Overview

• US robotics firm's Q1 revenue rose 578% yr/yr, beating analyst expectations

• Company attributed growth to expansion across offerings and Diligent Robotics acquisition

• Gross margin improved over prior quarter, driven by higher software and recurring revenue

Outlook

• Serve Robotics reaffirms 2026 revenue guidance of approximately $26 mln

• Company expects 2026 non-GAAP operating expense of $160 mln to $170 mln

Result Drivers

• PLATFORM EXPANSION - Revenue growth driven by expansion across offerings and entry into healthcare robotics via Diligent Robotics acquisition

• RECURRING AND SOFTWARE REVENUE - Higher proportion of recurring and software revenue contributed to improved gross margin

• INCREASED PRODUCTIVITY - Focus shifted from fleet expansion to increasing revenue per robot, supporting financial model improvement

Company press release: ID:nGNX9mLPv2

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$2.98 mln	$2.83 mln (9 Analysts)
Q1 Net Loss		$49.004 mln
Q1 EPS		-$0.65
Q1 Income from Operations		-$51.78 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "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 $16.00, about 67% above its May 6 closing price of $9.58

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