Knightscope (KSCP, Financial) has entered into a strategic two-year collaboration with Palantir Technologies to expedite its penetration into the U.S. federal market. By participating in Palantir's FedStart program, Knightscope aims to gain quicker access to FedRAMP High and DoD Impact Level 5 certified environments. This partnership offers comprehensive onboarding services and direct support for obtaining Authority to Operate, which are crucial for deploying Knightscope's AI-based public safety solutions within secure federal environments.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Knightscope Inc (KSCP, Financial) is $15.67 with a high estimate of $26.00 and a low estimate of $9.00. The average target implies an upside of 78.13% from the current price of $8.80. More detailed estimate data can be found on the Knightscope Inc (KSCP) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Knightscope Inc's (KSCP, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Knightscope Inc (KSCP, Financial) in one year is $7.98, suggesting a downside of 9.27% from the current price of $8.795. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Knightscope Inc (KSCP) Summary page.
KSCP Key Business Developments
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Knightscope Inc (KSCP, Financial) reported a 29% increase in total revenue for Q1 2025, reaching $2.9 million compared to $2.3 million in Q1 2024.
- Service revenues grew by 25% to $2.1 million, driven by ASR subscriptions and full-service maintenance agreements.
- Product revenues increased by 44% to $809,000, attributed to successful distribution partnerships.
- Gross loss improved significantly, reducing to $700,000 from $1.4 million in the previous year.
- Operating expenses decreased by 9% year-over-year, reflecting cost discipline and strategic changes in sales and marketing.
Negative Points
- Despite improvements, Knightscope Inc (KSCP) still reported a net operating loss of $6.8 million for the quarter.
- The company is yet to achieve positive EBITDA and earnings, with timing for profitability still uncertain.
- There are risks of disruption due to the move to a new facility, which could impact production and operations.
- Macro uncertainties, such as tariffs, could potentially impact component pricing and supply chain lead times.
- The company faces challenges in scaling its customer base and becoming a household name, partly due to funding constraints.
