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Knightscope Reports Second Quarter 2025 Financial Results

By: Knightscope, Inc. via Business Wire

August 13, 2025 at 08:00 AM EDT

ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.

Paid Off $3 Million Senior Secured Promissory Note

Knightscope, Inc. (NASDAQ: KSCP), a leader in autonomous security robots and emergency communication devices, today reported financial results for the second quarter ended June 30, 2025.

Second Quarter 2025 Highlights

Revenue of $2.7 million, compared to $3.2 million in Q2 2024, reflecting higher ASR service revenue offset by lower ECD product revenue due to component shortages.
Gross loss of $0.9 million, compared to $0.6 million in Q2 2024. Gross margin declined primarily due to lower ECD volumes.
Operating expenses decreased 14% year-over-year to $5.4 million, driven by lower general and administrative costs and reduced sales and marketing spend.
Net loss of $6.3 million, or $(0.90) per share, compared to a net loss of $6.3 million, or $(2.68) per share, in Q2 2024.
Cash and cash equivalents of $8.2 million as of June 30, 2025, a $5.6 million improvement from the prior year, supported by disciplined cost controls and at-the-market equity sales (ATM Program). Subsequent to June 30, 2025 the Company sold additional shares under the Company’s ATM Program resulting in cash on hand of $24.2 million as of August 8, 2025.

Business Updates

Repayment of Senior Secured Facility Related to Dilutive Warrants – In a significant step toward simplifying its capital structure and eliminating shareholder dilution risk, as of June 30, 2025, Knightscope has fully repaid its $3.0 million senior secured promissory note, eliminating the debt and strengthening the Company’s balance sheet.
New Headquarters – In April 2025, Knightscope signed a lease for a 33,355 square-foot facility in Sunnyvale, California, more than doubling its footprint. The expanded space will serve as the Company’s new headquarters and hub for engineering, manufacturing, and client support.
Operational Efficiency Initiatives – Fully staffed second production shift, reducing overtime costs and improving capacity utilization; continued backlog conversion efforts.
Inventory Review in Connection with Facility Move – As part of the relocation to Sunnyvale, Knightscope is conducting a comprehensive review of inventory, manufacturing processes, and legacy systems. This review is expected to result in non-cash write-offs of obsolete or excess inventory in future periods, potentially impacting gross margins in the near term.
Recurring Revenue Growth – Service revenue rose 7% year-over-year in Q2, supported by increased deployments within the Company’s top client accounts.
Innovation Investment – Continued strategic R&D investment in the upcoming K7 platform, autonomy, AI-powered analytics and a new generation of products.

Management Commentary

“Our second quarter reflects both the challenges and progress in executing Knightscope’s growth strategy,” said William Santana Li, Chairman and CEO. “While supply chain constraints impacted ECD deliveries, our recurring ASR service revenue continues to grow, and our move into a larger, state-of-the-art facility positions us to scale more efficiently. We remain committed to disciplined cost management, operational improvements, and product innovation to drive long-term shareholder value.”

Near Term Outlook

Knightscope expects near-term results to reflect continued investment in R&D, relocation and ramp-up costs associated with the Sunnyvale facility, and potential non-cash inventory write-offs from the inventory review. The Company continues to actively manage its liquidity position and is positioning itself for both organic and inorganic growth.

About Knightscope

Knightscope is transforming public safety with cutting-edge robotics and AI technologies. From autonomous security robots to advanced detection systems, Knightscope is committed to building safer communities where you live, work, study and visit. Our long-term ambition is bold but simple: to make the United States of America the safest country in the world. Learn more about us at www.knightscope.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of words such as "should," "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," "proposes" and similar expressions. Forward-looking statements contained in this press release and other communications include, but are not limited to, statements about the Company’s goals, profitability, growth, prospects, reduction of expenses, and outlook. Although Knightscope believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks, uncertainties and other important factors that could cause actual results to differ materially from such forward-looking statements, including the factors discussed under the heading "Risk Factors" in Knightscope’s Annual Report on Form 10-K for the year ended December 31, 2024, as updated by its other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of the document in which they are contained, and Knightscope does not undertake any duty to update any forward-looking statements, except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250813257570/en/

Contacts

Public Relations

overwatch@knightscope.com

Knightscope, Inc.

(650) 924-1025 ext. 6

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