Core Viewpoint - Knightscope, Inc. has received mixed ratings from analysts, with a consensus rating of "Moderate Buy" and an average target price of $15.00, despite a recent drop in target prices from some analysts [1] Group 1: Analyst Ratings and Price Targets - Weiss Ratings restated a "sell (d-)" rating on Knightscope shares [1] - Ascendiant Capital Markets reduced their target price from $27.00 to $25.00 while maintaining a "buy" rating [1] - Three analysts rated the stock as a Buy, while one issued a Sell rating [1] Group 2: Financial Performance - Knightscope reported earnings of ($0.98) per share, missing the consensus estimate of ($0.72) by ($0.26) [4] - The company had a revenue of $3.13 million for the quarter, exceeding the consensus estimate of $2.63 million [4] - Knightscope's negative net margin was 256.09%, and the negative return on equity was 156.57% [4] Group 3: Market Metrics - The market capitalization of Knightscope is $45.35 million, with a PE ratio of -1.03 and a beta of 1.73 [2][3] - The debt-to-equity ratio stands at 0.15, with a current ratio of 3.62 and a quick ratio of 3.37 [2][3] - The fifty-day moving average is $4.57, while the 200-day moving average is $5.56 [2][3] Group 4: Institutional Trading - Centiva Capital LP purchased a new position valued at $245,000 during the 3rd quarter [5] - Vanguard Group Inc. increased its position by 9.6%, owning 276,857 shares worth $1,597,000 after purchasing an additional 24,283 shares [5] - Institutional investors currently own 14.61% of Knightscope's stock [5] Group 5: Company Overview - Knightscope specializes in autonomous security robots and offers a robotics-as-a-service platform [6] - The company has developed a series of fully autonomous models designated K1 through K7 for various environments [7]

Core Insights - Knightscope, Inc. has surpassed a $1 million milestone in new sales, client renewals, and expansions, indicating strong momentum and interest in its technology [1] Company Developments - The announcement follows the 2025 Letter from the CEO regarding the establishment of the nation's first Autonomous Security Force, highlighting the company's strategic direction [1]

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]