Company Overview - Serve Robotics is focused on developing autonomous last-mile logistics solutions, particularly for food delivery, and has recently partnered with Uber Eats to deploy 2,000 delivery robots [4][9] - The company has made over 100,000 deliveries since early 2022, achieving a 99.8% completion rate, indicating high reliability [8] Financial Performance - Serve generated $642,000 in total revenue during Q2 2025, a 37% increase year-over-year, but this is relatively small given its market capitalization of over $500 million [10] - Wall Street estimates suggest Serve's total revenue for 2025 could reach approximately $3.6 million, a 99% increase from 2024, with potential growth to $80 million by 2026 as the rollout of Gen3 robots completes [11] - The company reported a loss of $33.7 million in the first half of 2025, indicating significant financial strain as it seeks to commercialize its business [12] Investment Considerations - Serve's current valuation is high, trading at a price-to-sales (P/S) ratio of 317, which raises concerns about its investment attractiveness compared to Nvidia's P/S ratio of 30 [14][15] - Nvidia sold its entire stake in Serve, which may indicate concerns about the company's overvaluation and financial situation [3][17] - Serve has approximately $183 million in cash, which may only sustain operations until the end of 2026, raising the possibility of future capital raises that could dilute existing shareholders [13] Market Opportunity - The shift to autonomous delivery solutions is projected to create a $450 billion market opportunity by 2030, as current last-mile logistics are deemed inefficient [6] - Serve's Gen3 robots utilize Nvidia's Jetson Orin platform, enabling Level 4 autonomy for safe deliveries without human intervention [7]

Core Insights - Serve Robotics Inc. has acquired Vayu Robotics, enhancing its position in the autonomous delivery market and leveraging Vayu's AI navigation technology [1][5][11] - The acquisition aims to combine Serve's real-world data with Vayu's AI models to improve navigation capabilities and accelerate deployment in new markets [2][7] Company Overview - Serve Robotics develops AI-powered, low-emission sidewalk delivery robots and has completed tens of thousands of deliveries for partners like Uber Eats and 7-Eleven [12] - Vayu Robotics specializes in urban robot navigation using large-scale AI models and aims to democratize robotics for widespread adoption [11] Strategic Implications - The merger is expected to enhance Serve's autonomy training capabilities and expand its operational environments, potentially increasing revenue and customer growth [7][8] - The integration of Vayu's technology is anticipated to improve safety, reliability, and speed, thereby reducing operational costs [7] Financial Details - The acquisition includes an initial consideration of 1,696,069 shares of Serve's common stock, with a potential future earnout of 560,000 shares based on performance milestones [8][9] - Additional warrants for 4,000,000 shares at an exercise price of $10.36 per share were issued to Khosla Ventures, a key investor in Vayu [8] Leadership and Expertise - Vayu's team, including founders with extensive experience in AI and robotics, will join Serve, bringing valuable insights and expertise [3][4] - Vinod Khosla, a prominent Silicon Valley technologist and Vayu's lead investor, will join Serve's Advisory Board to support its growth [4][6]

PART I - FINANCIAL INFORMATION This section presents the unaudited condensed consolidated financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, changes in stockholders' equity, and cash flows, along with detailed notes explaining accounting policies, significant transactions, and financial position [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This table presents the company's financial position, detailing assets, liabilities, and stockholders' equity as of June 30, 2025, and December 31, 2024 **Condensed Consolidated Balance Sheets (in thousands)** | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total Assets | $214,315 | $139,601 | | Cash and cash equivalents | $116,700 | $123,266 | | Short-term marketable securities | $66,631 | $- | | Total Liabilities | $7,109 | $7,920 | | Total Stockholders' Equity | $207,206 | $131,681 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This table outlines the company's revenues, costs, gross profit, operating expenses, and net loss for the three and six months ended June 30, 2025 and 2024 **Condensed Consolidated Statements of Operations (in thousands)** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $642 | $468 | $1,082 | $1,415 | | Cost of revenues | $3,501 | $326 | $5,410 | $678 | | Gross profit (loss) | $(2,859) | $142 | $(4,328) | $737 | | Total operating expenses | $19,785 | $8,698 | $33,323 | $17,003 | | Net loss | $(20,850) | $(9,038) | $(34,068) | $(18,075) | [Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity%20(Deficit)) This table details changes in stockholders' equity, including stock issuances, warrant exercises, stock-based compensation, and net loss for the six months ended June 30, 2025 **Changes in Stockholders' Equity (in thousands) for Six Months Ended June 30, 2025** | Item | Amount | | :-------------------------------------------------------------------------------- | :----- | | Balances at December 31, 2024 | $131,681 | | Issuance of common stock, net of offering costs | $75,847 | | Issuance of common stock under 2025 Equity Distribution Agreement, net of offering costs | $13,521 | | Exercise of warrants | $(411) | | Stock-based compensation | $4,398 | | Net loss | $(20,850) | | Balances at June 30, 2025 | $207,206 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This table summarizes cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 **Condensed Consolidated Statements of Cash Flows (in thousands) for Six Months Ended June 30** | Activity | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Net cash used in operating activities | $(25,426) | $(9,820) | | Net cash used in investing activities | $(81,934) | $(798) | | Net cash provided by financing activities | $100,795 | $39,392 | | Net change in cash and cash equivalents | $(6,565) | $28,774 | | Cash and cash equivalents at end of period | $116,700 | $28,781 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the accounting policies, significant transactions, and financial position supporting the unaudited condensed consolidated financial statements [1. Nature of Operations, History, Organization and Business](index=12&type=section&id=1.%20Nature%20of%20Operations,%20History,%20Organization%20and%20Business) Serve Robotics Inc. is developing next-generation robots for last-mile delivery services. The company completed a reverse merger in July 2023, becoming a public reporting company, and subsequently completed a public offering and uplisted to Nasdaq in April 2024 - Company's core business: Developing next-generation robots for **last-mile delivery services**[25](index=25&type=chunk) - Reverse Merger: Completed on **July 31, 2023**, with Serve becoming a wholly-owned subsidiary of Patricia Acquisition Corp., which then changed its name to Serve Robotics Inc[26](index=26&type=chunk) - Public Offering & Nasdaq Listing: Completed on **April 17, 2024**, raising approximately **$35.8 million net proceeds**, and commenced trading on Nasdaq under "SERV" beginning on April 18, 2024[27](index=27&type=chunk) [2. Summary of Significant Accounting Policies](index=12&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This section details the company's accounting policies, including its basis of presentation, single operating segment, liquidity and going concern considerations, and revenue recognition. It highlights significant customer concentration and outlines recently adopted and new accounting pronouncements - Basis of Presentation: Unaudited condensed consolidated financial statements prepared in accordance with SEC rules and GAAP, including normal recurring adjustments[29](index=29&type=chunk) - Liquidity and Going Concern: As of June 30, 2025, principal liquidity sources were **$183.3 million** in cash and marketable securities; the company expects to fund its operations for at least the next twelve months[32](index=32&type=chunk) **Customer Revenue Concentration** | Customer | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Magna | 39% | 63% | 46% | 81% | | Uber | 31% | 30% | 29% | 13% | - Revenue Recognition: Revenue is disaggregated into software services and fleet services, recognized when control of goods or services is transferred to customers[70](index=70&type=chunk)[74](index=74&type=chunk) - Recently Adopted Accounting Pronouncements: Adopted ASU No. 2023-07, Segment Reporting, during the fourth quarter of December 31, 2024[84](index=84&type=chunk) [3. Acquisition](index=20&type=section&id=3.%20Acquisition) On April 1, 2025, the Company acquired a foreign entity for approximately $5.75 million in cash, resulting in preliminary goodwill of $4.33 million. The acquisition included identifiable intangible assets such as developed technology, customer relationships, and trade names - Acquisition Date: **April 1, 2025**[87](index=87&type=chunk) - Purchase Consideration: Approximately **$5.75 million** of cash consideration[90](index=90&type=chunk) - Preliminary Goodwill: **$4.33 million**, attributed to expected synergies and other benefits[90](index=90&type=chunk) **Preliminary Fair Values of Identified Intangible Assets Acquired (in thousands)** | Intangible Assets | Useful life (in years) | Preliminary fair value at acquisition | | :---------------- | :--------------------- | :---------------------------------- | | Developed technology | 15 | $980 | | Customer relationships | 25 | $255 | | Trade names | 10 | $135 | | Total | | $1,370 | [4. Goodwill and Intangible Assets, Net](index=23&type=section&id=4.%20Goodwill%20and%20Intangible%20Assets,%20Net) Goodwill increased to $4.59 million as of June 30, 2025, primarily due to the recent acquisition and foreign currency translation effects. Intangible assets, net, totaled $1.43 million, consisting of developed technology, customer relationships, and trade names, amortized over 10-25 years **Goodwill Carrying Amount (in thousands)** | Metric | Amount | | :-------------------------- | :----- | | Balance as of December 31, 2024 | $— | | Acquisition | $4,327 | | Effects of foreign currency translation | $261 | | Balance as of June 30, 2025 | $4,588 | **Intangible Assets, Net (in thousands) as of June 30, 2025** | Intangible Assets | Weighted-Average Remaining Useful Life (in years) | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | | :---------------- | :---------------------------------------------- | :------------------- | :----------------------- | :----------------- | | Developed technology | 14.8 | $1,039 | $17 | $1,022 | | Customer relationships | 24.8 | $270 | $3 | $267 | | Trade names | 9.8 | $144 | $4 | $140 | | Total | | $1,453 | $24 | $1,429 | **Estimated Future Amortization Expense of Intangible Assets (in thousands)** | Year Ending December 31, | Amortization Expense | | :----------------------- | :------------------- | | Remainder of 2025 | $47 | | 2026 | $94 | | 2027 | $94 | | 2028 | $94 | | 2029 | $94 | | Thereafter | $1,006 | | Total | $1,429 | [5. Fair Value Measurements](index=23&type=section&id=5.%20Fair%20Value%20Measurements) As of June 30, 2025, the company held $172.6 million in cash equivalents and short-term marketable securities measured at fair value, primarily classified as Level 1 and Level 2. The derivative liability related to convertible notes was converted to additional paid-in capital in April 2024 **Fair Value Measurements as of June 30, 2025 (in thousands)** | Asset Type | Level 1 | Level 2 | Level 3 | Total | | :-------------------------- | :------ | :------ | :------ | :------ | | Money market funds | $97,318 | $— | $— | $97,318 | | Commercial Paper (cash equiv.) | $6,481 | $— | $— | $6,481 | | U.S. Treasury securities (cash equiv.) | $2,201 | $— | $— | $2,201 | | Commercial paper (short-term) | $— | $31,732 | $— | $31,732 | | Corporate bonds | $— | $27,492 | $— | $27,492 | | U.S. Treasury securities (short-term) | $— | $7,407 | $— | $7,407 | | Total | $106,000 | $66,631 | $— | $172,631 | - Derivative Liability: The related derivative liability was converted into additional paid-in capital in connection with the conversion of the underlying January Notes upon the Offering in **April 2024**[103](index=103&type=chunk) [6. Marketable Securities](index=24&type=section&id=6.%20Marketable%20Securities) As of June 30, 2025, the company held $172.6 million in cash equivalents and marketable securities. Unrealized losses of $45k were recorded on short-term marketable securities, but no credit loss allowance was deemed necessary as the company intends to hold these securities until maturity or recovery of cost basis **Marketable Securities Summary (in thousands) as of June 30, 2025** | Asset Type | Cost or Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | | :-------------------------- | :--------------------- | :--------------- | :---------------- | :------------------- | | Money market funds | $97,318 | $— | $— | $97,318 | | Commercial Paper (cash equiv.) | $6,481 | $— | $— | $6,481 | | U.S. Treasury securities (cash equiv.) | $2,201 | $— | $— | $2,201 | | Commercial paper (short-term) | $31,748 | $— | $(16) | $31,732 | | Corporate bonds | $27,515 | $— | $(23) | $27,492 | | U.S. Treasury securities (short-term) | $7,413 | $— | $(6) | $7,407 | | Total | $172,676 | $— | $(45) | $172,631 | - For marketable securities with unrealized losses, the Company does not intend to sell them and expects to hold them until maturity or recovery of cost basis; no allowance for credit losses was recorded[105](index=105&type=chunk) [7. Property and Equipment, Net](index=25&type=section&id=7.%20Property%20and%20Equipment,%20Net) Property and equipment, net, increased to $18.59 million as of June 30, 2025, from $11.96 million at December 31, 2024, primarily due to a significant increase in robot assets. Depreciation expense also increased substantially **Property and Equipment, Net (in thousands)** | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Office equipment | $373 | $332 | | Robot assets | $12,948 | $4,610 | | Construction-in-progress | $7,069 | $7,826 | | Tooling | $2,111 | $1,799 | | Total | $22,501 | $14,567 | | Less: accumulated depreciation | $(3,908) | $(2,604) | | Property and equipment, net | $18,593 | $11,963 | - Depreciation expense for the six months ended June 30, 2025, was **$1,269 thousand**, a significant increase from **$28 thousand** in the same period of 2024[106](index=106&type=chunk) [8. Note Payable](index=25&type=section&id=8.%20Note%20Payable) A related party note payable was fully repaid in January 2024. January 2024 convertible notes totaling $5.0 million were converted into 2,104,562 shares of common stock in April 2024 upon the public offering, eliminating related interest expense and derivative liability - Related Party Note Payable: **$70 thousand**, fully repaid on **January 3, 2024**[107](index=107&type=chunk) - January 2024 Convertible Notes: **$5.0 million** aggregate, converted into **2,104,562 shares of common stock** at a conversion price of **$2.42 per share** upon the closing of the Offering in **April 2024**[108](index=108&type=chunk)[109](index=109&type=chunk) - Derivative Liability: A derivative liability with a fair value of **$1.7 million** was reclassified to additional paid-in capital upon the conversion of the January Notes in **April 2024**[110](index=110&type=chunk) [9. Stockholders' Equity (Deficit)](index=26&type=section&id=9.%20Stockholders'%20Equity%20(Deficit)) The company's common stock outstanding increased significantly due to various equity transactions, including a $40.0 million public offering in April 2024, private placements totaling $32.3 million in July and August 2024, an $80 million registered direct offering in January 2025, and 'at-the-market' offerings raising $77.6 million in 2024 and $13.5 million in H1 2025 - Common Stock Outstanding: **59,333,332 shares** as of June 30, 2025, compared to **51,288,566 shares** as of December 31, 2024[16](index=16&type=chunk) - April 2024 Public Offering: Issued **10,000,000 shares** for gross proceeds of **$40.0 million**[115](index=115&type=chunk) - July 2024 Private Placement: Sold pre-funded warrants and investor warrants for net proceeds of **$13.7 million**[117](index=117&type=chunk) - August 2024 Private Placement: Sold pre-funded warrants and investor warrants for net proceeds of **$18.6 million**[118](index=118&type=chunk) - January 2025 Registered Direct Offering: Issued **4,210,525 shares** for approximately **$80 million gross proceeds**[119](index=119&type=chunk) - 2024 At-the-Market (ATM) Offering: Sold **5,698,992 shares**, raising **$77.6 million net proceeds** during the twelve months ended December 31, 2024[131](index=131&type=chunk) - 2025 At-the-Market (ATM) Offering: Sold **1,125,706 shares**, raising **$13.5 million net proceeds** during the six months ended June 30, 2025[132](index=132&type=chunk) - Magna Warrant: Issued on **February 7, 2024**, to purchase up to **2,145,000 shares** at **$0.01 per share**, fully exercised by June 30, 2025[127](index=127&type=chunk)[128](index=128&type=chunk) [10. Stock-Based Compensation](index=29&type=section&id=10.%20Stock-Based%20Compensation) The 2023 Equity Incentive Plan was amended in June 2025, increasing authorized shares by 2,280,000. Stock-based compensation expense for the six months ended June 30, 2025, was $8.28 million, an increase from $7.74 million in the prior year, primarily allocated to research and development, and general and administrative expenses - 2023 Equity Incentive Plan: Amended in **June 2025**, increasing the number of shares authorized by **2,280,000 additional shares**[134](index=134&type=chunk) **Stock-Based Compensation Expense (in thousands)** | Expense Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | General and administrative | $2,061 | $428 | $3,885 | $434 | | Operations | $96 | $138 | $176 | $144 | | Research and development | $2,158 | $2,861 | $4,087 | $7,101 | | Sales and marketing | $83 | $53 | $129 | $56 | | Total | $4,398 | $3,480 | $8,277 | $7,735 | - Unrecognized compensation cost related to non-vested stock option awards amounted to approximately **$166 thousand** as of June 30, 2025, to be recognized over a weighted average period of **1.31 years**[140](index=140&type=chunk) [11. Commitments and Contingencies](index=31&type=section&id=11.%20Commitments%20and%20Contingencies) The company has operating leases for office, warehouse space, and cargo vans, with total undiscounted future minimum payments of $2.75 million. A finance lease for robot assets was settled in April 2025 with the purchase of assets for $2.25 million. No material legal proceedings are pending **Future Annual Minimum Payments Under Operating Leases (in thousands) as of June 30, 2025** | Year | Amount | | :----------------------- | :----- | | Remainder of 2025 | $605 | | 2026 | $1,123 | | 2027 | $869 | | 2028 | $155 | | 2029 | $— | | Total undiscounted future cash flows | $2,752 | | Less: imputed interest | $(177) | | Total operating lease liabilities | $2,575 | - Finance Lease: The Company exercised the option to purchase robot assets at the end of the lease for **$2.25 million** in **April 2025**, with no outstanding liability as of June 30, 2025[145](index=145&type=chunk) - Contingencies: There are no pending, threatened, or actual material legal proceedings in which the Company or any of its subsidiaries is a party[146](index=146&type=chunk)[225](index=225&type=chunk) [12. Segment Information](index=32&type=section&id=12.%20Segment%20Information) The company operates as a single operating and reportable segment, with the Chief Executive Officer reviewing financial information on a consolidated basis for decision-making - The Company has **one operating and reportable segment**[147](index=147&type=chunk) - The Chief Executive Officer serves as the Chief Operating Decision Maker (CODM) and reviews financial information on a consolidated basis[147](index=147&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides an overview of Serve Robotics Inc.'s business, recent developments, financial performance for the three and six months ended June 30, 2025, key operational metrics, and an analysis of its liquidity and capital resources, along with critical accounting estimates and company status [Company Overview](index=33&type=section&id=Company%20Overview) This section outlines the company's mission, core technology in AI-powered robotics for last-mile delivery, and the market opportunity it addresses - Mission: To deliver a sustainable future by transforming how goods move among people[151](index=151&type=chunk) - Core Technology: Advanced, **AI-powered robotics mobility platform**, with last-mile delivery in cities as its first application[151](index=151&type=chunk) - Market Opportunity: Servicing the growing on-demand delivery market, where approximately **half of all deliveries are less than 2.5 miles** and well-suited to delivery by sidewalk robots[159](index=159&type=chunk) [Recent Developments](index=34&type=section&id=Recent%20Developments) This section highlights key corporate actions including a technology acquisition, a registered direct offering, Nasdaq uplisting, and a strategic partnership with Magna - Acquisition of Technology Company: On **April 1, 2025**, the Company acquired all of the issued and outstanding equity of a foreign entity[160](index=160&type=chunk) - Securities Purchase Agreement: On **January 7, 2025**, the Company issued and sold **4,210,525 shares of common stock** in a registered direct offering for approximately **$80 million gross proceeds**[161](index=161&type=chunk) - Public Offering and Uplisting to Nasdaq: On **April 17, 2024**, the Company completed a public offering, raising approximately **$35.8 million net proceeds**, and commenced trading on The Nasdaq Capital Market on **April 18, 2024**[162](index=162&type=chunk) - Strategic Partnership with Magna: Entered into a License and Services Agreement (**Feb 20, 2024**) and a Master Services Agreement (**Feb 1, 2024**) for technology licensing, development services, and robot assembly assistance[163](index=163&type=chunk)[164](index=164&type=chunk)[166](index=166&type=chunk) [Outlook And Challenges Facing Our Business](index=35&type=section&id=Outlook%20And%20Challenges%20Facing%20Our%20Business) This section discusses factors influencing the business, such as demand for last-mile delivery, customer concentration, inflation, supply chain constraints, and regulatory conditions - Overall Demand for Last-Mile Delivery: Growth depends significantly on continued demand on partner platforms, which can fluctuate based on market cycles, weather, health conditions, and competitive dynamics[168](index=168&type=chunk) - Customer Concentration: A significant portion of revenue is concentrated with **Magna (39% of Q2 2025 revenue)** and **Uber (31% of Q2 2025 revenue)**, posing risks if these customers are lost[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk) - Inflation and Market Considerations: Discretionary consumer spending is susceptible to economic conditions; inflation could reduce demand but also accelerate the adoption of automated robotic last-mile delivery as labor costs rise[172](index=172&type=chunk) - Supply Chain Constraints: Potential global supply chain shortages could impact future robot build plans, leading to higher costs or delays[174](index=174&type=chunk) - Governmental and Regulatory Conditions: Growth depends on continued permission and acceptance by local governments; changes in regulations could reduce or limit the ability to generate revenues[175](index=175&type=chunk) [Components of Results of Operations](index=36&type=section&id=Components%20of%20Results%20of%20Operations) This section defines the company's revenue streams, cost of revenue, and categories of operating expenses - Revenue: Consists of **software services revenues** and **fleet services revenues**[176](index=176&type=chunk) - Cost of Revenue: Primarily includes depreciation on robot assets, personnel time, and costs related to data and software for robot functionality[177](index=177&type=chunk) - Operating Expenses: Categorized into Operations (facility leases, field personnel), Research and Development (product design, hardware, software), Sales and Marketing (personnel, advertising), and General and Administrative (executive, finance, legal, HR, corporate expenses)[178](index=178&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk) [Financial Overview](index=37&type=section&id=Financial%20Overview) This section provides a high-level summary of the company's revenues, net loss, and accumulated deficit as of June 30, 2025 - Revenues for the three months ended June 30, 2025, were **$642 thousand**[182](index=182&type=chunk) - Net loss for the three months ended June 30, 2025, was **$20.8 million**[182](index=182&type=chunk) - Accumulated deficit as of June 30, 2025, was **$141.6 million**[182](index=182&type=chunk) [Results of Operations - Three Months Ended June 30, 2025 and 2024](index=37&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20June%2030,%202025%20and%202024) This section analyzes the company's financial performance, including revenues, costs, gross profit, operating expenses, and net loss, for the three months ended June 30, 2025 and 2024 **Operating Results (in thousands) for Three Months Ended June 30** | Metric | 2025 | 2024 | Change | Change % | | :-------------------------- | :----- | :----- | :----- | :------- | | Revenues | $642 | $468 | $174 | 37% | | Cost of revenues | $3,501 | $326 | $3,175 | 974% | | Gross profit (loss) | $(2,859) | $142 | $(3,002) | (2109)% | | Total operating expenses | $19,785 | $8,698 | $11,087 | 127% | | Net loss | $(20,850) | $(9,038) | $(11,812) | 131% | - Revenues increased by **$0.17 million (37%)** primarily due to a larger fleet, leading to a **$0.16 million increase in fleet services revenues**[184](index=184&type=chunk) - Cost of revenues increased by **$3.18 million (974%)** due to costs related to the scale-up of the fleet and launch-related costs in new markets[185](index=185&type=chunk) [Results of Operations - Six Months Ended June 30, 2025 and 2024](index=39&type=section&id=Results%20of%20Operations%20-%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) This section analyzes the company's financial performance, including revenues, costs, gross profit, operating expenses, and net loss, for the six months ended June 30, 2025 and 2024 **Operating Results (in thousands) for Six Months Ended June 30** | Metric | 2025 | 2024 | Change | Change % | | :-------------------------- | :----- | :----- | :----- | :------- | | Revenues | $1,082 | $1,415 | $(333) | (24)% | | Cost of revenues | $5,410 | $678 | $4,732 | 697% | | Gross profit (loss) | $(4,328) | $737 | $(5,065) | (688)% | | Total operating expenses | $33,323 | $17,003 | $16,320 | 96% | | Net loss | $(34,068) | $(18,075) | $(15,993) | 88% | - Revenues decreased by **$0.33 million (24%)** primarily due to a decrease in software services revenue, despite an increase in fleet services revenues of **$0.27 million**[191](index=191&type=chunk) - Cost of revenues increased by **$4.73 million (697%)** due to costs related to the scale-up of the fleet and launch-related costs in new markets[192](index=192&type=chunk) [Key Metrics](index=40&type=section&id=Key%20Metrics) This section presents key operational metrics such as Daily Active Robots and Daily Supply Hours, reflecting fleet utilization and operational capacity **Key Business Metrics** | Metric | Three Months Ended June 2025 | Three Months Ended June 2024 | Six Months Ended June 2025 | Six Months Ended June 2024 | | :------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Daily Active Robots | 160 | 48 | 116 | 44 | | Daily Supply Hours | 1,723 | 385 | 1,189 | 342 | - Daily Active Robots: The average number of robots performing daily deliveries, reflecting the operation team's capacity[198](index=198&type=chunk) - Daily Supply Hours: The average number of hours robots are ready to accept offers and perform daily deliveries, indicating fleet utilization potential[199](index=199&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's principal sources of liquidity, accumulated deficit, and a summary of cash flows from operating, investing, and financing activities - Principal Sources of Liquidity (June 30, 2025): **$183.33 million**, consisting of **$116.70 million** in cash and cash equivalents and **$66.63 million** in marketable securities[200](index=200&type=chunk) - Accumulated Deficit: **$141.59 million** as of June 30, 2025, reflecting significant operating losses[201](index=201&type=chunk) **Summary of Cash Flows (in thousands) for Six Months Ended June 30** | Activity | 2025 | 2024 | Change | | :-------------------------------- | :----- | :----- | :----- | | Net cash (used in) provided by: | | | | | Operating activities | $(25,426) | $(9,820) | $(15,606) | | Investing activities | $(81,934) | $(798) | $(81,136) | | Financing activities | $100,795 | $39,392 | $61,403 | | Increase (decrease) in cash and cash equivalents | $(6,565) | $28,774 | $(35,339) | - Net cash used in investing activities increased by **$81.14 million**, primarily due to the purchase of short-term marketable securities (**$66.3 million**) and the acquisition of a new business (**$5.6 million**)[205](index=205&type=chunk) - Net cash provided by financing activities increased by **$61.40 million**, primarily from proceeds from common stock issuances[206](index=206&type=chunk) [Off-Balance Sheet Transactions](index=42&type=section&id=Off-Balance%20Sheet%20Transactions) This section confirms the absence of off-balance sheet financing arrangements or relationships with unconsolidated entities during the reporting periods - The Company did not have any off-balance sheet financing arrangements or relationships with unconsolidated entities during the periods presented[209](index=209&type=chunk) [Critical Accounting Estimates](index=42&type=section&id=Critical%20Accounting%20Estimates) This section states that there have been no material changes to the critical accounting policies previously disclosed in the annual report - There have been no material changes in critical accounting policies from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[210](index=210&type=chunk) [Emerging Growth Company and Smaller Reporting Company Status](index=42&type=section&id=Emerging%20Growth%20Company%20and%20Smaller%20Reporting%20Company%20Status) This section clarifies the company's status as an emerging growth company and smaller reporting company, including its election for an extended transition period for accounting standards - The Company is an "emerging growth company" and a "smaller reporting company"[211](index=211&type=chunk)[212](index=212&type=chunk) - The Company has elected to use the extended transition period for complying with new or revised financial accounting standards[211](index=211&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Serve Robotics Inc. is not required to provide quantitative and qualitative disclosures about market risk for this reporting period - The Company is a smaller reporting company and is not required to provide the information for this item[213](index=213&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were not effective as of June 30, 2025, due to identified material weaknesses in internal control over financial reporting, including an ineffective control environment, lack of segregation of duties, inadequate accounting policies, and ineffective IT general controls. A remediation plan is in place [Disclosure Controls and Procedures](index=42&type=section&id=Disclosure%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of June 30, 2025, due to material weaknesses in internal control over financial reporting - Management concluded that disclosure controls and procedures were **not effective** as of June 30, 2025[217](index=217&type=chunk) - Ineffectiveness is due to **material weaknesses** in internal control over financial reporting[217](index=217&type=chunk) [Material Weaknesses in Internal Control Over Financial Reporting](index=43&type=section&id=Material%20Weaknesses%20in%20Internal%20Control%20Over%20Financial%20Reporting) Identified material weaknesses include an ineffective control environment, lack of segregation of duties, inadequate accounting policies, and ineffective IT general controls - Identified material weaknesses include an **ineffective control environment** due to insufficient resources, lack of effective segregation of duties, inadequate comprehensive and formalized accounting and financial reporting policies, and ineffective IT general controls[223](index=223&type=chunk) - These material weaknesses did not result in a misstatement to any of the Company's previously issued consolidated financial statements but could result in future material misstatements[219](index=219&type=chunk) [Status of Remediation Plan](index=43&type=section&id=Status%20of%20Remediation%20Plan) Management has established a remediation plan for 2025 to address identified material weaknesses by implementing robust processes and effective financial reporting controls - Management has established a remediation plan for **2025** to address material weaknesses, focusing on establishing more robust processes, designing and implementing effective financial reporting controls, and ensuring accurate documentation and timely support[220](index=220&type=chunk) - Full remediation will require completion and effective operation of these steps over a sufficient period of time[221](index=221&type=chunk) [Changes in Internal Control over Financial Reporting](index=43&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025 - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[222](index=222&type=chunk) PART II - OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) There are no pending, threatened, or actual material legal proceedings involving Serve Robotics Inc. or its subsidiaries - There are no pending, threatened or actual material legal proceedings in which the Company or any of its subsidiaries is a party[225](index=225&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the risk factors as disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[226](index=226&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds to report for this period - None[227](index=227&type=chunk) [Item 3. Defaults Upon Senior Securities](index=44&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities to report for this period - None[228](index=228&type=chunk) [Item 4. Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable to Serve Robotics Inc.'s operations - Not applicable[229](index=229&type=chunk) [Item 5. Other Information](index=44&type=section&id=Item%205.%20Other%20Information) Evan Dunn (General Counsel) and Euan Abraham (Chief Hardware and Manufacturing Officer) each entered into Rule 10b5-1 trading plans in May and June 2025, respectively, for the potential sale of common stock, with sales not to commence before September 2025. No shares have been sold under these plans as of the report date - Evan Dunn, General Counsel, entered into a Rule 10b5-1 trading plan on **May 20, 2025**, for the potential sale of up to **15,000 shares of common stock**, with sales not to commence prior to **September 1, 2025**[230](index=230&type=chunk) - Euan Abraham, Chief Hardware and Manufacturing Officer, entered into a Rule 10b5-1 trading plan on **June 2, 2025**, for the potential sale of up to **50,000 shares of common stock**, with sales not to commence prior to **September 2, 2025**[231](index=231&type=chunk) - As of the date of this report, none of the shares were sold under these trading plans[230](index=230&type=chunk)[231](index=231&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including amendments to the equity incentive plan, certifications of principal officers, and various XBRL documents - Exhibits include an amendment to the 2023 Equity Incentive Plan, certifications of the Principal Executive Officer and Principal Financial Officer, and Inline XBRL documents[233](index=233&type=chunk) [Signatures](index=46&type=section&id=Signatures) The report is duly signed on August 7, 2025, by Ali Kashani, Chief Executive Officer, and Brian Read, Chief Financial Officer - The report was signed on **August 7, 2025**, by Ali Kashani, Chief Executive Officer, and Brian Read, Chief Financial Officer[239](index=239&type=chunk)

Core Viewpoint - Serve Robotics Inc. reported a quarterly loss of $0.36 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.23, marking a significant earnings surprise of -56.52% [1] Financial Performance - The company posted revenues of $0.64 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 1.10%, compared to revenues of $0.47 million in the same quarter last year [2] - Over the last four quarters, Serve Robotics has surpassed consensus EPS estimates only once [2] Stock Performance - Serve Robotics shares have declined approximately 22.7% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.24 on revenues of $1.46 million, and for the current fiscal year, it is -$0.93 on revenues of $5.35 million [7] Industry Outlook - The Computers - IT Services industry, to which Serve Robotics belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $641,000, representing a 46% sequential increase from Q1 [25] - Fleet revenue, which includes delivery and branding revenues, grew by $117,000, a 56% increase quarter over quarter [26] - Software revenues increased by 36% to $312,000 [26] - Average daily operating hours per robot rose more than 20% quarter over quarter to 10.8 hours [27] - Adjusted EBITDA was negative $14,900,000 due to operational expansion [31] Business Line Data and Key Metrics Changes - Delivery volume grew nearly 80% compared to Q1, exceeding the company's expectations of 60-70% growth [6] - The fleet size increased to over 400 robots with the deployment of over 120 third-generation robots [7][8] - Daily active robots saw a growth of nearly 120% quarter over quarter [8] - Robot intervention rates decreased by 25% quarter over quarter, indicating improved autonomy [27] Market Data and Key Metrics Changes - The company expanded its market reach to nearly 800,000 households in the US, a fivefold increase since the start of the year [10] - Operations were launched in Atlanta, and coverage was expanded in Los Angeles and Miami [9] - The company plans to launch operations in Chicago, its fifth major metro area, in the coming weeks [12] Company Strategy and Development Direction - The company aims to deploy 2,000 robots across the country by the end of the year, positioning itself as a national autonomous last-mile delivery provider [5][17] - The strategy includes scaling with precision, focusing on operational efficiency and market expansion [11][24] - The company is exploring international markets, having successfully conducted a proof of concept in Doha, Qatar [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2,000 robot deployment milestone and anticipates continued growth in delivery volume [17][22] - The company is focused on building a robust data infrastructure to enhance AI and autonomy capabilities [21] - Management highlighted the importance of operational efficiency and utilization as key priorities moving forward [44] Other Important Information - The company ended the quarter with $183,000,000 in cash and marketable securities, providing flexibility for scaling operations [30] - Capital expenditures for the quarter were $6,000,000, primarily for robot production and market expansion [31] Q&A Session Summary Question: What were key learnings as you optimized the 250 robots deployed in Q1? - The 250 robots helped validate design and manufacturing improvements, leading to enhancements in battery life and drivetrain characteristics [36] Question: Do you expect to further refine the robot? Will we see a Gen four robot in the near term? - The focus will be on scaling efficiently with incremental upgrades rather than launching a new hardware platform every year [38] Question: How do you think about revenue and EBITDA for 2026? - The company is not yet providing guidance for 2026, focusing on executing the deployment of 2,000 robots [40] Question: Can you speak a little bit more about headcount and where it might get to by end of year? - Headcount is expected to grow by about 50% in operations, with significant investment in R&D and software teams [47] Question: Have tariffs affected the cost of components or the timing of receiving them? - There has not been a material impact from tariffs, as cost reductions have helped offset any exposure [49] Question: Can you comment on how you compare to competitors in the autonomy landscape? - The company believes it has a strong position due to its focus on AI and autonomy, and it is committed to building the best autonomous fleet [50]

Financial Performance - Serve Robotics reported quarterly losses of 24 cents per share, missing the Street estimate of 21 cents [1] - Quarterly revenue was $642,000, exceeding the consensus estimate of $624,800 [1] Company Strategy and Operations - The CEO, Dr. Ali Kashani, emphasized the company's vision for autonomous last-mile transportation and noted significant progress in expanding into new markets and scaling operations [2] - The company is focused on enhancing its autonomy capabilities, stating that each successful delivery improves the efficiency of its growing fleet [2] Future Outlook - Serve Robotics reiterated its guidance for an annualized revenue run-rate of $60 million to $80 million once its fleet of 2,000 robots is fully deployed and reaches target utilization [3] - The company anticipates third-quarter revenue to be between $600,000 and $700,000 [3] Stock Performance - Serve Robotics stock was down 4.72% at $10.09 in extended trading following the earnings report [3]

Core Insights - Serve Robotics Inc. reported significant growth in its autonomous sidewalk delivery operations, with plans to expand its fleet and market reach, projecting annualized revenues of $60 million to $80 million by 2026 [2][5]. Business Highlights - The company successfully launched its services in the Atlanta market and plans to enter Chicago soon [6][7]. - Delivery volume increased by nearly 80% quarter over quarter, with over 120 new third-generation robots delivered ahead of schedule [6][7]. - Serve has established a partnership with Little Caesars, enhancing its position as a preferred delivery partner for major merchants [7]. Financial Highlights - For Q2 2025, Serve reported revenue of $642 thousand, a 46% increase compared to Q1 2025 [6][7]. - The company maintained a strong liquidity position with $183 million as of June 30, 2025 [6][7]. - The fleet revenue, which includes delivery and branding revenue, grew by $117 thousand, representing a 55% increase quarter over quarter [7]. Outlook - The company reiterated its guidance for projected annualized revenue run-rate of $60 million to $80 million once its 2,000-robot fleet is fully deployed [5]. - For Q3 2025, Serve anticipates revenue growth between 170% and 215% year over year, projecting revenue of $600 to $700 thousand [14].

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Serve Robotics reported strong Q2 2025 progress, with revenue up 46% to $642 thousand and fleet expansion - Management emphasized disciplined execution, positioning the company for confident scaling. The plan is to quadruple the robot fleet again in the second half of 2025, aiming for a **2,000-robot fleet** in 2026[3](index=3&type=chunk) Metric | Metric | Q2 2025 Result | | :--- | :--- | | Revenue | $642 thousand | | Revenue Growth (QoQ) | 46% | | Delivery Volume Growth (QoQ) | ~80% | | Liquidity Position (as of June 30) | $183 million | - Key business developments include: - Launched operations in Atlanta and announced an upcoming launch in Chicago - Expanded footprint in Los Angeles and Miami - Completed the first Middle East pilot in Doha - Began a national partnership with Little Caesars after the quarter ended[7](index=7&type=chunk)[8](index=8&type=chunk) [Outlook](index=1&type=section&id=Outlook) Serve Robotics reiterated long-term revenue guidance of $60-80 million by 2026 and projects strong Q3 2025 revenue - Reiterated guidance for a projected annualized revenue run-rate of **$60 to $80 million** once the **2,000-robot fleet** is fully deployed and utilized, anticipated to occur during 2026[6](index=6&type=chunk) - For Q3 2025, the company projects revenue between **$600,000 and $700,000**, representing year-over-year growth of **170% to 215%**[15](index=15&type=chunk) - Fleet deployment is expected to accelerate in the second half of the year, with the robot fleet anticipated to **more than double in Q3**[15](index=15&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) [Key Operational Metrics & Revenue Disaggregation](index=3&type=section&id=Key%20Operational%20Metrics%20%26%20Revenue%20Disaggregation) Operational metrics showed significant growth, with Daily Active Robots increasing to 160 and Q2 2025 revenue at $642 thousand Key Operational Metrics | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Daily Active Robots | 160 | 73 | 48 | | Daily Supply Hours | 1,723 | 648 | 385 | Disaggregation of Revenue (in thousands) | Revenue Source | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Software services | $312 | $229 | $296 | | Fleet services | $330 | $211 | $172 | | **Total Revenue** | **$642** | **$440** | **$468** | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $214.3 million, reflecting strong liquidity and equity Balance Sheet Summary (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | **$186,530** | **$125,252** | | Cash and cash equivalents | $116,700 | $123,266 | | Short-term investments | $66,631 | $- | | **Total Assets** | **$214,315** | **$139,601** | | **Total Liabilities** | **$7,109** | **$7,920** | | **Total Stockholders' Equity** | **$207,206** | **$131,681** | - The company maintained a strong liquidity position of **$183 million** as of June 30, 2025, which is expected to provide a financial runway through the end of 2026[8](index=8&type=chunk) [Condensed Consolidated Statement of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Operations) For Q2 2025, Serve reported $642 thousand revenue and a $(20.9) million net loss, driven by increased operating expenses Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $642 | $468 | | Gross Profit (Loss) | $(2,859) | $142 | | Total Operating Expenses | $19,785 | $8,698 | | Loss from Operations | $(22,644) | $(8,556) | | Net Loss | $(20,850) | $(9,038) | | Net Loss Per Share | $(0.36) | $(0.27) | - The widening net loss was primarily driven by a substantial increase in operating expenses, particularly in General & Administrative and Research & Development, reflecting the company's investment in growth and scaling[27](index=27&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Net cash used in H1 2025 operations was $(25.4) million, offset by $100.8 million from financing, ending with $116.7 million cash Cash Flow Summary - Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | $(25,426) | $(9,819) | | Net Cash Used in Investing Activities | $(81,934) | $(798) | | Net Cash Provided by Financing Activities | $100,795 | $39,392 | | **Net Change in Cash** | **$(6,566)** | **$28,775** | - Financing activities were robust, with **$75.8 million** from common stock issuance and **$13.5 million** from an equity distribution agreement, highlighting successful capital raising efforts[29](index=29&type=chunk) [Non-GAAP Financial Measures](index=10&type=section&id=Non-GAAP%20Financial%20Measures) [Reconciliation to Adjusted EBITDA](index=10&type=section&id=Reconciliation%20to%20Adjusted%20EBITDA) Adjusted EBITDA for Q2 2025 was a loss of $(14.9) million, adjusted from GAAP net loss for non-cash and non-recurring items Adjusted EBITDA Reconciliation - Q2 2025 (in thousands) | Line Item | Amount | | :--- | :--- | | Net loss on GAAP basis | $(20,850) | | Adjustments: | | | Interest income | $(1,794) | | Transaction costs | $239 | | Finance lease purchase option | $2,246 | | Depreciation & amortization | $817 | | Stock-based compensation | $4,398 | | **Adjusted EBITDA** | **$(14,944)** | [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Non-GAAP measures show Q2 2025 net loss at $(14.0) million, compared to GAAP net loss of $(20.9) million GAAP vs. Non-GAAP Net Loss & EPS - Q2 2025 (in thousands, except per share) | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | Net Loss | $(20,850) | $(13,967) | | Net Loss Per Share | $(0.36) | $(0.24) | - The primary adjustments between GAAP and Non-GAAP net loss for Q2 2025 were stock-based compensation **($4.4 million)**, a finance lease purchase option **($2.2 million)**, and transaction costs **($0.2 million)**[32](index=32&type=chunk) [Company Information & Disclaimers](index=3&type=section&id=Company%20Information%20%26%20Disclaimers) This section provides corporate background, investor call details, and legal disclaimers for Serve Robotics - Serve Robotics was spun off from Uber in 2021 and has a multi-year contract to deploy **up to 2,000 delivery robots** on the Uber Eats platform across multiple U.S. markets[11](index=11&type=chunk) - The company hosted a conference call and webcast on August 7, 2025, to discuss the financial results[9](index=9&type=chunk) - The report contains forward-looking statements regarding future revenue, robot deployment, and market expansion, which are subject to risks and uncertainties detailed in SEC filings[17](index=17&type=chunk)[18](index=18&type=chunk)

Core Insights - Serve Robotics (SERV) is expected to report its second-quarter 2025 results on August 7, with previous earnings exceeding the Zacks Consensus Estimate by 23.8% [1] Financial Estimates - The Zacks Consensus Estimate for SERV's second-quarter 2025 loss per share is 23 cents, compared to an adjusted loss of 27 cents in the same quarter last year, with the consensus remaining unchanged over the past 30 days [2] - Revenue estimates for the quarter are projected at $0.64 million, reflecting a 35.1% increase from the previous year's figure [2] Growth Drivers - The anticipated revenue growth is attributed to the rapid expansion of SERV's robot fleet and geographic reach, with over 250 Gen 3 robots added in Q1 2025 and a planned launch in Atlanta [3] - Delivery volumes are expected to increase by 60% to 75% quarter over quarter due to the expansion into high-density areas and new partnerships with merchants like Shake Shack [3] - SERV is also unlocking new revenue opportunities through its software platform, aiming to generate recurring revenues from external partners in sectors such as automotive and logistics [4] Profitability Challenges - Despite the growth in revenue, SERV's aggressive expansion strategy is likely to continue impacting profitability negatively, with high costs associated with research and development, market launches, and operational infrastructure [5] - The increasing share of early-stage fleet revenues, which typically have lower margins than software services, adds further pressure on the overall margin profile [5] Earnings Outlook - According to the Zacks model, SERV currently has an Earnings ESP of 0.00% and a Zacks Rank of 3, indicating that the odds of an earnings beat are not favorable at this time [6]

Core Insights - Serve Robotics and Little Caesars have partnered to deliver pizzas using autonomous delivery robots in Los Angeles via Uber Eats [1][2][4] - Serve's third-generation robots can carry up to four large 16-inch pizzas along with additional items while maintaining food quality [3] - The partnership aims to enhance customer delivery experience and align with Little Caesars' commitment to innovation and sustainability [4] Company Overview - Little Caesars is the third-largest pizza chain globally, founded in 1959, with a presence in all 50 U.S. states and 30 countries [5][7] - The brand is known for its HOT-N-READY® pizza and innovative services like the Pizza Portal® pickup [6] - Little Caesars emphasizes quality ingredients and aims to reduce its environmental footprint through technology [4][6] Industry Context - The partnership with Serve Robotics is part of a broader trend in the $150 billion global pizza industry towards automation and enhanced delivery solutions [7][9] - Serve Robotics, spun off from Uber in 2021, focuses on sustainable and economical delivery solutions, having completed tens of thousands of deliveries [9]