Serve Robotics Reports 37% Revenue Increase but Significant Net Loss in Q2 2025

Serve Robotics Inc. reported its financial results for the second quarter of 2025, revealing a revenue increase of 37% to $642,000 compared to $468,000 in the same period last year. However, the company also experienced a significant net loss of $20.9 million, up from a loss of $9.0 million in the prior year. For the first half of 2025, revenues totaled $1.08 million, a decrease of 24% from $1.42 million in the first half of 2024, primarily due to a decline in software services revenue. The company attributed the increased losses to higher operational costs associated with scaling its fleet and launching in new markets.

In terms of operational metrics, Serve Robotics reported a substantial increase in its fleet, with daily active robots rising to 160 from 48 year-over-year. Daily supply hours also increased significantly, reflecting the company's efforts to enhance its delivery capabilities. The company’s total operating expenses surged to $19.8 million for the quarter, a 127% increase from $8.7 million in the same quarter of 2024, driven by higher general and administrative costs, research and development expenses, and operational expenditures.

Serve Robotics has made strategic moves to bolster its market position, including the acquisition of a foreign technology company on April 1, 2025, for approximately $5.75 million. This acquisition is expected to enhance the company's technological capabilities and operational efficiency. Additionally, the company has entered into significant partnerships, including a Master Services Agreement with Magna, which has become a key customer, accounting for 39% of revenue in the latest quarter. The concentration of revenue from a limited number of customers, including Uber, poses risks to the company’s financial stability.

As of June 30, 2025, Serve Robotics reported total assets of $214.3 million, with cash and cash equivalents of $116.7 million and marketable securities of $66.6 million. The company has indicated that it expects to have sufficient liquidity to fund its operations for at least the next twelve months. However, it also acknowledged the potential need for additional capital to support future growth initiatives, particularly in light of ongoing operational losses and the competitive landscape of the robotics delivery market.

Looking ahead, Serve Robotics faces challenges related to market demand for last-mile delivery services, inflationary pressures, and regulatory conditions that could impact its operations. The company remains focused on expanding its fleet and enhancing its technology to improve service delivery while navigating these uncertainties.