Serve Q2 Earnings Call Centers on Uber Reset and Lower Outlook

SERV Recasts the Uber Relationship

Co-Founder and CEO Ali Kashani said lower-than-expected robot utilization through Uber reflected differences over fleet coordination, merchant integration and the operating model, rather than weaker customer or merchant demand.

Kashani said Serve does not currently expect to renew the Uber agreement when it expires in early 2027 unless the operating model improves meaningfully. Discussions with Uber are continuing.

Prior guidance assumed a substantial second-half Uber volume ramp, which Serve removed from the 2026 outlook.

Serve Resets 2026 Outlook and Spending

SERV’s second-quarter revenues were $3.24 million, up 404% year over year and 9% sequentially, but missed the $3.54 million Zacks Consensus Estimate. Non-GAAP net loss was $47.1 million, or 59 cents per share. The reported loss of 80 cents per share was wider than the 69-cent Zacks Consensus Estimate.

Serve cut full-year 2026 revenue guidance to $9 million-$10 million from $26 million.

The company’s 2026 non-GAAP operating expense guidance fell to $140 million-$150 million from $160 million-$170 million. Planned capital expenditures were reduced to about $15 million-$17 million from roughly $25 million.

SERV Leans on Diversified Revenue Channels

Co-Founder and CEO Ali Kashani highlighted DoorDash as a counterpoint to Uber, saying partnership revenues grew nearly 50% sequentially in the second quarter. He also said another major delivery marketplace partnership was set to be announced.

Kashani said advertising represented nearly half of robotic food-delivery revenues. CFO Brian Read added that campaigns span local and national customers, with robot wraps still the primary format.

The CFO said recurring revenues exceeded 50% of total revenues, supported by hospital robotics. Serve signed seven multiyear hospital contract extensions and added two new hospitals in the first half of 2026.

Serve Builds More Direct Merchant Access

Ali Kashani said Serve is developing direct distribution to reduce dependence on any single delivery platform. Beacon, a cellular countertop device, is designed to connect restaurants directly with Serve.

The CEO said almost two-thirds of delivery orders in Serve's operating areas cannot use robotic last-mile delivery because of back-of-house integration barriers. Beacon is intended to work without restaurant internet or point-of-sale integration.

Kashani also said Serve plans another product later this fall aimed at generating direct customer demand and broadening the goods its network can move beyond food.

SERV Q&A Presses Utilization and Autonomy

A Northland Capital Markets analyst pressed management on the second-quarter utilization decline. Co-Founder and CEO Ali Kashani said Serve and Uber were not fully aligned on order allocation, fleet organization and operating responsibility.

An Oppenheimer analyst asked how investors should track autonomy efficiency. Kashani said key measures are whether robots become faster, safer and more reliable while supporting revenue growth and margin improvement.

A Ladenburg Thalmann analyst asked about advertising. Both the CEO and CFO said Serve is seeing local and national campaigns plus growing experiential use, but management did not provide separate advertising guidance.

Serve Narrows Priorities After the Reset

CFO Brian Read said spending will increasingly focus on autonomy performance, utilization, recurring revenues and gross-margin improvement. He also said Serve is reviewing overlapping G&A and shared services while integrating Diligent Robotics.

Read emphasized that core autonomy and software remain investment areas.

The CFO framed the updated plan around tighter prioritization, with capital focused on robot productivity and operating leverage.

SERV’s Zacks Rank & Style Scores Stay Cautious

SERV currently carries a Zacks Rank #3 (Hold). Its Value Score is F, Growth Score is F, Momentum Score is C and VGM Score is F, leaving it without the A or B Style Scores that provide stronger complementary signals to top Zacks Ranks.

The rank does not carry the same positive signal as Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks, while the Style Score hierarchy places C above F but below A and B. The Zacks Rank can change as estimates are revised after the just-reported results.

You can see the complete list of today’s Zacks #1 Rank stocks here.

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