GET DAILY SIGNALSKnightscope (KSCP) Posts Triple-Digit Revenue Growth in Q3 2026
Key Takeaways
- Knightscope reported third quarter 2026 revenue of $8.7 million, up 177% year over year, marking its third consecutive quarter of triple-digit growth.
- Net loss narrowed to $0.50 per share from $0.98 per share a year earlier, helped by a significantly higher share count and positive gross margin.
- Gross margin swung to a positive $0.4 million (5% of revenue), compared with a gross loss of $1.6 million in the third quarter of 2025.
- Service revenue jumped 349% to $8.6 million, including $6.6 million from the newly integrated Knightscope Security Force (KSF).
- The company secured a record approximately $27 million in renewals, bookings, and client awards since May 2026.
- Cash and cash equivalents stood at $6.8 million at quarter end.
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Why These Results Matter
Knightscope (KSCP), which describes itself as building the nation’s first Autonomous Security Force, moved into a new phase after acquiring Event Risk in February 2026. The deal brought licensed security agents into its mix of robots, software, and remote monitoring, creating a combined managed-services approach. I have been watching whether this model can keep driving fast revenue growth while steadily lifting profitability. The third quarter offered a clear test after two strong prior periods. With the company still reporting net losses and holding a limited cash position, these numbers also help show how effectively management is turning bookings into revenue and whether cost controls are producing real margin gains.
Breaking Down the Quarter
Revenue reached $8.7 million, a 177% increase from $3.1 million in the same quarter last year. Service revenue climbed 349% to $8.6 million, which included $6.6 million from the Knightscope Security Force, while product revenue fell to $0.1 million from $1.2 million. The result came in just below the average analyst expectation of about $8.85 million.
The net loss was $11.8 million, or $0.50 per share, based on 23.6 million weighted average shares. That compared with a $9.5 million loss, or $0.98 per share, on 9.8 million shares a year earlier. The per-share loss beat the consensus estimate of roughly $0.53, though the larger share count contributed to the improvement.
Gross margin turned positive at $0.4 million, or 5% of revenue, versus a $1.6 million gross loss in the prior-year quarter. Operating expenses were $12.0 million, or 138% of revenue, down from 254% a year earlier. Research and development spending eased 5% to $3.6 million, while sales, general and administrative expenses totaled $8.4 million, reflecting costs tied to the GSX 2026 launch and higher amortization from the acquisition.
I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Market Reaction and Sentiment
Investor views on Knightscope (KSCP) reflect a balance between fast revenue growth and better gross margins on one hand, and ongoing net losses plus a declining cash balance on the other. The latest quarter highlighted both sides. Revenue expansion stayed strong, and the move to positive gross margin for a third straight quarter points to operational progress. Cash and cash equivalents dropped to $6.8 million from $8.2 million at the end of the second quarter, so cash burn remains a focus. The roughly $27 million in secured renewals and bookings should be viewed positively, though attention will stay on how quickly that pipeline converts to revenue and whether margins keep improving.
What to Watch Going Forward
Execution remains the central story. Management has outlined three priorities for the second half of 2026: starting initial deployments of the K7 autonomous security robot, rolling out the Signals orchestration platform, and maintaining the recent growth pace. K7 manufacturing has begun at headquarters, with deployments planned for the fourth quarter, which gives investors a specific milestone to follow.
Conversion of the $27 million in bookings will matter just as much. That figure creates a solid revenue runway, but the speed of recognition will determine whether growth can hold. Service gross margin, which reached 8% in the quarter, offers another signal of whether the integrated model can continue lifting profitability.
The balance sheet also deserves attention. With $6.8 million in cash, the company’s ability to fund R&D and the K7 rollout while handling integration costs will influence confidence in coming quarters. The fourth quarter will give an early indication of whether a fourth straight period of triple-digit growth is in reach.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
KSCP's RSI Oscillator sits in oversold zone for 2 days
It is expected that a price bounce should occur soon.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for KSCP just turned positive on October 16, 2026. Looking at past instances where KSCP's MACD turned positive, the stock continued to rise in 35 of 42 cases over the following month. The odds of a continued upward trend are 83%.
Following a +4.21% 3-day Advance, the price is estimated to grow further. Considering data from situations where KSCP advanced for three days, in 165 of 205 cases, the price rose further within the following month. The odds of a continued upward trend are 80%.
KSCP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KSCP declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 90%.
The Aroon Indicator for KSCP entered a downward trend on November 11, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 7 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 32 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.379) is normal, around the industry mean (2.996). P/E Ratio (-0.139) is within average values for comparable stocks, (3.471). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (5.749). Dividend Yield (0.000) settles around the average of (0.244) among similar stocks. P/S Ratio (0.746) is also within normal values, averaging (2.085).
The Tickeron Price Growth Rating for this company is 95 (best 1 - 100 worst), indicating slightly worse than average price growth. KSCP’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 100 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. KSCP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 67, placing this stock worse than average.
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