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Knightscope Inc Class A (KSCP)
NASDAQ:KSCP
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Knightscope Inc Class A
(NASDAQ:KSCP)
Rating:49Neutral
Price Target:
$6.00
▼(-0.99%Downside)
Positive Factors
Business Expansion
The company announced $2.0M of sales, renewals, and customer expansions, which better reflects the positive momentum in the operating business.
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.
Technological Leadership
Knightscope is a pioneer in the use of AI for its Autonomous Security Robots, having logged over 2.5 million hours of operating service and recently launched the 5th Generation K5 ASR.
Negative Factors
Financial Losses
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.
Macroeconomic Concerns
The near term environment remains challenging with potential tariffs, and general macro uncertainty likely to put some pressure on new sales.
Short-Term Disruptions
The company's move to a new facility could potentially cause some short term disruption.
Knightscope Inc Class A (KSCP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$40.72M
Dividend YieldN/A
Average Volume (3M)198.68K
Price to Earnings (P/E)―
Beta (1Y)2.48
Revenue Growth-5.64%
EPS Growth35.09%
CountryUS
Employees71
SectorIndustrials
Sector Strength94
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)-13.80
Shares Outstanding6,564,466
10 Day Avg. Volume139,983
30 Day Avg. Volume198,680
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.97
Price to Sales (P/S)0.00
P/FCF Ratio-0.46
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.00Price Target Upside180.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Knightscope Inc Class A Business Overview & Revenue Model
Company DescriptionKnightscope 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 MoneyKnightscope 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 Earnings Call Summary
Earnings Call Date:Mar 31, 2025
(Q1-2025)
| % Change Since: 14.99%|
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 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.25
Negative
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.40
Negative
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.30
Negative
| 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
Positive
6.06
Price Trends
4.71
Positive
6.44
Negative
9.75
Negative
Market Momentum
0.27
Positive
57.46
Neutral
58.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KSCP, the sentiment is Positive. The current price of 6.06 is above the 20-day moving average (MA) of 5.77, above the 50-day MA of 4.71, and below the 200-day MA of 9.75, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 57.46 is Neutral, neither overbought nor oversold. The STOCH value of 58.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $43.62M | 32.76 | 9.92% | ― | ― | ― | |
66 Neutral | $4.48B | 12.24 | 5.32% | 248.54% | 4.09% | -12.10% | |
54 Neutral | $6.57M | ― | -26.63% | ― | 5.57% | -449.87% | |
53 Neutral | $24.39M | ― | -20.57% | ― | 0.18% | 91.18% | |
49 Neutral | $40.72M | ― | -243.06% | ― | -5.64% | 35.09% | |
47 Neutral | $4.27M | ― | -118.58% | ― | -28.69% | 65.07% |
* Industrials Sector Average
Performance Comparison
KSCP
Knightscope Inc Class A
6.02
-9.73
-61.78%
DGLY
Digital Ally
2.26
-6,097.74
-99.96%
UUU
Universal Security Instruments
2.92
1.34
84.81%
SPCB
SuperCom
10.77
6.90
178.29%
GFAI
Guardforce AI Co
1.15
-1.42
-55.25%
Knightscope Inc Class A Corporate Events
Private Placements and Financing
Knightscope Inc Class A Announces Stock Offering
Neutral
Nov 22, 2024
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.