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Serve Robotics Inc (SERV)
NASDAQ:SERV
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Serve Robotics Inc (SERV) AI Stock Analysis

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SERV

Serve Robotics Inc

(NASDAQ:SERV)

Rating:55Neutral
Price Target:
$12.00
▲(6.67% Upside)
Serve Robotics Inc. has a moderate overall stock score. The company's strong growth prospects and strategic expansions are offset by significant financial challenges, including negative profitability and cash flows. The recent acquisition and positive earnings call sentiment provide a promising outlook, but financial stability remains a concern.
Positive Factors
Long-term Growth Potential
Serve Robotics is positioned to be a long-term winner in last-mile delivery.
Partnerships and Expansion
Serve Robotics benefits from compelling unit economics and material partnerships for scale and expansion.
Negative Factors
Financial Performance
The rating on SERV was lowered to Neutral from Buy due to expectations of a more back-end weighted revenue ramp and increased near-term expenses.

Serve Robotics Inc (SERV) vs. SPDR S&P 500 ETF (SPY)

Serve Robotics Inc Business Overview & Revenue Model

Company DescriptionServe Robotics Inc (SERV) is a technology company focused on developing and deploying autonomous delivery robots designed to revolutionize last-mile delivery services. Operating primarily in the logistics and transportation sectors, Serve Robotics aims to enhance delivery efficiency and sustainability through its innovative robotic solutions. The company's core products include versatile robots equipped with advanced sensors and AI capabilities, enabling them to navigate urban environments and deliver goods autonomously.
How the Company Makes MoneyServe Robotics Inc generates revenue through a combination of direct sales, service agreements, and partnership collaborations. The company sells its autonomous delivery robots to businesses and logistics companies seeking to optimize their delivery operations. Additionally, Serve Robotics offers service contracts for maintenance and software updates, ensuring optimal performance of deployed units. Strategic partnerships with retail and food delivery companies also contribute to its earnings, as these collaborations often include revenue-sharing models and exclusive service agreements, allowing Serve Robotics to expand its market reach and drive adoption of its technology.

Serve Robotics Inc Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong growth and expansion for Serve Robotics, with significant increases in revenue and delivery volumes, strategic partnerships, and successful market expansions. However, the company faced increased operating expenses and negative EBITDA due to its aggressive expansion strategy, along with short-term revenue fluctuations. The overall sentiment of the call is positive, as the highlights significantly outweigh the lowlights, indicating a promising future for the company.
Q2-2025 Updates
Positive Updates
Significant Revenue Growth
Serve Robotics reported a 46% sequential increase in revenue compared to Q1 2025, meeting the guidance provided in the previous quarter.
Impressive Delivery Volume Increase
The company achieved nearly 80% quarter-over-quarter growth in delivery volume, surpassing the expected 60% to 70% growth.
Fleet Expansion Ahead of Schedule
Over 120 third-generation robots were deployed, increasing the fleet size to over 400, ahead of the original Q3 schedule.
Expansion to New Markets
Serve Robotics launched operations in Atlanta and expanded coverage in Los Angeles and Miami, now serving nearly 800,000 households in the U.S.
Strategic Partnership with Little Caesars
Serve Robotics began delivering for Little Caesars in partnership with Uber Eats, demonstrating the company's growing national delivery partnerships.
Strong Financial Position
The company ended the quarter with $183 million in cash and marketable securities, ensuring self-funding for the 2,000-unit fleet rollout.
Negative Updates
Increased Operating Expenses
GAAP operating expenses for Q2 were $19.8 million, reflecting targeted investments in new market launches and internal capabilities.
Negative Adjusted EBITDA
Adjusted EBITDA was negative $14.9 million, driven by operational expansion during the quarter.
Short-term Revenue Fluctuations
Projected Q3 revenue is expected to remain in line with Q2, with anticipated declines in software and branding revenues due to the conclusion of a nonrecurring contract with Magna.
Company Guidance
During the second quarter of 2025, Serve Robotics provided guidance indicating significant growth in their operations and financial performance. The company achieved a 46% sequential revenue growth from Q1, surpassing their previous expectations with an 80% increase in delivery volume. They expanded their fleet by deploying over 120 third-generation robots, increasing the total fleet size to over 400, and plan to double this number by the end of Q3 and again by the end of Q4. Additionally, Serve Robotics expanded into new markets, including Atlanta, and are set to launch in Chicago and another East Coast metro by the end of 2025. The company has increased its reach to nearly 1.8 million people across four metro areas and partnered with over 2,500 merchants, a substantial increase from 1,500 in Q1. Despite rapid growth, Serve Robotics maintained a 99.8% delivery reliability. Financially, they reported Q2 revenue of $641,000, in line with guidance, and ended the quarter with $183 million in cash and marketable securities. They project Q3 revenues between $600,000 and $700,000, representing a 170% to 215% year-over-year growth, and aim for an annualized revenue run rate of $60 million to $80 million once their 2,000-robot fleet achieves full utilization.

Serve Robotics Inc Financial Statement Overview

Summary
Serve Robotics Inc faces significant financial challenges with negative profitability and high reliance on debt financing. Despite recent revenue growth and equity improvements, operational inefficiencies and cash flow issues pose substantial risks.
Income Statement
15
Very Negative
Serve Robotics Inc shows significant challenges in profitability with negative gross profit and net income consistently over the years. The recent revenue growth is promising, but the company still faces high EBIT and EBITDA losses, indicating ongoing operational inefficiencies.
Balance Sheet
40
Negative
The balance sheet reveals substantial improvement in stockholders' equity due to the latest financing activities. However, the company has a high debt-to-equity ratio, suggesting reliance on debt financing, and a low equity ratio, indicating potential financial instability.
Cash Flow
30
Negative
The cash flow statement shows negative free and operating cash flows, with heavy reliance on financing activities for cash inflow. Despite a recent infusion of cash, the company struggles to generate cash from operations, raising concerns about long-term sustainability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.48M1.81M207.54K107.82K0.00
Gross Profit-5.14M-75.16K-1.52M-1.04M-42.47K
EBITDA-58.93M-37.98M-20.69M-20.83M-21.62M
Net Income-55.18M-39.19M-24.81M-21.86M-21.67M
Balance Sheet
Total Assets214.31M139.60M2.80M8.54M8.66M
Cash, Cash Equivalents and Short-Term Investments183.33M123.27M6.76K2.72M7.97M
Total Debt2.58M2.34M4.37M7.48M0.00
Total Liabilities7.11M7.92M6.84M21.00M336.31K
Stockholders Equity207.21M131.68M-4.03M-12.45M8.32M
Cash Flow
Free Cash Flow-56.10M-31.79M-15.98M-25.05M-10.87M
Operating Cash Flow-37.15M-21.54M-15.97M-21.40M-10.71M
Investing Cash Flow-91.45M-10.32M-4.91K-4.06M-258.73K
Financing Cash Flow216.52M155.12M13.27M20.21M18.93M

Serve Robotics Inc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.25
Price Trends
50DMA
10.65
Positive
100DMA
9.68
Positive
200DMA
10.91
Positive
Market Momentum
MACD
-0.03
Negative
RSI
58.16
Neutral
STOCH
79.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SERV, the sentiment is Positive. The current price of 11.25 is above the 20-day moving average (MA) of 10.25, above the 50-day MA of 10.65, and above the 200-day MA of 10.91, indicating a bullish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 58.16 is Neutral, neither overbought nor oversold. The STOCH value of 79.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SERV.

Serve Robotics Inc Risk Analysis

Serve Robotics Inc disclosed 59 risk factors in its most recent earnings report. Serve Robotics Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Serve Robotics Inc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
$6.67B-2.33-4.11%6.23%14.92%10.98%
55
Neutral
$614.99M-46.83%-2.66%-28.60%
54
Neutral
$78.80M-61.47%123.75%66.85%
48
Neutral
$50.92M30.96-3.73%-18.38%-128.11%
45
Neutral
$16.50M-58.13%-80.89%50.92%
$133.89M
$472.17M-26.25%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SERV
Serve Robotics Inc
11.25
2.27
25.28%
BWEN
Broadwind Energy
2.12
-0.13
-5.78%
CETY
Clean Energy Technologies
0.25
-0.88
-77.88%
SHMD
SCHMID Group NV
2.63
-1.23
-31.87%
LASE
Laser Photonics Corp.
4.60
0.24
5.50%
RR
Richtech Robotics Inc. Class B
3.10
1.65
113.79%

Serve Robotics Inc Corporate Events

M&A TransactionsBusiness Operations and Strategy
Serve Robotics Inc Acquires Vayu Robotics for AI Advancement
Positive
Aug 18, 2025

Serve Robotics Inc. announced the acquisition of Vayu Robotics, a pioneer in AI-based urban robot navigation, on August 18, 2025. This strategic move aims to enhance Serve’s capabilities in autonomous delivery by integrating Vayu’s AI foundation models and simulation-powered data engine, positioning Serve at the forefront of the robotics industry. The acquisition is expected to accelerate Serve’s roadmap, expand its autonomy training capabilities, and facilitate entry into new markets and use cases, ultimately improving operational efficiency and reducing delivery costs. Vinod Khosla, Vayu’s lead investor, will join Serve’s Advisory Board, further strengthening Serve’s industry positioning.

Business Operations and StrategyFinancial Disclosures
Serve Robotics Reports Q2 2025 Financial Growth
Positive
Aug 7, 2025

On August 7, 2025, Serve Robotics Inc. announced its financial results for the second quarter of 2025, highlighting a significant delivery volume growth of nearly 80% quarter over quarter and a 46% increase in revenue to $642 thousand. The company expanded into new markets, including Atlanta and Chicago, and maintained a strong liquidity position of $183 million. Serve Robotics also announced a new partnership with Little Caesars, emphasizing its strategic focus on becoming a preferred delivery partner for key merchants. The company plans to quadruple its fleet again in the latter half of 2025, projecting an annualized revenue run-rate of $60 to $80 million once its 2,000-robot fleet is fully deployed by 2026.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Serve Robotics Inc Confirms Director Elections and Key Proposals
Neutral
Jun 16, 2025

At the 2025 annual meeting of Serve Robotics Inc. held on June 12, 2025, stockholders voted on several key proposals. The election of two directors, Lily Sarafan and Olivier Vincent, to serve as Class II directors until 2028 was confirmed. Additionally, the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified. Furthermore, an amendment to the 2023 Equity Incentive Plan to increase the number of shares authorized for issuance was approved. These decisions reflect the company’s strategic direction and governance priorities.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 28, 2025