Knightscope Reports 14% Revenue Decline in Q2 2025, Increases R&D Spending

Knightscope, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $2.749 million, a decrease of approximately 14% from $3.203 million in the same period last year. The decline was primarily driven by a $0.6 million drop in product revenue, which was partially offset by a $0.1 million increase in service revenue. The company attributed the decrease in product revenue to component shortages affecting its Emergency Communication Devices (ECD) portfolio. For the first half of 2025, total revenue increased slightly to $5.666 million from $5.457 million in the prior year, with service revenue rising due to increased deployments of Autonomous Security Robots (ASRs).

The company's gross loss for the second quarter was $0.918 million, compared to a loss of $0.558 million in the same quarter of 2024. This increase in gross loss as a percentage of revenue rose to 33% from 17%, reflecting the impact of lower ECD revenue. Operating expenses for the quarter decreased to $5.350 million from $6.203 million, driven by reductions in sales and marketing, as well as general and administrative expenses. The net loss for the quarter was $6.329 million, slightly higher than the $6.271 million loss reported in the previous year.

Knightscope's operational developments included a strategic move to a larger facility in Sunnyvale, California, which is expected to enhance its engineering and manufacturing capabilities. The company has also increased its research and development spending by 28% year-over-year, focusing on the development of new products and improvements in autonomous navigation and AI analytics. As of June 30, 2025, Knightscope had cash and cash equivalents of $8.211 million, down from $11.124 million at the end of 2024, reflecting ongoing operational losses and investments in growth.

The company reported a total of 7,096,350 shares of Class A Common Stock outstanding as of June 30, 2025, following a reverse stock split in September 2024. Knightscope's accumulated deficit reached approximately $206.4 million, with total stockholders' equity at $15.115 million. The company continues to face challenges related to supply chain constraints and is actively working to diversify its supplier base to mitigate future risks. Looking ahead, Knightscope anticipates needing additional funding to support its operations and growth initiatives, raising concerns about its ability to continue as a going concern if it cannot secure sufficient capital.