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Serve Robotics Q3 revenue more than quadruples year-over-year; raises FY outlook

By Reuters News


Overview

  • U.S. robotics firm's Q3 revenue rose 313% yr/yr, beating analyst expectations

  • Company raised full-year 2026 revenue guidance to $12 mln from $9-10 mln

  • Gross margin improved as recurring revenue reached nearly 70% of total revenue


Outlook

  • Serve Robotics raises 2026 revenue guidance to $12 mln, up from $9 mln-$10 mln

  • Company lowers 2026 non-GAAP operating expense guidance to $150 mln from $160 mln-$170 mln


Result Drivers

  • RECURRING REVENUE MIX - Co said higher-margin recurring revenue rose to 69% of total revenue in Q3, supporting gross margin improvement

  • DELIVERY VOLUME GROWTH - Serve tripled daily average deliveries in Q3 with new delivery partners and expanded merchant base

  • HEALTHCARE CONTRACTS - Co entered into 12 multi-year contract extensions and added 4 new hospitals year-to-date through Q3, supporting healthcare automation revenue


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$2.84 mln

$1.65 mln (7 Analysts)

Q3 Net Loss

$59.23 mln

Q3 Income from Operations

-$61.19 mln

Q3 Loss Per Basic Share

$0.68


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the it services & consulting peer group is "buy"

  • Wall Street's median 12-month price target for Serve Robotics Inc. is $10.00, about 277.4% above its November 4 closing price of $2.65


Reuters Recommended Reads

  • Nov 3 - Lidar maker Ouster's Q3 revenue rises 50% on robotics demand

  • Nov 3 - Arista Networks Q3 revenue beats estimates on strong momentum across customer sectors

  • Nov 2 - Palantir Q3 revenue jumps 96%, beats analyst expectations


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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