Knightscope 2025 Q3 Earnings 72.6% EPS Improvement Amid 23.5% Revenue Growth

Knightscope (KSCP) reported its 2025 Q3 earnings on Nov 13, 2025, with results showing a 23.5% year-over-year revenue increase to $3.13 million, outpacing market expectations. However, the company’s GAAP EPS of -$0.98 missed estimates by $0.16, reflecting ongoing operational challenges. Management highlighted progress in recurring revenue streams and cost discipline, while projecting sustained momentum in the fourth quarter as production efficiency improves.

Revenue

Knightscope’s total revenue surged 23.5% year-over-year to $3.13 million in Q3 2025, driven by robust performance across its product and service lines. Service revenue accounted for $1.91 million, reflecting steady demand for maintenance and support solutions, while product revenue grew to $1.23 million, bolstered by accelerated deliveries of delayed orders. The company attributed the product segment’s strength to improved supply chain execution following prior material shortages.

Earnings/Net Income

The company narrowed its net loss to $9.54 million in Q3 2025, a 12.5% reduction from $10.90 million in Q3 2024. Earnings per share (EPS) improved to -$0.98 from -$3.58, marking a 72.6% sequential improvement. Despite these gains, Knightscope has reported losses for five consecutive years, underscoring persistent financial pressures.

Post-Earnings Price Action Review

Following the earnings release, Knightscope’s stock price dropped 4.50% in the latest trading day, reflecting investor caution amid unmet EPS expectations. However, the shares rebounded with a 16.47% surge during the most recent full trading week, driven by renewed optimism around the company’s recurring revenue growth and strategic product launches. Over the month-to-date, the stock plummeted 27.27%, aligning with broader market volatility and lingering concerns about profitability.

CEO Commentary

William Santana Li, Chairman and CEO, emphasized Knightscope’s progress in scaling its recurring revenue model, particularly through Machine-as-a-Service (MaaS) subscriptions and emergency communication device (ECD) renewals. He highlighted the K7 autonomous security robot’s role in expanding the company’s addressable market and improving operational efficiency. Li also noted disciplined cost controls and the transition to Sunnyvale’s new headquarters as key enablers of long-term growth.

Guidance

Knightscope expects to maintain revenue momentum in Q4 2025 as production efficiency improves and backlog conversion accelerates. The company reiterated its focus on strengthening cash reserves and expanding its recurring revenue base through strategic MaaS and ECD deployments.

Additional News

1. $1 Million in New Contracts and Renewals: Knightscope announced over $1 million in new sales and renewals, including 60+ ECD units across healthcare, education, and government sectors, and 8 new MaaS subscriptions for autonomous security robots.

2. K7 Autonomous Security Robot Launch: The company unveiled its K7 robot, designed for large outdoor environments, with a waitlist open for early access ahead of 2026 production.

3. Strategic Expansion: Knightscope completed its relocation to a new Sunnyvale headquarters, optimizing operations and reducing costs, while securing $32.7 million in equity investments to fund growth initiatives.