Serve Robotics Inc.

Q2 revenue was $3.2 million, versus $3 million in Q1, up 9% sequentially and over 400% year over year. Gross loss was approximately $8.8 million and gross margin was negative 271%. GAAP net loss was $64 million, or negative $0.80 per share; non-GAAP net loss was $47.1 million, or negative $0.59 per share. GAAP operating expenses were $57.3 million, including $14.7 million of stock-based compensation and $2.2 million of amortization and acquisition-related expenses; non-GAAP operating expenses were approximately $40.4 million. Cash and marketable securities ended above $240 million, and capital expenditures were approximately $1 million in the quarter before about $3.6 million of tariff refunds. For 2026, revenue guidance was reduced to $9 million-$10 million from $26 million, non-GAAP operating expense outlook was cut to about $140 million-$150 million from $160 million-$170 million, and capital expenditures were reduced to about $15 million-$17 million from about $25 million.

Ali Kashani framed the quarter as a portfolio reset rather than a setback to the autonomy thesis. He said the issue in Q2 was lower robot utilization tied to differing views with Uber on operating model and fleet integration, and he made clear Serve does not currently expect to renew that agreement absent a meaningful change. His tone was candid but forward-looking, emphasizing a more focused strategy around higher-utilization partnerships, direct merchant access through Beacon, and new product and technology launches later this year.

Brian Read said Q2 revenue diversification helped offset the delivery decline, with software revenue once again near $1 million and recurring revenue above 50% of total revenue. He highlighted gross loss of approximately $8.8 million and negative 271% gross margin, but noted fleet gross margin improved sequentially even with the Uber headwind, which he attributed to real cost discipline and operational efficiency. He also detailed the revised spending plan: 2026 capex lowered to about $15 million-$17 million and non-GAAP operating expenses lowered to about $140 million-$150 million, with more discipline expected in the second half through headcount, deployment infrastructure, and discretionary spending cuts.

Analysts focused heavily on why utilization fell in Q2 and whether Uber had changed its resource allocation or rev share terms. Ali said the issue was primarily misalignment on decisions like order allocation and fleet organization in a mixed autonomous-human operating model, rather than a sudden drop in customer demand or delivery quality. Questions also centered on which growth channel matters most going forward; management said it wants a mix of partner channels and direct merchant access, and pointed to Beacon, DoorDash growth, and an upcoming new marketplace partner. Analysts also asked about software revenue and Diligent, and Brian said software will be softer in the back half, while Diligent remains supportive of the mix and margin story.