Knightscope Reports 24% YoY Revenue Growth for 3Q 2025

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]