📊 KSCP Key Takeaways
Is Knightscope, Inc. (KSCP) a Good Investment?
Knightscope faces critical operational distress with $10.3M operating losses on merely $6M revenue, implying a -171.7% operating margin. With negative operating cash flow of $11.6M annually and $11.4M in cash, the company has approximately one year of runway before potential capital exhaustion. The 7.7% gross margin indicates fundamental unit economics failure, suggesting the business model is structurally unprofitable.
Fundamentals are severely weak: revenue growth is minimal while gross margin is negative and losses are substantial, driving deeply negative operating and net margins. Despite adequate liquidity and low leverage, cash burn is extreme and likely necessitates external financing absent a rapid improvement in unit economics. Until gross margin turns positive and operating cash outflows narrow meaningfully, risk outweighs any growth potential.
Knightscope, Inc. Key Strengths (KSCP)
- Minimal debt burden at 0.12x debt-to-equity ratio reduces refinancing risk
- Positive current ratio of 1.51x and quick ratio of 1.34x provide adequate short-term liquidity
- Revenue growth of 4.9% YoY demonstrates some residual market demand for products
- Solid liquidity (current 3.99x, quick 3.64x)
- Low leverage (D/E 0.14x; LT debt $4.01M)
- Positive, albeit modest, revenue growth (+4.9% YoY)
KSCP Stock Risks: Knightscope, Inc. Investment Risks
- Acute cash burn of $11.7M annually against $11.4M cash reserves creates existential runway pressure within 12 months
- Grossly unsustainable 7.7% gross margin indicates broken product economics or severe pricing/cost structure misalignment
- Operating losses of $10.3M dwarf $6M revenue, exposing fundamental business model failure at current scale
- Negative gross margin (-42.1%) indicating unsustainable unit economics
- Severe cash burn and FCF margin (-273.5%) implying dilution/going-concern risk
- Persistent large operating losses with inadequate interest coverage
Key Metrics to Watch
- Gross margin expansion trajectory - must reach 30%+ minimum to demonstrate path to viability
- Operating cash flow inflection - critical to restore positive cash generation
- Revenue acceleration rate and operating leverage - need 3-5x revenue growth to achieve profitability
- Gross margin trajectory toward positive
- Operating cash flow/burn rate vs. cash balance
Knightscope, Inc. (KSCP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Knightscope, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
KSCP Profit Margin, ROE & Profitability Analysis
KSCP vs Telecom Sector: How Knightscope, Inc. Compares
How Knightscope, Inc. compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Knightscope, Inc. Stock Overvalued? KSCP Valuation Analysis 2026
Based on fundamental analysis, Knightscope, Inc. has mixed fundamental signals relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Knightscope, Inc. Balance Sheet: KSCP Debt, Cash & Liquidity
KSCP Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Knightscope, Inc.'s revenue has grown significantly by 233% over the 5-year period, indicating strong business expansion. The most recent EPS of $-10.97 indicates the company is currently unprofitable.
KSCP Revenue Growth, EPS Growth & YoY Performance
KSCP Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.9M | -$6.9M | $-0.74 |
| Q3 2025 | $2.5M | -$9.5M | $-0.98 |
| Q2 2025 | $2.7M | -$6.3M | $-0.90 |
| Q1 2025 | $2.3M | -$6.9M | $-1.28 |
| Q3 2024 | $2.5M | -$8.3M | $-3.58 |
| Q2 2024 | $3.2M | -$4.8M | $-0.05 |
| Q1 2024 | $2.3M | -$2.4M | $-0.06 |
| Q3 2023 | $1.3M | -$5.2M | $-0.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Knightscope, Inc. Dividends, Buybacks & Capital Allocation
KSCP SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Knightscope, Inc. (CIK: 0001600983)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KSCP
What is the AI rating for KSCP?
Knightscope, Inc. (KSCP) has a Combined AI Grade of D from Claude (D) and ChatGPT (D) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KSCP's key strengths?
Claude: Minimal debt burden at 0.12x debt-to-equity ratio reduces refinancing risk. Positive current ratio of 1.51x and quick ratio of 1.34x provide adequate short-term liquidity. ChatGPT: Solid liquidity (current 3.99x, quick 3.64x). Low leverage (D/E 0.14x; LT debt $4.01M).
What are the risks of investing in KSCP?
Claude: Acute cash burn of $11.7M annually against $11.4M cash reserves creates existential runway pressure within 12 months. Grossly unsustainable 7.7% gross margin indicates broken product economics or severe pricing/cost structure misalignment. ChatGPT: Negative gross margin (-42.1%) indicating unsustainable unit economics. Severe cash burn and FCF margin (-273.5%) implying dilution/going-concern risk.
What is KSCP's revenue and growth?
Knightscope, Inc. reported revenue of $6.0M.
Does KSCP pay dividends?
Knightscope, Inc. does not currently pay dividends.
Where can I find KSCP SEC filings?
Official SEC filings for Knightscope, Inc. (CIK: 0001600983) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KSCP's EPS?
Knightscope, Inc. has a diluted EPS of $-0.74.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is KSCP's fundamental grade?
Based on our AI fundamental analysis in May 2026, Knightscope, Inc. has a D grade with 84% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is KSCP stock overvalued or undervalued?
Valuation metrics for KSCP: ROE of -30.4% (sector avg: 15%), net margin of -171.5% (sector avg: 14%). Compare these metrics with sector averages to assess valuation.
What is KSCP's AI grade for 2026?
Our dual AI analysis gives Knightscope, Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KSCP's free cash flow?
Knightscope, Inc.'s operating cash flow is $-11.6M, with capital expenditures of $111.0K. FCF margin is -194.7%.
How does KSCP compare to other Telecom stocks?
Vs Telecom sector averages: Net margin -171.5% (avg: 14%), ROE -30.4% (avg: 15%), current ratio 1.51 (avg: 1).