Serve Robotics 2025 Q2 Earnings Widening Losses Amid Strong Revenue Growth

Serve Robotics (SERV) reported its fiscal 2025 Q2 earnings on August 8, 2025. The results reflect a sharp increase in revenue but a significant widening of losses. The company has not adjusted its guidance and remains on track with prior expectations.

Revenue
Serve Robotics reported a 37.2% year-over-year increase in total revenue, reaching $642,000 in Q2 2025, compared to $468,000 in the same period the previous year. The revenue was driven by strong performance across its business segments, with software services contributing $312,000 and fleet services accounting for $330,000.

Earnings/Net Income
Net income continued to decline, with the company recording a loss of $0.36 per share in Q2 2025, a 33.3% increase in loss per share compared to $0.27 in Q2 2024. The net loss expanded to $20.85 million from $9.04 million in the prior year, representing a 130.7% increase. This trend reflects ongoing financial pressure and operational challenges.

Price Action
The stock of Serve Robotics saw positive short-term performance, with a 2.85% rise on the latest trading day and a 4.60% gain over the past week. However, it has declined by 2.15% month-to-date.

Post-Earnings Price Action Review
A strategy of buying Serve Robotics shares on the earnings release date and holding for 30 days has historically underperformed against the benchmark. Over the past three years, this approach yielded a return of -39.40%, compared to the benchmark’s 20.17%. The strategy showed no drawdowns but also failed to generate gains, resulting in a CAGR of -34.34% and an excess return of -59.57%.

CEO Commentary
Dr. Ali Kashani, CEO, emphasized Serve’s operational progress, including the delivery of over 120 new third-generation robots and a 340% increase in daily supply hours compared to Q2 2024. Kashani also highlighted the company’s expansion into new markets, including Atlanta, Los Angeles, Miami, and Doha. CFO Brian Read outlined disciplined financial execution and confidence in fleet expansion, with projections to scale to 2,000 robots by 2026.

Guidance
The company anticipates Q3 2025 revenue between $600,000 and $700,000, reflecting a projected 170–215% year-over-year growth. It expects to more than double its robot fleet in Q3 and reiterated a projected annualized revenue run-rate of $60–$80 million upon full utilization of its 2,000-robot fleet by 2026. Liquidity of $183 million is expected to support operations through the end of 2026.

Additional News
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