Knightscope, Inc. (KSCP) closed the last trading session at $6.06, gaining 25.7% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $17 indicates an 180.5% upside potential.The mean estimate comprises three short-term price targets with a standard deviation of $11.36. While the lowest estimate of $9 indicates a 48.5% increase from the current price level, the most optimistic analyst e ...

Summary of Key Points Core Viewpoint - Knightscope, Inc. (KSCP) has seen a significant stock price increase of 26.4% over the past four weeks, closing at $5.84, with analysts suggesting a potential upside of 191.1% based on a mean price target of $17 [1]. Price Targets and Analyst Consensus - The average price target for KSCP ranges from a low of $9 to a high of $30, with a standard deviation of $11.36, indicating variability in analyst estimates. The lowest estimate suggests a 54.1% increase, while the highest points to a 413.7% upside [2]. - A low standard deviation among price targets suggests a strong agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [9]. Earnings Estimates and Market Sentiment - Analysts have shown increasing optimism about KSCP's earnings prospects, as evidenced by a positive trend in earnings estimate revisions, which historically correlates with stock price movements [11]. - Over the past 30 days, one earnings estimate has increased, leading to a 4.7% rise in the Zacks Consensus Estimate for the current year [12]. Zacks Rank and Investment Potential - KSCP holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside in the near term [13].

Knightscope, Inc. (KSCP) came out with a quarterly loss of $1.28 per share versus the Zacks Consensus Estimate of a loss of $1.47. This compares to loss of $4 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 12.93%. A quarter ago, it was expected that this company would post a loss of $1.88 per share when it actually produced a loss of $0.78, delivering a surprise of 58.51%.Over the last four quarters, the company has surpassed ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-41248 Knightscope, Inc. (Exact name of registrant as specified in its charter) Delaware 46-2482575 (State or ...

Knightscope (KSCP) Q1 2025 Earnings Call May 14, 2025 03:00 PM ET Company Participants William Santana Li - Chairman and Chief Executive OfficerApoorv Dwivedi - EVP & CFO William Santana Li And a few things to cover. One, if you have a question, please use the q and a little button at the bottom of of the screen there for you, and we will try to answer your questions. If we can't legally answer what you're asking, we might reword your question. Another thing to note, we will not be sharing any MNPI or mater ...

Knightscope (KSCP) Q1 2025 Earnings Call May 14, 2025 03:00 PM ET Speaker0 And a few things to cover. One, if you have a question, please use the q and a little button at the bottom of of the screen there for you, and we will try to answer your questions. If we can't legally answer what you're asking, we might reword your question. Another thing to note, we will not be sharing any MNPI or material nonpublic information. We can certainly provide clarifications or stuff that's not material, but no material it ...

Knightscope, Inc. (KSCP) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stoc ...

Core Viewpoint - Knightscope, Inc. (KSCP) has shown a significant price increase of 24.4% over the past four weeks, with a mean price target of $17.67 indicating a potential upside of 250.6% from the current price of $5.04 [1] Price Targets and Estimates - The mean estimate consists of three short-term price targets with a standard deviation of $12.50, where the lowest estimate of $9 suggests a 78.6% increase, and the highest estimate of $32 indicates a potential surge of 534.9% [2] - A low standard deviation among price targets suggests a high degree of agreement among analysts regarding the stock's price movement direction and magnitude [9] Analyst Sentiment and Earnings Estimates - Analysts have shown increasing optimism about KSCP's earnings prospects, as evidenced by a strong consensus in revising EPS estimates higher, which correlates with potential stock price increases [11] - Over the last 30 days, one estimate has increased, leading to a 6.9% rise in the Zacks Consensus Estimate for the current year [12] - KSCP holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for near-term upside [13]

Federal Contracts and Market Position - Knightscope has obtained FedRAMP Authority to Operate (ATO) in January 2024, enabling it to pursue federal contracts, including a pilot program with the U.S. Department of Veteran Affairs for the K5 GOV ASR[21]. - The U.S. physical security market is projected to reach $56.8 billion by 2030, driven by technological advancements and heightened public safety concerns[29]. - The company has been awarded a Phase 1 contract from the U.S. Air Force in 2025, further solidifying its position in the federal market[44]. - The company is actively seeking additional government contracts, including a Phase 1 contract from the U.S. Air Force, which may expose it to risks such as early termination and regulatory scrutiny[122]. Product Development and Innovation - Knightscope aims to expand its installed base of Autonomous Security Robots (ASRs) through a Machine-as-a-Service (MaaS) subscription model, enhancing long-term revenue streams[41]. - The K7 Autonomous Security Robot is planned for production in 2026, designed for large environments like airports and industrial zones, enhancing automated perimeter patrolling[45]. - Knightscope's ASRs provide 24/7 monitoring capabilities, reducing reliance on human security personnel and improving incident response times[33]. - Knightscope's comprehensive suite of solutions includes ASRs, emergency communication devices (ECDs), and the cloud-based Knightscope Security Operations Center (KSOC)[191]. - The company is investing in new product development, including the K7 ASR, and has increased its R&D headcount to support these initiatives[207]. Financial Performance and Challenges - The Company incurred a net loss of $31.7 million for the year ended December 31, 2024, compared to a net loss of $22.1 million for the year ended December 31, 2023, with an accumulated deficit of $193.2 million as of December 31, 2024[62]. - Cash and cash equivalents on hand were $11.1 million as of December 31, 2024, up from $2.3 million as of December 31, 2023[62]. - The Company had a total backlog of approximately $1.7 million as of December 31, 2024, consisting of $0.4 million related to ASR orders and $1.3 million related to ECD orders[56]. - The company expects fluctuations in financial results due to various unpredictable factors, including client demand and economic conditions[76]. - The company projects operating losses and negative cash flows for the foreseeable future, raising substantial doubt about its ability to continue as a going concern[130]. Operational and Management Structure - The Company has a total of 71 full-time employees as of December 31, 2024, and is not a party to any collective bargaining agreements[58]. - The company appointed a new Chief Financial Officer and reduced approximately 40% of executive and senior leadership roles to enhance operational efficiency[203]. - The company has implemented a series of strategic and structural changes to optimize resources and reduce costs, including relocating production and renegotiating long-term client contracts[213]. - The company anticipates continued impacts from its strategic actions into 2025 as it completes transitions and drives further efficiencies across the business[208]. Competition and Market Dynamics - The U.S. security guard industry faces labor shortages, with turnover rates ranging from 100% to 400% annually, driving demand for automated solutions[29]. - The company competes with traditional public safety services, autonomous security robotics, and emergency communication systems, with key competitors including Allied Universal, Asylon Robotics, and Code Blue Corporation[51]. - Increased competition from other companies developing physical security technology may impact the company's market position[98]. - The company may face increased competition in the private security industry, which could result in reduced prices and lower gross margins[121]. Regulatory and Compliance Issues - Compliance with evolving privacy laws and regulations could limit the company's ability to deploy technologies in various markets[99]. - The regulatory framework for privacy and security is rapidly changing, potentially requiring the company to modify its business practices[100]. - The California Consumer Privacy Act (CCPA) imposes specific requirements on businesses processing personal information of California residents, which could affect the company's operations[101]. - Noncompliance with data protection laws like the GDPR could result in fines of up to €20 million or 4% of annual global revenues[103]. - The company is subject to the UK GDPR, which carries penalties of up to £17.5 million or 4% of global annual revenue for noncompliance[104]. Cybersecurity and Risk Management - Knightscope's management team is focused on cybersecurity risk management, with Mercedes Soria serving as the Chief Intelligence Officer and CISO, overseeing the cybersecurity program[165]. - The company utilizes external service providers to assist with cybersecurity assessments and incident response[166]. - Knightscope's cybersecurity practices include employee training and a third-party risk management evaluation process for key service providers[166]. - The company is dependent on its cybersecurity risk management program, and any security breaches could lead to significant financial and reputational damage[114]. Supply Chain and Operational Constraints - The company has experienced supply chain constraints and increased costs for materials, components, and freight due to geopolitical conflicts and inflationary pressures, which may negatively impact financial performance[127]. - The Company relies on over 100 suppliers for its manufacturing needs, with the top three suppliers being Alco Metal Fab, Sybridge Digital Solutions LLC, and E and M Electric and Machinery Inc.[48]. Stock and Financing - The company issued unsecured Public Safety Infrastructure Bonds totaling approximately $4.3 million, with a 10% annual interest rate starting December 31, 2024[92]. - The company may need to engage in equity or debt financings to secure additional funds for operations and product development[130]. - The company has never paid cash dividends on its Class A Common Stock and does not anticipate doing so in the foreseeable future[136]. - Future issuances of debt securities may adversely affect the return on investment from Class A Common Stock, as these securities would rank senior in bankruptcy or liquidation[138]. Asset Management and Valuation - Finished ASRs net value decreased slightly from $8,845,000 in 2023 to $8,765,000 in 2024, a decline of 0.9%[223]. - The total value of raw materials decreased from $3,841,000 in 2023 to $2,465,000 in 2024, a decline of 35.7%[223]. - The company did not record any impairment losses for ASRs or other long-lived assets for the years ended December 31, 2024 and 2023[224]. - The total value of finished ASRs net increased from $3,429,000 in 2023 to $5,978,000 in 2024, an increase of 74.5%[223].

Financial Performance - Estimated preliminary financial results for the fiscal year ended December 31, 2024, indicate a revenue of approximately $53.1 million, with an estimated $11 million for the fourth quarter[7]. - Knightscope has raised over $40 million in 2024, improving its balance sheet and corporate governance structure[42]. - Knightscope aims to significantly grow its revenue profitably through a diversified business model that includes recurring revenue streams[31]. Market Opportunities - Knightscope targets a total addressable market (TAM) of $230 billion, with specific segments including $57 billion for public safety and government by 2025[28]. - The U.S. security services industry is projected to grow significantly, with estimates indicating a market size increase to $50 billion by 2028, reflecting a compound annual growth rate (CAGR) of 5% from 2023[1]. - The autonomous security robots market is expected to reach $2.5 billion by 2028, growing at a CAGR of 20% from 2023[2]. - Emergency communication systems are forecasted to grow at a CAGR of 8% from 2023 to 2030, with the market size anticipated to reach $10 billion by 2030[3]. - U.S. public and private sector security spending is estimated to exceed $300 billion in 2023, with a projected increase of 6% annually[4]. - The critical infrastructure protection and perimeter security market is expected to grow to $15 billion by 2028, with a CAGR of 7% from 2023[5]. - Retail security and loss prevention spending is projected to reach $20 billion in 2023, reflecting a 5% increase from the previous year[6]. - K-12 and higher education campus security budgets are estimated to grow by 4% in 2023, reaching a total of $5 billion[7]. - The casino and hospitality security expenditures are expected to increase to $3 billion by 2027, with a CAGR of 6%[8]. - The multifamily housing security market is projected to grow by 5% annually, reaching $8 billion by 2023[9]. Product Development - The company plans to launch the K7 Autonomous Security Robot and K1 Super Tower by 2026, enhancing its product offerings[7]. - Knightscope's autonomous security robots (ASR) operate on a subscription model ranging from $1 to $11 per hour, providing a cost-effective alternative to traditional security services[26]. - Knightscope's technology generates over 200 terabytes of data annually per machine, providing real-time intelligence and physical deterrence against crime[21]. Strategic Initiatives - The company is focusing on organic and inorganic growth, including partnerships with Verizon Frontline to enhance telecommunications for first responders[40]. - The management team has undergone restructuring, reducing the management team by one-third and optimizing operations for future growth[43]. - Knightscope's proprietary market projections indicate a strong demand for security solutions, with anticipated revenue growth driven by customer requests for proposals (RFPs) and competitive landscape analysis[10]. Regulatory and Compliance - The company has achieved Authority to Operate (ATO) with the U.S. Federal Government, positioning itself for long-term sustainable growth[7].