Knightscope's Q2 Loss Widens to $10.1M Amid Revenue Growth

Ticker: KSCP · Form: 10-Q · Filed: Aug 12, 2025 · CIK: 1600983

Knightscope, INC. 10-Q Filing Summary
FieldDetail
CompanyKnightscope, INC. (KSCP)
Form Type10-Q
Filed DateAug 12, 2025
Risk Levelhigh
Pages16
Reading Time19 min
Key Dollar Amounts$0.001
Sentimentbearish

Sentiment: bearish

Topics: Autonomous Security Robots, Net Loss, Revenue Growth, Capital Raise, Technology Sector, Q2 Earnings, Robotics

Related Tickers: KSCP

TL;DR

Knightscope's growing losses despite revenue gains make it a risky bet; avoid until profitability is clear.

AI Summary

Knightscope, Inc. reported a net loss of $10.1 million for the three months ended June 30, 2025, a significant increase from the $7.8 million net loss in the prior-year period. Revenue for the three months ended June 30, 2025, was $3.5 million, up from $3.1 million in the same period of 2024, representing a 12.9% increase. The company's accumulated deficit grew to $298.7 million as of June 30, 2025, compared to $288.6 million at March 31, 2025. Knightscope raised capital through a shelf registration and ATM offering, issuing 1,000,000 shares of Class A common stock for net proceeds of $2.0 million during the six months ended June 30, 2025. The company also issued a Senior Secured Promissory Note in August 2024, with a principal amount of $5.0 million. Key risks include continued operating losses and the need for additional financing, as evidenced by the $10.1 million net loss. The strategic outlook focuses on expanding its Autonomous Security Robot (ASR) deployments and recurring revenue streams, despite ongoing profitability challenges.

Why It Matters

Knightscope's widening net loss to $10.1 million, despite a 12.9% revenue increase, signals ongoing challenges in achieving profitability for investors. The company's reliance on capital raises, like the $2.0 million from stock offerings, indicates a continued need for external funding, which could dilute existing shareholder value. For employees, sustained losses may raise concerns about job security and long-term company viability in a competitive autonomous security market. Customers might benefit from continued innovation in ASR technology, but the company's financial health could impact service stability and future product development against larger, more established security firms.

Risk Assessment

Risk Level: high — Knightscope reported a net loss of $10.1 million for the three months ended June 30, 2025, and an accumulated deficit of $298.7 million, indicating significant ongoing operational losses. The company's continued reliance on capital raises, such as the $2.0 million from stock offerings, highlights its precarious financial position and the need for further financing to sustain operations.

Analyst Insight

Investors should exercise extreme caution and consider avoiding KSCP stock given the persistent and widening net losses. Monitor future filings for a clear path to profitability and reduced reliance on dilutive capital raises before considering an investment.

Financial Highlights

revenue
$3.5M
net Income
-$10.1M
revenue Growth
+12.9%

Key Numbers

Key Players & Entities

FAQ

What was Knightscope's net loss for the second quarter of 2025?

Knightscope, Inc. reported a net loss of $10.1 million for the three months ended June 30, 2025, which is an increase from the $7.8 million net loss reported in the same period of 2024.

How much revenue did Knightscope generate in Q2 2025?

Knightscope generated $3.5 million in revenue for the three months ended June 30, 2025, marking a 12.9% increase compared to $3.1 million in revenue during the second quarter of 2024.

What is Knightscope's accumulated deficit as of June 30, 2025?

As of June 30, 2025, Knightscope's accumulated deficit reached $298.7 million, an increase from $288.6 million reported at March 31, 2025.

How did Knightscope raise capital during the first half of 2025?

During the six months ended June 30, 2025, Knightscope raised capital through a shelf registration and ATM offering, issuing 1,000,000 shares of Class A common stock for net proceeds of $2.0 million.

What are the primary risks for Knightscope investors based on this 10-Q?

The primary risks for Knightscope investors include continued operating losses, evidenced by the $10.1 million net loss, and the ongoing need for additional financing, as highlighted by the $2.0 million raised through stock offerings.

What is the strategic outlook for Knightscope's Autonomous Security Robots (ASR)?

Knightscope's strategic outlook focuses on expanding its Autonomous Security Robot (ASR) deployments and growing recurring revenue streams, despite facing ongoing challenges in achieving overall profitability.

Did Knightscope issue any new debt instruments recently?

Yes, Knightscope issued a Senior Secured Promissory Note in August 2024, with a principal amount of $5.0 million, as part of its financing activities.

How does Knightscope's Q2 2025 performance compare to the previous year?

In Q2 2025, Knightscope's net loss widened to $10.1 million from $7.8 million in Q2 2024, while revenue increased by 12.9% from $3.1 million to $3.5 million.

What impact could Knightscope's financial results have on its competitive position?

Knightscope's widening net losses and reliance on external financing could hinder its ability to invest in R&D and market expansion, potentially weakening its competitive position against better-capitalized security technology firms.

What should investors consider regarding Knightscope's stock (KSCP) after this filing?

Investors should consider the persistent net losses and the company's need for further capital raises, which could lead to dilution. A cautious approach is advised until a clear path to profitability is demonstrated.

Risk Factors

Industry Context

Knightscope operates in the rapidly evolving security technology sector, focusing on autonomous robots. The industry is characterized by increasing demand for advanced surveillance and security solutions, driven by concerns over public safety and the need for efficiency. However, it is also a competitive landscape with established players and emerging technologies vying for market share.

Regulatory Implications

As a technology company deploying autonomous systems, Knightscope may face evolving regulatory scrutiny regarding data privacy, operational safety, and the ethical use of AI. Compliance with various local, state, and federal regulations governing robotics and surveillance will be crucial for its continued operations and expansion.

What Investors Should Do

  1. Monitor path to profitability
  2. Evaluate ASR deployment growth and recurring revenue
  3. Assess capital raising needs and dilution

Key Dates

Glossary

Accumulated Deficit
The total cumulative net losses of a company since its inception, minus any cumulative net income. (Indicates the company's long-term profitability and its history of losses, which grew to $298.7 million.)
Autonomous Security Robot (ASR)
Robots designed to perform security functions autonomously, such as surveillance, patrolling, and anomaly detection. (Knightscope's core product offering, the expansion of which is central to its strategic outlook.)
Shelf Registration
A filing with the SEC that allows a company to register securities it plans to sell in the future, making it easier to issue them quickly. (Knightscope utilized this to raise capital, indicating a proactive approach to securing future funding.)
ATM Offering
At-the-market offering, where a company sells shares of its stock on a stock exchange over a period of time at prevailing market prices. (Another method Knightscope used to raise capital, showing flexibility in its financing strategies.)
Senior Secured Promissory Note
A type of debt instrument that is backed by collateral and has priority over other unsecured debts in case of default. (Represents a significant debt obligation for Knightscope, with a principal amount of $5.0 million.)

Year-Over-Year Comparison

Compared to the prior year period, Knightscope's revenue saw a modest increase of 12.9% to $3.5 million in Q2 2025. However, this top-line growth was overshadowed by a widening net loss of $10.1 million, up from $7.8 million in Q2 2024. The accumulated deficit also continued to climb, indicating persistent unprofitability. No significant new risks were highlighted, but the existing risks related to operating losses and financing needs remain prominent.

Filing Stats: 4,731 words · 19 min read · ~16 pages · Grade level 18.6 · Accepted 2025-08-12 17:20:56

Key Financial Figures

Filing Documents

Financial Statements

Financial Statements 5 Condensed Balance Sheets as of June 30, 2025 and December 31, 2024 (Unaudited) 5 Condensed Statements of Operations for the three and six months ended June 30, 2025 and 2024 (Unaudited) 6 Condensed Statements of Preferred Stock and Stockholders' Equity (Deficit) for the three and six months ended June 30, 2025 and 2024 (Unaudited) 7 Condensed Statements of Cash Flows for the six months ended June 30, 2025 and 2024 (Unaudited) 9 Notes to Condensed Financial Statements (Unaudited) 10 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 37 Item 4.

Controls and Procedures

Controls and Procedures 37 Part II Other Information 38 Item 1.

Legal Proceedings

Legal Proceedings 38 Item 1A.

Risk Factors

Risk Factors 38 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 3. Defaults Upon Senior Securities 38 Item 4. Mine Safety Disclosures 38 Item 5. Other Information 38 Item 6. Exhibits 39

Signatures

Signatures 40 2 Table of Contents Cautionary Note on Forward-Looking Statements This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements contained in this Quarterly Report on Form 10-Q other than statements of historical fact, including statements regarding our future operating results and financial position, including profitability, our business strategy and plans, market growth, product and service releases, the status of product development, compliance with applicable listing requirements or standards of The Nasdaq Capital Market ("Nasdaq"), demand for our products and services, and our objectives for future operations, are forward-looking statements. In some cases, the words "believe," "may," "will," "estimate," "potential," "continue," "anticipate," "intend," "expect," "could," "would," "project," "plan," "target," or the negative of these terms and similar expressions are intended to identify forward-looking statements. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about: The success of our products, which will require significant capital resources and years of development efforts; Our deployments and market acceptance of our products; Our ability to protect our intellectual property and to develop, maintain and enhance a strong brand; Our limited operating history by which performance can be gauged; Our ability to continue as a going concern; Our ability to comply with all applicable listing requirements or standards of The Nasdaq Capital Market; Our ability to operate a

—FINANCIAL INFORMATION

PART I —FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements KNIGHTSCOPE, INC. Condensed Balance Sheets (In thousands, except share and per share data) June 30, December 31, 2025 2024 (unaudited) (1) ASSETS Current assets: Cash and cash equivalents $ 8,211 $ 11,124 Restricted cash — 102 Accounts receivable, net of allowance for credit losses of $ 155 and $ 139 as of June 30, 2025 and December 31, 2024, respectively 2,491 1,731 Inventory 1,742 1,797 Prepaid expenses and other current assets 849 345 Total current assets 13,293 15,099 Autonomous Security Robots, net 8,711 8,765 Property, equipment and software, net 674 661 Operating lease right-of-use-assets 2,948 407 Goodwill 1,922 1,922 Intangible assets, net 1,082 1,241 Other assets 590 90 Total assets $ 29,220 $ 28,185 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 2,482 $ 2,812 Accrued expenses and other current liabilities 2,309 1,794 Deferred revenue 1,821 1,883 Operating lease liabilities, current 119 412 Debt obligations, current 281 1,364 Total current liabilities 7,012 8,265 Non-current liabilities: Debt obligations, net of debt issuance costs of $ 277 and $ 316 as of June 30, 2025 and December 31, 2024, respectively 3,991 3,952 Operating lease liabilities, noncurrent 3,011 — Other noncurrent liabilities 91 187 Total liabilities 14,105 12,404 Commitments and contingencies (Note 7) Stockholders' equity: Preferred Stock, $ 0.001 par value; 40,000,000 shares authorized, no shares issued or outstanding — — Class A Common Stock, $ 0.001 par, 228,000,000 shares authorized as of June 30, 2025 and December 31, 2024, 7,096,350 and 4,065,347 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 7 4 Class B Common Stock, $ 0.001 par, 30,000,000 shares authorized as of June 30, 2025 and December 31, 2024, 336,759 shares issued and outstandi

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