Knightscope Reports 23.5% Revenue Growth but Incurred $9.5 Million Net Loss in Q3 2025

Knightscope, Inc. reported its financial results for the third quarter of 2025, revealing a total revenue of $3.1 million, a 23.5% increase from $2.5 million in the same period last year. The growth was primarily driven by a significant rise in product revenue, which increased to $1.2 million from $674,000, while service revenue remained relatively stable at $1.9 million compared to $1.9 million in the prior year. Despite the revenue increase, the company reported a gross loss of $1.6 million, up from a loss of $506,000 in the previous year, attributed to higher costs associated with service and product delivery, including a $600,000 write-off of obsolete raw materials.

In terms of operational metrics, Knightscope's total operating expenses for the quarter rose to $7.9 million, compared to $7.2 million in the same quarter of 2024. The increase was largely due to a 113% rise in research and development expenses, which reached $3.8 million as the company continued to invest in the development of its K7 autonomous security robot. General and administrative expenses decreased by 31% to $3.1 million, reflecting cost-cutting measures and reduced investor relations fees. The net loss for the quarter was $9.5 million, a slight improvement from a loss of $10.9 million in the same period last year.

Knightscope's balance sheet showed a significant improvement in liquidity, with cash and cash equivalents increasing to $20.4 million as of September 30, 2025, up from $11.1 million at the end of 2024. This increase was attributed to successful fundraising efforts, including net proceeds of approximately $31.2 million from the sale of Class A common stock under its at-the-market offering program. The company also reported an accumulated deficit of approximately $216 million and total stockholders' equity of $26.9 million.

Strategically, Knightscope has made notable advancements, including the signing of a lease for a new, larger headquarters in Sunnyvale, California, which is expected to enhance its manufacturing and operational capabilities. The company is also focused on improving its production processes and has implemented measures to mitigate supply chain challenges that previously affected its ability to fulfill orders. As of November 10, 2025, Knightscope reported a backlog of approximately $2.8 million, indicating ongoing demand for its products.

Looking ahead, Knightscope anticipates continued investment in research and development to drive innovation and growth. However, the company acknowledges the need for additional capital to sustain operations and support its growth initiatives. Management has expressed concerns regarding its ability to continue as a going concern if it cannot secure sufficient funding, which may lead to operational reductions or delays in product development.