Knightscope, Inc. reported fourth‑quarter 2025 revenue of $2.54 million, a 9.8% decline from $2.81 million in the same period last year. Service revenue, the core of the company’s autonomous‑security‑robot subscription model, was essentially flat, while product revenue fell, reflecting supply‑chain constraints that limited deliveries of its robotic units.
The quarter ended with a gross loss of $1.6 million, up from the $3.7 million loss reported in the prior year’s fourth quarter. The wider loss was driven by higher material costs, a $600,000 inventory write‑off related to the transition to a new Sunnyvale headquarters, and continued investment in research and development.
Operating expenses rose to $9.7 million, an increase of $3.8 million year‑over‑year, and the company’s operating cash burn remained high at $7.9 million. Net loss widened to $11 million, underscoring the liquidity pressure that prompted a going‑concern disclosure in the third quarter.
Despite the weak quarterly results, Knightscope’s shares surged 22.83% in after‑hours trading. Investors focused on the company’s strategic pivot toward a recurring‑revenue model and the recent acquisition of Event Risk LLC, which is expected to drive triple‑digit revenue growth in 2026 and accelerate the transition to a managed‑service provider.
The acquisition of Event Risk LLC on February 27 2026, the completion of the move to a new Sunnyvale headquarters in August 2025, and the broader “ICM initiative” that seeks to build the nation’s first autonomous security force all signal a long‑term shift from product sales to subscription services.
Analysts had projected fourth‑quarter revenue of $6.2 million, so the $2.54 million reported represents a 59.03% miss. The figure also fell 10.79% below the Zacks Consensus Estimate of $2.81 million, and the earnings per share missed expectations by a significant margin.
Management did not provide new guidance for the next quarter, but reiterated its focus on scaling the service model, improving gross margins, and integrating the capabilities of Event Risk LLC to build a sustainable, recurring‑revenue business.
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