Strategic Acquisition Completes Operational Pillars of Autonomous Security Force

SUNNYVALE, Calif.: $KSCP #homelandsecurity--Knightscope, Inc. (NASDAQ: KSCP), a managed service provider building the nation’s first Autonomous Security Force, today reported financial results for the first quarter ended March 31, 2026.

"Q1 was a turning point for Knightscope. With the strategic acquisition of Event Risk, all four operational pillars of the Autonomous Security Force – autonomous machines, advanced software, real-time monitoring, and licensed security agents – are now in place," said William Santana Li, Chairman and Chief Executive Officer. "Revenue more than doubled from the same prior period year, gross margin turned positive, and the work of integrating these capabilities into a single unified force is underway. We are just getting started."

First Quarter 2026 Financial Highlights

• Total revenue of $6.0 million, an increase of 106% from $2.9 million in the first quarter of 2025

• Service revenue of $4.2 million, up 98% year-over-year, including approximately $2.4 million from one month of Security Force operations following the February 27, 2026 acquisition of Event Risk, LLC

• Product revenue of $1.8 million, up 128% year-over-year, primarily reflecting fulfillment of Emergency Communication Device orders previously impacted by supply chain constraints

• Gross margin of $0.5 million, or 8% of revenue, compared to a gross loss of $(0.7) million, or (23)%, in the prior year period

• Research and development expense of $4.7 million, compared to $2.1 million in the prior year period, reflecting continued investment in new product development

• Sales, general and administrative expense of $6.1 million, compared to $4.0 million in the prior year period, reflecting acquisition-related costs and expanded corporate infrastructure to support growth.

• Net loss of $(10.3) million, compared to $(6.9) million in the prior year period

• Cash and cash equivalents of $11.4 million as of March 31, 2026, compared to $20.6 million as of December 31, 2025

Strategic Acquisition

On February 27, 2026, Knightscope completed the acquisition of Event Risk, LLC for total purchase consideration of approximately $18.0 million, comprising $5.0 million in cash paid at closing, repayment of $1.1 million of the seller's outstanding indebtedness, the issuance of 1,724,418 shares of Class A Common Stock, $4.0 million in deferred cash payments through December 31, 2028, and contingent future consideration tied to post-closing performance through 2031. The transaction added licensed armed and unarmed security agent operations to the Autonomous Security Force, bringing all four operational pillars – autonomous machines, advanced software, real-time monitoring, and licensed security agents – in place under one company. The acquisition resulted in the recognition of $7.7 million in goodwill and $16.1 million in customer relationship and other intangible assets.

Management believes the acquisition accelerates the Company's strategy to deliver a fully integrated Autonomous Security Force and expects the integrated business to be free cash flow generative over time.

BRIEFING: Q1 2026 Financial Results

Knightscope will host a webinar to discuss its first quarter 2026 financial results on Monday, May 18, 2026 at 1pm PT / 4pm ET. RSVP here.

About Knightscope

Knightscope, Inc. (NASDAQ: KSCP) is building the nation's first Autonomous Security Force – a unified force that integrates autonomous machines, advanced software, and licensed armed and unarmed security agents under a single managed service accountable for the security of the people, property, and places we help protect. The Company serves commercial and government clients across the United States. Built in America to Secure America. Learn more about us at www.knightscope.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of words such as "should," "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," "proposes" and similar expressions. Forward-looking statements contained in this press release and other communications include, but are not limited to, statements about Knightscope’s goals, profitability, growth, prospects, reduction of expenses, outlook, and any statements related to any increase, growth and recurring revenues attributable to Knightscope acquisitions. Although Knightscope believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks, uncertainties and other important factors that could cause actual results to differ materially from such forward-looking statements, including the factors discussed under the heading "Risk Factors" in Knightscope’s Annual Report on Form 10-K for the year ended December 31, 2025, as updated by its other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of the document in which they are contained, and Knightscope does not undertake any duty to update any forward-looking statements, except as may be required by law.

Fonte: Business Wire