What caused SERV's Q4 2024 EPS to drop significantly?

The significant drop in SERV's Q4 2024 EPS can be attributed to **Increased Operating Expenses and Higher Net Loss**: 1. **Operational Costs**: The total operating expenses for the quarter increased almost 100% to $12.9 million. This substantial rise is a major contributor to the decreased EPS. 2. **Loss from Operations**: The company reported a loss from operations of $13.6 million, which is a significant increase from the previous year's loss of $6.8 million. This indicates that the company's operational performance is deteriorating, leading to a negative impact on EPS. 3. **Strategic Investments and Challenges**: Serve Robotics is investing heavily in expanding its fleet and technology, which includes the design and deployment of new generation robots. These investments are likely to have a short-term impact on profitability, as evidenced by the increased net loss of $39.2 million for the year. These strategic investments are crucial for long-term growth but can temporarily strain financial performance. In summary, the drop in SERV's Q4 2024 EPS is primarily due to a combination of increased operational costs, a higher net loss, and strategic investments that are impacting short-term profitability.