Knightscope Inc Class A (KSCP) AI Stock Analysis

• Market Cap: $33.54M
• Dividend Yield: N/A
• Average Volume (3M): 198.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.31
• Revenue Growth: -5.64%
• EPS Growth: 35.09%
• Country: US
• Employees: 71
• Sector: Industrials
• Sector Strength: 87
• Industry: Security & Protection Services
• EPS (TTM): -13.80
• Shares Outstanding: 6,564,466
• 10 Day Avg. Volume: 257,374
• 30 Day Avg. Volume: 198,379
• PEG Ratio: 0.16
• Price to Book (P/B): -9.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.00
• Enterprise Value/Market Cap: 2.34
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: -26.83
• Enterprise Value/Ebitda: -0.77
• 1Y Price Target: $15.67
• Price Target Upside: 222.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 42 Neutral
• Price Target: $4.50 ▼(-7.41%Downside)

Knightscope Inc.'s overall stock score reflects significant financial challenges and valuation concerns. Despite some operational improvements and revenue growth, the company's persistent net losses and weak technical indicators weigh heavily on its investment attractiveness. The negative P/E ratio further highlights valuation difficulties. While there is potential for improvements, the current financial and market conditions remain challenging.

Positive Factors

Cost Management

General and administrative expenses were down approximately 24.0% year over year, which highlights the company's ongoing cost discipline.

Market Opportunity

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

Macroeconomic Challenges

The near term environment remains challenging with potential tariffs, and general macro uncertainty likely to put some pressure on new sales.

Operational Disruption

The company's move to a new facility could potentially cause some short term disruption.

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 Class A (KSCP) is a technology company specializing in the development and deployment of advanced physical security technologies. The company operates within the security and robotics sector, providing innovative solutions designed to enhance public safety and security. Knightscope's core products include autonomous security robots and software systems that are utilized across various industries to monitor, detect, and report security incidents in real-time.

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. is in a challenging financial position with consistent net losses and cash flow deficits. While there are signs of improvement, such as revenue growth at certain points and better debt levels, the company still faces significant hurdles in achieving profitability and sustainable cash flow. The reliance on financing and operational inefficiencies remain key risks.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.47M	10.80M	12.80M	5.63M	3.41M	3.33M
Gross Profit	-2.92M	-3.70M	-2.35M	-3.32M	-2.06M	-1.30M
EBITDA	-25.18M	-26.55M	-19.20M	-14.70M	-37.96M	-15.72M
Net Income	-31.04M	-31.73M	-22.12M	-4.79M	-48.94M	-19.34M
Balance Sheet
Total Assets	29.81M	28.18M	22.97M	22.08M	17.58M	12.94M
Cash, Cash Equivalents and Short-Term Investments	12.66M	11.12M	2.38M	4.81M	10.75M	7.06M
Total Debt	1.64M	5.73M	2.93M	10.74M	8.24M	6.27M
Total Liabilities	11.65M	12.40M	15.40M	29.89M	43.30M	13.97M
Stockholders Equity	18.16M	15.78M	7.57M	-7.80M	-25.71M	-1.02M
Cash Flow
Free Cash Flow	-21.13M	-22.50M	-29.28M	-24.18M	-20.22M	-15.80M
Operating Cash Flow	-20.22M	-22.45M	-24.16M	-24.06M	-20.11M	-15.17M
Investing Cash Flow	-2.73M	-3.18M	-5.12M	-9.93M	-2.33M	-632.45K
Financing Cash Flow	33.02M	34.48M	26.85M	27.96M	26.13M	22.25M

Knightscope Inc Class A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 4.86 is below the 20-day moving average (MA) of 5.52, below the 50-day MA of 5.47, and below the 200-day MA of 9.14, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 46.04 is Neutral, neither overbought nor oversold. The STOCH value of 27.77 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 *	66 Neutral	€9.81B	16.41	3.59%	3.47%	3.75%	-21.04%
SPCB	65 Neutral	$44.79M	28.79	9.92%	―	―	―
UUU	54 Neutral	$6.98M	―	-26.63%	―	5.57%	-449.87%
GFAI	54 Neutral	$23.55M	―	-20.57%	―	0.18%	91.18%
DGLY	48 Neutral	$4.04M	―	-118.58%	―	-28.69%	65.07%
KSCP	42 Neutral	$33.54M	―	-243.06%	―	-5.64%	35.09%

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.