Serve Robotics — Second Quarter 2026 Earnings Summary

Financial Performance

• Reported total revenue of $3.238 million for the quarter ended June 30, 2026, representing a 404% year-over-year increase and a 9% sequential increase from Q1 2026.
• Revenue for the six months ended June 30, 2026, totaled $6.222 million, compared to $1.082 million in the same period of 2025.
• Reported a GAAP net loss of $64.127 million for the quarter and $113.131 million for the six months ended June 30, 2026.
• GAAP gross loss was $8.779 million for the quarter; non-GAAP gross loss was $11.870 million for the quarter after adjusting for amortization of intangible assets.
• Non-GAAP operating expenses for the quarter were $40.385 million, down from $42.781 million in GAAP operating expenses.
• Ended the quarter with $240.4 million in cash and marketable securities ($79.112 million in cash and cash equivalents plus $156.295 million in short-term marketable securities and $5.001 million in long-term marketable securities).
• Deferred revenue increased significantly to $1.975 million as of June 30, 2026, from $2 million at December 31, 2025.
• Total assets were $378.624 million as of June 30, 2026, compared to $367.751 million at December 31, 2025.
• Total liabilities were $26.832 million as of June 30, 2026, compared to $17.007 million at December 31, 2025.
• Net cash used in operating activities was $84.738 million for the six months ended June 30, 2026.
• Net cash provided by financing activities was $85.326 million for the six months ended June 30, 2026, primarily driven by $84.922 million from at-the-market public offerings.
• Adjusted EBITDA for the quarter was $(44.471) million.

Guidance and Future Outlook

• Revised full-year 2026 revenue guidance to a range of $9 million to $10 million, reflecting lower than expected delivery volume through the Uber Eats partnership and the removal of projected demand in the second half of 2026.
• Revised full-year 2026 non-GAAP operating expense guidance to $140 million to $150 million, down from the previous range of $160 million to $170 million.
• Management indicated a deliberate decision to concentrate fleet and capital behind the highest-return opportunities to maintain a strong balance sheet while continuing to expand the autonomous network.

Business Segments and Product Lines

• Revenue diversification is evident with recurring revenue comprising over 50% of total revenues in Q2 2026.
• Advertising revenue accounted for nearly 50% of food delivery revenue in Q2 2026.
• Fleet services revenue was $2.305 million for the quarter, while software services revenue was $933,000.
• Healthcare segment delivered steady revenue in line with expectations, with 7 multiyear contract extensions signed and 2 new hospitals added in the first half of 2026.
• DoorDash partnership revenue grew nearly 50% sequentially in Q2 2026, exceeding expectations.
• Acquired Diligent Robotics, Inc. in 2026, expanding operations from sidewalk delivery into indoor service robots used in hospitals.
• Deployed over 2,000 robots across the U.S. reaching a population of approximately 3 million and supporting over 4,000 restaurants.
• Daily active robots averaged 792 in Q2 2026, up from 160 in Q2 2025; daily supply hours averaged 9,809 in Q2 2026, up from 1,723 in Q2 2025.

Market and Competitive Landscape

• Serve Robotics operates in the last-mile delivery and autonomy sector, competing through a scaled robot fleet powering deliveries across multiple verticals including food, healthcare, grocery, and laundry.
• The company has established partnerships with major platforms including DoorDash, Uber Eats, and NoScrubs Laundry.
• Management highlighted that leadership in autonomy and commercial deployment creates advantages that compound with scale, enabling unique partnerships and diversified revenue streams.

Risks and Challenges

• Forward-looking statements note risks including uncertainties in future revenue generation, timing of robot manufacturing and deployment, and ability to expand to additional markets.
• Specific challenges mentioned include lower than expected delivery volume through the Uber Eats partnership impacting the revised revenue outlook.
• Actual results may differ materially from forward-looking statements due to risks and uncertainties outside the company's control, including those detailed in SEC filings.

Management Commentary and Tone

• CEO Dr. Ali Kashani stated the company is driving innovation in last-mile delivery with a scaled fleet powering deliveries across multiple verticals, emphasizing a disciplined approach to growth.
• CFO Brian Read noted the updated outlook reflects a deliberate decision to concentrate fleet and capital behind highest-return opportunities, lowering expected operating expenses while maintaining a strong balance sheet.
• Management expressed confidence in the flexibility to continue expanding the autonomous network and investing in the technology platform to drive sustainable long-term growth.

Other Key Points

• Approximately 86 million shares of common stock were outstanding as of June 30, 2026.
• The company raised $84.922 million through at-the-market public offerings during the six months ended June 30, 2026.
• Acquisitions, net of cash acquired, totaled $21.447 million for the six months ended June 30, 2026.
• The company received $3.567 million in tariff refunds during the six months ended June 30, 2026.
• Stock-based compensation expense was $14.685 million for the quarter and $22.038 million for the six months ended June 30, 2026.
• Goodwill increased to $27.998 million as of June 30, 2026, from $15.530 million at December 31, 2025, likely due to the Diligent Robotics acquisition.
• Intangible assets increased to $34.505 million as of June 30, 2026, from $31.313 million at December 31, 2025.