Serve Robotics Inc. /DE/

Previous wording

Serve operates autonomy systems across multiple domains spanning both outdoor and indoor environments. Our sidewalk delivery operations provide autonomous last-mile delivery services for restaurant and retail partners, while our healthcare operations, enabled through the acquisition of Diligent Robotics in 2026, deploy robots in hospital settings to support clinical staff through logistics and workflow automation.

Current wording

Serve operates autonomy systems across multiple domains spanning both outdoor and indoor environments. Our outdoor delivery operations provide autonomous last-mile delivery services for restaurant and retail partners, while our healthcare operations, enabled through the acquisition of Diligent Robotics in 2026, deploy robots in hospital settings to support clinical staff through logistics and workflow automation.

Previous wording

For the three months ended June 30, 2026 and 2025, we generated revenues of $3.2 million and $0.6 million, respectively, and reported net losses of $64.1 million and $20.9 million, respectively. For the six months ended June 30, 2026 and 2025, we generated revenues of $6.2 million and $1.1 million, respectively, and reported net losses of $113.1 million and $34.1 million, respectively.

Current wording

For the three months ended September 30, 2026 and 2025, we generated revenues of $2.8 million and $0.7 million, respectively, and reported net losses of $59.2 million and $33.0 million, respectively. For the nine months ended September 30, 2026 and 2025, we generated revenues of $9.1 million and $1.8 million, respectively, and reported net losses of $172.4 million and $67.1 million, respectively.

Previous wording

As noted in our unaudited condensed consolidated financial statements, as of June 30, 2026, we had an accumulated deficit of $322.0 million.

Current wording

As noted in our unaudited condensed consolidated financial statements, as of September 30, 2026, we had an accumulated deficit of $381.2 million.

Previous wording

Our potential for growth depends significantly on continued demand for last-mile delivery of food and other items on our partner platforms and for automation solutions from our hospital customers. The demand for last-mile delivery can fluctuate based on various market cycles, weather and local community health conditions, as well as evolving competitive dynamics. The demand for hospital-based automation solutions can fluctuate based on budget cycles, staffing levels, operational priorities, and broader healthcare industry conditions.

Current wording

Our potential for growth depends significantly on continued demand for last-mile delivery of food and other items on our partner platforms and for automation solutions from our hospital customers. The demand for last-mile delivery can fluctuate based on various factors, including market cycles, weather and local community health conditions, as well as evolving competitive dynamics. The demand for hospital-based automation solutions can fluctuate based on factors such as budget cycles, staffing levels, operational priorities, and broader healthcare industry conditions.

Previous wording

Our largest stream of projected revenue comes from maximizing utilization of our outdoor delivery robot fleet to perform deliveries on our partner platforms. Matching algorithms on these platforms as well as the extent of their merchant and end-customer participation in robotic delivery directly impacts the utilization rate of our robots, both of which can be challenging to predict. Our ability to gain additional partners and to generate revenue with such additional partners is dependent on numerous factors, including, among others, the partner’s consumer base and desire to use robotic delivery, along with normal-course onboarding for new partners. These uncertainties make demand difficult to forecast for us and our partners.

Current wording

Our largest stream of projected revenue comes from maximizing utilization of our outdoor delivery robot fleet to perform deliveries on our partner platforms. Matching algorithms on these platforms as well as the extent of their merchant and end-customer participation in robotic delivery directly impacts the utilization rate of our robots, both of which can be challenging to predict. As previously disclosed, the Company has experienced lower than expected delivery volume through the Company’s Uber Eats partnership, which contributed to downward pressure on our revenue during the three and nine months ended September 30, 2026, and we expect reduced demand to continue through the remainder of 2026. Our ability to gain additional partners and to generate revenue with such additional partners is dependent on numerous factors, including, among others, the partner’s consumer base and desire to use robotic delivery, along with normal-course onboarding for new partners. These uncertainties make demand difficult to forecast for us and our partners.

Previous wording

Revenues increased by $2.6 million, or 404%, to $3.2 million, for the three months ended June 30, 2026, compared with $0.6 million for the same period in 2025. This increase was primarily driven by a $2.0 million increase in fleet services revenue due to overall expansion and diversification of the robot fleet and partnerships. The remaining increase of $0.6 million was attributable to an increase in software services revenue.

Current wording

Revenues increased by $2.1 million, or 313%, to $2.8 million, for the three months ended September 30, 2026, compared with $0.7 million for the same period in 2025. This increase was primarily driven by a $2.1 million increase in fleet services revenue due to overall expansion and diversification of the robot fleet and partnerships, including hospital-based robots.

Previous wording

Cost of revenues increased by $8.5 million to $12.0 million for the three months ended June 30, 2026, compared with $3.5 million for the same period in 2025, due primarily to the integration of recent acquisitions and expansion of the outdoor robot fleet.

Current wording

Cost of revenues increased by $5.3 million to $10.4 million for the three months ended September 30, 2026, compared with $5.1 million for the same period in 2025, due primarily to the integration of recent acquisitions and expansion of the outdoor robot fleet.

Previous wording

Research and development expense increased by $11.2 million to $20.3 million for the three months ended June 30, 2026, compared with $9.1 million for the same period in 2025, due primarily to an increase in personnel-related costs and stock-based compensation expense.

Current wording

Research and development expense increased by $9.2 million to $22.6 million for the three months ended September 30, 2026, compared with $13.4 million for the same period in 2025, due primarily to an increase in personnel-related costs and stock-based compensation expense.

Previous wording

General and administrative expense increased by $16.8 million to $24.8 million for the three months ended June 30, 2026, compared with $8.1 million for the same period in 2025, due primarily to an increase in personnel-related costs, including stock-based compensation expense, as well as higher amortization expense associated with acquired intangible assets.

Current wording

General and administrative expense increased by $7.1 million to $20.2 million for the three months ended September 30, 2026, compared with $13.2 million for the same period in 2025, due primarily to an increase in personnel-related costs, including stock-based compensation expense, as well as higher amortization expense associated with acquired intangible assets.

Previous wording

Operations expense increased by $5.7 million to $7.9 million for the three months ended June 30, 2026, compared with $2.1 million for the same period in 2025. The increase was primarily attributable to an increase in personnel-related costs and higher depreciation expense associated with the expansion of our robot fleet.

Current wording

Operations expense increased by $4.3 million to $7.3 million for the three months ended September 30, 2026, compared with $3.0 million for the same period in 2025. The increase was primarily attributable to an increase in personnel-related costs and higher depreciation expense associated with the expansion of our robot fleet.

Previous wording

Sales and marketing expenses increased by $3.8 million to $4.3 million for the three months ended June 30, 2026, compared with $0.5 million for the same period in 2025. This increase was primarily due to an increase in personnel-related costs.

Current wording

Sales and marketing expenses increased by $2.6 million to $3.5 million for the three months ended September 30, 2026, compared with $0.9 million for the same period in 2025. This increase was primarily due to an increase in personnel-related costs.

Previous wording

Comparison of Results of Operations for the six months ended June 30, 2026 and 2025

Current wording

Comparison of Results of Operations for the nine months ended September 30, 2026 and 2025

Previous wording

The following table summarizes our operating results as reflected in our unaudited condensed consolidated statements of operations and comprehensive loss during the six months ended June 30, 2026 and 2025, respectively, and provides information regarding the dollar and percentage increase (or decrease) during such periods (in thousands).

Current wording

The following table summarizes our operating results as reflected in our unaudited condensed consolidated statements of operations and comprehensive loss during the nine months ended September 30, 2026 and 2025, respectively, and provides information regarding the dollar and percentage increase (or decrease) during such periods (in thousands).

Previous wording

Revenues increased by $5.1 million, or 475%, to $6.2 million, for the six months ended June 30, 2026, compared with $1.1 million for the same period in 2025. This increase was primarily driven by a $3.7 million increase in fleet services revenue due to overall expansion and diversification of the robot fleet and partnerships. The remaining increase of $1.4 million was attributable to an increase in software services revenue.

Current wording

Revenues increased by $7.3 million, or 412%, to $9.1 million, for the nine months ended September 30, 2026, compared with $1.8 million for the same period in 2025. This increase was primarily driven by a $5.9 million increase in fleet services revenue due to overall expansion and diversification of the robot fleet and partnerships. The remaining increase of $1.4 million was attributable to an increase in software services revenue.

Previous wording

Cost of revenues increased by $18.6 million to $24.0 million for the six months ended June 30, 2026, compared with $5.4 million for the same period in 2025, due primarily to the integration of recent acquisitions and expansion of the outdoor robot fleet.

Current wording

Cost of revenues increased by $23.9 million to $34.4 million for the nine months ended September 30, 2026, compared with $10.5 million for the same period in 2025, due primarily to the integration of recent acquisitions and expansion of the outdoor robot fleet.

Previous wording

Research and development expense increased by $23.3 million to $39.3 million for the six months ended June 30, 2026, compared with $16.0 million for the same period in 2025, due primarily to an increase in personnel-related costs, including an increase in stock-based compensation expense, as well as increased software costs due to network usage.

Current wording

Research and development expense increased by $32.5 million to $62.0 million for the nine months ended September 30, 2026, compared with $29.4 million for the same period in 2025, due primarily to an increase in personnel-related costs, including an increase in stock-based compensation expense, as well as increased software costs due to network usage.

Previous wording

General and administrative expense increased by $26.9 million to $39.8 million for the six months ended June 30, 2026, compared with $12.8 million for the same period in 2025, due primarily to an increase in personnel-related costs, including stock-based compensation expense, as well as higher amortization expense associated with acquired intangible assets and increased professional fees largely related to acquisition activities.

Current wording

General and administrative expense increased by $34.0 million to $60.0 million for the nine months ended September 30, 2026, compared with $26.0 million for the same period in 2025, due primarily to an increase in personnel-related costs, including stock-based compensation expense, as well as higher amortization expense associated with acquired intangible assets and increased professional fees largely related to acquisition activities.

Previous wording

Operations expense increased by $11.0 million to $14.8 million for the six months ended June 30, 2026, compared with $3.8 million for the same period in 2025. The increase was primarily attributable to an increase in personnel-related costs, higher depreciation expense associated with the expansion of our robot fleet, and increased facility costs related to our entry into new markets.

Current wording

Operations expense increased by $15.3 million to $22.1 million for the nine months ended September 30, 2026, compared with $6.8 million for the same period in 2025. The increase was primarily attributable to an increase in personnel-related costs, higher depreciation expense associated with the expansion of our robot fleet, and increased facility costs related to our entry into new markets.

Previous wording

Sales and marketing expenses increased by $5.5 million to $6.2 million for the six months ended June 30, 2026, compared with $0.7 million for the same period in 2025. This increase was primarily due to an increase in personnel-related costs.

Current wording

Sales and marketing expenses increased by $8.1 million to $9.7 million for the nine months ended September 30, 2026, compared with $1.6 million for the same period in 2025. This increase was primarily due to an increase in personnel-related costs.

Previous wording

Other income (expense) increased by $0.4 million to $4.0 million for the six months ended June 30, 2026, compared with $3.6 million for the same period in 2025. This increase was primarily due to an increase in interest income as a result of interest earned from cash on hand and marketable securities.

Current wording

Other income (expense) increased by $0.5 million to $5.9 million for the nine months ended September 30, 2026, compared with $5.4 million for the same period in 2025. This increase was primarily due to an increase in interest income as a result of interest earned from cash on hand and marketable securities.

Previous wording

Daily Active Robots. We define daily active robots as the average number of robots performing daily deliveries during the period. This metric is reflective of the total robot fleet, including both indoor and outdoor robots. Daily active robots reflect our operation team’s capacity to have active robots in the field performing delivery services or generating branding revenues. We closely monitor and strive to efficiently increase our daily active robots as we improve our autonomy and resultant human-to-robot ratios and increase the number of partners on our platform.

Current wording

Daily Active Robots. We define daily active robots as the average number of robots performing daily deliveries during the period. This metric is reflective of the total robot fleet, including both indoor and outdoor robots. Daily active robots reflect our operations team’s capacity to have active robots in the field performing delivery services or generating branding revenues. We closely monitor and strive to efficiently increase our daily active robots as we improve our autonomy and resultant human-to-robot ratios and increase the number of partners on our platform.

Previous wording

As of June 30, 2026, our principal sources of liquidity were cash and cash equivalents, and marketable securities of $240.4 million, which consisted of $79.1 million in cash and cash equivalents, $156.3 million in short-term marketable securities, and $5.0 million in long-term marketable securities. Cash and cash equivalents consisted of cash on deposit with banks as well as an institutional money market account. Marketable securities consisted of commercial paper, corporate bonds, U.S. government agency securities and U.S. Treasury securities.

Current wording

As of September 30, 2026, our principal sources of liquidity were cash and cash equivalents, and marketable securities of $198.0 million, which consisted of $50.8 million in cash and cash equivalents, and $147.2 million in marketable securities. Cash and cash equivalents consisted of cash on deposit with banks as well as an institutional money market account. Marketable securities consisted of commercial paper, corporate bonds, U.S. government agency securities and U.S. Treasury securities.

Previous wording

We have generated significant operating losses from our operations as reflected in our accumulated deficit of $322.0 million as of June 30, 2026. We have historically funded our operations from issuance of equity and debt securities. To execute on our strategic initiatives to continue to grow our business, we may incur operating losses and generate negative cash flows from operations in the future, and as a result, we may require additional capital resources. We believe our existing cash and cash equivalents and marketable securities will be sufficient to meet our working capital and capital expenditures needs for at least the next 12 months.

Current wording

We have generated significant operating losses from our operations as reflected in our accumulated deficit of $381.2 million as of September 30, 2026. We have historically funded our operations from issuance of equity and debt securities. To execute on our strategic initiatives to continue to grow our business, we may incur operating losses and generate negative cash flows from operations in the future, and as a result, we may require additional capital resources. We believe our existing cash and cash equivalents and marketable securities will be sufficient to meet our working capital and capital expenditures needs for at least the next 12 months.

Previous wording

Net cash used in operating activities was $84.7 million and $25.4 million for the six months ended June 30, 2026 and 2025, respectively. The increase of $59.3 million primarily consisted of an increased net loss of $79.1 million, adjusted for certain non-cash items, which primarily includes an increase of $13.8 million of non-cash stock-based compensation expense and an increase of $11.5 million of depreciation and amortization expense. These increases were offset by a decrease of change in operating assets and liabilities of $4.4 million.

Current wording

Net cash used in operating activities was $123.5 million and $50.6 million for the nine months ended September 30, 2026 and 2025, respectively. The increase of $72.9 million primarily consisted of an increased net loss of $105.3 million, adjusted for certain non-cash items, which primarily includes an increase of $19.7 million of non-cash stock-based compensation expense and an increase of $15.9 million of depreciation and amortization expense. These increases were offset by a decrease of change in operating assets and liabilities of $0.9 million.

Previous wording

Net cash used in investing activities was $27.7 million and $81.9 million for the six months ended June 30, 2026 and 2025, respectively. The decrease of $54.2 million was primarily due to an increase in acquisition activity of $15.8 million, offset by an increase in net proceeds from marketable securities of $59.0 million.

Current wording

Net cash used in investing activities was $17.4 million and $122.1 million for the nine months ended September 30, 2026 and 2025, respectively. The decrease of $104.7 million was primarily due to an increase in acquisition activity of $13.9 million, offset by an increase in net proceeds from marketable securities of $100.6 million.

Previous wording

Net cash provided by financing activities was $85.3 million and $100.8 million for the six months ended June 30, 2026 and 2025, respectively. The decrease of $15.5 million primarily consisted of a decrease of $11.4 million in proceeds from exercises of warrants and a decrease of $4.4 million in proceeds from the issuance of the Company’s common stock during the period.

Current wording

Net cash provided by financing activities was $85.5 million and $166.3 million for the nine months ended September 30, 2026 and 2025, respectively. The decrease of $80.8 million primarily consisted of a decrease of $11.4 million in proceeds from exercises of warrants and a decrease of $69.7 million in proceeds from the issuance of the Company’s common stock during the period.