Knightscope (KSCP) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 was $2.7M, down from $3.2M in Q2 2024, with higher ASR service revenue offset by lower ECD product revenue due to component shortages.

• Net loss for Q2 2025 was $6.3M, with loss per share improving to $(0.90) from $(2.68) year-over-year.

• Operating expenses decreased 14% year-over-year for the quarter, reflecting cost discipline despite higher R&D investment.

• Cash and cash equivalents were $8.2M as of June 30, 2025, rising to $24.2M by August 8, 2025 after equity sales.

• Gross loss margin increased to 33% in Q2 2025 from 17% in Q2 2024, mainly due to lower ECD revenue.

Financial highlights

• Q2 2025 revenue: $2.7M (service $2.1M, product $0.7M); six-month revenue: $5.7M.

• Q2 2025 gross loss: $0.9M (33% of revenue), up from $0.6M in Q2 2024; six-month gross loss: $1.6M (28% of revenue).

• Q2 2025 net loss: $6.3M; six-month net loss: $13.2M.

• Operating expenses for Q2 2025: $5.4M, down from $6.2M in Q2 2024.

• Cash used in operations for six months ended June 30, 2025: $11.9M.

Outlook and guidance

• Management expects non-cash inventory write-offs in future periods due to facility consolidation and inventory clean-up, which may impact gross margin and operating results.

• Ongoing investment in R&D for new ASR and ECD platforms, with focus on scaling production and operational efficiency.

• Company anticipates continued losses and will require additional capital to sustain operations over the next twelve months.

• Liquidity management and positioning for both organic and inorganic growth remain priorities.