Knightscope (KSCP) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue increased 106% year-over-year to $6.0 million, driven by the acquisition of Event Risk and fulfillment of delayed product orders, marking a turning point with the integration of all operational pillars of the Autonomous Security Force.

• The acquisition of Event Risk LLC (now Knightscope Security Force) for $18.0 million added licensed security personnel and executive protection services, expanding the managed services platform and addressable market.

• Net loss widened to $10.3 million from $6.9 million in Q1 2025, reflecting higher operating expenses, R&D, and integration costs.

• Strategic focus remains on operational integration, technology development, and scaling managed services to address a $230 billion market.

Financial highlights

• Q1 2026 consolidated revenue reached $6.0 million, up 106% year-over-year, with service revenue at $4.2 million (up 98%) and product revenue at $1.8 million (up 128%).

• Gross margin turned positive at 7.7–8% of revenue, a $1.1 million improvement from the prior year, mainly due to the new segment's contribution.

• Net loss for the quarter was $10.3 million, with normalized net loss excluding one-time costs at $9.3 million.

• Cash and cash equivalents stood at $11.4 million as of March 31, 2026, down from $20.6 million at year-end 2025, reflecting acquisition-related outflows.

• Operating expenses increased 75% year-over-year to $10.8 million, with R&D up 120% and SG&A up 51%.

Outlook and guidance

• Focused on deploying the K7 robot in limited release, integrating acquired operations, and unveiling at GSX in September.

• Continued investment in product development, AI, and operational infrastructure expected throughout 2026.

• Management expects the integrated business to be free cash flow generative over time, with margin improvement anticipated through operational scale and cross-selling higher-margin services.

• The company will require significant additional financing to meet operational needs and continue as a going concern.