Knightscope 2025 Q1 Earnings Misses Targets with Net Loss Narrowing by 9%

Knightscope (KSCP) reported its fiscal 2025 Q1 earnings on May 14th, 2025. Knightscope's Q1 2025 results showed a mixed performance. The company missed revenue expectations with a 29% year-over-year increase, reaching $2.92 million, slightly below the consensus. However, Knightscope made strides in narrowing its net loss to $6.9 million, a 9% improvement from the previous year's Q1. The company remains focused on achieving positive EBITDA and earnings in the future, with no specific timeline for profitability. Guidance remains in line, targeting growth in services and product offerings.

Revenue
Knightscope's revenue for Q1 2025 showed a notable increase compared to the previous year, reaching $2.92 million, up from $2.25 million in Q1 2024. Service revenue contributed $2.11 million, while the product segment added $809,000 to the total. This growth reflects the company's efforts to expand its service offerings and product partnerships.

Earnings/Net Income
Knightscope narrowed its losses to $1.28 per share in Q1 2025 from a loss of $3.99 per share in Q1 2024, marking a 67.9% improvement. The net loss also decreased to $6.9 million, a 9.2% reduction from the previous year. Despite these improvements, the company's earnings per share indicate ongoing financial challenges.

Price Action
The stock price of Knightscope has climbed 4.29% during the latest trading day, surged 18.46% during the most recent full trading week, and has surged 96.22% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing Knightscope shares following a revenue miss and holding for 30 days appears unpromising based on current data. Knightscope recently reported an improved quarterly loss of $1.28 per share from $4 per share, yet revenue growth of 29% to $2.9 million fell short of consensus estimates. Following the earnings release, the stock rose by 8.35%, closing at $5.27. However, this momentum may not sustain if financial performance fails to improve substantially. The company continues to face financial health challenges, with a negative gross profit margin of 34.2% and significant net losses, suggesting potential stock price declines. Historical backtesting indicates that strategies appearing profitable in the short term may not perform consistently over longer periods. Furthermore, a comparative analysis with FiscalNote Holdings, Inc. (NOTE), which surpassed revenue estimates, suggests Knightscope may be a riskier investment. Thus, buying Knightscope after a revenue miss and holding may not be a reliable strategy.

CEO Commentary
William Li, Chairman and CEO, highlighted Knightscope's progress due to significant changes over the past 15 months, driven by improved service revenue and product partnerships. He emphasized a focus on execution and cost management for achieving positive gross margins. Li expressed optimism about market opportunities, particularly in public safety, and reiterated the company's commitment to long-term growth despite macroeconomic challenges.

Guidance
Knightscope anticipates continued revenue growth with a target of achieving positive EBITDA and earnings in the future. The company aims to scale its services and product offerings while maintaining disciplined cost control. Although the timing for profitability remains uncertain, the focus is on executing growth strategies effectively. The reported revenue for Q1 2025 is approximately $2.9 million, with an EPS of -1.28, reflecting efforts to improve financial performance and operational efficiency.

Additional News
Knightscope recently announced its participation in the Ladenburg Thalmann Innovation EXPO25, scheduled for May 21, 2025, in New York. This event will gather innovative companies and institutional investors for presentations and networking opportunities. Knightscope's involvement in the expo highlights its commitment to engaging with the investment community and showcasing its progress in public safety technology. The company aims to leverage this platform to foster meaningful conversations about its strategic direction and growth potential in the autonomous security robots sector.