Knightscope Reports Q3 Revenue Growth Amid Manufacturing Transition and Cash Position Strengthening

Knightscope, Inc. (NASDAQ: KSCP) reported third-quarter 2025 revenue of $3.1 million, representing a significant increase from the $2.5 million recorded during the same period last year. The revenue growth was primarily driven by accelerated product deliveries following material shortages that had impacted previous quarters, indicating the company's recovery from supply chain constraints that had previously hampered its operations.

The autonomous security technology company did face challenges during the quarter, with gross loss widening to $1.6 million. This deterioration in gross margin was largely attributed to a $0.6 million non-cash inventory write-off connected to the company's transition to a new Sunnyvale headquarters and manufacturing facility. The relocation represents a strategic move to enhance production capabilities and operational efficiency, though the transition period has incurred temporary financial impacts.

Operating expenses increased by 10 percent to $7.9 million, reflecting Knightscope's continued investment in research and development for next-generation autonomous systems. These investments underscore the company's commitment to advancing its technology platform and maintaining its competitive position in the rapidly evolving security robotics market. The sustained R&D spending suggests Knightscope is positioning itself for future growth opportunities in the autonomous security sector.

Despite the increased operating expenses and inventory write-off, Knightscope demonstrated improved financial management with net loss narrowing to $9.5 million compared to $10.9 million in the prior year period. This improvement in bottom-line performance indicates progress toward operational efficiency and cost management, even as the company continues to invest heavily in technology development and expansion.

The most notable financial development was the company's strengthened cash position, which reached $20.4 million at quarter-end. This represents a substantial $15.2 million increase compared to the same period last year, providing Knightscope with enhanced financial flexibility and runway to execute its strategic initiatives. The improved liquidity position is particularly important for a growth-stage technology company operating in capital-intensive markets.

For investors seeking detailed financial information, the complete press release is available at https://ibn.fm/mtjoA. Additional news and updates relating to Knightscope are accessible through the company's dedicated newsroom at https://ibn.fm/KSCP.

The financial results come at a time when autonomous security solutions are gaining increased attention across multiple sectors, including commercial real estate, corporate campuses, and public spaces. Knightscope's performance reflects both the opportunities and challenges facing companies in the emerging security robotics industry, where balancing growth investments with financial sustainability remains a critical consideration for long-term success.