Knightscope, Inc. (NASDAQ: KSCP) Delivers Strong Q1 2025 Results
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Earnings Per Share (EPS) of -$1.28, beating the estimated loss of $1.47.
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Revenue of $2.92 million, surpassing estimates of $2.49 million with 29% year-over-year growth.
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Gross loss improved to $700,000, with a negative gross margin of -34.2%; net loss narrowed to $6.9 million.
Knightscope, Inc. (NASDAQ: KSCP), a leader in autonomous security robots and AI-powered technologies, develops solutions to enhance public safety across sectors like commercial real estate, universities, and municipalities. Competing with firms like Iveda Solutions and Evolv Technologies, Knightscope's innovative robots, such as the K5 and K1, provide real-time monitoring and incident detection. On May 14, 2025, the company announced its Q1 2025 financial results, with CEO William Santana Li and CFO Apoorv Dwivedi highlighting operational progress during a conference call.
Knightscope reported a quarterly loss of $1.28 per share, outperforming the Zacks Consensus Estimate of a $1.47 loss and improving from a $4.00 loss per share in Q1 2024. Revenue reached $2.92 million, a 29% increase from $2.25 million the prior year, exceeding the consensus estimate of $2.49 million. The growth was driven by a 25% rise in service revenue ($2.1 million) and a 44% increase in product revenue ($809,000).
Over the past four quarters, Knightscope has surpassed EPS estimates twice and revenue estimates twice, signaling consistent improvement.
The company reduced its gross loss to $700,000 from $1.4 million, though the gross margin remained negative at -34.2%, reflecting ongoing profitability challenges. The net loss narrowed by 9% to $6.9 million from $7.6 million, supported by a 9% reduction in operating expenses to $6.2 million. Investments in the next-generation K5 v5 platform and a new 33,000-square-foot headquarters in Sunnyvale, California, underscore Knightscope's focus on long-term growth.
Knightscope's price-to-sales (P/S) ratio is approximately 3.0, based on a market capitalization of $34.46 million (as of May 13, 2025). The current ratio of 1.83 indicates sufficient liquidity to cover short-term obligations. The debt-to-equity ratio is moderate, with stockholders' equity at $18.2 million, though exact debt figures are undisclosed. The negative gross margin and challenges in generating operating cash flow remain hurdles, but the company's $2.5 million backlog and strategic partnerships signal growth potential.
Following the earnings report, Knightscope's stock rose 8.35% to $5.27 on May 14, 2025, reflecting positive market sentiment. The company will present at the Ladenburg Thalmann Innovation EXPO25 on May 21, 2025, to showcase its progress.