Knightscope (KSCP) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 increased 106% year-over-year to $6.0 million, driven by the acquisition of a security force business and fulfillment of delayed product orders.

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

• 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.

Financial highlights

• Service revenue rose 98% to $4.2 million, primarily from Security Force operations; product revenue grew 128% to $1.8 million due to fulfillment of delayed ECD orders.

• Gross margin improved to $0.5 million (8% of revenue) from a gross loss of $0.7 million (-23%) in Q1 2025, mainly due to the new segment's contribution.

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

• Cash and cash equivalents were $11.4 million as of March 31, 2026, down from $20.6 million at year-end 2025.

• Working capital stood at $7.0 million; accumulated deficit reached $237.3 million.

Outlook and guidance

• Management expects continued integration of Security Force operations and further expansion of managed services.

• Ongoing supply chain volatility and cost pressures may impact production efficiency and margins.

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