0001104659-26-036240
SEC filingKnightscope, Inc. reported a net loss of $33.8 million for fiscal year 2025, an increase from a $31.7 million loss in 2024. Total revenue grew 4.9% year-over-year to $11.3 million, driven by service-related revenue and Emergency Communication Device (ECD) product sales. However, the company incurred a gross loss of $4.8 million, widening from a $3.7 million gross loss in the prior year, as cost of revenue ($16.1 million) significantly exceeded revenue. Operating expenses increased to $29.1 million, primarily from higher research and development spending ($12.5 million). The company's cash position improved to $20.6 million at year-end, bolstered by $42.2 million in net financing cash flows from equity offerings, though operating activities used $30.3 million in cash. The auditor's report expressed substantial doubt about the company's ability to continue as a going concern due to recurring losses and negative cash flows.
Knightscope, Inc. reported a net loss of $33.8 million for the fiscal year ended December 31, 2025, compared to a net loss of $31.7 million in 2024. Total revenue increased 4.9% year-over-year to $11.3 million from $10.8 million, driven by growth in service-related revenue and Emergency Communication Device (ECD) product sales. However, the company incurred a gross loss of $4.8 million, widening from a $3.7 million gross loss in the prior year, as cost of revenue ($16.1 million) significantly exceeded total revenue. Operating expenses increased to $29.1 million from $26.0 million, primarily due to higher research and development spending ($12.5 million versus $7.1 million). Basic and diluted net loss per share was $4.00, compared to $10.97 in 2024, with the improvement primarily due to an increase in weighted average shares outstanding.
Revenue is disaggregated into service and product categories. Service revenue was $8.0 million in 2025, up from $7.5 million in 2024, while product revenue was $3.4 million, relatively flat compared to $3.3 million in the prior year. Management noted that revenue growth was driven primarily by service-related revenue and ECD product sales, but significant supply chain constraints affecting electronic components and certain single-source suppliers within the ECD product line resulted in extended lead times, intermittent production interruptions, higher input costs, and delivery delays that impacted revenue timing and margin performance during the year. The company had one client who individually accounted for 19% of total revenue in 2025.
The company's gross margin was negative 42.1% in 2025, deteriorating from negative 34.2% in 2024, as cost of revenue grew faster than revenue. Cost of revenue increased to $16.1 million from $14.5 million, with service cost of revenue representing $12.3 million of the total. Operating margin was negative 299.0%, with operating losses increasing to $33.9 million from $29.7 million in 2024. The increase in operating loss was primarily driven by higher research and development expenses ($12.5 million versus $7.1 million) and restructuring charges ($11 thousand versus $510 thousand), partially offset by lower sales, general and administrative expenses ($16.6 million versus $18.4 million).
Net cash used in operating activities was $30.3 million in 2025, compared to $22.5 million in 2024. The company used $2.5 million in investing activities for purchases of Autonomous Security Robots and property and equipment. Financing activities provided $42.2 million, primarily from proceeds from equity sales net of issuance costs ($42.8 million). Cash and cash equivalents were $20.6 million at December 31, 2025, compared to $11.1 million at December 31, 2024. Total assets were $41.3 million, with current assets of $26.4 million. Total liabilities were $13.5 million, resulting in stockholders' equity of $27.8 million. The company had an accumulated deficit of $227.0 million as of December 31, 2025.
The independent auditor's report expressed substantial doubt about the company's ability to continue as a going concern due to recurring losses from operations and cash used in operations. Management stated that the company will need to raise additional funds in the next twelve months by selling additional equity or incurring debt to sustain ongoing operations. The company had a total backlog of approximately $3.1 million as of March 24, 2026, comprised of $0.6 million related to ASR orders and $2.5 million related to orders for ECDs. On February 27, 2026, the company completed the acquisition of Event Risk LLC for consideration including a $5.0 million cash payment, repayment of $1.1 million of indebtedness, issuance of 1,724,418 shares of Class A Common Stock, and $4.0 million of deferred cash payments.