This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

Knightscope, Inc.
5/18/2026
Welcome everyone to Nightscope headquarters here in Silicon Valley. Excited to walk you through our first quarter financials for 2026. But before we do that, we're going to get into the overall corporate strategy as we move to becoming a managed service provider. But before we do that, report.
Thanks, Bill. This presentation contains forward-looking statements with the meaning of the Private Securities Litigation Reform Act of 1995. including statements regarding night scope strategy, event risk acquisition and integration, expected revenue, gross margin, operating expenses, addressable market, and the company's ability to fund operations and continue as a going concern. Actual results may differ materially due to risks including operating losses and substantial doubt about the company's ability to continue as a going concern. the need for additional capital, integration of event risk, customer concentration, supply chain and labor conditions, competition, and NASDAQ listing requirements. Please see risk factors in the company's SEC filings at the SEC.gov website. Proforma information is illustrative only. Forward-looking statements may speak only as of today. The company undertakes no obligation to update them except as required by law. Please refer to the Q1, 2026, Form 10-Q for the complete disclosure. With that, Bill?
All right, let's get into it. We're really excited to talk about building the nation's first autonomous security force. That is a unique combination of hardware, software, and humans in an orchestrated format. So let's talk a little bit about the escalation levels and the model behind that managed service provider. Most folks may not know this, but 92%, 93% of alerts and the like are false in the security industry. So you're dealing with the teams are inundated with a massive amount of noise. So what we want to do is put that into a very thoughtful, let's call it seven-layer take, which has three pieces, autonomous, remote command, and a physical response. So let's see if we can, on the autonomous layer, basically have AI agents, autonomous robots, autonomous machines, and the like resolve ongoing items that humans really shouldn't be having to deal with. And then when and if a decision needs to be made, then you can move on to having that escalated to the remote monitoring team. The remote monitoring then can review, approve, deny whatever changes need to be made, and if needed, then escalate it to the human agents, be them armed, unarmed, or law enforcement. So we want to provide one managed service provider, again, combination of hardware, software, and humans. in an orchestrated format, and that's going to be a new profound opportunity for us to provide positive outcomes, improved outcomes, and hopefully lower costs for our clients that seek an integrated solution and dealing with a lot of fragmented items today. So visually what that looks like is basically what I just said. Hardware, software, and humans. So you've got stationary devices, autonomous machines and robots that patrol without remote control, and then augmented security agents that can then complement that entire solution. So one of the really exciting things about not only the financial impact of the acquisition of Rentverse is just designing and strategizing what that next generation security agent might look like. So we have a small team working on a very exciting technology to take some of the capabilities that are on our robots today and actually put them on person exclusively for our security agents to be able to not only have them do their jobs much, much more effectively, but then also provide that data into a really interesting piece of unique software that we're developing to get all of that combined into one field of view. And one of the other items similarly, not just on the human side, but the team is actively working on making very good progress on the K7 autonomous security robot. This is intended to patrol much, much larger environments at higher speeds and be able to really secure that perimeter. So all of that gets combined into one field of view. So one of the things that if you've ever had a ring doorbell camera or the like and you're looking at the app, you actually can't see to the left of you, you can't see to the right of you, you don't know what's behind. And that's what you're asking a remote monitoring security analyst to do. They've never been to the location, they've never walked the premises, and somehow they're supposed to secure the facility with one single field of view. And what that signals platform that the team is developing is to provide an eye in the sky view of the entire facility in three dimensions. So you're combining video gaming technology, digital twins and then all the significant amount of data coming out of the stationary devices, the robots and our augmented security agents to keep that digital twin up to date as much as possible so you can actually secure the facility and have that analyst be omniscient and omnipresent, know everything and be everywhere and we can be more profoundly excited about uh this orchestration software that we intend to release for our internal use here during the fourth quarter of this year moving on uh for the 2026 highlights uh thus far we're uh uh very exciting time uh we were able to put up some pretty serious numbers uh on the filing last week uh we've got revenue up 106 to six million dollars for the quarter and we're just getting started uh one of the other Wonderful opportunities with the acquisition is it now has all four pillars of what we want that autonomous security force to be all included and in place. So you've got everything from autonomous machines, remote monitoring, orchestration software, as well as armed and unarmed licensed agents. And all that integration is underway so we can have one single unified force. And the image that you have there was a celebration there for Autonomous Security Force Day, our first annual. So hopefully we can do that every year going forward on our annual corporate birthday. And the team is now very strong and growing. We're well over 400 employees. And that toast from that image was one team, one force. Very excited for what we hope to be a Blockbuster 2026. So building that first, the nation's first autonomous security force, this is intended to address that $230 billion total addressable market. And the strategic logic is basically add the increase the capabilities because technology can't do everything. Humans can't do everything, but that combination is extremely powerful, and this is that unlock for us to go after requests for proposals that normal technology-only companies would not be allowed to do. And this also is a very unique land and expand where we hope to become a trusted technical advisor to our clients and be able to implement additional technologies, again, to improve their outcomes and reduce their costs. So early validation, revenues up, we've got positive gross margins, and the strategy has a lot of traction. It's very interesting when the industry is excited, the team is excited, the board is excited, all our incoming recruits are excited. We're off to a very, very solid 2026. So with that, I'm going to turn it over to our trustee CFO.
You're reading a preview of the KSCP Q1 2026 earnings call.
Free account.