SERV's Utilization Improves: What's Supporting Unit Economics?

Serve Robotics Inc. SERV reported improving utilization metrics in its fourth-quarter 2025, with operating data indicating higher activity levels across its deployed fleet. The development comes alongside a year marked by significant fleet expansion, shifting focus toward operational performance.

During the quarter, average daily operating hours per robot increased 56% year over year to more than 12 hours, pointing to longer active usage across deployed units. SERV noted that cost per delivery declined sequentially through 2025, as operational experience increased and systems continued to mature. These trends were observed in the context of ongoing fleet expansion and entry into additional cities during the year.

Newly deployed robots initially operate below steady-state efficiency following rollout, with performance improving as operational processes mature over time. This underscores a phased progression from deployment to full utilization across markets.

Following a significant increase in fleet size during 2025, the company stated that its near-term focus is on activating and optimizing the existing fleet. It expects deployed robots to reach full daily operational status as rollout activities are completed.

Overall, the increase in operating hours per robot and the sequential decline in cost per delivery point to improved unit-level efficiency as SERV scales its operations. Higher utilization allows a greater number of deliveries to be completed per robot, supporting more efficient cost absorption at the unit level. These trends position utilization as a key driver of operating performance alongside continued fleet expansion.

SERV’s Price Performance, Valuation & Estimates

Shares of Serve Robotics have gained 55.4% over the past year against the industry’s 7% decline. At the same time frame, other industry players, such as Vertiv Holdings Co. VRT and BigBear.ai Holdings, Inc. BBAI, have jumped 284.4% and 12.5%, respectively.

SERV’s Stock One-Year Price Performance

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SERV stock is currently trading at a premium. It is currently trading at a forward 12-month price-to-sales (P/S) multiple of 17.67, well above the industry average of 12.75. Then again, other industry players, such as Vertiv and BigBear.ai, have P/S ratios of 6.83 and 10.95, respectively.

SERV’s P/S Ratio (Forward 12-Month) vs. Industry

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The Zacks Consensus Estimate for Serve Robotics’ 2026 loss per share has widened from $1.81 to $2.47 in the past 30 days.

EPS Trend of SERV Stock

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The company is likely to report dismal earnings, with projections indicating a 51.5% fall in 2026. Conversely, industry players like Vertiv and BigBear.ai are likely to witness growth of 46.7% and 63.4%, respectively, year over year in 2026 earnings.

SERV stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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