Knightscope, Inc. reported full‑year 2025 results that showed a modest 5% rise in total revenue to $11.3 million, driven by a 7% increase in service revenue to $8.0 million and an 82% jump in product revenue to $3.4 million. The company’s service segment, which accounts for roughly 70% of revenue, benefited from higher contract volumes and a shift toward recurring service agreements, offsetting headwinds in the product line.
Despite the revenue growth, Knightscope’s gross loss widened to $4.8 million from $3.7 million in 2024. The increase is largely attributable to higher cost of revenue, including supply‑chain‑related material and labor costs, and significant investment in product development. The company’s net loss for the year was $33.8 million, or $(4.00) per share, reflecting the combined impact of operating expenses and one‑time charges.
Cash and cash equivalents rose to $20.6 million at year‑end, up from $11.1 million in 2024, giving the company a stronger liquidity position to fund ongoing R&D and integration of its recent acquisition. The Event Risk acquisition, completed on February 27, 2026, is expected to drive triple‑digit revenue growth in 2026 by expanding Knightscope’s service portfolio and enabling larger, long‑term contracts.
Management emphasized the company’s transition to a recurring‑revenue, managed‑service model. CEO William Santana Li noted that “the Event Risk acquisition will significantly increase the Company’s revenue in 2026 supporting expected triple‑digit revenue growth and further advancing the Company’s transition to a larger recurring, service‑based operating model.” The shift is intended to improve margin stability and reduce the volatility associated with product sales.
While the company’s earnings per share for the year were $(4.00), missing the consensus estimate of $(3.73), the broader context of strategic investment and a strengthened cash position suggests a focus on long‑term growth over short‑term profitability. Investors will likely view the widening gross loss and net loss as a short‑term cost of scaling, while the Event Risk acquisition and recurring‑revenue strategy signal a potential turnaround in profitability as the company matures its service offerings.
The results underscore a critical juncture for Knightscope: balancing aggressive investment in autonomous security technology with the need to control costs and achieve sustainable profitability. The company’s forward‑looking guidance indicates confidence in the upcoming year’s revenue trajectory, but the “going concern” note in the financial statements highlights the importance of continued cash flow management as the company navigates this transition.
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