Company Overview
Knightscope, Inc. specializes in the design, development, manufacturing, and deployment of autonomous security robots (ASR) for use within the United States, serving both indoor environments like corporate offices and hospitals as well as outdoor external settings. The company operates within the Industrials sector, specifically targeting the Security & Protection Services industry, which positions it as a provider of advanced technological solutions for physical security needs. Knightscope currently maintains a market capitalization of $71.51M with an annual revenue of $11.61M and employs a workforce of 71 individuals to execute its operations. The relatively modest market cap and revenue figures indicate that the company operates as a small-cap entity, suggesting a niche market position where valuation is heavily influenced by the perceived potential of its proprietary autonomous robot technology rather than established large-scale profitability.
Financial Health
The company reports a trailing twelve-month revenue of $11.61M, yet it simultaneously reports a net income of $-29,732,000 and an EBITDA of $-26,766,000, a discrepancy that reveals a significant structural gap where operating expenses substantially exceed gross revenue. This negative net income relative to revenue highlights a cost structure where overhead, research, and development, or other operational costs are not being covered by current sales levels, resulting in a substantial pre-tax loss. Free cash flow stands at $-17,337,124, indicating that the company is burning cash rather than generating liquidity, which constrains its financial flexibility and necessitates reliance on existing cash reserves or external financing to sustain operations. The gross margin is listed at -38.1%, meaning the cost of goods sold exceeds revenue, while the operating margin of -303.7% and profit margin of -256.1% further illustrate severe inefficiencies or high fixed costs relative to the scale of current sales. Despite these operational deficits, the company holds $20.39M in cash against $7.37M in debt, creating a net cash position, and maintains a debt-to-equity ratio of 27.42, which suggests a leveraged balance sheet where equity is relatively small compared to debt obligations. The current ratio is 3.62, indicating that the company possesses 3.62 times more current assets than current liabilities, which points to a robust short-term liquidity position despite the operational losses. Return on Equity is -164.5% and Return on Assets is -55.7%, metrics that reveal management has not yet generated returns on the capital invested in the company, reflecting the challenges of scaling a technology-focused business in a loss-making phase.
Valuation Assessment
The trailing P/E ratio is N/A due to negative earnings, whereas the forward P/E is -2.17, a negative valuation multiple that implies the market is pricing in significant future losses or a restructuring of the earnings base rather than traditional earnings growth. The price-to-book ratio is 1.86, indicating that the market values the company at a premium of 86% over its book value, which may reflect investor optimism regarding the intangible value of the autonomous security robot intellectual property despite current financial performance. The price-to-sales ratio stands at 6.16 and the EV/EBITDA is -1.58, suggesting that valuation is being driven by revenue potential and asset backing rather than profitability, as these alternative metrics highlight the disconnect between current sales figures and the massive negative earnings. The 52-week high is $10.14 and the 52-week low is $2.45, placing the current trading price within a range that captures significant volatility over the past year. The beta value is 1.71, which indicates that the stock price is expected to be 71% more volatile than the broader market, meaning the stock will likely amplify market movements with higher swings in both upward and downward directions.
Growth & Income
Revenue growth year-over-year is recorded at 23.5%, demonstrating a strong expansion in top-line sales, while earnings growth is N/A due to the company's consistent net losses, implying that revenue expansion has not yet translated into profitability. As a non-dividend payer, Knightscope reports a dividend yield of N/A and a payout ratio of 0.0%, confirming that the company retains all earnings to fund its operations and research rather than distributing income to shareholders. The absence of a dividend payout indicates a strategy of reinvesting limited financial resources back into the development and deployment of autonomous security robots to attempt to achieve future profitability. The overall growth and income profile presents a high-risk, high-growth characteristic with expanding revenue but negative earnings, relying entirely on capital preservation and operational efficiency improvements to eventually bridge the gap between sales and net income.