Knightscope (NASDAQ:KSCP) is positioning itself as a managed service provider for physical security, combining autonomous robots, software, remote monitoring and human security personnel into what Founder, Chairman and CEO Bill Santana Li described as an “autonomous security force.”
Speaking at an investor conference, Li said the company’s goal is to help make the United States safer through an integrated security model that can deter, detect and respond to incidents. He said the company has operated autonomous systems in the field for four million hours since May 2015 and currently serves 435 clients across 42 states with a workforce of roughly 500 employees.
K7 Robot and Security Technology
Li highlighted Knightscope’s K7 autonomous security robot, a 2,500-pound unmanned vehicle designed to patrol large perimeters at speeds of up to 10 miles per hour. The vehicle, which was unveiled at the GSX security conference, is intended to provide a visible physical deterrent while collecting data for the company’s software platform.
According to Li, the K7 can generate approximately 90 terabytes of data annually. Knightscope expects to begin scaling production in 2027 after starting shipments in the fourth quarter of 2026. He said the company has received initial customer commitments and has a wait list for the product.
The company also provides security agents with proprietary technology that includes forward- and rear-facing cameras, thermal scanning, facial recognition, license-plate recognition and mobile-device detection capabilities. Li said Knightscope does not plan to sell that equipment independently because it is intended to operate as part of the company’s managed service.
Knightscope’s security agents are company employees rather than contractors, Li said. He attributed the company’s approximately 6% employee turnover rate to recruiting, training, health benefits and stock options, contrasting it with what he characterized as turnover rates of 100% to 400% in the broader security-guarding industry.
Digital Twin Platform
Li demonstrated the company’s “Signals” software, which creates a live digital twin of a protected location using feeds from robots, stationary devices, cameras, LiDAR sensors and human personnel. The platform was deployed at Knightscope’s Sunnyvale, California, facility during the week of the presentation, he said.
The system is designed to give remote monitoring personnel a three-dimensional view of a site and to coordinate responses among hardware and human staff. Li said the company can integrate existing customer camera infrastructure alongside its own devices.
During the demonstration, Li described a scenario in which a mobile-device signal near a perimeter triggered cameras and lighting before a robot was directed to the location to perform additional checks. A remote “talk-down” warning was then used to instruct the person to leave the property.
In another scenario, the system identified a vehicle entering a parking lot at high speed, using a solar-powered tower to capture information including a license plate and facial-recognition data. The incident was then reviewed by remote personnel and escalated to an on-site augmented security agent rather than being automatically resolved.
Li said Knightscope’s model follows a tiered escalation process, with autonomous systems handling certain events first, remote human operators reviewing unresolved issues, on-site personnel responding when necessary, and law enforcement contacted as a last step. He cited an industry figure that 92% of security alerts are false and said only about 2% of the 100 million cameras in the U.S. are remotely monitored.
Audit Trails and Business Model
A key feature of the platform is its ability to record incident timelines, locations, asset activity and AI decision logs. Li said the company can recreate events in three dimensions and generate exportable records intended to provide customers with proof that security work was completed.
Knightscope operates under a subscription-oriented model rather than selling customers individual components, Li said. Customers may pay a monthly subscription or a deployment fee followed by monitoring and support fees, depending on the arrangement.
Li said security contracts typically run about one year. The company’s approach is to establish an initial relationship with human security personnel and then add technology over time. He said a business focused primarily on personnel may generate gross margins of 10% to 20%, while a more technology-enabled deployment could potentially reach gross margins of 50% to 60%.
The company announced triple-digit revenue growth for three consecutive quarters, according to Li, though he did not provide specific revenue figures during the presentation. He described the U.S. physical-security market opportunity as roughly $230 billion and said Knightscope is focused exclusively on the U.S. market.
Capital and Execution
Li acknowledged that Knightscope will need additional capital before reaching breakeven. He said the company primarily uses its at-the-market equity program to raise capital, which he characterized as a lower-cost and less dilutive alternative to certain financing structures involving warrants.
“We are investing in building technologies and capabilities that no one in the industry has,” Li said, rejecting the characterization that the company is simply burning cash.
Li said Knightscope has “line of sight” to $1 billion in annual recurring revenue, while emphasizing that the company’s primary task is execution. He also said the company is pursuing federal-grade cybersecurity standards, including Department of Defense Impact Level 5 and FedRAMP High, for its systems and data practices.
About Knightscope (NASDAQ:KSCP)
Knightscope, Inc develops autonomous security robots designed to support security, public safety, and facility-monitoring operations. Its robots use sensors, cameras, artificial intelligence, and autonomous navigation to patrol designated areas, identify activity, provide real-time alerts, and help organizations maintain situational awareness.
The company’s product portfolio has included the K5 outdoor autonomous security robot, the K3 indoor security robot, and the K1 stationary security robot, including tower and other configurations.
