Knightscope Inc Class A (KSCP) AI Stock Analysis

• Market Cap: $51.21M
• Dividend Yield: N/A
• Average Volume (3M): 492.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.89
• Revenue Growth: 5.50%
• EPS Growth: 51.32%
• Country: US
• Employees: 71
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): -13.80
• Shares Outstanding: 11,172,438
• 10 Day Avg. Volume: 351,757
• 30 Day Avg. Volume: 492,050
• PEG Ratio: 0.03
• Price to Book (P/B): 2.31
• Price to Sales (P/S): 3.38
• P/FCF Ratio: -1.62
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 2.92
• Enterprise Value/Gross Profit: -7.80
• Enterprise Value/Ebitda: -1.27
• 1Y Price Target: $15.00
• Price Target Upside: 244.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -2.65
• Revenue Forecast (FY): $15.22M

• Rating: 41 Neutral
• Price Target: $4.00 ▼(-8.26% Downside)

The score is primarily held down by weak financial performance, with persistently negative margins and negative operating cash flow despite modest revenue and free-cash-flow improvement. Technicals add only a slight offset as the stock is still below key longer-term moving averages and MACD remains negative. Valuation support is limited because the company is unprofitable (negative P/E) and no dividend yield is available.

Positive Factors

Recurring Revenue Model

Knightscope's subscription and long-term leasing offerings create recurring revenue that supports predictable cash inflows and customer retention. This structural revenue mix improves revenue visibility and resilience versus pure one-time hardware sales over the next several quarters.

Improving Leverage

A low debt-to-equity ratio (0.13) indicates conservative leverage, reducing interest burden and bankruptcy risk. Structurally, this balance sheet flexibility allows the company to fund product development or scale deployments without excessive refinancing stress over a multi-quarter horizon.

Free Cash Flow Improvement

A 17% rise in free cash flow shows improving cash generation despite losses. This trend, plus free cash flow roughly covering net losses, gives management incremental financial flexibility to invest in sales, R&D or extend runway without immediately relying on dilutive financing.

Negative Factors

Deeply Negative Net Margin

A net margin near -256% reflects substantial losses relative to revenue, indicating structural problems in pricing, cost control, or scale economics. Such deep deficits constrain reinvestment, make profitability targets distant, and raise dilution or financing risk over coming quarters.

Negative Operating Cash Flow

Persistent negative operating cash flow means core operations consume cash, forcing reliance on financing or equity raises to sustain growth. Even with FCF improvement, continued operational cash outflows weaken liquidity and limit the company's ability to fund expansion internally.

Negative Gross and EBIT/EBITDA Margins

Negative gross and EBIT/EBITDA margins point to fundamental cost structure issues and weak operating leverage. Without meaningful margin recovery or scale gains, the business risks prolonged unprofitability and impaired ability to achieve sustainable operating cash generation.

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 generates revenue primarily through the sale and leasing of its security robots, as well as providing associated services such as maintenance and software updates. The company offers subscription-based plans for clients who utilize its robots, creating a recurring revenue stream. Key revenue streams include direct sales of robotic units, long-term leasing agreements that provide clients with flexibility, and ongoing service contracts that ensure the robots remain operational and up-to-date. Additionally, Knightscope has formed strategic partnerships with various organizations to expand its reach and enhance its service offerings, contributing positively to its earnings.

Knightscope Inc Class A Financial Statement Overview

Summary

Knightscope Inc Class A shows modest revenue growth, but profitability remains a significant concern with persistent negative margins. The balance sheet shows some improvement in leverage, yet the company struggles with negative returns on equity. Cash flow improvements are noted, but operational cash flows are still negative, indicating the need for strategic adjustments to achieve financial stability.

Income Statement

Knightscope Inc Class A shows a slight improvement in revenue growth with a 5.41% increase in TTM, but the company continues to face significant challenges with negative profit margins. The gross profit margin is negative, indicating costs exceed revenues. The net profit margin remains deeply negative at -256.09%, reflecting ongoing losses. Despite a small revenue uptick, the EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet shows some improvement with a lower debt-to-equity ratio of 0.13 in TTM, suggesting better leverage management. However, the return on equity is negative, indicating that the company is not generating profit from shareholders' equity. The equity ratio is not explicitly calculated, but the increase in stockholders' equity suggests a more stable financial position compared to previous years.

Cash Flow

Cash flow analysis reveals a positive trend with a 17.07% growth in free cash flow in TTM, yet operating cash flow remains negative, indicating cash outflows from operations. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is marginally covering net losses, but the operating cash flow to net income ratio remains negative, highlighting ongoing cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.61M	10.80M	12.80M	5.63M	3.41M	3.33M
Gross Profit	-4.35M	-3.70M	-2.02M	-3.32M	-2.06M	-1.30M
EBITDA	-26.75M	-26.55M	-23.77M	-14.70M	-37.96M	-15.72M
Net Income	-29.73M	-31.73M	-22.12M	-25.64M	-43.84M	-19.34M
Balance Sheet
Total Assets	41.06M	28.18M	22.97M	22.08M	17.58M	12.94M
Cash, Cash Equivalents and Short-Term Investments	20.39M	11.12M	2.28M	4.81M	10.75M	7.16M
Total Debt	3.38M	5.73M	2.69M	10.74M	8.24M	6.27M
Total Liabilities	14.16M	12.40M	15.40M	29.89M	43.30M	13.97M
Stockholders Equity	26.90M	15.78M	7.57M	-7.80M	-25.71M	-1.02M
Cash Flow
Free Cash Flow	-26.29M	-22.50M	-29.28M	-24.18M	-20.22M	-15.17M
Operating Cash Flow	-24.81M	-22.45M	-24.16M	-24.06M	-20.11M	-15.17M
Investing Cash Flow	-2.59M	-3.18M	-5.12M	-9.93M	-2.33M	-632.00K
Financing Cash Flow	42.49M	34.48M	26.85M	27.96M	26.13M	22.25M

Knightscope Inc Class A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KSCP, the sentiment is Neutral. The current price of 4.36 is above the 20-day moving average (MA) of 4.00, below the 50-day MA of 4.45, and below the 200-day MA of 5.37, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 52.62 is Neutral, neither overbought nor oversold. The STOCH value of 72.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KSCP.

Knightscope Inc Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
UUU	56 Neutral	$13.09M	9.73	26.86%	―	-23.22%	―
SPCB	54 Neutral	$36.88M	25.56	―	―	―	―
GFAI	44 Neutral	$12.61M	-1.30	-21.54%	―	4.38%	74.69%
KSCP	41 Neutral	$51.21M	-0.65	-164.48%	―	5.50%	51.32%