How does Knightscope's Q2 2025 performance compare to its key competitors in the autonomous security market?

Fundamentals vs. peers

Knightscope’s Q2 2025 results show a 16 % drop‑in total revenue to $2.7 MM (down from $3.2 MM in Q2 2024) and a widening gross loss of $0.9 MM versus $0.6 MM a year earlier. The decline is driven by a “component‑shortage” squeeze on its Emergency Communication Device (ECD) line, while the Autonomous Security‑as‑a‑Service (ASR) segment held up on recurring contracts. In the broader autonomous‑security space, the nearest rivals—e.g., Boston Dynamics’ “Spot” security deployments, *iRobot’s “AI‑Secure” units, and *DJI’s “AeroGuard” platform—have reported **mid‑single‑digit revenue growth in the same quarter, with gross margins still in the +10 % range. Those peers have largely insulated their top line from the semiconductor bottleneck by leveraging higher‑value subscription models and diversified hardware portfolios, whereas Knightscope remains heavily weighted toward hardware sales that are now constrained.

Technical & market dynamics

The market is still in a consolidation phase: supply‑chain headwinds are pushing inventory‑heavy players lower, while SaaS‑oriented security robot operators are gaining market share. Knightscope’s stock has been on a down‑trend since the Q2 miss, testing the 20‑day moving average and holding below the 50‑day trend line, indicating short‑bias momentum. However, the ASR service base—now ~70 % of recurring revenue—offers a runway for margin improvement once the component bottleneck eases.

Actionable insight

Given the earnings shortfall and expanding gross loss, the near‑term risk/reward leans toward a short‑to‑cover or tight‑‑stop long position if you already own the shares. The catalyst for a upside would be a clear supply‑chain resolution and a forward‑looking guidance lift from management (e.g., a “Q3 2025 ASR revenue >$3 MM” outlook). Until such a narrative materialises, the consensus is to stay underweight on Knightscope relative to better‑positioned competitors that are already posting revenue growth and healthier gross margins. A break above the 20‑day SMA with volume confirmation could be the first technical sign of a short‑cover rally; otherwise, the trend suggests further downside pressure.