Knightscope (KSCP) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $2.9 million, a 29% year-over-year increase, driven by both service and product growth, with strong demand for ECD and ASR products.

• Gross margin loss improved to (23%), a significant gain from (64%) in Q1 2024, reflecting cost savings and price optimization.

• Net loss narrowed to $6.9 million, a 19% improvement from Q1 2024.

• Cash and cash equivalents rose to $12.7 million as of March 31, 2025, up from $11.1 million at year-end 2024.

• Backlog as of May 7, 2025, totaled $2.5 million ($1.9 million ECDs, $600,000 ASR-related).

Financial highlights

• Cost of revenue was $3.6 million, slightly lower than $3.7 million in Q1 2024, reflecting savings from one-time scrap fees and higher product costs due to increased sales volume.

• General and administrative expenses declined 24% year-over-year, while sales and marketing expenses dropped 15% to $1.3 million.

• Research and development expenses increased 35% to $2.1 million, supporting ongoing innovation.

• No restructuring charges this quarter, compared to $100,000 in Q1 2024.

• Earnings loss per share improved to $0.01129 from nearly $4 per share last year, reflecting the reverse stock split.

Outlook and guidance

• Focus remains on achieving positive gross margins, scaling services and product footprint, and operating with increased efficiency.

• Management highlights operational execution, financial discipline, and innovation, with investments in new platform and sales infrastructure.

• No specific timeline provided for positive EBITDA or earnings, as growth and long-term shareholder value are prioritized over short-term profitability.

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

• Participation in Ladenburg Thalmann Innovation EXPO25 to showcase progress and connect with investors.