Breaking Down Knightscope, Inc. (KSCP) Financial Health: Key Insights for Investors

Are you keeping a close watch on the financial health of Knightscope (KSCP) and wondering if it's a solid investment? In fiscal year 2024, the company's revenue stood at $10.8 million, a decrease from $12.8 million in 2023, while service revenue saw a 4% increase, reaching $7.5 million. Despite raising $34.5 million in capital, which boosted their cash balance to $11.1 million, the company reported a net loss of $31.7 million. What does this mean for potential investors? Let's dive into a detailed breakdown of KSCP's financial performance and explore the key insights that could influence your investment decisions.

Knightscope, Inc. (KSCP) Revenue Analysis

Understanding Knightscope, Inc.'s (KSCP) revenue streams is crucial for investors seeking to assess the company’s financial health and growth potential. A detailed breakdown reveals how the company generates its income, the consistency of its revenue growth, and the significance of each business segment.

For insights into the company's foundational principles, refer to: Mission Statement, Vision, & Core Values of Knightscope, Inc. (KSCP).

Knightscope, Inc. primarily generates revenue through the sales and subscriptions of its Autonomous Security Robots (ASRs) and related services. These ASRs are deployed in various sectors, including corporate campuses, shopping malls, and residential communities, providing security and surveillance.

Here’s a closer look at the key aspects of Knightscope, Inc.'s (KSCP) revenue streams:

• Primary Revenue Sources: The main revenue drivers include:
• Product Sales: This involves the direct sale of ASR units to customers.
• Subscription Services: A significant portion of revenue comes from subscription-based services, where clients pay recurring fees for the use of ASRs, including maintenance, support, and software updates.
• Services: Knightscope also generates revenue from installation, training, and other related services that support the deployment and operation of its ASRs.

Analyzing year-over-year revenue growth provides insights into Knightscope's performance and market acceptance. The company's financial reports and investor presentations offer data on historical revenue trends and percentage increases or decreases. It's essential to consider both short-term and long-term growth rates to understand the company's trajectory.

To illustrate, consider the following (hypothetical) revenue data:

The contribution of different business segments to Knightscope’s overall revenue highlights the strengths and weaknesses of each area. Typically, this involves assessing the revenue generated from product sales versus subscription services. Understanding this breakdown helps investors identify which segments are driving growth and which may need improvement.

Significant changes in revenue streams, such as a shift from product sales to subscription services, can indicate strategic shifts or evolving market demands. Analyzing these changes helps investors understand how Knightscope is adapting to the competitive landscape and positioning itself for future growth.

Knightscope, Inc. (KSCP) Profitability Metrics

Analyzing Knightscope, Inc. (KSCP)'s profitability involves looking at several key metrics that reveal how efficiently the company generates profit from its revenue. These metrics include gross profit, operating profit, and net profit margins. Examining these figures over time and comparing them to industry averages provides valuable insights into the company's financial health and operational effectiveness.

Gross profit is the revenue a company retains after deducting the costs associated with producing its goods and services. It serves as an initial indicator of profitability, reflecting the company's efficiency in managing production costs. For instance, a high gross profit margin suggests that Knightscope, Inc. (KSCP) effectively controls its direct production expenses. A low gross profit margin may indicate higher production costs or lower pricing power.

Operating profit is derived by subtracting operating expenses, such as administrative and sales costs, from the gross profit. This metric offers a clearer picture of a company's profitability from its core business operations. A growing operating profit suggests that Knightscope, Inc. (KSCP) is improving its operational efficiency and cost management. Conversely, a declining operating profit might signal rising operational costs or decreasing sales.

Net profit represents the actual profit earned after deducting all expenses, including taxes and interest. The net profit margin, calculated as net profit divided by total revenue, indicates the percentage of revenue that translates into profit. This metric is crucial for assessing the overall financial health and sustainability of Knightscope, Inc. (KSCP). A consistently positive and increasing net profit margin signifies effective cost management and revenue generation. In contrast, a negative or declining net profit margin may raise concerns about the company's long-term viability.

Trends in profitability over time are essential for understanding the direction and stability of Knightscope, Inc. (KSCP)'s financial performance. Analyzing historical data helps identify patterns, such as seasonal fluctuations or long-term growth trends. Consistent improvement in profitability metrics indicates strong management and strategic execution. However, fluctuating or declining profitability may warrant a deeper investigation into the underlying causes, such as changing market conditions or internal inefficiencies.

Comparing Knightscope, Inc. (KSCP)'s profitability ratios with industry averages provides a benchmark for evaluating its performance relative to its peers. If Knightscope, Inc. (KSCP)'s profitability ratios are higher than the industry average, it suggests a competitive advantage and superior operational efficiency. Conversely, lower-than-average profitability ratios may indicate areas where the company needs to improve to remain competitive.

Analysis of operational efficiency involves examining how well Knightscope, Inc. (KSCP) manages its costs and maximizes its gross margin. Effective cost management is crucial for maintaining and improving profitability. Monitoring trends in the gross margin helps assess the company's ability to control production costs and maintain pricing power. A rising gross margin indicates improved cost management or increased pricing power, while a declining gross margin may signal rising costs or decreased pricing power.

For example, if Knightscope, Inc. (KSCP) reports a gross profit margin of 40%, an operating profit margin of 15%, and a net profit margin of 5%, this would indicate that for every dollar of revenue, the company keeps 40 cents after direct production costs, 15 cents after operating expenses, and 5 cents after all expenses, including taxes and interest. Monitoring these margins over several periods and comparing them to industry standards can provide a comprehensive view of the company's financial health.

In summary, a thorough analysis of gross profit, operating profit, and net profit margins, along with trends over time and comparison to industry averages, is essential for understanding Knightscope, Inc. (KSCP)'s profitability and overall financial health.

• Gross Profit Margin: Revenue after deducting the cost of goods sold.
• Operating Profit Margin: Profit from core business operations.
• Net Profit Margin: Actual profit earned after all expenses.

Related Insights: Breaking Down Knightscope, Inc. (KSCP) Financial Health: Key Insights for Investors

Knightscope, Inc. (KSCP) Debt vs. Equity Structure

Understanding how Knightscope, Inc. (KSCP) finances its operations and growth is crucial for investors. This involves examining the company's debt levels, debt-to-equity ratio, and recent financing activities.

As of the fiscal year 2024, Knightscope, Inc. (KSCP) reported a total debt of $24.97 million. This includes both short-term and long-term obligations, reflecting the company's strategy to fund its expansion and operational needs. The breakdown includes:

• Short-term debt: $2.37 million
• Long-term debt: $22.6 million

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. Knightscope, Inc. (KSCP)'s debt-to-equity ratio stands at 2.95. This indicates that the company has $2.95 of debt for every dollar of equity. Compared to the industry average, this ratio can provide insights into whether Knightscope, Inc. (KSCP) is more or less leveraged than its peers.

Recent financial activities provide further context:

• In 2024, Knightscope, Inc. (KSCP) issued senior secured convertible notes due October 6, 2024, with an aggregate principal amount of $8,297,500.
• The company has also been actively utilizing equity funding. As of December 31, 2023, they had sold 3,352,741 shares of common stock for net proceeds of approximately $3.5 million.

Knightscope, Inc. (KSCP) strategically balances debt and equity to support its mission. The company's reliance on debt is evident from its financial statements, while equity offerings provide additional capital to sustain operations and growth. The balance between these two funding sources is vital for Knightscope, Inc. (KSCP)'s financial stability and long-term strategy. More about the company's goals can be found at: Mission Statement, Vision, & Core Values of Knightscope, Inc. (KSCP).

Here's a summary of Knightscope, Inc. (KSCP)'s debt and equity situation:

Understanding these figures helps investors assess the financial risk and growth potential of Knightscope, Inc. (KSCP).

Knightscope, Inc. (KSCP) Liquidity and Solvency

When evaluating Knightscope, Inc.'s financial health, understanding its liquidity and solvency is crucial for investors. Liquidity refers to the company's ability to meet its short-term obligations, while solvency assesses its ability to meet long-term liabilities.

Here's an overview of key liquidity indicators for Knightscope, Inc.:

• Current Ratio: The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.
• Quick Ratio: The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets.
• Working Capital: Working capital is a measure of a company's short-term financial health, calculated as the difference between current assets and current liabilities.

Analysis of Knightscope, Inc.'s cash flow statements reveals the following trends:

• Operating Cash Flow: Cash flow from operating activities indicates the cash a company generates from its normal business operations.
• Investing Cash Flow: Cash flow from investing activities relates to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Cash Flow: Cash flow from financing activities involves transactions related to debt, equity, and dividends.

To provide a clearer picture, here's a hypothetical overview of Knightscope, Inc.'s key financial ratios and cash flows based on the 2024 fiscal year:

Based on the hypothetical data, Knightscope, Inc. has a current ratio of 1.2, suggesting it has $1.20 in current assets for every $1.00 of current liabilities. The quick ratio of 0.8 indicates that it might face some challenges in meeting short-term obligations using only its most liquid assets. The negative operating cash flow of $10 million suggests that the company is not generating enough cash from its core operations and relies on external financing, as indicated by the positive financing cash flow of $15 million.

It is important to monitor these trends closely to assess any potential liquidity concerns or strengths. Investors should also consider these factors in the context of the company's overall financial strategy and market conditions.

For more detailed insights, you can explore: Breaking Down Knightscope, Inc. (KSCP) Financial Health: Key Insights for Investors

Knightscope, Inc. (KSCP) Valuation Analysis

Determining whether Knightscope, Inc. (KSCP) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. Let's delve into these aspects to provide a clearer picture of KSCP's valuation.

Currently, comprehensive data for traditional valuation metrics such as price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios for Knightscope, Inc. (KSCP) are not readily available. This can be due to factors such as the company’s current financial status or reporting practices. Real-time updates on these metrics can typically be found on financial data platforms like Yahoo Finance, Bloomberg, and MarketWatch.

Analyzing Knightscope, Inc.'s stock price trends over the past year offers insights into market sentiment and investor confidence. As of April 2025, the specific trends need to be checked on financial platforms such as Yahoo Finance, MarketWatch, or Bloomberg to provide an up-to-date analysis. These platforms offer detailed historical stock performance data, aiding in the assessment of its valuation relative to its past performance and industry peers.

Dividend yield and payout ratios are important indicators of valuation, but they apply primarily to companies that distribute dividends. As of now, Knightscope, Inc. does not offer dividends. Therefore, these metrics are not applicable in evaluating KSCP’s valuation.

To gauge market sentiment and professional financial opinion, it's essential to consider analyst consensus on Knightscope, Inc.'s stock valuation. Information on analyst ratings (buy, hold, or sell) and price targets can be sourced from financial news outlets, brokerage reports, and financial data providers like TipRanks, MarketBeat, and Yahoo Finance. These insights reflect how financial experts perceive the stock's potential value and future performance.

For more insights into the company's direction and values, refer to: Mission Statement, Vision, & Core Values of Knightscope, Inc. (KSCP).

Knightscope, Inc. (KSCP) Risk Factors

Assessing the financial health of Knightscope, Inc. (KSCP) requires a close examination of the various risk factors that could impact its performance. These risks span both internal operational challenges and external market dynamics.

Here’s an overview of the key risks facing Knightscope, Inc. (KSCP):

• Industry Competition: The autonomous security market is becoming increasingly competitive. New entrants and established players could intensify price pressures and erode Knightscope, Inc. (KSCP)’s market share.
• Regulatory Changes: Changes in regulations regarding autonomous technology, data privacy, or security services could impose new compliance costs or limit the company’s operational scope.
• Market Conditions: Economic downturns or shifts in security spending priorities among potential clients could reduce demand for Knightscope, Inc. (KSCP)’s solutions.

Operational, financial, and strategic risks are detailed in Knightscope, Inc. (KSCP)’s filings. These include:

• Liquidity and Capital Resources: The Company has suffered recurring losses from operations. As of December 31, 2023, the Company had an accumulated deficit of $124,844,972.
• Limited Operating History: The Company has a limited operating history in a rapidly evolving industry, which makes it difficult to evaluate its future prospects and may increase the risk of investment.
• Financial Performance: The Company’s independent registered public accounting firm included an explanatory paragraph in its report on the Company’s financial statements for the year ended December 31, 2023, regarding substantial doubt about its ability to continue as a going concern.
• Reliance on limited number of contract manufacturers and component suppliers: The Company relies on a limited number of contract manufacturers and component suppliers, making it vulnerable to supply chain disruptions, quality control issues, and potential cost increases, which could negatively impact its business, financial condition, and operating results.

Mitigation strategies or plans (if available):

Knightscope, Inc. (KSCP) is actively pursuing strategies to mitigate these risks:

• Diversification of Product Offerings: Expanding its product line to cater to various security needs and market segments.
• Strategic Partnerships: Forming alliances to enhance technological capabilities and market reach.
• Cost Management: Implementing measures to control operational costs and improve efficiency.

Below is a summary of selected financial data from Knightscope, Inc. (KSCP)’s Form 10K filing for the year ended December 31, 2023:

For more detailed insights, read this comprehensive analysis: Breaking Down Knightscope, Inc. (KSCP) Financial Health: Key Insights for Investors

Knightscope, Inc. (KSCP) Growth Opportunities

For investors eyeing future potential, understanding Knightscope, Inc.'s (KSCP) growth prospects is crucial. Several factors could drive the company forward.

Analysis of key growth drivers:

• Product Innovations: Continued development and deployment of advanced security robots with enhanced capabilities can attract new customers and expand market share.
• Market Expansions: Targeting new industries and geographic regions can diversify revenue streams and reduce reliance on existing markets.
• Strategic Alliances: Forming partnerships with other technology companies or security service providers could create synergistic opportunities and accelerate growth.

Future revenue growth projections and earnings estimates remain speculative without concrete data for the 2024 fiscal year. Investors should consult official company reports and analyst forecasts for the most up-to-date financial projections.

Strategic initiatives or partnerships that may drive future growth:

• Government Contracts: Securing contracts with local, state, or federal government agencies can provide a stable revenue stream and enhance the company's reputation.
• Subscription-Based Model: Expanding the subscription-based service model can generate recurring revenue and improve long-term financial stability.

Competitive advantages that position the company for growth:

• First-Mover Advantage: As one of the early players in the autonomous security robot market, Knightscope, Inc. (KSCP) has established brand recognition and a loyal customer base.
• Technological Expertise: The company's proprietary technology and intellectual property create a barrier to entry for potential competitors.

Here is a sample table illustrating potential growth drivers and their impact:

For a deeper dive into Knightscope, Inc.'s (KSCP) financial health, check out this detailed analysis: Breaking Down Knightscope, Inc. (KSCP) Financial Health: Key Insights for Investors