Service Robotics (SERV) stock falls after EPS loss despite 578% rise in revenue

TLDR

• Q1 revenue was $3.0 million, up 578% year over year and 238% sequentially, beating internal expectations.
• EPS came in at -$0.65, missing the consensus of -$0.51
• The company reiterates full-year 2026 revenue guidance of $26 million
• No new deployments of sidewalk robots are planned for the first half of 2026; The focus shifts to efficiency
• The cash position stands at $197.4 million with 2,000 bots currently active

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Service Robotics reported Q1 2026 revenue of $3.0 million, up 578% year over year and 238% sequentially. CEO Ali Kashani said the results were “above expectations,” driven by growth across fleet services and software.

$service (robot service) #Profits outside: pic.twitter.com/NU5hXPKHxi

– Earnings Reporter (@earnings_guy) May 7, 2026

Despite the revenue increase, earnings per share fell to -$0.65, beating Wall Street estimates of -$0.51.

Software services accounted for nearly a third of first-quarter revenue. Just under half of total revenue is now recurring, a metric the company strives to achieve.

Surf Robotics, Inc. Surf

Fleet revenue accounted for approximately $2 million of the quarter’s total, with software revenue contributing approximately $1 million. Recurring revenue alone was approximately $1.4 million.

Gross margin remains very negative at -302%, although the company noted that software gross margin was positive. This gap reflects the expensive nature of operating an actual robot fleet at scale.

GAAP operating expenses were $42.8 million for the quarter. Net loss was $49 million, or -$0.65 per share. Non-GAAP net loss was $38 million, or -$0.50 per share.

Cash used in operations amounted to $41.4 million. The company ended the quarter with $197.4 million in cash and marketable securities.

H1 post pause

serves Intentionally keeping its fleet of dockside robots around 2,000 units through the first half of 2026. The company says the focus has shifted from adding robots to making existing robots more productive.

Kashani defined the second quarter as a preparation quarter, saying that work on activating merchants and integrating delivery platforms and geographic coverage is moving toward “the second half of the year when growth picks up again.”

Multi-domain expansion

Surf entered the healthcare space through its acquisition of Diligent Robots. The company now operates in 44 cities in 14 states, adding hospital networks to its existing curbside delivery footprint.

The combined fleet is approaching 2 million cumulative deliveries across onshore and offshore environments.

CFO Brian Reed outlined financial priorities moving forward: improving robot productivity, increasing revenue per robot and per operating hour, and building a more sustainable recurring revenue base.

The company reaffirmed full-year 2026 revenue guidance of $26 million and non-GAAP operating expense guidance of $160 million to $170 million.

Moxie and Service bots currently provide over 10,000 bot supply hours to partners daily, with over 800 bots active daily.