Knightscope Announces 24% Year-over-Year Revenue Increase for Third Quarter of 2025
Financial Performance: Knightscope reported a revenue of $3.1 million for Q3 2025, an increase from $2.5 million in Q3 2024, despite a gross loss of $1.6 million due to a non-cash inventory write-off.
Operational Developments: The company moved to a new headquarters in Sunnyvale, California, enhancing production capabilities and operational efficiency, while also fully staffing its second production shift.
Liquidity and Investment: Knightscope raised approximately $32.7 million year-to-date through capital raises, improving its cash position to $20.4 million, which supports its strategic growth initiatives and innovation investments.
Future Outlook: The company anticipates maintaining revenue momentum in Q4 2025, driven by strong interest in its autonomous security products, while managing supply chain challenges through proactive procurement strategies.
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- Significant Contract Value: Knightscope announced approximately $3.8 million in new contracts across eight sectors, including critical infrastructure, retail and consumer, and healthcare, showcasing the company's robust performance in diversified markets.
- Critical Infrastructure Dominance: The largest share of bookings comes from critical infrastructure, anchored by engagements with a major California county government, federal agencies, and multiple metropolitan law enforcement and emergency response organizations, indicating a strong foundation in public safety.
- Private Sector Involvement: Contracts also include participation from Fortune 500 pharmaceutical and healthcare organizations, leading hospital systems, and a global beverage company, further expanding Knightscope's client base and market influence.
- Market Demand Driven: CEO William Santana Li stated that clients are seeking unified solutions rather than fragmented products, and Knightscope is addressing this need by providing an integrated service through its Autonomous Security Force, meeting the urgent demand for security services in the market.
- Earnings Performance: Knightscope reported a Q1 GAAP EPS of -$0.74, missing expectations by $0.19, indicating challenges in profitability that could affect investor confidence.
- Revenue Growth: The company achieved revenue of $6M, a 106.9% year-over-year increase, surpassing market expectations by $2.35M, suggesting strong demand for its products and laying a foundation for future growth.
- Cash Flow Status: As of March 31, 2026, cash and cash equivalents stood at $11.4M, a significant decline from $20.6M on December 31, 2025, reflecting financial pressure in operations and investments.
- Market Outlook: Despite substantial revenue growth, ongoing losses and reduced cash flow may limit Knightscope's expansion capabilities, prompting investors to closely monitor its future financial health.
- Significant Revenue Growth: Knightscope reported total revenue of $6.0 million for Q1 2026, a 106% increase year-over-year, indicating strong demand and the company's ability to expand in the security services market.
- Strategic Acquisition Completed: By acquiring Event Risk, Knightscope successfully integrated all four operational pillars of autonomous security – autonomous machines, advanced software, real-time monitoring, and licensed security agents, enhancing its competitive position in the market.
- Gross Margin Turned Positive: The company achieved a gross margin of 8%, a significant improvement from a negative 23% in the prior year, reflecting enhanced operational efficiency and effective cost control measures.
- Increased R&D Investment: Research and development expenses rose to $4.7 million, a 124% increase from the previous year, demonstrating the company's commitment to ongoing product development aimed at driving future technological innovation and market leadership.
- Educational Collaboration: Knightscope has signed an agreement with Carnegie Mellon University to fund five educational projects over five years, aimed at strengthening the U.S. robotics workforce and advancing next-generation autonomous systems for public safety.
- National Security Lab: Knightscope will provide its National Security Robotics Lab at its Silicon Valley headquarters for Carnegie Mellon University, fostering a connection between academic research and practical applications to accelerate innovation in autonomous security systems.
- Graduate Program Involvement: Currently, five graduate students from Carnegie Mellon are collaborating with Knightscope to develop advanced AI features for the new K7 Autonomous Security Robot (ASR), enhancing their practical skills in the robotics and automation field.
- Long-term Strategic Goals: The CEO of Knightscope stated that this collaboration not only strengthens America's leadership in autonomy and public safety but also provides crucial support for the training of future robotics technology talent.
- Five-Year Collaboration: Knightscope has entered into an agreement with Carnegie Mellon University to fund five educational projects over five years, aimed at enhancing the U.S. robotics workforce and advancing next-generation autonomous systems for public safety.
- National Security Robotics Lab: Knightscope will make its National Security Robotics Lab at its Silicon Valley headquarters available for Carnegie Mellon graduate students to engage in practical projects, fostering a connection between academia and real-world applications.
- AI Development: Currently, five graduate students from Carnegie Mellon are collaborating with Knightscope to develop advanced AI features for the upcoming K7 Autonomous Security Robot (ASR), enhancing the robot's capabilities in security applications.
- Strategic Implications: This partnership not only solidifies Knightscope's leadership in the autonomous security sector but also provides students with opportunities to tackle real-world security challenges, driving innovation and application in future robotics technology.
- Revenue Decline: Knightscope experienced a year-over-year revenue decline of approximately 9.8% in Q4 2025, primarily due to supply chain constraints affecting product shipments, which has led to ongoing market pressures for the company.
- Gross Loss Expansion: The gross loss for Q4 reached $1.6 million, reflecting significant impacts on profitability due to rising material costs and under-absorption of fixed manufacturing overhead, indicating a challenging operational environment.
- Operating Expenses Increase: Operating expenses surged by $3.8 million year-over-year to $9.7 million in Q4, driven by increased investments in R&D and SG&A, which further exacerbates the company's financial burden amid declining revenues.
- Net Loss Widening: Knightscope reported a net loss of $11 million in Q4, widening from the previous year, highlighting the severe financial challenges the company faces due to lower revenues and sustained gross margin pressures.








