SERV — Serve Robotics Inc.

Summary of Serve Robotics Inc. Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Q4 2025 Revenue: $900,000, representing a 400% year-over-year increase.
• Full-Year 2025 Revenue: $2,700,000, exceeding guidance of $2,500,000 and showing 46% growth from the previous year.
• Fleet Revenue: $700,000 for Q4, up 50% sequentially.
• Branding Revenue: Increased by 50% year-over-year in Q4.
• Software Revenue: Over $200,000 in Q4, with 70% of software revenues now recurring.
• Adjusted EBITDA: Negative $28,000,000, but expected to improve as revenue scales.
• Operating Expenses: GAAP operating expenses for Q4 were $34.3 million; non-GAAP (excluding stock-based compensation) was $25.2 million.

2. Strategic Updates and Business Highlights:

• Successfully deployed 2,000 autonomous robots across 20 cities, achieving a significant national footprint.
• Expanded partnerships with DoorDash and Uber Eats, covering over 80% of the U.S. food delivery market.
• Completed four strategic acquisitions in 2025, enhancing capabilities in data collection, model development, and healthcare robotics.
• Achieved a 99.8% delivery completion rate and maintained strong safety records.
• Expanded merchant network to over 4,500 partners, a tenfold increase from the previous year.

3. Forward Guidance and Outlook:

• 2026 Revenue Guidance: Raised to approximately $26,000,000, driven by the acquisition of Diligent Robotics and new healthcare contracts expected to contribute $7,000,000.
• Plans to continue fleet expansion and operational optimization, with capital expenditures estimated at $25 million for 2026.
• Long-term goal to reach a revenue run rate of $60 million to $80 million as fleet utilization increases.

4. Bad News, Challenges, or Points of Concern:

• Negative Adjusted EBITDA: Indicates ongoing losses as the company scales, though improvements are anticipated.
• High Operating Expenses: Significant costs associated with rapid fleet deployment and expansion could pressure margins.
• Utilization Challenges: Achieving full operational efficiency for the newly deployed robots will require time and careful management.
• Supply Chain and Manufacturing Constraints: Potential delays in scaling production for additional robots could impact growth plans.

5. Notable Q&A Insights:

• Future Robot Deployments: The company plans to focus on optimizing the current fleet before deploying additional robots, with a disciplined approach to expansion.
• Healthcare Integration: The integration of Diligent Robotics is ongoing, with plans to enhance the healthcare business through established recurring revenue contracts.
• International Expansion: Active discussions are underway for potential international markets, with a cautious approach to ensure successful market entry.
• Operational Optimization: Emphasis on improving fleet efficiency and utilization in 2026, with a focus on leveraging existing data and operational learnings.

Overall, Serve Robotics Inc. demonstrated strong growth in Q4 2025, with a clear strategy for future expansion and revenue generation, despite facing challenges related to scaling and operational efficiency.