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1. Company Snapshot

1.a. Company Description

Knightscope, Inc.designs, develops, builds, deploys, and supports physical security technologies in the United States.The company's solutions combine the physical presence of autonomous security robots (ASR) with real-time on-site data collection and analysis, and a human-machine interface to reduce crime.


Its products include K3 and K5 ASRs designed to roam a geo-fenced area autonomously by utilizing numerous sensors and lasers, either on a random basis or based on a particular patrolling algorithm to navigate around people, vehicles, and objects in dynamic indoor or outdoor environments; K1, an ASR for used in indoors or outdoors and at ingress/egress points for both people and vehicles; and K7, a multi-terrain ASR.The company also develops and operates the Knightscope security operations center (KSOC), a browser-based interface, which allows real-time data access service to its clients for alert of an abnormal event; and Knightscope network operations center (KNOC), a custom set of tools that enables it to manage and monitor the network of ASRs with alerts related to critical indicators and statistics, including charging, software, navigation, and temperatures, as well as to execute over-the-air software upgrades, patches, and other related items.In addition, it offers Knightscope+ remote monitoring, an optional service for clients that operate without a fully staffed 24/7 security operations center.


The company serves law enforcement agencies, hospitals, and security teams.Knightscope, Inc.was incorporated in 2013 and is headquartered in Mountain View, California.

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1.b. Last Insights on KSCP

Knightscope's recent performance was negatively impacted by a Q1 loss of $1.28 per share, despite topping revenue estimates. The company's gross margin loss improved to (23%), a notable improvement from (64%) in Q1 2024, but the net loss decreased to $6.9 million, a 19% improvement. The company's revenue of $2.9 million, up 29% compared to $2.3 million in Q1 2024, was not enough to offset the losses.

1.c. Company Highlights

2. Knightscope Q4: Navigating Supply Chains Amid Growth Ambitions

Knightscope reported a 4.9% rise in full‑year revenue to $11.3 million, driven largely by services, while product sales lagged behind due to supply‑chain constraints. The company posted a net loss of $33.8 million, a widening of the operating loss to $1.6 million in Q4, and an EPS of –$0.94 versus analysts’ estimate of –$0.74. Gross margins slipped under pressure from higher component costs, and operating expenses climbed 12.1% YoY, largely from R&D and SG&A. With a P/S ratio of 2.51 and an EV/EBITDA of –0.37, the market still views Knightscope’s valuation as highly leveraged on its current earnings trajectory. “We are actively working to replace suppliers and manage volatility,” said CFO Apoorv Dwivedi, underscoring the company’s commitment to stabilizing margins while scaling services.

Publication Date: Apr -18

📋 Highlights
  • Q4 Revenue Decline:: Revenue fell 9.8% YoY to $X, primarily due to supply chain constraints, while services revenue remained flat.
  • Full-Year Revenue Growth:: Annual revenue rose 4.9% to $11.3 million, driven by services expansion, though product revenue growth was limited by supply chain issues.
  • Operating Expenses Surge:: Full-year operating expenses increased 12.1% YoY, reflecting $3.8 million higher R&D and SG&A investments.
  • Liquidity & Capital Strategy:: Used $30.3 million in operating activities but raised $42.2 million via financing, bolstering the balance sheet.
  • Event Risk Acquisition Impact:: Strategic acquisition expanded market potential and enabled managed service offerings, with integration prioritizing finance, HR, and IT over 2+ quarters.

Revenue Breakdown

Quarterly revenue fell 9.8% YoY to $3.3 million, primarily from product sales, whereas services revenue held steady at $2.1 million. The company’s service arm, which includes managed security and AI‑driven analytics, is the main growth engine, yet product revenue remains constrained by ongoing supply‑chain bottlenecks that have limited the rollout of new autonomous robots.

Margin and Expense Dynamics

Gross loss of $1.6 million in Q4 reflects margin erosion from higher component costs, while operating expenses rose by $3.8 million YoY. R&D investment surged as Knightscope accelerates AI integration and the beta testing of its K7 platform, a move that will likely sustain long‑term profitability but compress short‑term margins.

Cash Flow and Capital Strategy

Operating cash outflow reached $30.3 million in 2025, yet the company raised $42.2 million through financing activities, bolstering its balance sheet. The infusion supports the acquisition of Event Risk and the expansion of the autonomous security force, positioning Knightscope to capture a larger managed‑service market.

Strategic Moves and Future Outlook

Chairman William Li announced the acquisition of Event Risk, a transformative step that will allow Knightscope to offer end‑to‑end guarding services and accelerate market penetration. The company plans to shift from selling autonomous agents to providing a managed service model, emphasizing problem resolution over product sales. Upcoming milestones include the integration of Event Risk, the beta testing of the K7, and a showcase at GSX in Atlanta.

Key Takeaways for Investors

Investors should monitor the 2026 10‑Q filings for traction on the security force, the progress of the K7 prototype, and the impact of Event Risk on services revenue. With a negative ROE of –153.81% and a high net debt/EBITDA of 0.54, Knightscope remains in a rebuilding phase, yet its strategic pivot toward managed services and AI could unlock significant upside if execution aligns with market demand.

3. NewsRoom

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Knightscope and Carnegie Mellon University Enter Into Letter Agreement

Apr -15

Source: globenewswire.com

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Knightscope and Carnegie Mellon University Enter Into Letter Agreement

Apr -15

Source: businesswire.com

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Knightscope, Inc. (KSCP) Q4 2025 Earnings Call Transcript

Apr -01

Source: seekingalpha.com

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Knightscope Reports 2025 Results, Advances Autonomous Security Force

Mar -30

Source: businesswire.com

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Knightscope, Inc. (KSCP) Reports Q4 Loss, Misses Revenue Estimates

Mar -27

Source: zacks.com

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Knightscope (KSCP) to Release Earnings on Monday

Mar -23

Source: defenseworld.net

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Knightscope Quadruples Workforce to Over 400 Strong; Company Approves Inducement Grants Under Nasdaq Rule 5635(c)(4)

Mar -17

Source: businesswire.com

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Knightscope Acquires Event Risk to Accelerate Autonomous Security Force Strategy

Mar -03

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.94%)

6. Segments

Electronic Control Device

Expected Growth: 10.95%

Knightscope's Electronic Control Device growth is driven by increasing demand for autonomous security solutions, government investments in smart city infrastructure, and rising concerns over public safety. Additionally, the device's ability to provide real-time data and analytics, enhancing law enforcement's efficiency and effectiveness, contributes to its rapid adoption.

Autonomous Security Robots

Expected Growth: 10.93%

Increasing demand for autonomous security solutions, driven by rising crime rates and security concerns, coupled with advancements in AI and robotics technology, are fueling growth for Knightscope's autonomous security robots. Additionally, cost savings and efficiency gains from automation are attracting customers, contributing to the 10.93% growth rate.

7. Detailed Products

K1 Autonomous Security Robot

A fully autonomous security robot designed for outdoor security and surveillance, equipped with advanced sensors and AI-powered analytics.

K3 Autonomous Indoor Security Robot

A fully autonomous security robot designed for indoor security and surveillance, equipped with advanced sensors and AI-powered analytics.

K5 Autonomous Security Robot

A fully autonomous security robot designed for outdoor security and surveillance, equipped with advanced sensors and AI-powered analytics.

KSOC (Knightscope Security Operations Center)

A cloud-based security operations center that provides real-time monitoring and analytics for Knightscope's autonomous security robots.

KAI (Knightscope AI)

An AI-powered analytics platform that provides real-time insights and alerts for security threats and anomalies.

8. Knightscope, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Knightscope's autonomous security robots are highly specialized and customized, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

Knightscope's customers are primarily large enterprises and government agencies, which have limited bargaining power due to the customized nature of the company's products.

Bargaining Power Of Suppliers

Knightscope relies on a few key suppliers for its robotic components, giving them some bargaining power, but the company's strong relationships and diversified supply chain mitigate this risk.

Threat Of New Entrants

The autonomous security robot market is rapidly growing, and new entrants with innovative technologies could potentially disrupt Knightscope's market share.

Intensity Of Rivalry

The autonomous security robot market is moderately competitive, with a few established players, but Knightscope's strong brand recognition and patented technology give it a competitive edge.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.67%
Debt Cost 3.95%
Equity Weight 77.33%
Equity Cost 14.24%
WACC 11.91%
Leverage 29.32%

11. Quality Control: Knightscope, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Mistras

A-Score: 4.4/10

Value: 5.3

Growth: 4.3

Quality: 4.1

Yield: 0.0

Momentum: 8.5

Volatility: 4.0

1-Year Total Return ->

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Evolv Technologies Holdings

A-Score: 4.3/10

Value: 6.2

Growth: 4.4

Quality: 3.6

Yield: 0.0

Momentum: 9.0

Volatility: 2.3

1-Year Total Return ->

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Arlo Technologies

A-Score: 3.9/10

Value: 1.4

Growth: 5.7

Quality: 5.6

Yield: 0.0

Momentum: 7.5

Volatility: 3.3

1-Year Total Return ->

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Bridger Aerospace

A-Score: 3.8/10

Value: 8.3

Growth: 6.4

Quality: 5.5

Yield: 0.0

Momentum: 1.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Knightscope

A-Score: 2.9/10

Value: 8.1

Growth: 4.7

Quality: 3.3

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Iveda Solutions

A-Score: 2.8/10

Value: 9.6

Growth: 3.6

Quality: 3.3

Yield: 0.0

Momentum: 0.0

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.06$

Current Price

3.06$

Potential

-0.00%

Expected Cash-Flows