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]