Knightscope (KSCP) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $2.9 million, a 29% year-over-year increase, driven by growth in both service and product revenue.

• Gross margin loss improved to (23%), a significant gain from (64%) in Q1 2024, reflecting better cost management.

• Net loss narrowed to $6.9 million, with EPS loss improving to $0.01129 (adjusted for reverse split).

• Cash and cash equivalents rose to $12.7 million at quarter-end, up from $11.1 million at year-end 2024.

• Backlog as of May 7, 2025, totaled $2.5 million, with strong demand for both ECD and ASR products.

Financial highlights

• Service revenue: $2.1 million (+25% YoY); Product revenue: $809,000 (+44% YoY).

• Gross loss: $700,000 (improved from $1.4 million YoY); cost of revenue: $3.6 million (slightly lower YoY).

• Operating expenses declined 9–10% YoY, with G&A down 24% and sales/marketing down 15%.

• Net loss: $6.9 million (improved from $7.6–$8.3 million YoY); EPS loss: $0.01129 (vs. $4 prior year, adjusted for reverse split).

• Cash and equivalents surged to $12.7 million, up 388% YoY.

Outlook and guidance

• Management focuses on scaling operations, improving gross margin, and investing in revenue-generating activities.

• Backlog of $2.5 million as of May 7, 2025, with $1.9 million in ECD and $0.6 million in ASR orders.

• No specific timeline for positive EBITDA or earnings; long-term growth prioritized over short-term profitability.

• Management expresses optimism as strategic changes begin to yield results.

• Knightscope expects continued losses and negative cash flows in the near term and will require additional fundraising.