Knightscope (NASDAQ:KSCP) reported record second-quarter revenue of $9 million, up 228% from $2.7 million a year earlier, as the company benefited from a full-quarter contribution from its Security Force acquisition as well as autonomous security robot subscriptions and emergency communication device deployments.
Founder, Chairman and Chief Executive Officer William Santana Li called the period “the best quarter in Knightscope’s history,” noting that the company now serves 434 clients in 42 states. The second-quarter result followed first-quarter revenue growth of 106% year over year, according to the company.
Acquisition Drives Revenue and Positive Gross Margin
Dwivedi attributed the improvement to the acquisition’s contribution and margin expansion across the company’s technology product lines. He said the integrated combination of technology products and security services is “structurally more profitable than either business alone.”
However, operating expenses rose to $13.8 million from $5.4 million in the prior-year quarter. The increase reflected research and development investment for next-generation technology, higher headcount across departments and Security Force integration costs. Research and development expenses increased by $3.9 million from the prior year, according to Dwivedi.
Knightscope posted a net loss of $14.1 million, or $0.79 per share, compared with a loss of $6.3 million, or $0.90 per share, in the year-earlier period. The company cited higher operating expenses and roughly $1 million of other expense related to changes in the fair value of contingent consideration associated with the recent acquisition.
Cash and cash equivalents totaled $8.2 million at quarter-end, flat from the prior-year level. Dwivedi said the company has seen an improving cash conversion cycle following the acquisition.
Autonomous Security Force Strategy
Management described its strategy as combining hardware, software and licensed human agents in a managed-service model called the Autonomous Security Force. Li said the company is focused on solving clients’ broader security challenges rather than selling individual robots, sensors or guard services.
He said traditional unarmed guard services generally carry lower gross margins than software, but Knightscope believes that a blended offering can produce gross margins in the 50% to 60% range over time. Li cited an analysis of the company’s longest-standing clients that indicated gross margins of roughly 50% to 65% over a five-year period.
The company intends to use data from client sites to recommend combinations of human security, robots, sensors and remote monitoring. Li characterized the approach as a cycle of “deter, detect, respond, learn,” with the data collected intended to improve algorithms, technology and operating procedures over time.
Knightscope also sees cross-selling opportunities among its 434 clients. Li said certain Security Force clients currently use human services without Knightscope technology, while some legacy technology customers use third-party guard providers. Management said it plans to focus primarily on expanding relationships with existing clients while continuing to pursue new customers.
Product Development and Operational Changes
The company said its K7 autonomous security robot passed its alpha prototype gate review and remains on track for initial deployments during the fourth quarter of 2026. Knightscope has partnered with Carnegie Mellon University, whose graduate robotics program is working on autonomous patrol technology under Knightscope’s engineering team.
Knightscope is also developing the H1 wearable for what it calls augmented security agents. Li said agents are currently testing prototypes of the wearable, which the company plans to offer to its own agents.
In addition, management said significant work is underway on the Signals platform, software intended to orchestrate robots, stationary devices, sensors, augmented agents and mission-intelligence remote monitoring. The company said the platform will combine 3D digital-twin technology and AI agents to provide monitoring capabilities and an auditable record of activity.
Operationally, Li said the company reduced assembly time for one product line by nearly 80%. It also restructured field service operations in Northern California and the Northeast through local service-provider relationships, while bringing field services in Southern California in-house to improve service and lower delivery costs.
Potential M&A and Second-Half Priorities
Li said Knightscope remains interested in potential acquisitions across three areas: additional security-guarding businesses, remote-monitoring companies and technology assets or teams. He said the company would be selective and emphasized that post-transaction integration is critical to the success of any deal.
For the second half of 2026, management identified four priorities:
- Initial K7 deployments in the fourth quarter;
- The formal launch of the Autonomous Security Force at the GSX security conference in Atlanta in September;
- An initial launch of the Signals orchestration platform; and
- Continued financial and operational improvement following the first two record revenue quarters of the year.
Li said management’s role is to improve financial performance, grow the company and communicate results to the market, while acknowledging that it does not control the stock price. He said the company will remain focused on revenue growth, reducing cost of goods, managing fixed costs and executing on its product roadmap.
About Knightscope (NASDAQ:KSCP)
Knightscope, Inc (NASDAQ: KSCP) is a technology company specializing in the design and deployment of autonomous security robots. The firm offers a robotics-as-a-service platform that integrates self-driving devices with artificial intelligence and machine learning capabilities to enhance perimeter security, detect anomalies and deliver real-time incident reporting.
Since its founding in 2013 and headquartered in Mountain View, California, Knightscope has developed a series of fully autonomous models—designated K1 through K7—suited for indoor and outdoor environments.
