Knightscope 2025 Q2 Earnings Narrowed Losses Amid Revenue Decline

Knightscope (KSCP) released its 2025 Q2 earnings on August 12, 2025. The company’s results showed mixed performance, with declining revenue but slightly improved earnings per share. The earnings report highlights ongoing financial challenges and strategic adjustments.

Knightscope’s total revenue declined by 14.2% year-over-year to $2.75 million in Q2 2025, as the company faced headwinds in both product and service segments. The service segment accounted for the bulk of revenue, with $2.08 million, while product revenue totaled $670,000. These figures reflect a challenging market environment and subdued demand.

The company narrowed its loss per share to $0.90 in Q2 2025, an improvement of 66.4% compared to a loss of $2.68 per share in the same quarter of 2024. However, net loss widened to $6.33 million, a 0.9% increase from the previous year's $6.27 million. The loss reflects the company’s continued struggle to achieve profitability, with losses sustained for five consecutive years in the same quarter.

Knightscope’s stock price has shown mixed short-term performance, rising 2.94% on the latest trading day and 1.02% for the week, but falling 19.16% month-to-date. A post-earnings investment strategy of holding shares for 30 days after the report led to a poor outcome, with a compound annual growth rate (CAGR) of -63.01% and an excess return of -140.72%, significantly underperforming the benchmark.

CEO William Liu emphasized the company’s commitment to innovation and efficiency amid difficult market conditions. He acknowledged the Q2 loss as a temporary setback driven by macroeconomic pressures and strategic R&D investments in AI and robotics. Liu outlined plans to streamline costs and enhance product offerings to build long-term competitiveness, noting strong interest from enterprise clients and a focus on execution, scalability, and customer value.

The company is continuing to invest in R&D and operational improvements but did not provide specific quantitative guidance for the upcoming quarter. The CEO expects revenue to improve in the coming quarters as new contracts ramp up and cost efficiencies are realized.

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