Serve Robotics Inc.(SERV) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights 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] 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][8] 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] - For Q3 2025, the company projects revenue between $600,000 and $700,000, representing year-over-year growth of 170% to 215%[15] - 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] Financial Statements Key Operational Metrics & Revenue Disaggregation 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 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] Condensed Consolidated Statement of Operations 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] Condensed Consolidated Statement of Cash Flows 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] Non-GAAP Financial Measures Reconciliation to Adjusted EBITDA 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 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] Company Information & Disclaimers 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] - The company hosted a conference call and webcast on August 7, 2025, to discuss the financial results[9] - 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][18]