Serve Robotics — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported revenue of $2.8 million for the quarter ended September 30, 2026, representing a 313% year-over-year increase compared to $687,000 in Q3 2025.
• Revenue mix shifted toward higher-margin recurring revenue, which accounted for 69% of total revenue in Q3 2026.
• Branding revenue grew nearly 80% sequentially in Q3 2026.
• Gross margin improved sequentially, driven by the mix of recurring revenue.
• Net loss for the nine months ended September 30, 2026, was $172.4 million, compared to a net loss of $67.1 million for the same period in 2025.
• Non-GAAP net loss for the nine months ended September 30, 2026, was $129.7 million, compared to $47.7 million in the prior year period.
• Cash and marketable securities totaled $198.0 million as of September 30, 2026.
• Deferred revenue increased to $1.9 million as of September 30, 2026, from $2,000 as of December 31, 2025.
• Total assets were $331.5 million as of September 30, 2026, down from $367.8 million as of December 31, 2025.

Guidance and Future Outlook:

• Raised full-year 2026 revenue guidance to $12 million, up from the previous range of $9 million to $10 million.
• Lowered full-year 2026 non-GAAP operating expense guidance to $150 million, down from the previous range of $160 million to $170 million.
• Management cited strong robot demand and growth across a diversified portfolio of revenue streams as drivers for the revenue guidance increase.
• Cost discipline and structural improvements in unit economics are expected to support long-term trends.

Business Segments and Product Lines:

• Launched "Serve Physical AI Services," making the technology behind its fleets available to other robot makers.
• Healthcare segment generated strong revenue consistent with expectations, entering into 12 multi-year contract extensions with hospital customers and adding 4 new hospitals year-to-date.
• Delivery platform partners saw daily delivery volume triple and merchant count grow 2.5x in Q3 2026.
• Exclusively launched operations in the first international city in Australia in October 2026.
• Daily active robots averaged 917 in Q3 2026, up from 312 in Q3 2025.
• Daily supply hours averaged 11,214 in Q3 2026, up from 3,781 in Q3 2025.
• Revenue from Fleet services was $2.6 million in Q3 2026, compared to $433,000 in Q3 2025.
• Revenue from Software services was $253,000 in Q3 2026, compared to $254,000 in Q3 2025.

Market and Competitive Landscape:

• The company operates in the autonomy and robotics sector, serving over 4,000 restaurants and reaching a population of approximately 3 million across the U.S.
• The acquisition of Diligent Robotics, Inc. in 2026 expanded operations from sidewalk delivery into indoor service robots used in hospitals.
• Management noted that the mix of higher-margin recurring revenue jumped to nearly 70% of all revenues.

Risks and Challenges:

• The press release includes standard forward-looking statement disclaimers regarding risks, uncertainties, and factors outside the company's control that could cause actual results to differ materially from forecasts.
• Specific risks referenced include the ability to scale to commercial production, timing of robot manufacturing and deployment, and outcomes of planned acquisitions and partnerships.

Management Commentary and Tone:

• Dr. Ali Kashani, Co-founder and CEO, stated the company is "getting stronger on every front" with growing demand, lower fleet operating costs, and new revenue generation opportunities.
• Brian Read, CFO, characterized the quarter as one of "execution," noting that Q3 revenue exceeded expectations and operating expenses were driven down.
• Management expressed confidence that sequential improvements in fleet margin (over 100 percentage points) are structural and form the foundation for long-term unit economics improvement.

Other Key Points:

• Approximately 88 million shares of common stock were outstanding as of September 30, 2026.
• The company acquired Diligent Robotics, Inc. in 2026, contributing to the expansion into indoor service robots.
• Proceeds from the issuance of common stock pursuant to at-the-market public offerings were $84.9 million for the nine months ended September 30, 2026.
• Acquisitions, net of cash acquired, cost $21.4 million for the nine months ended September 30, 2026.
• The company reported a benefit from income taxes of $79,000 for the quarter ended September 30, 2026.
• A conference call and webcast were hosted on November 5, 2026, to discuss results.