Knightscope disclosed its third‑quarter 2025 results on November 12, 2025, reporting revenue of $3.13 million, up 24% from $2.5 million in the same period a year earlier. The company posted a net loss of $9.5 million, a modest improvement from the $10.9 million loss in Q3 2024, and an earnings per share of $‑0.98, missing the consensus estimate of $‑0.72. Cash and cash equivalents stood at $20.4 million, an increase of $15.2 million from the prior year, giving the company a stronger liquidity cushion as it continues to invest in product development and operational efficiency initiatives.
Revenue was driven by a $1.9 million contribution from service contracts and $1.2 million from product sales, reflecting accelerated deliveries of autonomous security robots and emergency communication devices. The $0.63 million beat on revenue was largely due to the company’s recent contract wins, including a $1 million milestone in new contracts and client renewals that bolstered demand in both the emergency communication device (ECD) and autonomous security robot (ASR) segments. The mix shift toward higher‑margin service revenue helped offset the lower margin on product sales.
Gross loss widened to $1.6 million from $0.5 million a year earlier, primarily because of a $0.6 million non‑cash inventory write‑off associated with the transition to Knightscope’s new Sunnyvale headquarters. The write‑off, combined with higher raw‑material costs and increased labor expenses for the new production line, compressed gross margins and contributed to the broader loss. Operating expenses rose 10% to $7.9 million, driven by higher research and development spend to accelerate the K7 autonomous security robot and expanded marketing efforts to support the Machine‑as‑a‑Service (MaaS) subscription model.
While the net loss narrowed, the company’s earnings per share fell short of expectations, missing the consensus by $0.26. The miss reflects the impact of the inventory write‑off, higher operating costs, and the company’s ongoing investment in new product development. In its filing, Knightscope disclosed “substantial doubt about its ability to continue as a going concern,” underscoring the need for additional capital to sustain operations and achieve profitability.
Chief Executive Officer William Santana Li emphasized that the K7 represents “the next frontier in autonomous physical security” and that the company remains “laser‑focused on operational execution, financial discipline, and delivering innovation in public safety technologies.” Chief Financial Officer Apoorv Dwivedi highlighted disciplined cost management and the company’s robust balance sheet, noting that “with more than $20 million in cash on hand following recent capital raises, we believe we have the financial flexibility to advance our strategic growth initiatives while prudently managing expenses.”
Investors reacted positively to the announcement, driven largely by the company’s contract wins and the launch of the K7 robot. The market’s enthusiasm reflected confidence in Knightscope’s recurring revenue model and the perceived growth potential of its autonomous security solutions, even as the earnings miss and going‑concern warning tempered long‑term optimism.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.