Knightscope Gains Momentum: Sales, Expansion and Upgrades Continue

Rhea-AI Summary

Knightscope (NASDAQ: KSCP) announced new sales achievements and technological upgrades across multiple sectors. The company completed a fleet-wide upgrade to the 5th generation K5 Autonomous Security Robot, replacing all K5 v3 models with K5 v5 units at no additional cost to existing clients.

Through its partner Structure Consulting Group, Knightscope will provide the City of Killingly, CT with emergency phone systems utilizing Verizon Frontline. The City College of San Francisco is expanding its K1 Blue Light Tower deployment, while the Southern California Regional Rail Authority is increasing its emergency call box network to 80 units.

The company's upgraded K5 robots are now serving various sectors including Distribution Centers, Retail, Commercial Real Estate, Hospitality, High-Tech Corporate Campuses, Industrial Real Estate, and Casinos.

Positive

• Completed 100% fleet-wide upgrade to K5 v5 model at no cost to clients
• Secured new contract with City of Killingly for emergency phone systems
• Expanded deployment at City College of San Francisco
• Increased Southern California Regional Rail Authority deployment to 80 units

Negative

• None.

Insights

Technology Industry Analyst

The latest developments at Knightscope demonstrate a strategic evolution in their business model and market positioning. The completion of the fleet-wide K5 v5 upgrade across 14 clients, provided at no additional cost, reflects a customer-centric approach to product development while potentially impacting near-term margins. This investment in customer satisfaction could drive higher retention rates and future upsell opportunities.

The new contract wins across municipalities, education, and transit sectors are particularly noteworthy for three reasons:

• The integration with Verizon Frontline establishes Knightscope as a serious player in critical infrastructure security, opening doors to government contracts
• The expansion of existing deployments (like SCRRA's growth to 80 units) validates the solution's effectiveness and suggests strong customer satisfaction
• The diversification across sectors (Distribution, Retail, Commercial Real Estate, etc.) indicates broad market applicability and reduces sector-specific risks

The strategic partnership with Structure Consulting Group for the Killingly, CT deployment represents a scalable go-to-market approach, potentially accelerating market penetration without significant direct sales force expansion. The combination of autonomous robots (ASRs) and emergency communication devices (ECDs) positions Knightscope as an integrated security solutions provider rather than just a robotics company, potentially commanding higher margins and creating deeper customer relationships.

However, investors should note that while the free v5 upgrades demonstrate strong customer commitment, they may pressure short-term financials. The key metrics to watch will be customer retention rates, contract expansion rates, and the speed of new client acquisition across these diverse sectors.

Completes Fleet Wide Upgrade to the 5^th Generation K5 Autonomous Security Robot

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- Knightscope, Inc. (NASDAQ: KSCP), an innovator in robotics and artificial intelligence technologies focused on public safety, announced today new sales that will strengthen public safety infrastructure across municipalities, educational institutions, and public transit systems, continued traction in healthcare and the achievement of an important fleet wide upgrade milestone.

(Graphic: Business Wire)

Emergency Communication Devices (ECD)

Knightscope’s authorized partner, Structure Consulting Group, will provide the City of Killingly, CT, the emergency phone system, including Knightscope Emergency Management System (KEMS), reinforcing the city’s commitment to public safety. These ECDs will utilize Verizon Frontline, seamlessly integrating with Verizon’s dedicated public safety network to provide reliable, secure, and priority communications in emergency situations. This ensures that first responders, law enforcement, and emergency services can receive distress calls with minimal risk of service disruptions, even during network congestion or crises. By leveraging this advanced connectivity, our ECDs enhance emergency response efforts, enabling faster reaction times, clearer communication, and greater operational resilience in critical situations.

City College of San Francisco, in collaboration with an electrical contractor, is expanding its deployment of K1 Blue Light Tower emergency phones across campus. These highly visible and instantly accessible towers provide a critical lifeline for students, faculty, and staff, ensuring they can quickly connect with security personnel in case of emergencies.

Additionally, the Southern California Regional Rail Authority (SCRRA) is expanding its emergency call box network, bringing the total number of deployed units to 80. Public transit systems are high-traffic environments where quick access to emergency communication is essential. Knightscope’s emergency call boxes provide an immediate connection to security and police, improving response times and overall passenger safety.

Emergency communication devices play a critical role in deterring crime, assisting individuals in distress, and improving emergency response times. With the continued expansion of Knightscope’s technology across various sectors, more communities, schools, and transit authorities are taking proactive measures to ensure public safety.

Autonomous Security Robots (ASR)

Knightscope is proud to announce the successful completion of its fleet-wide upgrade, having fully replaced all K5 v3 Autonomous Security Robots in the field with the enhanced K5 v5 model. With 14 additional clients now upgraded to the latest 5^th generation K5 Autonomous Security Robot, we have achieved our stated goal of modernizing 100% of eligible units – all without any incremental cost to our existing clients. These advanced robots serve a diverse range of sectors, including Distribution Centers, Retail, Commercial Real Estate, Hospitality, High-Tech Corporate Campuses, Industrial Real Estate, and Casinos, delivering cutting-edge AI-driven security solutions. By completing this transition, Knightscope continues to elevate safety and security across the spaces where people live, study, work, and visit, reinforcing our commitment to protecting the communities and organizations that rely on us daily.

Experience the Future Today

Knightscope’s portfolio of advanced public safety technologies – including the K1 Laser, Blue Light Emergency Communication Devices, Autonomous Security Robots and Automated Gunshot Detection Services – can enhance security where it matters most, book a discovery call today at www.knightscope.com/discover.

About Knightscope

Knightscope is transforming public safety with cutting-edge robotics and AI technologies. From autonomous security robots to advanced detection systems, Knightscope is committed to building safer communities where you live, work, study and visit. Our long-term ambition is bold but simple: to make the United States of America the safest country in the world. Learn more about us at www.knightscope.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of words such as "should," "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," "proposes" and similar expressions. Forward-looking statements contained in this press release and other communications include, but are not limited to, statements about the Company’s goals, profitability, growth, prospects, reduction of expenses, and outlook. Although Knightscope believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks, uncertainties and other important factors that could cause actual results to differ materially from such forward-looking statements, including the factors discussed under the heading "Risk Factors" in Knightscope’s Annual Report on Form 10-K for the year ended December 31, 2023, as updated by its other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of the document in which they are contained, and Knightscope does not undertake any duty to update any forward-looking statements, except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250220668703/en/

Public Relations

Drew McDowell

press@yourwashingtonoffice.com

Knightscope, Inc.

(650) 924-1025 ext. 6

Source: Knightscope, Inc.

FAQ

What is the significance of Knightscope's K5 v5 fleet-wide upgrade for KSCP?

Knightscope completed a 100% upgrade of all K5 v3 robots to the advanced K5 v5 model across their entire fleet, at no additional cost to existing clients, demonstrating technological advancement and customer commitment.

How many emergency call boxes will KSCP deploy for the Southern California Regional Rail Authority?

The Southern California Regional Rail Authority is expanding its emergency call box network to a total of 80 deployed units.

What sectors are now using Knightscope's K5 v5 autonomous security robots?

The K5 v5 robots are serving Distribution Centers, Retail, Commercial Real Estate, Hospitality, High-Tech Corporate Campuses, Industrial Real Estate, and Casinos.

What technology partnership did KSCP announce for the City of Killingly emergency system?

Knightscope's emergency phone systems in Killingly will utilize Verizon Frontline, providing reliable, secure, and priority communications for emergency situations.