Knightscope, Inc.

What they do

Knightscope provides managed security services combining hardware (ASRs, ECDs), cloud software (KSOC, KEMS), and human monitoring/response personnel. Revenue comes from subscription-based Machine-as-a-Service (MaaS) for robots, product sales and recurring contracts for emergency communication devices, and security guarding/executive protection added via the 2026 Event Risk acquisition (operating as Knightscope Security Force). The company targets commercial, government, healthcare, education, transportation, and residential clients across the United States.

Revenue drivers

• Autonomous Security Robots (ASRs) – MaaS subscriptions — Recurring revenue from K1 Hemisphere, K1 Tower, and K5 deployments including maintenance, support, connectivity, KSOC access, and software updates; K5 is the majority of mobile deployments.
• Emergency Communication Devices (ECDs) – product sales and service contracts — K1 Blue Light Towers, Blue Light Emergency Phones, and Call Boxes; product sales grew in 2025 but were constrained by supply chain issues.
• Security Force guarding and executive protection services — Added via the February 2026 acquisition of Event Risk LLC; contributed full-quarter revenue in Q2 2026 and drove the record quarterly results.

Recent performance

Revenue in Q2 2026 was $9.0 million, up 228% from $2.7 million in Q2 2025, a record quarter; Q1 2026 revenue was $6.0 million. Full-year 2025 revenue was $11.3 million versus $10.8 million in 2024, with net loss of $33.8 million in 2025. In Q2 2026, gross margin turned positive at about 7% of revenue, operating expenses were $13.8 million, and net loss was $14.1 million ($0.79 per share). Cash and equivalents were $8.2 million as of June 30, 2026.

Strategy

Management aims to build an integrated Autonomous Security Force (ASF) that combines hardware, software, and licensed human response under one managed service. The Event Risk acquisition (total consideration ~$18.0 million, including $5.0 million cash and 1,724,418 shares) adds guarding and executive protection to enable bundled bids. Investments include the K7 robot (Alpha Prototype passed, Beta phase), the new Signals orchestration platform with 3D digital twin technology, and the H1 wearable for Augmented Security Agents. The company also cut assembly time by nearly 80% for one product line, restructured field services, and insourced Southern California field services to lower costs.

Risks

• Going concern risk — Substantial doubt about ability to continue as a going concern due to cumulative net losses ($227.0 million accumulated deficit at 12/31/2025) and reliance on future funding.
• Supply chain and input costs — Extended lead times, single-source electronic components, and tariff-related cost increases have caused production interruptions and margin pressure in ECD and other product lines.
• Integration and deal risk — The Event Risk acquisition involves $4.0 million of deferred cash payments through 2028 and recorded $7.7 million goodwill and $15.5 million customer relationships, with integration execution risks.
• Liquidity and capital needs — Cash of $8.2 million at June 30, 2026, with significant operating losses and $30.3 million negative operating cash flow in 2025; may need to raise capital or reduce operations.

Outlook

Management expects initial K7 deployments to begin in Q3 2026 and continue through year-end, with commercial production targeted for late 2026 or early 2027. The Signals orchestration platform is planned for initial launch in the second half of 2026. The company will officially launch the Autonomous Security Force at GSX 2026 in September and aims to maintain the momentum of the last two record quarters.