Knightscope Begins K7 Production, Targets Conversion of $27 Million in Bookings and Renewals
Key Facts
Knightscope has begun manufacturing K7 robots at its headquarters, aiming to accelerate deployment during the fourth quarter of 2026, its CEO said on the third-quarter results call. The move comes as the company seeks to convert about $27 million in renewals, bookings and customer awards it says it has secured since May 2026 into revenue. Knightscope described the amount as a company record and listed converting it into revenue among its priorities. The figure includes renewals, bookings and customer awards, not only contracts and awards. The announcement links the start of manufacturing with the execution path, while the company is prioritizing revenue from existing commercial activity.
The production announcement came amid quarterly results showing Knightscope revenue rose to $8.7 million in the quarter ended September 30, 2026, up 177% from $3.1 million in the third quarter of 2025. The company said this was its third consecutive quarter of triple-digit year-over-year growth. Services revenue was $8.6 million, up 349% year over year, including $6.6 million from Knightscope Security Force. By contrast, product revenue was $0.1 million, compared with $1.2 million in the same period of 2025. The divergence puts services growth alongside a decline in product revenue in the quarter’s results, as K7 manufacturing begins while the company seeks to execute its deployment plans.
Gross profit turned to $0.4 million, equal to 5% of revenue, after the company posted a gross loss of $1.6 million in the third quarter of 2025. But net loss widened to $11.8 million, or $0.50 per share, compared with $9.5 million and $0.98 per share a year earlier. The per-share loss figures were based on a weighted average of 23.6 million shares in the third quarter of 2026, compared with 9.8 million shares in the year-earlier period. Cash and cash equivalents totaled $6.8 million at quarter-end. The figures show an improvement in gross profit alongside a larger net loss, as Knightscope continues to prioritize converting renewals, bookings and awards into revenue and improving margins.
Management said the K7 launch during the fourth quarter would be limited and that it had already begun the initial rollout. It added that it would take a selective and cautious approach in deciding how to expand production and deployment during 2027. The CEO said the main constraint was deployment, installation and integration at sites, rather than the usual production capacity for hardware products. He said: "The constraint is really on the other side; it's in deployment, where teams have to be in the field to carry out the work, integrate it and install it." The pace of expansion, according to management, is therefore tied to the ability of field operations to absorb deployments. In an update issued on August 12, 2026, the company said K7 had passed its Alpha prototype gate review and moved to the Beta prototype phase, with initial deployment expected to begin in the fourth quarter of that year.
Knightscope presents its plan as an integrated operation combining autonomous machines, AI software and licensed security officers under one contract. The company said these elements operate "as one accountable operation under one contract." The approach coincides with the services revenue growth recorded in the third quarter, including revenue from Knightscope Security Force, while product revenue fell from the comparable period. The company also cautioned that customers may request fewer services than it estimates, or that customer awards may not turn into final agreements. It said these risks could cause actual results to differ materially from expectations, making the conversion of awards and bookings into revenue central to tracking its commercial execution.
In the market, KSCP closed at $0.4449 on November 12, 2026, up from $0.3997 in the previous session, according to EL7 daily data. The share move came on the day the company announced third-quarter results showing revenue of $8.7 million and year-over-year growth of 177%. K7 production also began as management confirmed that the fourth-quarter launch would be limited and that production and deployment expansion in 2027 would be selective and cautious. The next step identified by the company is to carry out the initial deployment in the fourth quarter while addressing the constraint of installation and integration at sites. Management tied further expansion to a cautious approach during 2027, while warning that some customer awards may not result in final agreements.