Key Highlights
- First quarter revenue reached $3.0M, representing a 578% increase year-over-year and 238% growth quarter-over-quarter, surpassing company projections
- Earnings per share of -$0.65 fell short of analyst expectations of -$0.51
- Full-year 2026 revenue target of $26M maintained
- New sidewalk robot rollouts halted for first half of 2026 as company prioritizes operational efficiency
- Company holds $197.4M in cash and equivalents with approximately 2,000 robots in operation
Serve Robotics delivered first quarter 2026 revenue totaling $3.0 million, marking a 578% jump from the prior year period and 238% increase from the previous quarter. Chief Executive Ali Kashani characterized the performance as exceeding internal forecasts, attributing the strength to expansion in both fleet operations and software service offerings.
However, the revenue outperformance was offset by an earnings miss, with the company reporting a loss of -$0.65 per share compared to the Street’s anticipated -$0.51.
Software services contributed approximately one-third of quarterly revenue. The company highlighted that recurring revenue now represents just under half of total sales, reflecting progress toward a more predictable revenue model.
Fleet operations generated roughly $2 million in the period, while software services added about $1 million. Recurring revenue streams totaled approximately $1.4 million.
Gross margin registered at -302%, remaining substantially negative, though management emphasized that software operations achieved positive margins. The negative consolidated figure reflects the capital-intensive economics of deploying physical robotics infrastructure.
GAAP-based operating expenses totaled $42.8 million in the quarter. The company posted a net loss of $49 million, translating to -$0.65 per diluted share. On a non-GAAP basis, net loss measured $38 million, or -$0.50 per share.
Operating activities consumed $41.4 million in cash. The quarter concluded with $197.4 million in cash, cash equivalents, and marketable securities on the balance sheet.
First Half Deployment Freeze
Serve plans to maintain its sidewalk delivery robot fleet at roughly 2,000 units throughout the opening half of 2026. Leadership indicated the strategic pivot emphasizes maximizing productivity from the existing fleet rather than pursuing aggressive unit expansion.
Kashani described the second quarter as a foundational period, explaining that initiatives around merchant partnerships, delivery platform connectivity, and geographic market development are designed to accelerate “when growth resumes in the latter half of the year.”
Diversification Into Healthcare
Serve expanded into medical facilities following its purchase of Diligent Robotics. The business now maintains operations spanning 44 cities across 14 states, integrating hospital delivery networks with its established sidewalk delivery infrastructure.
The unified fleet has completed nearly 2 million total deliveries across both indoor hospital settings and outdoor urban environments.
Chief Financial Officer Brian Read detailed the organization’s strategic financial objectives: enhance individual robot utilization, increase revenue generation per robot and per operational hour, and strengthen the foundation of predictable recurring income.
Management reiterated its full-year 2026 revenue forecast of $26 million alongside non-GAAP operating expense guidance ranging from $160 million to $170 million.
Moxie and Serve robots collectively deliver more than 10,000 robot supply hours to commercial partners daily, with over 800 units operating in the field each day.
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