Key Highlights

  • Third quarter 2026 Revenue rose 177% year over year to $8.7 million.
  • Service revenue reached $8.6 million, up 349%, including $6.6 million from Knightscope Security Force.
  • Gross Margin was $0.4 million, or 5% of revenue, compared with a gross loss of $1.6 million a year earlier.
  • Net loss was $11.8 million, or $0.50 per share, compared with $9.5 million, or $0.98 per share.

Knightscope, Inc. (NASDAQ:KSCP) reported financial results for the third quarter ended September 30, 2026, on November 12, 2026. The security technology company is building what it calls an autonomous security force that combines autonomous machines, AI-driven software and licensed security agents. Revenue more than tripled from the prior-year quarter, and the company reported a positive gross margin for its services business. Net loss widened over the same period as the company expanded operations.

Revenue Growth and Service Mix

Revenue for the third quarter was $8.7 million, up 177% from $3.1 million a year earlier. The release describes it as the company's third consecutive quarter of triple-digit year-over-year revenue growth. Service revenue was $8.6 million, up 349%, including $6.6 million from Knightscope Security Force, the company's managed offering.

Product revenue was $0.1 million, compared with $1.2 million in the third quarter of 2025. The sharp decline in product sales alongside the rise in services shows the company's revenue mix shifting toward its service contracts over the period.

Gross Margin and Net Loss

Gross margin improved by $2.0 million year over year to $0.4 million, or 5% of revenue, compared with a gross loss of $1.6 million in the third quarter of 2025. Service gross margin was $0.7 million, or 8% of service revenue. Chief Executive William Santana Li described the result as positive gross margin in the services business.

The net loss for the quarter was $11.8 million, or $0.50 per share, based on 23.6 million weighted average shares. In the third quarter of 2025, the net loss was $9.5 million, or $0.98 per share, on 9.8 million weighted average shares. The per-share change reflects a higher share count, and the release does not describe the components of the Operating Expense increase in its summary.

Bookings, Strategy and Outlook

Li said the company redefined its go-to-market strategy this year around delivering security outcomes under a single contract. He said the company has about $27 million in renewals, bookings and client awards secured since May 2026, and that its priorities are converting that Backlog into revenue, expanding with existing clients and improving margins.

The release does not provide revenue guidance or a timeline for conversion of the $27 million, so the timing of recognized revenue from those awards is not stated. The company's focus on margin expansion will depend on the mix of services, autonomous machines and software it sells.

Final Word

The third quarter shows Knightscope with revenue more than tripling, a first positive services gross margin and a larger net loss per share compared with the prior-year quarter. The company's near-term results depend on converting about $27 million in renewals, bookings and awards into revenue and improving the margin profile of its service contracts. The fourth-quarter figures will show how that conversion progresses.