Knightscope (NASDAQ:KSCP) reported third-quarter revenue of $8.7 million, up 177% from a year earlier, as its acquired security services business contributed most of the company’s sales. The company posted a positive gross profit but a wider net loss.
Founder, Chairman and CEO Bill Santana Li said the quarter marked Knightscope’s third consecutive period of triple-digit year-over-year revenue growth. Management said its priorities include converting approximately $27 million in renewals, bookings and client awards secured since May into revenue while improving margins.
Acquired Security Business Drives Service Revenue
Service revenue rose 349% to $8.6 million in the quarter ended September 30, including $6.6 million from Knightscope Security Force, or KSF, which the company acquired in February 2026, Chief Financial Officer Apoorv Dwivedi said. Total revenue was $3.1 million in the prior-year quarter.
Product revenue fell to $0.1 million from $1.2 million a year earlier. Dwivedi said Knightscope is evaluating direct and channel partnerships and how its product line fits into a bundled services model. He said product revenue previously came primarily from the company’s ECD product line.
Knightscope reported gross profit of $0.4 million, or 5% of revenue, compared with a gross loss of $1.6 million a year earlier. Service gross profit was $0.7 million, or 8% of revenue, versus a $1.6 million service gross loss in the prior-year period.
Dwivedi said the company expects scale, contract mix and operating discipline to support further margin improvement. Santana Li said management also expects margins to improve over time as it adds technology to security operations that initially rely on human agents.
Loss Widens as Expenses Rise
Operating expenses increased to $12 million from $7.9 million, although they fell as a proportion of revenue to 138% from 254%. Research and development expenses declined 5% to $3.6 million as the company completed most development work on new products and moved engineering in-house, Dwivedi said.
Selling, general and administrative expenses were $8.4 million. That included approximately $1 million in event and sponsorship costs, primarily related to the unveiling of the Autonomous Security Force at GSX 2026, and $0.6 million in higher intangible asset amortization related to the KSF acquisition.
The net loss widened to $11.8 million from $9.5 million. The loss per share narrowed to $0.50 from $0.98. Knightscope ended the quarter with $6.8 million in cash and cash equivalents.
Asked when the company expects to become profitable, Dwivedi said management was focused on growing revenue and margins while maintaining operating costs, but did not provide a timetable.
K7 Release and Contract Pipeline
Knightscope is marketing its Autonomous Security Force as a managed service combining autonomous machines, AI-driven software and licensed armed and unarmed security agents. Santana Li said K7 manufacturing has begun at the company’s headquarters and that a limited fourth-quarter release was underway, with selective scaling planned for 2027.
Santana Li said field deployment and installation, rather than manufacturing capacity, could be the larger constraint. He also said Knightscope could outgrow its existing facility over the next few quarters.
The company’s Signals orchestration software and operational digital twin is live in an initial release at its headquarters, Santana Li said. He described the software as a way to coordinate machines, software and people in client operations.
The approximately $27 million in renewals, bookings and client awards since May is a company record, according to Santana Li. Dwivedi did not break out the amount attributable to new business, but said a large portion represented expanded work with existing clients or new customers. The figure has not all been recognized as revenue.
Nasdaq Compliance
Responding to a written question about a Nasdaq bid-price deficiency notice, Santana Li said Knightscope has 180 days and is evaluating options to regain compliance. He did not announce a specific course of action.
About Knightscope (NASDAQ:KSCP)
Knightscope, Inc. develops autonomous security technology designed to help organizations monitor and protect public and private spaces. The company combines robotics, artificial intelligence, autonomous navigation, and communications technologies to support security personnel and provide a visible presence in environments such as corporate campuses, shopping centers, residential communities, hospitals, schools, and public facilities. Its product portfolio includes autonomous security robots such as the outdoor K5, indoor K3, and compact K1 models, as well as related systems including the K1 Blue Light Tower.
