KSCP

Knightscope is not a scaled-down growth story; it is a company that loses money on its product before it pays a single overhead dollar. FY2025 gross profit was NEGATIVE $4.78M (gross margin -42.1%) and got worse YoY (-29.1%), which management ties to single-source ECD component shortages, tariff-driven input costs and 'inventory adjustments and absorption variability.' When cost of revenue exceeds revenue, more sales deepen the hole — so the headline +4.9% revenue growth to $11.3M is worthless, and even that is below FY2023's $12.8M, meaning the top line has stagnated for three years.

The balance sheet is a countdown clock. Operating cash flow was -$30.3M against just $20.6M of cash — under a year of runway on the FY2025 burn rate alone — and that is BEFORE the February 2026 Event Risk acquisition, which drained $5.0M cash at close plus $1.1M of debt repayment and layered on $4.0M of deferred payments (2027-2028) and 1.72M new shares. The filing's own first-listed risk factor states the company 'may never achieve profitability,' and the $227M accumulated deficit plus a -$4.00 diluted EPS confirm the pattern. The equity looks 'covered' by cash only because shareholders keep refilling it: weighted shares rose 192% YoY, so the modest $17.3M market cap is a moving target that dilutes anyone who buys today.