Knightscope Inc Class A (KSCP) AI Stock Analysis

• Market Cap: $18.43M
• Dividend Yield: N/A
• Average Volume (3M): 246.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.76
• Revenue Growth: -9.30%
• EPS Growth: 49.84%
• Country: US
• Employees: 95
• Sector: Industrials
• Sector Strength: 64
• Industry: Security & Protection Services
• EPS (TTM): -13.80
• Shares Outstanding: 6,564,466
• 10 Day Avg. Volume: 304,740
• 30 Day Avg. Volume: 246,161
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.49
• Price to Cash Flow (P/CF): -0.90
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $17.67
• Price Target Upside: 582.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Knightscope Inc. has a low overall stock score due to significant financial difficulties, characterized by persistent losses, high leverage, and negative cash flows. Technical indicators suggest weak momentum and poor market sentiment, while valuation metrics reflect challenging prospects. The absence of earnings call data and corporate events leaves these factors unaddressed in the analysis.

Positive Factors

Government Authorization

Knightscope has received authorization to operate within the U.S. federal government by FedRAMP, which could represent a multi-billion-dollar opportunity.

Sales Growth

The company announced $2.0M of sales, renewals, and customer expansions, which better reflects the positive momentum in the operating business.

Strategic Positioning

Strategic changes in the business in 2024 have better positioned the company for growth beginning in 2025 and continuing into 2026.

Negative Factors

Commercialization Challenges

Knightscope has not provided forward guidance, and there are commercialization challenges ahead for its main products.

Financial Performance

A gross loss of $3.7M was a deterioration from a loss of $2.0M in 2023, largely driven by third-party service costs and inventory write-downs.

Share Value Decline

Recent deterioration in share value is largely driven by shifting investor risk tolerances as the level of macro uncertainty rises.

Knightscope Inc Class A Business Overview & Revenue Model

Company Description

Knightscope, Inc. designs, develops, builds, deploys, and supports physical security technologies in the United States. The company's solutions combine the physical presence of autonomous security robots (ASR) with real-time on-site data collection and analysis, and a human-machine interface to reduce crime. Its products include K3 and K5 ASRs designed to roam a geo-fenced area autonomously by utilizing numerous sensors and lasers, either on a random basis or based on a particular patrolling algorithm to navigate around people, vehicles, and objects in dynamic indoor or outdoor environments; K1, an ASR for used in indoors or outdoors and at ingress/egress points for both people and vehicles; and K7, a multi-terrain ASR. The company also develops and operates the Knightscope security operations center (KSOC), a browser-based interface, which allows real-time data access service to its clients for alert of an abnormal event; and Knightscope network operations center (KNOC), a custom set of tools that enables it to manage and monitor the network of ASRs with alerts related to critical indicators and statistics, including charging, software, navigation, and temperatures, as well as to execute over-the-air software upgrades, patches, and other related items. In addition, it offers Knightscope+ remote monitoring, an optional service for clients that operate without a fully staffed 24/7 security operations center. The company serves law enforcement agencies, hospitals, and security teams. Knightscope, Inc. was incorporated in 2013 and is headquartered in Mountain View, California.

How the Company Makes Money

Knightscope Inc generates revenue primarily through the sale and leasing of its autonomous security robots and related software services. The company offers its security solutions on a subscription basis, providing clients with ongoing access to its advanced security technology and support services. Key revenue streams include contracts with private businesses, government entities, and other organizations seeking to enhance their security measures. Additionally, Knightscope may engage in strategic partnerships to expand its market reach and technology capabilities, contributing to its earnings.

Knightscope Inc Class A Financial Statement Overview

Summary

Knightscope Inc faces significant financial challenges, including declining revenues, persistent losses, and negative cash flows. Despite a positive shift in equity, the company must address operational inefficiencies to stabilize financially.

Income Statement

Knightscope Inc shows a challenging financial situation with consistent negative gross and net profit margins. The gross profit margin for the TTM is -41.92%, indicating significant cost concerns. Revenue has decreased by 14% from the previous year, and the company continues to report negative EBIT and EBITDA margins, reflecting ongoing operational inefficiencies and high operating expenses.

Balance Sheet

The balance sheet reveals a debt-to-equity ratio of 0.79, which reflects moderate leverage; however, the company’s equity position has improved, moving into positive territory compared to negative equity in prior years. The equity ratio is 37.13%, indicating a stronger asset base relative to equity. Return on equity remains negative due to persistent net losses.

Cash Flow

Operating cash flow remains negative, reflecting ongoing cash outflows from operations. The free cash flow growth is negative, highlighting difficulties in sustaining cash-generating activities. The operating cash flow to net income ratio is less indicative due to negative cash flows and net income.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
11.01M	12.80M	5.63M	3.41M	3.33M	3.03M
	Gross Profit
-4.62M	-2.35M	-3.32M	-2.06M	-1.30M	-1.61M
	EBIT
-29.83M	-26.14M	-31.97M	-24.55M	-14.64M	-10.07M
	EBITDA
-25.33M	-19.20M	-14.70M	-37.96M	-15.72M	-8.39M
	Net Income Common Stockholders
-31.30M	-22.12M	-4.79M	-48.94M	-19.34M	-11.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.69M	2.38M	4.81M	10.75M	7.06M	608.67K
	Total Assets
6.13M	22.97M	22.08M	17.58M	12.94M	7.74M
	Total Debt
0.00	2.93M	10.74M	8.24M	6.27M	6.47M
	Net Debt
-2.69M	548.00K	5.93M	-2.51M	-784.38K	5.86M
	Total Liabilities
1.94M	15.40M	29.89M	43.30M	13.97M	11.47M
	Stockholders Equity
4.19M	7.57M	-7.80M	-25.71M	-1.02M	-3.74M
Cash Flow		Free Cash Flow
-26.68M	-29.28M	-24.18M	-20.22M	-15.80M	-8.54M
	Operating Cash Flow
-23.37M	-24.16M	-24.06M	-20.11M	-15.17M	-8.52M
	Investing Cash Flow
-4.02M	-5.12M	-9.93M	-2.33M	-632.45K	-1.16M
	Financing Cash Flow
27.98M	26.85M	27.96M	26.13M	22.25M	8.83M

Knightscope Inc Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KSCP, the sentiment is Negative. The current price of 2.59 is below the 20-day moving average (MA) of 3.64, below the 50-day MA of 6.30, and below the 200-day MA of 11.13, indicating a bearish trend. The MACD of -1.18 indicates Negative momentum. The RSI at 18.84 is Positive, neither overbought nor oversold. The STOCH value of 9.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KSCP.

Knightscope Inc Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADT	78 Outperform	$6.58B	14.94	14.41%	2.83%	-13.19%	10.03%
OSIS	75 Outperform	$3.21B	24.58	16.85%	―	20.69%	17.89%
ALRM	74 Outperform	$2.50B	21.69	17.54%	―	6.59%	53.89%
Sector *	62 Neutral	$7.16B	12.21	3.05%	3.43%	3.62%	-14.48%
RELL	60 Neutral	$134.22M	292.57	0.30%	3.28%	-10.16%	-94.32%
CRSR	60 Neutral	$689.95M	―	-15.60%	―	-9.83%	-3191.56%
KSCP	21 Underperform	$18.43M	―	-271.81%	―	-9.30%	49.84%

Knightscope Inc Class A Corporate Events

Knightscope Inc Class A Announces Stock Offering

Knightscope, Inc., a leader in robotics and AI technologies for public safety, has announced a public offering of Class A common stock, aiming to raise approximately $12.1 million. The company plans to use the proceeds for general corporate purposes, including working capital. Titan Partners Group acts as the sole bookrunner for the offering, which is subject to customary closing conditions. This offering signals Knightscope’s ongoing efforts to enhance its financial position and support its growth objectives.