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Knightscope Inc Class A (KSCP)
NASDAQ:KSCP
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Knightscope Inc Class A (KSCP) AI Stock Analysis

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KSCP

Knightscope Inc Class A

(NASDAQ:KSCP)

Rating:47Neutral
Price Target:
$7.50
▲(0.00%Upside)
Knightscope Inc. is making headway in improving financial stability and operational efficiency, yet it remains heavily challenged by consistent net losses and cash flow issues. While technical indicators show positive momentum, valuation concerns due to lack of profitability and negative earnings persist. The earnings call underscored progress in revenue growth and cost management, but highlighted ongoing challenges and external uncertainties. The overall score reflects a stock with potential but significant risks.
Positive Factors
Cost Management
General and administrative expenses were down approximately 24.0% year over year, highlighting the company's ongoing cost discipline.
Market Expansion
In the U.S., a fragmented marketplace of over 8,000 private security firms and 19,000 law enforcement agencies presents a growth opportunity for Knightscope's technologies.
Revenue Growth
Revenue of $2.9M was up approximately 29.0% from the year ago period as the company works through its existing backlog and moves towards more material growth.
Negative Factors
Commercialization Challenges
Knightscope has not provided forward guidance, and there are commercialization challenges ahead for its main products.
Share Value Volatility
Recent deterioration in share value is largely driven by shifting investor risk tolerances as the level of macro uncertainty rises.

Knightscope Inc Class A (KSCP) vs. SPDR S&P 500 ETF (SPY)

Knightscope Inc Class A Business Overview & Revenue Model

Company DescriptionKnightscope Inc Class A (KSCP) is a technology company specializing in the development of fully autonomous security robots. The company operates in the robotics and security sectors, providing innovative solutions designed to improve safety and security in various environments. Knightscope's core products include autonomous security robots that offer real-time data and surveillance capabilities to enhance situational awareness and reduce crime.
How the Company Makes MoneyKnightscope Inc makes money primarily through the sale and leasing of its autonomous security robots. The company offers subscription-based services, which include the deployment and maintenance of its robots, providing clients with ongoing access to its security technology. Knightscope also generates revenue through service contracts that provide continuous monitoring and support. The company's key revenue streams are its leasing agreements and service contracts, which are often established with businesses, corporate campuses, and public institutions seeking enhanced security solutions.

Knightscope Inc Class A Earnings Call Summary

Earnings Call Date:Mar 31, 2025
(Q1-2025)
|
% Change Since: 42.31%|
Next Earnings Date:May 14, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive revenue growth and operational efficiency improvements, alongside challenges such as federal contract delays and potential disruptions from moving facilities. While the company is making progress towards profitability, ongoing net losses and external uncertainties pose significant challenges.
Q1-2025 Updates
Positive Updates
Significant Revenue Growth
Total revenue for Q1 2025 was $2.9 million, marking a 29% increase from $2.3 million in Q1 2024. This growth was driven by a 25% increase in service revenue and a 44% increase in product revenue.
Improved Gross Loss and Cost Management
Gross loss decreased to $700,000 from $1.4 million the previous year, due to savings in the total cost of revenue. Operating expenses were reduced by 9% year-over-year.
Operating Loss Reduction
Net operating loss improved to $6.8 million from $8.3 million in Q1 2024. Net loss was 11% lower than the previous year's $7.6 million, aided by the absence of warrant liabilities.
Cash Position Strengthened
The company's cash balance was stronger than both Q1 2024 and the end of 2024, with approximately $11.2 million reported.
New Facility and Operational Efficiency
The company secured a new facility more than double the size of the previous one, expected to enhance collaboration and production efficiency.
Negative Updates
Challenges with Federal Contracts
The company faces slow progress in securing federal contracts despite having FedRAMP authorization, which took 4.5 years and $2.5 million to achieve.
Potential Disruptions from Facility Move
The move to a new facility may cause disruptions in production and operations, with associated risks and costs.
Continued Net Losses
Despite improvements, the company still reported a net loss, indicating ongoing challenges in achieving profitability.
Impact of Tariffs and Supply Chain Uncertainty
The financial impact of tariffs and supply chain uncertainties posed challenges, particularly affecting component pricing and lead times.
Company Guidance
During the first quarter of 2025, Knightscope reported a total revenue of $2.9 million, marking a 29% increase from the $2.3 million earned in the same period in 2024. This growth was fueled by a 25% increase in service revenues to $2.1 million and a 44% rise in product revenues to $809,000. The company's gross loss improved significantly to $700,000 from $1.4 million in the previous year, with the cost of revenue slightly decreasing to $3.6 million. Operating expenses also declined by 9% to $6.2 million, with notable reductions in sales and marketing expenses by 15% and G&A expenses by $800,000. The net operating loss reduced to $6.8 million from $8.3 million, and the net loss was 11% lower than the previous year's $7.6 million. Earnings loss per share improved to $1.29 from almost $4 per share last year. The company ended the quarter with a stronger cash balance, emphasizing its focus on achieving positive gross margins, scaling operations, and enhancing efficiency.

Knightscope Inc Class A Financial Statement Overview

Summary
Knightscope Inc. is facing ongoing financial challenges with persistent net losses and cash flow deficits. Despite some improvements in balance sheet strength and occasional revenue growth, the company's profitability and cash flow sustainability remain at risk. The improvements in equity and the reduction of leverage are positive, but reliance on external financing and operational inefficiencies are concerning.
Income Statement
20
Very Negative
Knightscope Inc. shows a persistent pattern of negative net income and low gross profit margins, with gross profit margin at -25.5% for TTM and a worsening EBIT margin at -243.6%. Revenue growth is present but inconsistent, with a notable 103.6% increase from 2021 to 2022, but a decline of 15.6% from 2023 to 2024. The company struggles with profitability, reflected in its consistently negative EBITDA and net profit margins.
Balance Sheet
40
Negative
The balance sheet indicates some improvement, with positive stockholders' equity of $18.2 million in the TTM period, a reversal from past negative equity. The debt-to-equity ratio improved significantly to 0.09, suggesting reduced leverage. However, the equity ratio is still concerning at 61.0%, indicating moderate reliance on external financing. Overall, there is a move towards stability, but past high leverage and equity deficits are risk factors.
Cash Flow
30
Negative
The cash flow statement reveals ongoing challenges with negative operating cash flow and free cash flow, at -$20.2 million and -$21.1 million respectively for TTM. Free cash flow has slightly improved compared to the prior period, but remains negative. The operating cash flow to net income ratio is not favorable due to persistent net losses. Cash flows depend heavily on financing activities, highlighting potential liquidity concerns.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.80M12.80M5.63M3.41M3.33M
Gross Profit-3.70M-2.35M-3.32M-2.06M-1.30M
EBITDA-26.55M-19.20M-14.70M-37.96M-15.72M
Net Income-31.73M-22.12M-4.79M-48.94M-19.34M
Balance Sheet
Total Assets28.18M22.97M22.08M17.58M12.94M
Cash, Cash Equivalents and Short-Term Investments11.12M2.38M4.81M10.75M7.06M
Total Debt5.73M2.93M10.74M8.24M6.27M
Total Liabilities12.40M15.40M29.89M43.30M13.97M
Stockholders Equity15.78M7.57M-7.80M-25.71M-1.02M
Cash Flow
Free Cash Flow-22.50M-29.28M-24.18M-20.22M-15.80M
Operating Cash Flow-22.45M-24.16M-24.06M-20.11M-15.17M
Investing Cash Flow-3.18M-5.12M-9.93M-2.33M-632.45K
Financing Cash Flow34.48M26.85M27.96M26.13M22.25M

Knightscope Inc Class A Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price7.50
Price Trends
50DMA
6.23
Positive
100DMA
5.28
Positive
200DMA
9.22
Negative
Market Momentum
MACD
0.65
Negative
RSI
54.12
Neutral
STOCH
20.29
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 7.5 is above the 20-day moving average (MA) of 6.93, above the 50-day MA of 6.23, and below the 200-day MA of 9.22, indicating a neutral trend. The MACD of 0.65 indicates Negative momentum. The RSI at 54.12 is Neutral, neither overbought nor oversold. The STOCH value of 20.29 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 Risk Analysis

Knightscope Inc Class A disclosed 40 risk factors in its most recent earnings report. Knightscope Inc Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Knightscope Inc Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$42.48M27.309.92%
65
Neutral
$11.06B15.735.16%1.93%3.12%-25.59%
56
Neutral
$28.80M-20.57%0.18%91.18%
54
Neutral
$7.05M-26.63%5.57%-449.87%
47
Neutral
$63.92M-243.06%-5.64%35.09%
47
Neutral
$3.45M-118.58%-28.69%65.07%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KSCP
Knightscope Inc Class A
7.50
-3.99
-34.73%
DGLY
Digital Ally
2.00
-4,078.00
-99.95%
UUU
Universal Security Instruments
3.05
1.47
93.04%
SPCB
SuperCom
9.36
5.90
170.52%
GFAI
Guardforce AI Co
1.37
-0.74
-35.07%

Knightscope Inc Class A Corporate Events

Shareholder Meetings
Knightscope Inc Reduces Quorum Requirement in Bylaws
Neutral
Jul 21, 2025

On July 18, 2025, Knightscope, Inc. announced an amendment to its bylaws, reducing the quorum requirement for stockholder meetings from a majority to one-third of voting power. This change aims to minimize the risk of failing to achieve quorum, which could lead to additional costs and disruptions for the company.

The most recent analyst rating on (KSCP) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Knightscope Inc Class A stock, see the KSCP Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Knightscope Inc Announces $50M Stock Offering Plan
Neutral
Jul 18, 2025

On July 18, 2025, Knightscope, Inc. announced the filing of a prospectus supplement related to the issuance and sale of up to $50 million in Class A common stock under an At The Market Offering Agreement. This move is part of the company’s strategy to raise capital and potentially strengthen its market position, although it does not constitute an immediate offer or sale of shares.

The most recent analyst rating on (KSCP) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Knightscope Inc Class A stock, see the KSCP Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 23, 2025