Serve Robotics Inc. Q3 FY2025 earnings call

• Crossed threshold for 1,000 robots deployed; delivery reliability nearly 100%, delivery volume increased 66% in a quarter; delivered for over 3,600 restaurants (45% increase from last quarter, over ninefold increase since last year).
• Fleet size grew 10x, cities 5x, major platform partners 2x in less than a year; added three new expansions (Buckhead, Georgia; Fort Lauderdale, Florida; Alexandria, Virginia) before end of 2025.
• Partnered with DoorDash, Uber, Shake Shack, Little Caesars, Jersey Mike's Subs, and expects to add another well-known national QSR brand; developing a living atlas of cities.
• Acquired YU Robotics, which accelerates the physical AI flywheel; third-generation fleet leverages best-in-class sensors, creating proprietary urban datasets for better AI models and more efficient fleets.
• Average daily operating hours per robot increased 12.5% sequentially; robot intervention rates reduced; proportion of miles driven in autonomous mode increased in Q3.

Total revenue for Q3 2025 was $687,000, an increase of 210% versus last year. Fleet revenue was $433,000. Branding revenue jumped 120% sequentially over Q2. Software revenues were $254,000 in the quarter. Fleet revenue is becoming a predictable growth engine, and software revenues are transitioning from one-time to recurring.

• 2025 full-year revenue expected to be more than $2,500,000; underlying recurring fleet revenues (excluding nonrecurring software) projected to grow 3x year over year from 2024 to 2025.
• Confident in generating an annualized revenue run rate of $60 to $80,000,000; intend to update 2026 full-year guidance early next year; initial indications show 2026 could see roughly a 10x inflection in revenue.

• Certain statements in the call are forward-looking statements; actual results may differ materially from forward-looking statements. Factors causing actual results to differ materially from forward-looking statements are described in the press release, most recent annual report on Form 10, and other filings with the SEC.

Q: Do you expect to add more robots in 2026? If so, what would be the timing and magnitude of the addition?

A: We aren't going to share specific numbers right now, but we are focused on growing quickly but with precision and discipline, being laser-focused on making fleets efficient and effective, layering new partners and going to new geographies, and will push on growth responsibly.

Q: Could you provide details on robot design simplification and cost reduction, beyond economies of scale?

A: Robot design is more modular, easier to manufacture with fewer custom assemblies; supply chain strengthened for better parts at lower prices, cutting material and assembly costs; benefited from scale manufacturing and ecosystem maturity; Gen 3 robots are a third the cost of Gen 2 robots, and we'll keep pushing improvements.

Q: What are the next steps in your DoorDash relationship? How do you see that helping the business?

A: Working closely with DoorDash to integrate robots into the fleet thoughtfully and plan market rollouts; DoorDash unlocks a large network of restaurants and consumers; in the next few months, will start to grow volume under the new channel with DoorDash; interoperability increases utilization and lowers cost per day rate, benefiting partners.

Q: Can you quantify the autonomy effect from YU? For example, with average speed increase or with the ratio of robot to operators improve?

A: We're early in the integration process; integration will allow robots to be faster and smarter while maintaining safety and reliability, driving efficiency and utilization, and landing in unit economics; excitement from teams to hit the ground running after merger.

Q: What are some differences between deployments in different cities? What have you learned from new deployments and expansions that will help you scale further?

A: Each city has distinct characteristics (e.g., humidity, pedestrian intersections, city design); learning from new cities enriches models; new markets like Chicago provide data on dense urban environments and cold weather; subsequent city launches get more reliable and better due to learned data.

Q: What can you share about the pipeline for software and data sales? How are you looking to accelerate software revenues in 2026 and beyond?

A: Strong pipeline with substantial discussions with multiple partners; being smart and selective in engaging partners; as fleet scales, data and AI insights become more valuable, enabling adding more recurring software and focusing on robotics and autonomy as a service offering.

Q: When do you expect to reach the $60 to $80,000,000 run rate?

A: The path to hitting $60 to $80,000,000 is underway; still more than twelve months out; will have more to say on this in the next call early next year; momentum through 2025 and accelerating into 2026 to approach the target, with focus on improving fleet utilization.