ---------  ---------  ---------  ----------  ----------- 
Net loss on 
 GAAP basis    $(64,127)  $(49,004)  $(20,850)  $(113,131)  $(34,068) 
Interest 
 income          (1,927)    (2,106)    (1,794)     (4,033)    (3,586) 
Interest 
 expense             --         --         --          --          3 
Acquisition 
 related 
 expenses           360      1,822        239       2,182        239 
Finance lease 
 purchase 
 option              --         --      2,246          --      2,246 
Depreciation      3,699      3,408        794       7,107      1,269 
Amortization      2,875      2,850         23       5,725         23 
Stock-based 
 compensation    14,685      7,353      4,398      22,038      8,277 
Benefit from 
 income 
 taxes              (36)      (648)        --        (684)        -- 
                -------    -------    -------    --------    ------- 
  Adjusted 
   EBITDA      $(44,471)  $(36,325)  $(14,944)  $ (80,796)  $(25,597) 
                =======    =======    =======    ========    ======= 
 
 

Table 7

Reconciliation of GAAP Measures to Non-GAAP Measures

 
 
                            Three Months Ended                   Six Months Ended 
                 ----------------------------------------  ---------------------------- 
                   June 30,     March 31,      June 30,      June 30, 
                     2026          2026          2025          2026      June 30, 2025 
                 ------------  ------------  ------------  ------------  -------------- 
GAAP cost of 
 revenues        $    12,017   $    11,985   $     3,501   $    24,002   $     5,410 
Amortization of 
 intangible 
 assets                  147            84            --           231            -- 
                  ----------    ----------    ----------    ----------    ---------- 
Non-GAAP cost 
 of revenues     $    11,870   $    11,901   $     3,501   $    23,771   $     5,410 
 
GAAP research 
 and 
 development 
 expense         $    20,279   $    19,037   $     9,120   $    39,316   $    16,000 
Stock-based 
 compensation          5,421         3,522         2,159         8,943         4,087 
                  ----------    ----------    ----------    ----------    ---------- 
Non-GAAP 
 research and 
 development 
 expense         $    14,858   $    15,515   $     6,961   $    30,373   $    11,913 
 
GAAP general 
 and 
 administrative 
 expense         $    24,844   $    14,916   $     8,078   $    39,760   $    12,828 
Stock-based 
 compensation          8,543         3,447         2,061        11,990         3,885 
Amortization of 
 intangible 
 assets                1,743         1,685            --         3,428            -- 
Acquisition 
 related 
 expenses                360         1,822           239         2,182           239 
Finance lease 
 purchase 
 option                   --            --         2,246            --         2,246 
                  ----------    ----------    ----------    ----------    ---------- 
Non-GAAP 
 general and 
 administrative 
 expense         $    14,198   $     7,962   $     3,532   $    22,160   $     6,458 
 
GAAP operations 
 expense         $     7,862   $     6,955   $     2,124   $    14,817   $     3,793 
Stock-based 
 compensation            309           250            96           559           176 
Amortization of 
 intangible 
 assets                  111            63            --           174            -- 
                  ----------    ----------    ----------    ----------    ---------- 
Non-GAAP 
 operations 
 expense         $     7,442   $     6,642   $     2,028   $    14,084   $     3,617 
 
GAAP sales and 
 marketing 
 expense         $     4,301   $     1,873   $       463   $     6,174   $       702 
Stock-based 
 compensation            412           134            83           546           129 
Amortization of 
 intangible 
 assets                    2             3            --             5            -- 
                  ----------    ----------    ----------    ----------    ---------- 
Non-GAAP sales 
 and marketing 
 expense         $     3,887   $     1,736   $       380   $     5,623   $       573 
 
GAAP operating 
 expense         $    57,286   $    42,781   $    19,785   $   100,067   $    33,323 
Stock-based 
 compensation         14,685         7,353         4,398        22,038         8,277 
Amortization of 
 intangible 
 assets                1,856         1,751            --         3,607            -- 
Acquisition 
 related 
 expenses                360         1,822           239         2,182           239 
Finance lease 
 purchase 
 option                   --            --         2,246            --         2,246 
                  ----------    ----------    ----------    ----------    ---------- 
Non-GAAP 
 operating 
 expenses        $    40,385   $    31,855   $    12,902   $    72,240   $    22,561 
 
GAAP net loss 
 before income 
 taxes           $   (64,163)  $   (49,652)  $   (20,850)  $  (113,815)  $   (34,068) 
Stock-based 
 compensation         14,685         7,353         4,398        22,038         8,277 
Amortization of 
 intangible 
 assets                2,003         1,835            --         3,838            -- 
Acquisition 
 related 
 expenses                360         1,822           239         2,182           239 
Finance lease 
 purchase 
 option                   --            --         2,246            --         2,246 
                  ----------    ----------    ----------    ----------    ---------- 
Non-GAAP net 
 loss before 
 income taxes    $   (47,115)  $   (38,642)  $   (13,967)  $   (85,757)  $   (23,306) 
 
GAAP net loss    $   (64,127)  $   (49,004)  $   (20,850)  $  (113,131)  $   (34,068) 
Stock-based 
 compensation         14,685         7,353         4,398        22,038         8,277 
Amortization of 
 intangible 
 assets                2,003         1,835            --         3,838            -- 
Acquisition 
 related 
 expenses                360         1,822           239         2,182           239 
Finance lease 
 purchase 
 option                   --            --         2,246            --         2,246 
                  ----------    ----------    ----------    ----------    ---------- 
Non-GAAP net 
 loss            $   (47,079)  $   (37,994)  $   (13,967)  $   (85,073)  $   (23,306) 
 
Weighted 
 average common 
 shares 
 outstanding - 
 basic and 
 diluted          80,310,583    75,302,980    57,514,808    77,820,615    56,953,711 
                  ----------    ----------    ----------    ----------    ---------- 
GAAP basic and 
 diluted net 
 loss per 
 Common share    $     (0.80)  $     (0.65)  $     (0.36)  $     (1.45)  $     (0.60) 
                  ==========    ==========    ==========    ==========    ========== 
Non-GAAP basic 
 and diluted 
 net loss per 
 Common share    $     (0.59)  $     (0.50)  $     (0.24)  $     (1.09)  $     (0.41) 
                  ==========    ==========    ==========    ==========    ========== 
 
 

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