Knightscope, Inc. Q4 FY2025 earnings call

• William mentions Thursday's first annual Autonomous Security Force Day and 13th anniversary, with VIP sessions and open house in Sunnyvale. - Apoorv reviews Q4 and full year 2025 financials, talks about liquidity and capital strategy. - William talks about the acquisition of Event Risk as a transformative step to be a managed service provider, new technologies in development, and focus on execution. - Discusses the importance of moving away from focusing on selling widgets and instead on providing solutions to clients, and the integration process of the Event Risk acquisition.

Q4 revenues declined approximately 9.8% year-over-year due to product shipments delays from supply chain constraints; services business unchanged. Gross loss of $1.6 million. Full year 2025 revenue grew ~4.9% to $11.3 million, driven by services revenue expansion but product revenue modest due to supply chain issues. Cost of revenue increased ~$1.1 million. Full year operating expenses up ~12.1%, R&D up $5.4 million, SG&A had cost savings. Full year loss ~$33.8 million, weighted average loss per share $4 decreased ~63.5% year-over-year. Cash used in operating activities ~$30.3 million in 2025, raised $42.2 million via financing activities, cash position improved 83% year-over-year.

• Focus on managing liquidity through capital markets, operational discipline, and strategic initiatives. - Expectations of improved financial performance over time with the combination of technology, software, and human-enabled delivery capabilities. - Anticipation of accelerated growth and market penetration with the Event Risk acquisition, with a focus on execution in 2026 and beyond. - Key milestones to watch include regulatory filings reflecting activity from the security force side, progress on K7, K1 Capsule, Super Tower, and Signals platform development.

• Supply chain volatility driven by macro events like geopolitical instability, tariffs, end-of-life components, and broader electronics market issues with longer lead times and tighter availability of components. - Some supply chain issues not directly in the company's control, requiring ongoing mitigation efforts like expanding vendor relationships and identifying high-risk items.

Q: Can you provide visibility on timing of supply chain issues clearing up?

A: Volatility due to macro events, working through with supply chain manager and team, mitigating by not relying on single source, expanding vendors, identifying high-risk items.

Q: Is the move to the Sunnyvale facility complete and up to operational efficiency?

A: Mostly done, with some landlord challenges but showcasing progress.

Q: Following the Event Risk acquisition, can you give an estimate of how much your potential market has expanded?

A: TAM not changed, but ability to penetrate and grab market share faster accelerated.

Q: What is the overall sales pipeline expected for ASR, ECD and Knightscope Security Force business?

A: Pipeline healthy, focused on execution.

Q: Will you be announcing the contracts of the Knightscope Security Force when they are won?

A: TBD, thoughtful balance-of-the-year process.

Q: Can you provide a time line for integration? How is the process so far?

A: Integration plan with priorities on finance, accounting, audit, HR, IT, and go-to-market later, going smoothly.

Q: Any outlook for any more M&A over the next year?

A: Looking for accretive opportunities in technology and remote monitoring sides.

Q: What are some key milestones should investors watch out for in 2026?

A: Regulatory filings reflecting security force activity, progress on K7, K1 Capsule, Super Tower, and Signals platform