Serve Robotics Gears Up for Q2 Earnings: Factors to Note

Serve Robotics SERV is set to report second-quarter 2025 results on Aug. 7. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 23.8%.

SERV’s Q2 Estimate Revisions

The Zacks Consensus Estimate for Serve Robotics’ second-quarter 2025 loss per share is pegged at 23 cents. In the prior-year quarter, the company reported an adjusted loss per share of 27 cents. The consensus mark has been unchanged over the past 30 days. 

The Zacks Consensus Estimate for revenues is pegged at $0.64 million, indicating a 35.1% gain from the year-ago quarter's reported figure.

Factors to Note for Serve Robotics’ Q2 Earnings

Serve Robotics' top line in the second quarter of 2025 is likely to have been fueled by the rapid expansion of its robot fleet and broader geographic reach. With over 250 Gen 3 robots added in first-quarter 2025 and its planned launch in Atlanta during the second quarter, the company is significantly increasing its delivery capacity. This has already led to a notable rise in utilization, with delivery volumes expected to grow in the range of 60% to 75% quarter over quarter. The expansion into high-density areas, coupled with new partnerships with merchants like Shake Shack, is enabling Serve Robotics to scale its operations and reach more households and restaurants across multiple cities.
 
In addition to physical expansion, Serve Robotics is beginning to unlock new revenue opportunities through its software platform. At the start of the second quarter, the company expected to generate recurring software revenues from external partners in industries such as automotive and logistics. These platform deals, though modest initially, represent a strategic move to diversify revenue and capitalize on Serve Robotics' proprietary technology. Together with increasing robot utilization and merchant onboarding, these developments are likely to have contributed meaningfully to top-line growth in the to-be-reported quarter.

On the bottom line, however, Serve Robotics’ aggressive expansion strategy is likely to continue weighing on profitability. Costs tied to research and development, market launches, and operational infrastructure remain high, while the growing share of early-stage fleet revenues, typically lower margin than software services, adds pressure to the overall margin profile.

What Our Model Says for SERV

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

Serve Robotics has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks Poised to Beat Earnings

Bumble Inc. BMBL has an Earnings ESP of +37.01% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
 
For the to-be-reported quarter, Bumble’s earnings are expected to register a 68.2% decline. In the preceding quarter, Bumble's earnings missed the Zacks Consensus Estimate by 18.8%.
 
StoneCo Ltd. STNE currently has an Earnings ESP of +12.68% and a Zacks Rank of 1.

For the to-be-reported quarter, StoneCo’s earnings are expected to increase 20%. StoneCo’s earnings beat the consensus estimates in the trailing three out of four quarters and missed once, the average surprise being 6.4%.
 
PENN Entertainment, Inc. PENN currently has an Earnings ESP of +23.32% and a Zacks Rank of 3. 

For the to-be-reported quarter, PENN Entertainment’s earnings are expected to increase 61.1%. PENN Entertainment’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 13.5%.

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This article originally published on Zacks Investment Research (zacks.com).

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