KSCP

• Overall Quarterly Milestones
  • Q2 26 revenue was a new quarterly company record, marking the second consecutive quarter of triple-digit YoY revenue growth (Q1 26 was up 106% YoY, Q2 26 up 228% YoY).
  • Knightscope now serves 434 clients across 42 U.S. states, and management delivered on the public commitment made in May that each quarter would be better than the prior.
• Acquisition and Integration Progress
  • Integration of the Security Force acquisition, the company's second acquisition as a public company, is proceeding on plan, with teams operating as one unified organization.
  • Operational efficiency gains have already been delivered, including an 80% reduction in assembly time for one core product line.
  • The acquisition strengthens Knightscope's unique integrated offering of hardware + software + human security delivered as a single managed service.
• Operational and Organizational Improvements
  • The field service network was restructured: new partnerships with local service providers were established in Northern California and the Northeast, while field services were insourced in Southern California to improve service quality and lower delivery costs.
  • Multiple senior executives with experience scaling companies were recruited to strengthen the company's leadership team.
  • The company's technical team depth was expanded significantly to match growing market interest in Knightscope's offerings.
• Product Development Progress
  • The new K7 autonomous security robot completed its alpha prototype gate review, remaining on track for initial customer deployments in Q4 26 as it moves into the beta prototype phase, with strong client interest already growing.
  • Knightscope announced a partnership with Carnegie Mellon University's top-ranked graduate robotics program in April 26, which is now collaborating with Knightscope's engineering team on autonomous patrol technology.
  • Development is well underway on the new Signals platform, an industry-first orchestration platform that combines proprietary 3D digital twin technology and AI to connect all of Knightscope's autonomous robots, stationary devices, sensors, augmented security agents, and remote monitoring to eliminate blind spots and provide auditable proof of work.
  • Development of the H1 wearable device for augmented security agents (ASA) is progressing, with Security Force agents already testing prototypes.
• Brand and Go-to-Market Progress
  • Knightscope sharpened its market positioning as a managed service provider building the U.S.'s first fully integrated autonomous security force, which resonated strongly with institutional investors during non-deal roadshows in New York.
  • The company is preparing to officially launch its integrated Autonomous Security Force offering at GSX 26, the security industry's largest annual gathering, to be held in Atlanta in September 2026.
  • Strong talent recruitment momentum: a June career night at the company's Silicon Valley headquarters drew a line of attendees around the building, reflecting high interest in the company's mission.

• Management reaffirmed the public commitment made in May 26 that each quarter will be better than the prior quarter, after delivering two consecutive record quarters to start the year.
• Management expects the operational and financial benefits of the Security Force acquisition to continue and strengthen as the company hits upcoming new product development milestones.
• For the second half of 26, management confirmed it is on track to deliver four key milestones: (1) initial K7 autonomous robot deployments in Q4 26; (2) official launch of the integrated Autonomous Security Force offering at GSX 26 in September 26; (3) initial launch of the Signals orchestration software platform; (4) continuation of the improving quarterly performance trend seen in the first half of 26.
• Management expects long-term blended gross margins for the integrated Autonomous Security Force offering to reach 50-60% as the business scales.

Knightscope operates three core offering segments: autonomous security robots (ASR), stationary autonomous security devices (ACD), and the recently acquired Security Force human security services. Overall Q2 26 total revenue was $9 million, a 228% increase year-over-year (YoY) from $2.7 million in Q2 25. Revenue growth was driven by the full-quarter contribution of the Security Force acquisition, plus growth in core ASR subscriptions and ACD deployments. Overall gross margin was $700 thousand, or 7% of total revenue, marking the second consecutive positive gross margin quarter, compared to a $900 thousand gross loss in the prior year period. Margin improvement came from the immediately accretive Security Force acquisition and margin expansion across the core technology product lines. Operating expenses totaled $13.8 million, up from $5.4 million in Q2 25, driven primarily by increased R&D investment for next-generation product development, company-wide headcount growth, and Security Force acquisition integration costs. Net loss for the quarter was $14.1 million ($0.79 per diluted share), compared to a net loss of $6.3 million ($0.90 per diluted share) in Q2 25. End-of-quarter cash and cash equivalents totaled $8.2 million, flat YoY with an improving cash conversion cycle due to the Security Force acquisition.

• Forward-looking statements regarding product launches, future performance, and growth are subject to material risks and uncertainties that could cause actual results to differ materially, as detailed in the company's SEC filings. The company undertakes no obligation to update forward-looking statements unless required by law.
• M&A transactions carry inherent integration risk, particularly around aligning differing corporate cultures between acquired private firms and the public technology parent.
• Product development timelines for new offerings (including the K7, H1, and Signals platform) may face delays or unforeseen technical challenges that impact deployment and commercialization timelines.
• The company's stock price is subject to market forces outside of management's control, and there is no guarantee that positive operational execution will lead to immediate stock price appreciation.
• The company continues to operate at a net loss, and requires sustained revenue growth and margin expansion to achieve profitability.

Q: What are the unit economics of the integrated Autonomous Security Force (ASF) bundled offering, and is it more profitable per client than standalone robot contracts? / A: Traditional human guarding has low single-digit to 20% gross margins, while scaled software and robotics have 60-80% gross margins. When blended over the lifetime of a long-term client relationship, management expects the integrated ASF offering to deliver a blended gross margin of 50-60% at scale. The offering focuses on end-to-end client outcomes rather than discrete product margins, combining human deterrence, technology-aided detection, coordinated response, and continuous data-driven improvement, eliminating the hassle of managing multiple disjointed security vendors.

Q: What is Knightscope's appetite for additional M&A, and what criteria and priority areas guide potential transactions? / A: Management is actively pursuing targeted acquisitions aligned with its hardware+software+humans strategy across three buckets. First, bolt-on acquisitions of smaller regional security guarding firms, as many are owned by retiring owners with no succession plan and limited alternative buyers, to organically grow the Security Force segment. Second, synergistic acquisitions of cash-flowing remote monitoring firms that lack existing security or robotics offerings to add complementary capabilities. Third, targeted acquisition of technology assets or teams from failed Silicon Valley startups to accelerate software and product development. All M&A is focused on strengthening the integrated autonomous security force offering to better solve client problems.

Q: What is the client retention rate for the legacy Security Force client base, and what is the company's strategy for growing revenue with existing clients? / A: Legacy Security Force has had very strong client retention, with almost no voluntary client losses (occasional client terminations are deliberate decisions by Knightscope to exit unprofitable accounts). The combined company now has 434 total clients, with the top 5 clients alone accounting for ~$850 million in annual security spend. Management identifies existing client expansion as the highest priority growth opportunity, with cross-selling opportunities for technology to legacy Security Force clients and human security services to legacy Knightscope technology clients.

Q: What are the key synergies from the Security Force acquisition? / A: First, the acquisition immediately drove triple-digit revenue growth, and brings shared services leverage: existing corporate overhead and infrastructure built as a public company can support the larger combined business without proportional increases in operating expenses. Second, it enables valuable cross-selling: technology to Security Force's blue-chip client base and human security services to Knightscope's existing technology clients. Third, it creates complementary cultural synergies, combining Security Force's disciplined operational command and control with Knightscope's Silicon Valley innovation culture, and Security Force agents are already providing real-world industry insights to improve product development, leading to a combined outcome greater than the sum of its parts.