Knightscope, Inc.
For the period ended Jun 30, 2026. Filed Aug 12, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 12, 2026
KSCP$0.47+14.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0001104659-26-062505
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-12.
0001104659-26-094859
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 62 previous paragraphs and 75 current paragraphs.
37 unchanged; 20 reworded; 14 added; 5 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 5 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (14)
Current report
Total revenue, net for the three months ended June 30, 2026 increased by 228%, or $6.3 million, to $9.0 million compared to $2.7 million for the same period in the prior year. The increase was driven by a $6.6 million increase in service revenue, partially offset by a $0.3 million decrease in product revenue.
Current report
Product revenue decreased by $0.3 million, or 42%, to $0.4 million for the three months ended June 30, 2026, from $0.7 million in the prior year period.
Current report
Total cost of revenue was $8.4 million for the three months ended June 30, 2026, an increase of $4.7 million compared to the same period in the prior year. This increase was the result of $4.9 million in higher cost of revenue, service partially offset by lower cost of revenue, product of $0.2 million. The increase in cost of revenue, service was driven by higher payroll related costs of $4.5 million primarily a result of the addition of security guard workforce due to the acquisition of KSF.
Current report
Sales, general and administrative expenses increased by approximately $4.5 million, or approximately 137%, for the three months ended June 30, 2026, as compared to the same period in the prior year. The increase was primarily due to $1.6 million higher payroll-related costs largely attributed to the KSF Acquisition and incentive compensation, $0.7 million in higher professional services fees and legal expenses, $0.6 million higher investor relations fees, $0.6 million higher intangible asset amortization costs due to the KSF Acquisition, $0.2 million higher software subscription expense, $0.1 million higher rent and facilities expenses, and $0.1 million higher credit loss expense.
Current report
Other Income (Expense), Net
Current report
Total other expense, net increased by approximately $0.9 million for the three months ended June 30, 2026 as compared to the same period in the prior year primarily related to a $1.0 million revaluation of the contingent consideration and acquisition-related liabilities associated with the KSF Acquisition.
Current report
Comparison ofthe Six Months Ended June 30, 2026 and 2025
Current report
Revenue, net
Current report
Cost of revenue
Current report
Gross Margin (Loss)
Current report
Research and Development
Current report
Sales, General and Administrative
Current report
Other Income (Expense), Net
Current report
Total other expense, net increased by approximately $0.9 million, or 661%, for the six months ended June 30, 2026 as compared to the same period in the prior year primarily related to a $1.0 million revaluation of the contingent consideration and acquisition-related liabilities associated with the KSF Acquisition.
Removed paragraphs (5)
Previous report
As the acquired business has not been integrated, the CODM evaluates segment performance primarily based on revenue and gross margin and allocates resources based on consolidated operating results and liquidity considerations. The measure of segment assets is reported on the Condensed Consolidated Balance Sheets as total assets.
Previous report
The Company expects the Security Force operations to become increasingly integrated within the Company’s broader service offerings and managed services platform over time.
Previous report
As of May 8, 2026, the Company had a total backlog of approximately $0.8 million, comprised of $0.6 million related to ASR orders and $0.2 million related to orders for ECDs.
Previous report
Other Income (expense)
Previous report
Total other income (expense) for the three months ended March 31, 2026 increased slightly as compared to the same period in the prior year.
Reworded paragraphs (20)
Previous wording
*The historical results presented below are notnecessarily indicative of the results that may be expected for any future period.*Forward-looking statements about our business, results of operations, cash flows, financial condition and prospects based on current expectations that involve risks, uncertainties, and assumptions, and other important factors. Our actual results could differ materially from such forward-looking statements. Factors that could cause or contribute to those differences include, but are not limited to, those identified below and those discussed in “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K, as updated by our other filings with the SEC, and the section titled “Cautionary Note on Forward-Looking Statements” included elsewhere herein.
Current wording
The historical results presented below are notnecessarily indicative of the results that may be expected for any future period. This discussion may contain f**orward-looking statements about our business, results of operations, cash flows, financial condition and prospects based on current expectations that involve risks, uncertainties, and assumptions, and other important factors. Our actual results could differ materially from such forward-looking statements. Factors that could cause or contribute to those differences include, but are not limited to, those identified below and those discussed in “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K, as updated by our other filings with the SEC, and the section titled “Cautionary Note on Forward-Looking Statements” included elsewhere herein.
Previous wording
The components of the ASF include Autonomous Security Robots ("ASRs"), comprising stationary and mobile platforms; Emergency Communication Devices ("ECDs"); and security services delivered by armed and unarmed licensed security agents, including executive protection, operating as Knightscope Security Force ("KSF" or "Security Force"), which was added through the acquisition of Event Risk, LLC in the three months ended March 31, 2026. These components are supported by real-time monitoring services delivered through the Company's cloud-based Knightscope Security Operations Center ("KSOC") for ASRs, Knightscope Emergency Management System ("KEMS") for ECDs, and Risk & Threat Exposure ("RTX") remote monitoring team.
Current wording
The Company delivers the ASF as a single, integrated managed services offering, combining Autonomous Security Robots ("ASRs"), comprising stationary and autonomous, mobile platforms; Emergency Communication Devices ("ECDs"); and licensed security personnel, including armed and unarmed security agents and executive protection services, added through the Company's acquisition of Event Risk, LLC on February 27, 2026 and operating as Knightscope Security Force ("KSF" or "Security Force"). These components are supported by real-time monitoring services delivered through the Company's cloud-based Knightscope Security Operations Center ("KSOC") for ASRs, Knightscope Emergency Management System ("KEMS") for ECDs, and Risk & Threat Exposure ("RTX") remote monitoring team.
Previous wording
The Company expects to increasingly go to market through a managed services model that combines autonomous systems, software, monitoring capabilities, and licensed security personnel into a more unified customer offering.
Current wording
The Company provides a managed services model that combines autonomous systems, software, monitoring capabilities, and licensed security personnel into a more unified customer offering.
Previous wording
Our revenues for the three months ended March 31, 2026 were $6.0 million, an increase of $3.1 million or 106% from the comparable period in the prior year. We have incurred net losses since inception. Our net loss was $10.3 million for the quarter ended March 31, 2026 and $6.9 million for the quarter ended March 31, 2025. As of March 31, 2026, we had an accumulated deficit of $237.3 million. Cash and cash equivalents on hand were $11.4 million as of March 31, 2026, compared to $20.6 million as of December 31, 2025. These factors raise substantial doubt about our ability to continue as a going concern.
Current wording
Though our revenues for the three months ended June 30, 2026 were $9.0 million, an increase of $6.3 million or 228% from the comparable period in the prior year, we have incurred net losses since inception. Our net loss was $14.1 million and $6.3 million for the three months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, we had an accumulated deficit of $251.4 million. Cash and cash equivalents on hand were $8.2 million as of June 30, 2026, compared to $20.6 million as of December 31, 2025. These factors raise substantial doubt about our ability to continue as a going concern.
Previous wording
Gross margin was $0.5 million, or 8% of revenue, for the three months ended March 31, 2026, compared to a gross loss of $0.7 million, or (23%) of revenue, for the same period in the prior year. The improvement in gross margin was primarily driven by the contribution of Security Force revenues, which have a different cost structure.
Current wording
Gross margin was $0.7 million, or 7% of revenue, for the three months ended June 30, 2026, compared to a gross loss of $0.9 million, or (33%) of revenue, for the same period in the prior year. The improvement in gross margin was primarily driven by the contribution of service revenues following the KSF Acquisition.
Previous wording
Research and development expenses increased by approximately $2.6 million, or approximately 120% for the three months ended March 31, 2026, as compared to the same period in the prior year. The increase is primarily due to third-party engineering services as the Company continues to invest in the development of new products.
Current wording
Research and development expenses increased by approximately $3.9 million, or approximately 188%, for the three months ended June 30, 2026, as compared to the same period in the prior year. The increase is primarily due to third-party engineering services as the Company continues to invest in the development of new products.
Previous wording
Total revenue, net for the three months ended March 31, 2026 increased by 106%, or $3.1 million, to $6.0 million compared to $2.9 million for the same period in the prior year. The increase was driven by a $2.1 million increase in service revenue and a $1.0 million increase in product revenue.
Current wording
Total revenue, net for the six months ended June 30, 2026 increased by 165%, or $9.4 million, to $15.0 million compared to $5.7 million for the same period in the prior year. The increase was driven by an $8.6 million increase in service revenue and a $0.8 million increase in product revenue.
Previous wording
Service revenue increased by $2.1 million, or 98%, to $4.2 million for the three months ended March 31, 2026, from $2.1 million in the prior year period. The increase was primarily driven by $2.4 million of Security Force revenue recognized following the KSF Acquisition. This increase was partially offset by lower ASR subscription revenue and a reduction in maintenance and service contracts associated with ECD deployments.
Current wording
Service revenue increased by $8.6 million, or 206%, to $12.8 million for the six months ended June 30, 2026, from $4.2 million in the prior year period. The increase was primarily driven by $9.2 million of security revenue recognized following the KSF Acquisition. This increase was partially offset by lower ASR subscription revenue and a reduction in maintenance and service contracts associated with ECD deployments.
Previous wording
Product revenue increased by $1.0 million, or 128%, to $1.8 million for the three months ended March 31, 2026, from $0.8 million in the prior year period. The increase was primarily attributable to the fulfillment of previously delayed ECD orders that had been impacted by supply chain constraints in the second half of 2025, including extended lead times for certain electronic components and reliance on limited-source suppliers.
Current wording
Product revenue increased by $0.8 million, or 51%, to $2.2 million for the six months ended June 30, 2026, from $1.5 million in the prior year period. The increase was primarily attributable to the fulfillment of previously delayed ECD orders that had been impacted by supply chain constraints in the second half of 2025, including extended lead times for certain electronic components and reliance on limited-source suppliers.
Previous wording
Total cost of revenue was $5.6 million for the three months ended March 31, 2026, an increase of $2.0 million compared to the same period in the prior year. The increase was driven by higher service costs of $1.5 million and higher product costs of $0.5 million.
Current wording
Total cost of revenue was $13.9 million for the six months ended June 30, 2026, an increase of $6.7 million compared to the same period in the prior year. The increase was driven by higher service costs of $6.4 million and higher product costs of $0.3 million.
Previous wording
Service cost of revenue increased by $1.5 million compared to the same period in 2025, primarily due to $1.8 million of contract labor associated with Security Force operations following the KSF Acquisition. This increase was partially offset by lower third-party service expenses.
Current wording
Service cost of revenue increased by $6.4 million compared to the same period in 2025, primarily due to $2.4 million of contract labor and $4.5 million of payroll related costs associated with the KSF Acquisition. This increase was partially offset by $0.3 million lower third-party service expenses.
Previous wording
Product cost of revenue increased by $0.5 million to $1.3 million for the three months ended March 31, 2026, compared to the prior year period. The increase was primarily attributable to higher material costs to support the increased production volume associated with the fulfillment of previously delayed ECD orders.
Current wording
Product cost of revenue increased by $0.3 million to $1.9 million for the six months ended June 30, 2026, compared to the prior year period. The increase was primarily attributable to higher material costs to support the increased production volume associated with the fulfillment of previously delayed ECD orders.
Previous wording
Sales, general and administrative expense for the three months ended March 31, 2026 was $6.1 million, an increase of $2.1 million from the three months ended March 31, 2025. The increase was primarily driven by $0.6 million in general corporate expenses, $0.4 million in higher investor relations and advertising expenses, $0.4 million in higher professional services fees, $0.3 million general and administrative costs associated with KSF, and $0.2 million in higher rent-related costs associated with our new larger headquarters.
Current wording
Sales, general and administrative expense for the six months ended June 30, 2026 was $13.8 million, an increase of $6.5 million from the six months ended June 30, 2025. The increase was primarily driven by $1.8 million in payroll related costs largely attributed to the KSF Acquisition and incentive compensation, $1.0 million in higher investor relations and advertising expenses, $1.2 million in higher professional services fees primarily related to the KSF Acquisition and subsequent integration costs, $0.8 million in higher intangible assets amortization expense as a result of the KSF Acquisition, $0.2 million in credit loss expense, $0.3 million in higher software costs, $0.2 million in higher corporate insurance costs and $0.4 million in higher rent and facilities-related costs associated with our new larger headquarters.
Previous wording
As of March 31, 2026, we had $11.4 million of cash and cash equivalents. As of March 31, 2026, the Company also had an accumulated deficit of $237.3 million, working capital of $7.0 million, and stockholders’ equity of $34.0 million. For the quarter ended March 31, 2026, the Company had a net loss of $10.3 million and cash used in operating activities of $11.6 million. These factors raise substantial doubt about our ability to continue as a going concern. The Company will require significant additional financing to meet its planned capital and operational needs and is pursuing opportunities to obtain additional financing through equity and/or debt alternatives. There can be no assurance that the Company will be successful in acquiring additional funding at levels sufficient to fund its future operations. Management’s plans include seeking additional financing, such as issuances of equity and issuances of debt and/or convertible debt instruments. Sales of additional equity securities, convertible debt and/or warrants by the Company could result in the dilution of the interests of existing stockholders. However, there can be no assurance that financing will be available when required in sufficient amounts, on acceptable terms or at all. If the Company is unable to raise additional capital in sufficient amounts or on terms acceptable to it, the Company may have to significantly reduce its operations, delay, scale back or discontinue the development of one or more of its platforms or discontinue operations completely.
Current wording
As of June 30, 2026, the Company had $8.2 million of cash and cash equivalents. As of June 30, 2026, the Company also had an accumulated deficit of $251.4 million, working capital of $2.4 million, and stockholders’ equity of $29.6 million. For the six months ended June 30, 2026, the Company had a net loss of $24.4 million and cash used in operating activities of $23.1 million. These factors raise substantial doubt about our ability to continue as a going concern. The Company will require significant additional financing to meet its planned capital and operational needs and is pursuing opportunities to obtain additional financing through equity and/or debt alternatives. There can be no assurance that the Company will be successful in acquiring additional funding at levels sufficient to fund its future operations. Management’s plans include seeking additional financing, such as issuances of equity and issuances of debt and/or convertible debt instruments. Sales of additional equity securities, convertible debt and/or warrants by the Company could result in the dilution of the interests of existing stockholders. However, there can be no assurance that financing will be available when required in sufficient amounts, on acceptable terms or at all. If the Company is unable to raise additional capital in sufficient amounts or on terms acceptable to it, the Company may have to significantly reduce its operations, delay, scale back or discontinue the development of one or more of its platforms or discontinue operations completely.
Previous wording
Common Stock, preferred stock, debt securities, warrants and/or units, in any combination. The new shelf registration statement was declared effective on April 11, 2025. On July 18, 2025, we filed a new prospectus supplement for additional sales under the ATM Facility of up to $50.0 million of shares of Class A Common Stock. As of May 8, 2026, we have approximately $18.3 million remaining to be sold pursuant to the new prospectus supplement and the accompanying prospectus related to the ATM Facility.
Current wording
Common Stock, preferred stock, debt securities, warrants and/or units, in any combination. The new shelf registration statement was declared effective on April 11, 2025. On July 18, 2025, we filed a new prospectus supplement for additional sales under the ATM Facility of up to $50.0 million of shares of Class A Common Stock. As of August 7, 2026, we have approximately $5.6 million remaining to be sold pursuant to the filed prospectus supplement and the accompanying prospectus related to the ATM Facility.
Previous wording
During the three months ended March 31, 2026, the Company issued 2,027,993 shares of Class A Common Stock under the ATM Facility for net proceeds of approximately $9.0 million, net of brokerage and placement fees of approximately $0.2 million.
Current wording
During the six months ended June 30, 2026, the Company issued 5,530,922 shares of Class A Common Stock under the ATM Facility for net proceeds of approximately $18.3 million, after brokerage and placement fees of approximately $0.5 million.
Previous wording
Net cash used in operating activities was approximately $11.6 million for the three months ended March 31, 2026. Net cash used in operating activities resulted from a net loss of approximately $10.3 million and changes in working capital and non-cash charges.
Current wording
Net cash used in operating activities was approximately $23.1 million for the six months ended June 30, 2026. Net cash used in operating activities resulted from a net loss of approximately $24.4 million and changes in working capital and non-cash charges.
Previous wording
Net cash used in operating activities for the three months ended March 31, 2026 increased by approximately $5.2 million as compared to the same period of the prior year. This was primarily a result of an increase in the net loss of approximately $3.4 million and changes in assets and liabilities of approximately $1.9 million.
Current wording
Net cash used in operating activities for the six months ended June 30, 2026 increased by approximately $11.2 million as compared to the same period of the prior year. This was primarily a result of an increase in the net loss of approximately $11.2 million.
Previous wording
Net cash used in investing activities for the three months ended March 31, 2026 and 2025 was approximately $6.3 million and $0.4 million, respectively. Our primary investing activities have consisted of capital expenditures and investment in ASRs. As our business grows, we expect our capital expenditures to continue to increase. As discussed in Note 2, the Company paid $6.1 million (that was netted against $0.6 million of cash acquired) for the KSF Acquisition during the three months ended March 31, 2026.
Current wording
Net cash used in investing activities for the six months ended June 30, 2026 and 2025 was approximately $7.2 million and $1.2 million, respectively. Our primary investing activities have consisted of capital expenditures and investment in ASRs. As our business grows, we expect our capital expenditures to continue to increase. As discussed in Note 2, the Company paid $6.1 million (that was netted against $0.6 million of cash acquired) for the KSF Acquisition on February 27, 2026.
Previous wording
Net cash provided by financing activities was approximately $8.8 million for the three months ended March 31, 2026, an increase of approximately $0.5 million as compared to the same period of the prior year. Our financing activities for the three months ended March 31, 2026, consisted primarily of net proceeds from the issuance of Class A Common Stock under our ATM Facility with Wainwright of approximately $9.0 million, partially offset by repayments of debt obligations of $0.2 million. In the same prior year period, our financing activities consisted primarily of net proceeds resulting from our ATM Facility with Wainwright of approximately $7.4 million and the issuance of common stock and pre-funded warrants of $1.4 million, partially offset by repayments of debt obligation of $0.6 million.
Current wording
Net cash provided by financing activities was approximately $17.9 million for the six months ended June 30, 2026, an increase of approximately $7.9 million as compared to the same period of the prior year. Our financing activities for the six months ended June 30, 2026 consisted primarily of net proceeds from the issuance of Class A Common Stock under our at-the-market offering program with Wainwright of approximately $18.3 million, partially offset by repayments of debt obligations of $0.4 million. In the prior year period, our financing activities consisted primarily of net proceeds resulting from our at-the-market agreement with Wainwright of approximately $10.3 million, net proceeds from the issuance of common stock under a direct registration offering of approximately $1.4 million, partially offset by repayments of debt obligations of $1.7 million.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Service revenue increased by 315%, to $8.6 million for the three months ended June 30, 2026, from $2.1 million in the prior year period. The increase was primarily driven by $6.8 million of service revenue recognized following the KSF Acquisition. This increase was partially offset by lower ASR subscription revenue and a reduction in maintenance and service contracts associated with ECD deployments.
Current report — wording carried from elsewhere
The following table sets forth selected Condensed Consolidated Statements of Operations data and such data as a percentage of total revenue.
Current report — wording carried from elsewhere
Gross margin was $1.1 million, or 8% of revenue, for the six months ended June 30, 2026, compared to a gross loss of $1.6 million, or (28%) of revenue, for the same period in the prior year. The improvement in gross margin was primarily driven by the contribution of service revenues after the KSF Acquisition.
Current report — wording carried from elsewhere
Research and development expenses increased by approximately $6.5 million, or approximately 154% for the six months ended June 30, 2026, as compared to the same period in the prior year. The increase is primarily due to third-party engineering services as the Company continues to invest in the development of new products.