Knightscope, Inc. (KSCP) AI Stock Summary
Going-concern warning and tight cash
Updated
Snapshot
Knightscope is a micro-cap security firm in financial distress. The company reported $11.3M in FY 2025 revenue but lost $33.8M in net income, driven by massive operating expenses that far exceed sales. Gross margins are deeply negative at -43%, meaning the core business loses money on every dollar of revenue. Cash reserves have fallen to $11.4M, leaving a runway of just 3.2 months at current burn rates. Management has explicitly warned that the company may not survive as a going concern without raising more capital. The share count exploded by 2,823% last year due to dilutive financing, and the stock trades near its 52-week low.
What's Happening Right Now
- Fri 15th May '26 · Liquidity Risk: Management raised substantial doubt about the company's ability to continue as a going concern, citing cash reserves dropping to $11.4M and the need for additional fundraising within twelve months.
- Wed 15th Apr '26 · Partnership: The company signed a letter agreement with Carnegie Mellon University to collaborate on robotics education and public safety research.
- Tue 17th Mar '26 · Hiring: Knightscope expanded its workforce to over 400 employees and approved equity inducement grants for 320 new hires to support its growing operations.
- Tue 3rd Mar '26 · Acquisition: Knightscope completed the acquisition of Event Risk LLC for approximately $18M to add licensed human security agents to its autonomous robot strategy.
Ownership
Institutions hold 0.0% of the company, while insiders hold 11.6%.
Bottom Line
Knightscope is a high-risk speculative name facing immediate liquidity pressure. The business model is not yet profitable, with losses exceeding revenue by a wide margin and negative gross margins. The recent acquisition of Event Risk adds human guards to the mix but also increases costs and debt. With only three months of cash left and a formal going-concern warning, the company must raise money quickly to avoid insolvency. This is not a value play; it is a binary bet on whether the company can secure funding and turn its operations around before running out of cash.