Serve Robotics Inc. (SERV) reported substantial growth in operational momentum as it enters the second half of 2025, with 250 new third-generation (Gen 3) robots deployed in Q1 2025, on track to meet its target of 2,000 units for the year. The company has expanded its household reach by 100% since December, now servicing over 1,500 restaurants, and experienced a 75% surge in delivery volume during the quarter.
Management anticipates a 60% to 75% sequential increase in delivery volume for Q2 2025, supported by ongoing robot rollouts and a new launch in Atlanta. Serve Robotics holds a $198 million cash balance, which aids its self-funding strategy and is expected to save about $20 million through 2026. The company plans to deploy an additional 700 Gen 3 robots by the end of Q3 2025, keeping it aligned with its full-year deployment goals.
SERV shares have increased by 101.5% over the past three months, trading at a forward price-to-sales ratio of 26.62, above the industry average of 19.46. The Zacks Consensus Estimate indicates a potential 38.8% decline in earnings year-over-year for 2025 as loss per share estimates have widened over the past 60 days.
