Serve Robotics Inc.

that your phone is not muted when asking a question. Again, please press star 1 to join the queue. And your first question comes from the line of Pauline Rogers Oppenheimer. Please go ahead.

Thanks so much. You talked about the cadence of delivery times and speed of delivery being a key lever for you guys. Can you talk a little bit about the cadence of improvement in the economy and how much is coming from scheduling? and how you see that evolve over the course of the balance of the year.

Yes. Thanks for the question, Colin. This is Ali. We are improving a number of pieces, a lot of investments going into things like autonomy, which is a big factor because robots move faster when they are using their kind of capabilities and sensors to perceive the world than any other mode. The autonomy and speed basically go hand in hand. So as the robots become more capable, they can move more quickly. And that's one of the biggest areas of investment that we've continued to make from early days, but especially now.

Okay, I'll follow up offline. And then with the communications platform that you guys have built and put together, it's clear that you've got a differentiated capability there. Can you talk a little bit about your potential to monetize that capability outside of your own internal usage.

Yeah, that's already in progress. Hopefully we'll have more to share about that soon too. But there are a number of customers already using that service. For folks who are not familiar, one of the first pieces of software that we are commercializing in our robotic platform as a whole is the connectivity layer because having robots in the field in thousands that can reliably connect to the Internet so that they can share their data, but also receive support when they need it. It's a pretty important piece that pretty much every robotic and autonomy team or company needs, and we have a piece of technology that we believe is really superior to whatever is out there. So we have been commercializing that. There's investments made, and there will be more to share in the next few months. All right. Thanks, guys.

And your next question comes from the line of Alex Lattimore of Northland. Please go ahead.

Hey, Ali. Hey, Brian. Great quarter, guys. I just want to start from the top with some broad strokes here. Can you talk about demand as you're seeing it? Will the market still take pretty much as many robots as you can deliver? Anything there would be great.

Hey, Alex. Yes, again, I can take this. This, to me, feels like the closest thing to infinite time because it's such an expensive thing to move things in last mile right now. And we are seeing a lot of opportunities for new use cases or new customers that have never used the service. So we haven't really seen any constraint as far as demand goes. I think the parts of the problem that have to be solved as we scale have to do with policy and societal acceptance, obviously building, deploying robots and getting it operationalized. Also, integration into services that people use every day, that takes effort and time. But as far as the TAM and the total kind of opportunity, I'm very bullish on that.

Great. And then also, now that you're moving towards optimization more, trying to increase daily revenue per robot, What are some of the key takeaways that you've learned just from going through, you know, head down on the optimization flywheel here? And are there any notable changes given that experience?

I guess I'm trying to understand the question. Do you want to maybe state that differently?

Yeah, yeah. Just from focusing on optimization, I was wondering if there are any key learnings that you can take going forward for incorporating new robots that you manufacture or just optimizing the rest of the fleet?

So from an operational point of view, I mean, the learnings come every day. It's about where do you send a robot in the morning? It's about where do you send a robot after it completes a job? It's about what's the range of deliveries you accept, because if you accept longer deliveries, that means the robot is spending more time on that delivery. So you need to always kind of balance what's the distance of jobs that you accept and where do you put the limits on that. So there's a lot of interesting variables that are actually very market-dependent. And as we go to new markets, we basically have to customize that per market and sometimes even per neighborhood. So I wouldn't say there's anything really large as a learning because we've been out in the market for seven years or something doing deliveries. It's mostly kind of ongoing learnings and then enabling the platform to do those customizations so we can make neighborhood-based adjustments.

Awesome, and then just one more quick one. As you're looking to add robots in the second half, is this mainly going to be current city expansions or through adding new cities?

Yeah, that's a really good question. So we are looking at basically both in the markets we are, but also new cities and even international. So we are exploring all of them. For example, just last night, city of Vancouver in Canada approved a motion to enable the robots to deploy there in a pilot. That's not a done deal yet. We still have to work with them and the province, but it's very exciting. It would be the very first such deployment in Canada. So we are very excited actively working on unlocking these new markets and new cities, including some international options. And then as any of them firm up, we would obviously make announcements.

Sweet. Thank you.

Once again, if you wish to ask a question, please press star 1 to join the queue. And your next question comes from the line of Taylor Manley of Guggenheim. Please go ahead.

Hey, thanks for taking the question. Kind of expanding on that, so you mentioned Vancouver, which is very exciting. More generally, there's some markets that you are in that kind of have established regulatory frameworks, such as Los Angeles. Kind of on the flip side, you've highlighted ambitions to enter cities where AV delivery doesn't exist, like New York. So kind of how does regulation inform your thinking on which markets to expand to or not, if at all?

Yeah, it absolutely does. Our thinking is, if you look at, again, the broader size of the opportunity, there's a lot of places to go and a lot of options to choose from. So we don't need to force ourselves anywhere. We want to go to places that are receptive. There are really three kind of legs to the stool. You have the permit to operate. You have the demand, say, partners and platforms that we are working with. And then, of course, you have our operational side. We are pretty good at getting our operational set up in a new city. So the other two variables is what we focus on to open a new market, which is, are they receptive? Is this a place we want to be? Or do they have a framework? Do we need to help them develop it? So there are a lot of investments we are making to kind of create a strong pipeline of markets. And again, that includes both in the US and international. And then at the same time, working with platforms, including new platforms besides Uber and DoorDash, to access the demand in those markets. So these are all investments that we are making simultaneously.

Helpful. Thank you. And then second, any insight on how to think about kind of revenue contribution from fleet services versus software services for the balance of the year? Obviously, software services is pretty strong in the first quarter, so just Anything, should we expect kind of similar mix or any changes there moving forward? Thanks.

Yeah. Hey, Taylor, this is Brian. So, yeah, we had a really strong Q1 with respect to software services. And, you know, I think we're going to continue to invest in some of those opportunities. In the back half of the year, as we continue to scale up, With the revenue per robot and per supply hour focus, I think we're going to see more growth on the fleet side. Obviously, we're not going to give guidance with respect to fleet versus software. Reiterating and anchoring on the $26 million overall is the objective, and monetizing those robots the best we can is our first focus. Awesome. Thank you, Ian.

And your next question comes from the line of Jeff Cohen of Fladenberg Thalmann. Please go ahead.

Hi there. This is Destiny on for Jeff. Thank you for taking the questions. I was wondering if we could talk a bit about MOXIE and the hospital segment in general. Can you just talk about how you plan on maximizing revenue per hospital or robot and then how that may contribute to the top line and the cadence of how that will contribute to the top line?

going forward yeah happy two days there's a number of again apart to this so if you think about it very first principle the main question is how much are the robots helping the staff in a hospital. So we have very explicit KPIs that we track to make sure that not only are we doing enough, we are improving and increasing the number of tasks and really deliveries that these robots complete. And that's trending always in a good way. And then, of course, as we do that, we can continue to work on the pricing with the hospital networks that we are working with. Often what we like to do is increase the number of robots because the more productive they are, the more they can support the staff in different ways. So one of the ways to maximize that revenue is to actually increase the fleet size.

And Destiny, this is Brian. Just to add on to that, I think to Ali's last point of increasing the fleet size, I think that's an opportunity we have for the remainder of 2026 to support the diligent efforts in the team through additional robots and thus ensuring we can grow that top line throughout the rest of the year.

Okay, perfect. And then one more for me. You've been very successful with M&A over the last several months. I'm wondering if you could hypothesize on what other verticals you think your autonomy stack would be suitable for, but recognizing that you've been clear that you're focused on optimization, not necessarily expanding into other verticals, just theoretically.

Yeah, no, I appreciate that you're calling that out. So we, even in the past, haven't been kind of proactively trying to look for expansions. It's been that we are very conscious of where the market is right now. A lot of investment on the private capital side has been made into various sectors in robotics, and right now is a very good time for consolidation. So we've been opportunistic, and we found some really amazing opportunities, obviously Diligent being one of them. So if you want to look at it more broadly, it's really anywhere where robots and humans have to coexist in an environment. but you don't really have control to limit that environment in any way for the robots. For example, in a warehouse, you have a lot of control over the environment. You can tell people how to behave next to the robots because they're all your employees. But in a shopping mall, you don't have that choice. At an airport, you don't have that choice. On a sidewalk, in a hospital. So I would say actually most environments that we are in would classify as that. So any place where robots can help, whether they're moving things or monitoring things or just assisting in general, would be a good place for this. And we'll keep our ears to the ground, and when good opportunities show up, we'll react.

Perfect. All righty. Thank you for taking the questions.

And there are no further questions over the audio. I would like to turn the call back over to Steve for any email questions.

Yeah, thank you. We have one email question, which is, what is the status of DoorDash? What's your relationship with DoorDash?

I can take that one. So a lot of great progress there. Our delivery volume with DoorDash has been growing faster than other partners. It's been about 6x in terms of merchant count just since the beginning of this year. So we are seeing really good momentum and we are going to continue to build on that momentum.

And that wraps it up. Thank you everyone.

That concludes our session for today, ladies and gentlemen. Thank you, everyone, for joining. You may now disconnect.