SERVE ROBOTICS INC (NASDAQ:SERV) Reports Mixed Q3 2025 Results Amidst Strategic DoorDash Partnership

Recent Performance

Serve Robotics Inc (NASDAQ:SERV) reported its financial results for the third quarter of 2025, revealing a mixed performance against analyst expectations. The immediate market reaction saw the stock trading lower in after-hours activity, declining approximately 2.4%. This follows a broader negative trend for the stock over recent weeks, with shares down about 24% in the last two weeks and over 40% in the past month, indicating a period of sustained investor pessimism leading up to the earnings release.

Earnings and Revenue Analysis

The company's key financial metrics for the quarter presented a complex picture. While the business is demonstrating significant operational growth, its profitability relative to expectations appears to be the primary focus for the market's negative reaction.

• Revenue: The company reported revenue of $690,000 for the quarter, falling short of the analyst consensus estimate of approximately $705,000.
• Earnings Per Share (EPS): The non-GAAP EPS came in at -$0.54, which was significantly wider than the estimated loss of -$0.33 per share.

The divergence between robust operational growth and a wider-than-expected loss highlights the challenges of scaling an autonomous delivery business. While the company is successfully increasing its delivery volume, the path to profitability remains a key concern for investors, as reflected in the post-earnings stock movement.

Operational Highlights and Strategic Moves

Beyond the headline financial figures, the earnings press release underscored significant operational momentum. The company announced a 66% quarter-over-quarter growth in delivery volume, a dramatic increase that suggests strong adoption of its services. Furthermore, this quarter's volume represents a 300% increase compared to the same period in 2024, illustrating rapid year-over-year expansion.

A major strategic development was the announcement of a new multi-year partnership with DoorDash. This agreement is a significant vote of confidence in Serve's technology and business model, potentially opening up a substantial new channel for deployment and revenue. This follows the company's existing platform-level integrations with other major delivery apps, reinforcing its position within the food delivery ecosystem.

Forward-Looking Expectations

Looking ahead, analyst estimates provide a benchmark for the company's future performance. For the upcoming fourth quarter of 2025, the market is anticipating a narrowed EPS loss of -$0.33 and a substantial jump in revenue to $1.92 million. For the full 2025 year, the sales estimate stands at $4.23 million. The company's ability to meet or exceed these future estimates, particularly in light of the new DoorDash partnership, will be critical in shifting investor sentiment. The recent price action suggests the market is taking a "wait-and-see" approach, rewarding future execution over current growth metrics.

For a detailed breakdown of future earnings estimates and historical performance, more information is available on the dedicated earnings page for SERV.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.