SUNNYVALE, Calif.--(BUSINESS WIRE)--Knightscope, Inc. (NASDAQ: KSCP), a leader in autonomous security robots and emergency communication devices, today announced that on the heels of the 2025 Letter from the CEO on establishing the nation's first Autonomous Security Force, the Company has exceeded yet another $1 million milestone in new sales, client renewals and expansions. Knightscope believes its recent sales activity reflects continued momentum and growing interest in the Company's technolo. ...

Core Insights - Knightscope, Inc. is launching the K7 Autonomous Security Robot, which aims to address a $2.6 trillion problem in public safety by providing 24/7 coverage at an estimated cost of $15 per hour [7] - The company has a strong financial position with $24.2 million in cash as of August 2025, a clean balance sheet, and no toxic debt [7] - Knightscope has established multiple contracts exceeding $1 million across various sectors, including healthcare, education, gaming, and local government [7] - A strategic partnership with Palantir Technologies enhances Knightscope's capabilities by integrating advanced AI and defense infrastructure [7] Company Overview - Knightscope was founded on April 4, 2013, in response to significant public safety incidents, aiming to transform public safety through robotics and AI technologies [3][4] - The company's long-term goal is to make America the safest country in the world [4] Leadership - William Santana Li has been the Chairman and CEO since April 2013, bringing over 30 years of experience from the global automotive sector and various startups [5][6]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $3.1 million, representing a growth of 23.5% compared to the prior year, driven by an 82% increase in product revenue and a modest 2% growth in services revenue [9][12] - Gross loss was $1.6 million, influenced by a $600,000 write-off of slow-moving inventory and higher material costs [10] - Operating expenses increased by nearly 13% to $7.9 million, primarily due to heightened investment in R&D for the K7 robot [10] - Net loss was $10 million, which was $1 million better than the previous year, with EPS at negative $0.98 compared to a loss of $3.58 in the prior year [12] - Cash balance improved significantly to $20.4 million from $5.3 million year-over-year [12] Business Line Data and Key Metrics Changes - Services revenue grew modestly by 2%, while product revenue surged by 82%, indicating a strong recovery from previous component shortages [9] - The ECD devices accounted for approximately 60% of overall revenue, with a focus on growing service revenue alongside product sales [104][108] Market Data and Key Metrics Changes - The company is experiencing uneven adoption in the robotics industry, which is still in its early stages despite excitement around the technology [8][72] - The company aims to penetrate existing markets and explore new ones with innovative technologies [8] Company Strategy and Development Direction - The company is overhauling its product delivery and manufacturing processes to prepare for the next phase of growth [9] - Three growth strategies were outlined: organic growth, new product development-led growth, and inorganic growth through mergers and acquisitions [40][42] - The K7 robot is set to begin limited series production in the second half of 2026, which is expected to enhance the company's market position [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's future, emphasizing the importance of execution and innovation for growth [38][76] - The company is focused on addressing the challenges of uneven adoption of robotics in the security sector and is working to educate potential clients [72][98] - Management acknowledged the need for a national robotics strategy to facilitate the adoption of robotics in government and other sectors [98] Other Important Information - The company is committed to maintaining compliance with the Buy American Act, ensuring that its products are designed and manufactured in the U.S. [58] - The company is actively pursuing government contracts, although progress has been hindered by government shutdowns [49] Q&A Session Summary Question: What is the company’s strategy for inventory management? - The company traditionally sold products first and then built them, but is shifting towards building inventory to meet demand more efficiently [21][29] Question: How does the company justify executive salaries given stock performance? - Management stated that stock price does not reflect company performance and that compensation is determined by the board based on performance and future potential [30] Question: What capabilities does the K7 have? - The K7 can reach speeds of up to 10 miles per hour and is designed for more challenging terrains, with ongoing R&D for off-grid capabilities [31][32] Question: What is the company doing to drive shareholder value? - The company is focused on execution, market penetration, and improving margins as part of its strategy to enhance shareholder value [37][38] Question: Are there any M&A opportunities being pursued? - The company is actively looking at M&A opportunities, particularly in software and human resources to enhance its technology and capabilities [42][43] Question: What is the company’s approach to government contracts? - The company has local, state, and federal contracts but faces challenges due to government shutdowns affecting progress [49] Question: How does the company plan to overcome the fear of robots? - Management emphasized the importance of communication and education to alleviate concerns about robotics [97][98] Question: What are the challenges in achieving the goal of 100-plus K5s in the field? - The primary challenge is adoption, as potential clients need time to become comfortable with new technologies [90]

Core Insights - Knightscope reported a 24% year-over-year revenue growth for Q3 2025, with revenue reaching $3.1 million compared to $2.5 million in Q3 2024, primarily driven by a $0.6 million increase in product revenue due to improved delivery execution [2][4] Financial Performance - The company experienced a gross loss of $1.6 million in Q3 2025, compared to a gross loss of $0.5 million in the same quarter last year, attributed to a non-cash inventory write-off of approximately $0.6 million during a comprehensive review of inventory and manufacturing processes [3] - Operating expenses increased by 10% year-over-year to $7.9 million, mainly due to higher research and development expenses as the company invests in new product development [4] - The net loss for Q3 2025 was $9.5 million, or $(0.98) per share, an improvement from a net loss of $10.9 million, or $(3.58) per share, in Q3 2024 [4] - Cash and cash equivalents stood at $20.4 million as of September 30, 2025, reflecting a $15.2 million improvement from the previous year, supported by disciplined cost controls and equity investments [5] Business Developments - Knightscope completed its move to a new headquarters in Sunnyvale, California, in August 2025, more than doubling its footprint at lower-than-market rates [6] - The company is advancing its next-generation K7 platform, autonomy, AI-powered analytics, and advanced emergency communication device solutions [6] - Operational efficiency initiatives include a fully staffed second production shift, which reduces overtime costs and improves capacity utilization [7] Management Commentary - The CEO highlighted solid top-line growth and successful order fulfillment, emphasizing the transition to the new headquarters as a significant factor in enhancing production capabilities and operational efficiency [8] - The CFO noted that disciplined cost management and a strengthened balance sheet are key priorities, with over $20 million in cash available for strategic growth initiatives [8] Market Outlook - Knightscope anticipates strong interest in its autonomous security and emergency communication product lines, expecting to maintain revenue momentum in Q4 as production efficiency improves [9] - The company is optimistic about its proactive procurement strategy and inventory controls supporting continued delivery execution despite uneven supply chain conditions [9]

Core Insights - Knightscope, Inc. reported a quarterly loss of $0.98 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.72, representing an earnings surprise of -36.11% [1] - The company generated revenues of $3.13 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 14.69% and showing an increase from $2.54 million year-over-year [2] - Knightscope shares have declined approximately 61% year-to-date, contrasting with the S&P 500's gain of 16.4% [3] Earnings Outlook - The future performance of Knightscope's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is -$0.69 on revenues of $2.86 million, while for the current fiscal year, it is -$3.46 on revenues of $11.27 million [7] Industry Context - The Technology Services industry, to which Knightscope belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Revenue Performance - Total revenue for the three months ended September 30, 2025, increased by approximately $0.6 million to $3.131 million, primarily due to a $0.6 million increase in product revenue [144]. - Service revenue accounted for 61% of total revenue in Q3 2025, down from 73% in Q3 2024, while product revenue rose to 39% from 27% [143]. - Total revenue for the nine months ended September 30, 2025, increased by approximately $0.8 million to $8.8 million, driven by a $0.6 million increase in service revenue and a $0.2 million increase in product revenue [155]. Cost and Gross Loss - Total cost of revenue for Q3 2025 was $4.701 million, an increase of approximately $1.7 million compared to the prior year, driven by higher service and product costs [145]. - Gross loss for Q3 2025 was approximately $1.570 million, representing 50% of net revenue, compared to a gross loss of $0.506 million or 20% of net revenue in Q3 2024 [146]. - Total cost of revenue for the same period rose by approximately $1.5 million to $12.0 million, with service costs increasing by $0.8 million and product costs by $0.7 million [156]. - Gross loss for the nine months ended September 30, 2025, was approximately $3.2 million, representing a gross loss margin of 36%, up from 30% in the prior year [159]. Expenses - Research and development expenses surged by approximately 113% to $3.773 million in Q3 2025, reflecting the company's focus on advancing product innovation [147]. - Research and development expenses increased by approximately $3.0 million, or 61%, to $8.0 million, primarily due to investments in the next-generation K7 autonomous security robot platform [160]. - General and administrative expenses decreased by approximately 31% to $3.076 million in Q3 2025, primarily due to reductions in various operational costs [149]. - General and administrative expenses decreased by approximately $2.9 million, or 26%, to $8.0 million, mainly due to lower investor relations fees and third-party professional fees [162]. - Sales and marketing expenses decreased by approximately $0.6 million, or 15%, to $3.4 million, attributed to lower advertising and promotional costs [161]. Cash and Financing Activities - As of September 30, 2025, the company had cash and cash equivalents of approximately $20.4 million, a year-over-year increase of $15.2 million [132]. - As of September 30, 2025, the company had $20.4 million in cash and cash equivalents, up from $11.1 million at the end of 2024 [166]. - Net cash used in operating activities for the nine months ended September 30, 2025, was approximately $19.7 million, an increase of $2.4 million compared to the prior year [177]. - Net cash provided by financing activities was approximately $30.8 million for the nine months ended September 30, 2025, an increase of approximately $8.0 million compared to the same period of the prior year [181]. - Financing activities included net proceeds from the issuance of Class A Common Stock of approximately $31.2 million and net proceeds from a direct registration offering of approximately $1.4 million [181]. - Debt obligations repayments amounted to $1.9 million during the nine months ended September 30, 2025 [181]. - In the prior year period, net proceeds from the at-the-market agreement with Wainwright were approximately $20.4 million and Public Safety Infrastructure Bonds issuance was approximately $2.6 million [181]. Inventory and Backlog - The company recorded a non-cash inventory write-off of approximately $0.6 million during Q3 2025 as part of its transition to a new facility [137]. - The total backlog as of November 10, 2025, was approximately $2.8 million, with $2.3 million related to orders for emergency communication devices and $0.5 million for autonomous security robots [140]. Future Investments - The company is actively investing in a new, larger production facility in Sunnyvale, California, to enhance engineering, manufacturing, and client support efforts [133]. - The company anticipates continuing significant capital investments to support growth, including new product development across ASRs and ECDs [167].

Core Insights - Knightscope, Inc. has achieved a $1 million milestone in new contracts and client renewals, indicating strong demand for its security solutions [1] Company Performance - The company has experienced continued momentum in securing contracts, reflecting an expanding market for its technology-driven safety solutions [1] - The recent achievements are part of a series of monthly milestones, showcasing the effectiveness of Knightscope's offerings in enhancing security infrastructure [1] Industry Trends - There is a growing demand for advanced physical security technologies in both public and private sectors, highlighting a trend towards modernization of security solutions [1] - Knightscope's focus on technology-driven safety solutions positions it well within the evolving security landscape [1]

Core Viewpoint - Knightscope, Inc. (KSCP) shows significant upside potential with a mean price target of $15.67, indicating a 170.2% increase from the current trading price of $5.8 [1] Price Targets and Estimates - The mean estimate consists of three short-term price targets with a standard deviation of $10.02, where the lowest estimate is $8.00 (37.9% increase) and the highest is $27.00 (365.5% increase) [2] - A low standard deviation among price targets suggests a strong agreement among analysts regarding the stock's price movement [9] Analyst Sentiment and Earnings Estimates - Analysts exhibit growing optimism about KSCP's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which correlates with potential stock price increases [11] - The Zacks Consensus Estimate for the current year has risen by 3.5% over the past month, with one estimate increasing and no negative revisions [12] - KSCP holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - While price targets are often sought after, they can mislead investors, and reliance solely on them may not yield favorable returns [3][7][10] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8]

Core Insights - Knightscope, Inc. has announced the acquisition of over $1 million in new contracts and renewals, indicating strong market momentum [1] - The increase in contracts reflects a growing commitment among organizations to adopt advanced, technology-driven solutions for enhancing safety [1] Company Summary - Knightscope is recognized as a leader in autonomous security robots and emergency communication devices [1] - The company previously announced $1 million in contracts last month, showcasing consistent growth in its business operations [1] Industry Trends - There is a notable trend among organizations nationwide towards the adoption of technology-driven solutions aimed at improving safety and security [1]

Company Overview - Knightscope, Inc. (KSCP) shares increased by 19% to close at $7.4, with notable trading volume exceeding typical levels, and a 13.5% gain over the past four weeks [1][2] Financial Performance - The company is expected to report a quarterly loss of $0.77 per share, reflecting a year-over-year increase of 78.5%, with anticipated revenues of $2.73 million, up 7.5% from the previous year [3] - The consensus EPS estimate for Knightscope has remained unchanged over the last 30 days, indicating stability in earnings expectations [4] Growth Drivers - Continued growth in recurring autonomous security robot service revenues and scalability from moving to a larger facility are key factors driving the company's performance [2] - Prudent cost management, operational enhancements, and product innovation are expected to contribute to long-term shareholder value [2] Industry Context - Knightscope is part of the Zacks Technology Services industry, which includes other companies like Digi Power X Inc. (DGXX), which saw a 10.2% increase in its stock price [5] - Digi Power X Inc. has a Zacks Rank of 2 (Buy), while Knightscope currently holds a Zacks Rank of 3 (Hold) [5][6]