Knightscope, Inc. (NASDAQ: KSCP) reported its financial results for the third quarter ended September 30, 2026, highlighting significant growth in revenue and an improvement in gross margin. The company announced total revenue of $8.7 million for the quarter, an increase of 177% compared to $3.1 million in the same period of the prior year. This marks the third consecutive quarter of triple-digit year-over-year revenue growth for the company.
Financial performance details for the third quarter of 2026 include a gross margin of $0.4 million, or 5% of revenue. This represents an improvement of $2.0 million compared to a gross loss of $1.6 million in the third quarter of 2025. The company noted that service revenue was $8.6 million, up 349%, while product revenue was $0.1 million, a decrease from $1.2 million in the prior year.
Operating expenses for the quarter totaled $12.0 million, or 138% of revenue, compared to $7.9 million, or 254% of revenue, in the prior year. Research and development expenses declined by 5% to $3.6 million, attributed to the company moving engineering in-house to improve development speed and control. Sales, general, and administrative expenses were $8.4 million, which included $0.9 million for events and sponsorship costs, primarily related to the Autonomous Security Force unveiling at GSX 2026.
Knightscope reported a net loss of $11.8 million for the quarter, or $0.50 per share, based on 23.6 million weighted average shares. This compares to a net loss of $9.5 million, or $0.98 per share, based on 9.8 million weighted average shares, in the third quarter of 2025. As of September 30, 2026, the company held cash and cash equivalents of $6.8 million.
Operational highlights for the period include the commencement of K7 manufacturing at the company's headquarters to accelerate deployment in the fourth quarter of 2026. The company also unveiled its Signals orchestration software and operational digital twin at its headquarters. Additionally, Knightscope secured approximately $27 million in renewals, bookings, and client awards since May 2026, a company record.
