Shares of Serve Robotics Inc. (SERV) tumbled 5.35% in after-hours trading on Wednesday following the release of the company's mixed third-quarter earnings report and disappointing revenue forecast for 2025.

The autonomous sidewalk delivery company reported a narrower-than-expected loss of $0.24 per share, beating analyst estimates of a $0.33 per share loss. However, quarterly revenue came in at $687,000, falling short of the Street estimate of $691,167. While this represents a significant 209% increase compared to the same period last year, investors seemed concerned about the company's growth trajectory.

Adding to the downward pressure, Serve Robotics provided a weak revenue outlook for 2025. The company forecasts generating over $2.5 million in revenue for the full year 2025, which falls well below analysts' average estimate of $4.14 million. This disappointing guidance overshadowed management's claim of potential 10x revenue growth in 2026. The market's negative reaction suggests skepticism about the company's ability to meet its ambitious growth targets in the highly competitive robotics delivery space.