A $2.6 Trillion Problem Has Pushed Security Costs Out of Control. The K7 Could Be the Physical AI Solution That Changes Everything

Every few decades, a new idea redefines how America protects itself.

First came 911 call centers, fingerprinting, cameras and tasers. Then came networks and big data. Now comes autonomy: machines that can deter, detect, and report in real time.

Across the country, crime drains an estimated $2.6 trillion from the US economy every year.1 Businesses pay as much as $65 an hour for security guards who can only be in one place at a time with limited capabilities.2 Cities spend billions training officers who face burnout and significant attrition.

Turnover for guards can reach up to 400% annually.3

The system is overworked, expensive, and broken.

Technology, and specifically Physical AI, is ready to step in.

A new generation of autonomous machines is emerging. Systems designed to patrol, deter, and protect around the clock without fatigue or human error. They record continuously. They analyze instantly. They scale effortlessly.

And they are already being built in Silicon Valley.

The company leading this transformation is Knightscope, Inc. (NASDAQ:KSCP), a pioneer in autonomous security that has logged more than 4 million hours of autonomous field experience nationwide.

Knightscope, Inc. (NASDAQ:KSCP) is a public safety innovator headquartered in Silicon Valley on a long-term mission to make America the safest country in the world. 

The company is now preparing to launch its most advanced innovation yet: the K7 Autonomous Security Robot (ASR), designed to redefine how America defends its most critical assets.

The Breakthrough: The K7 Autonomous Security Robot

For years, experts have talked about the coming convergence of artificial intelligence and real-world automation. The theory was simple: when machines can handle physical work with human-like awareness, entire industries will change.

That moment is now beginning in the world of physical security.

The K7 Autonomous Security Robot is the next evolution in Physical AI. An all-new purpose-built platform that can patrol vast properties, respond to alerts, and gather data around the clock without interruption.4

image4 4 A $2.6 Trillion Problem Has Pushed Security Costs Out of Control. The K7 Could Be the Physical AI Solution That Changes Everything

Designed for light-duty off-road terrain and large-scale environments, the K7 can cover the kinds of areas that fixed cameras and human guards simply cannot. From solar farms to industrial sites, ports, logistics hubs, critical infrastructure and wind farms, it was engineered to operate where visibility and coverage are mission critical.

Behind the K7’s design is more than a decade of work by Knightscope, Inc. (NASDAQ:KSCP), a company that has logged over 4 million hours of autonomous field experience and training data across its nationwide fleet of machines.5

Each hour of operation feeds a growing data set of experiences, a real-world training system that sharpens detection, improves navigation, and expands response capabilities over time – humans and technologies working together.

Unlike conventional robotics companies that start from simulation, Knightscope, Inc. (NASDAQ:KSCP) has already proven its technology in the field. That real-world experience gives the K7 an edge in overall performance. Critical factors for clients working on public safety, law enforcement and security operations.

And while the K7 is larger, faster, and more capable than previous models, it remains part of the same connected network that powers all Knightscope machines.6

It integrates seamlessly with the company’s security software, allowing real-time communication between units, remote monitoring through the Knightscope Security Operations Center, and 24/7 support through the company’s US-based Knightscope Network Operations Center (KNOC) team.

The result is a machine designed not only to see and record but to understand and respond, turning decades of security labor costs into a scalable, intelligent service that never stops working.

Why are investors looking at Knightscope?
Technology keeps reshaping the landscape of safety, as evolving security risks demand new approaches. Public safety is ready for disruption by AI and robotics. Knightscope, Inc. (NASDAQ:KSCP) represents an opportunity to build the next major $30 billion defense-tech company, but focused on the home front. Its addressable market includes Homeland Security, the Department of Justice, over 19,000 law enforcement agencies, and 8,000 private security firms across the US.

Every Hour, Businesses Burn Thousands on Human Guards. The K7 Could Flip That Equation

Security is one of the few industries where costs keep rising while performance keeps slipping.

In the United States alone, companies, cities, and institutions spend hundreds of billions every year trying to protect property, assets, and people. Yet crime continues to climb, and coverage gaps persist everywhere.7

The reason is simple. The current system depends almost entirely on people. Three large guarding companies employ over 500,000 humans and generate over $30 billion in revenue in the U.S. alone.

A single unarmed guard can cost $20 to $40 per hour. Armed security can reach $65 per hour or more. To cover a site 24 hours a day, you need at least four guards rotating shifts, which quickly adds up to over half a million dollars per year for a single location.8

Then add management, training, benefits, turnover, and downtime and the real number climbs even higher.

Now look at police departments across the country. Many face vacancy rates between 10% and 30%, while operating costs soar as they compete for limited personnel. In total, the US spends more than $2.6 trillion each year on crime-related losses and prevention.

Screen Shot 2025 11 11 at 10.38.02 PM A $2.6 Trillion Problem Has Pushed Security Costs Out of Control. The K7 Could Be the Physical AI Solution That Changes Everything

This is where the K7 Autonomous Security Robot changes the equation.

Developed by Knightscope, Inc. (NASDAQ:KSCP), the K7 offers non-stop patrol capability at roughly one-quarter of the cost of a traditional guard. 

It requires no breaks, no sick days, and no benefits package. Its sensors never blink, and its cameras never look away. And it has a perfect memory. 

Each K7 machine generates continuous, high-definition video, audio, and thermal data.  The kind of persistent coverage that human patrols simply cannot provide. When combined with Knightscope’s proprietary software systems, this data can be analyzed in real time, turning surveillance into actionable intelligence.

image1 1 A $2.6 Trillion Problem Has Pushed Security Costs Out of Control. The K7 Could Be the Physical AI Solution That Changes Everything

That means faster detection, quicker escalation, and better deterrence. All without adding headcount.

For large facilities like solar farms, logistics centers, hospitals, or universities, this efficiency compounds. One K7 can often do the work of several guards at a fraction of the cost, freeing staff to focus on higher-value operations instead of routine patrols.

And unlike temporary security contracts that must be renewed year after year, the K7 operates within Knightscope’s (NASDAQ:KSCP) Machine-as-a-Service (MaaS) model, generating recurring revenue for the company while delivering predictable, scalable protection for the client.

Every deployment adds to a growing data network that continuously improves performance across all machines. The longer the K7 fleet operates, the smarter and more efficient it becomes. Something no human workforce can replicate.

In short, Knightscope, Inc. (NASDAQ:KSCP) is not competing with security firms on price. It’s rewriting the economics of the entire industry. Game changer.

From Million-Dollar Contracts to a Partnership with Palantir, the Validation Is Already Here

Momentum separates potential from performance.

In emerging technology, there are only two kinds of companies. Those still talking about what they plan to do, and those already showing proof that their ideas work.

Knightscope, Inc. (NASDAQ:KSCP) now belongs to the second group.

Over the past year, the company has delivered a steady sequence of operational wins. Each one reinforces the next. Together, they point to a business that is not only scaling but maturing.

In recent quarters, Knightscope, Inc. (NASDAQ:KSCP) continues to demonstrate measurable commercial traction through a powerful cadence of multi-million-dollar contracts. In recent quarters, the company has repeatedly surpassed the $1 million mark in new sales, renewals, and client expansions, confirming sustained demand for its Autonomous Security Robots (ASRs) and Emergency Communication Devices (ECDs). 

These are not pilot programs or small test runs. They are multi-year service agreements and renewals that deepen relationships with long-term clients while bringing in new ones across the country.

Each deployment adds to a growing base of recurring revenue through the company’s Machine-as-a-Service model. This means every robot in the field generates subscription income, service fees, and data-driven value that compounds over time. When a contract renews, that income becomes more predictable and more scalable.

image2 1 A $2.6 Trillion Problem Has Pushed Security Costs Out of Control. The K7 Could Be the Physical AI Solution That Changes Everything

At the same time, Knightscope, Inc. (NASDAQ:KSCP) continues to strengthen its financial position. The company reported a record $24.2 million in cash as of August 2025, more than tripling its liquidity from the previous year.9 It also repaid its $3 million senior secured note, cleaning the balance sheet and removing a major source of shareholder dilution risk.

A leaner cost structure and fully staffed second production shift have positioned the company to meet rising demand more efficiently. Management cut overhead while doubling headquarters capacity to 33,000 square feet in Sunnyvale, California. The move consolidated operations into one modern space where engineering, manufacturing, and client support teams now operate side by side.10

The company’s Q2 2025 financial report highlighted several key improvements. Operating expenses were down 14% year over year. Recurring service revenue increased 7% The company’s cash position improved by more than $5 million quarter over quarter. While some product deliveries were delayed due to component shortages, the backlog conversion rate continued to accelerate.

This kind of financial and operational discipline matters. It is what separates concept-driven companies from execution-driven companies.

But the most defining moment of the year came in July, when Knightscope, Inc. (NASDAQ:KSCP) announced a two-year contract with Palantir Technologies (NASDAQ:PLTR).11

image3 3 A $2.6 Trillion Problem Has Pushed Security Costs Out of Control. The K7 Could Be the Physical AI Solution That Changes Everything

Palantir is one of the most respected names in artificial intelligence and US defense infrastructure. Its software powers decision-making for some of the most sensitive environments in government and industry. For Knightscope, being chosen to work alongside Palantir is not just a partnership. It is validation at the highest level.

Palantir’s collaborations are reserved for organizations that are operational, data-rich, and ready to scale inside mission-critical systems. That makes this agreement a clear signal of where Knightscope, Inc. (NASDAQ:KSCP) stands today. A trusted developer of autonomous technology capable of meeting enterprise and federal standards.

"“As federal leaders look to autonomous technologies to enhance operations and resilience, Knightscope is investing in the infrastructure, partnerships, and accreditations that will enable us to lead.”"
— William Santana Li, Chairman and CEO, Knightscope, Inc.12

That vision is what drives every innovation the company builds.

And the numbers show it is resonating with customers. Throughout 2025, Knightscope (NASDAQ:KSCP) reported a string of new contracts that highlight expanding adoption across diverse sectors. 

      • April  2025 – Secured over $1.2 million in new contracts, including an order from a Fortune 25 corporation for K5 ASRs, major expansions at college campuses, and new ECD deployments for public-sector and commercial real-estate clients.13
      • July 2025 – Announced $1 million+ in additional wins across higher education, parks & recreation, healthcare, and local government, totaling 541 new ECD bookings.14
      • July 2025 – Closed $1.3 million in combined new sales, renewals, and expansions, highlighted by 834 new ECDs for clients in aviation, casinos & gaming, healthcare, and municipal facilities.15
      • September 2025 – Signed another $1 million in contracts, including 90+ new ECD orders spanning airports, hospitals, national parks, and university campuses, alongside renewed multi-year ASR service agreements.16
      • October 2025 – Surpassed yet another $1 million milestone in new and renewed contracts, reinforcing Knightscope’s momentum with long-term enterprise and government clients nationwide.17

The client mix continues to diversify as well. Healthcare networks are expanding coverage across their campuses. Universities are increasing deployments for student safety. Industrial sites, casinos, and local governments are renewing subscriptions for both Autonomous Security Robots (ASRs) and Emergency Communication Devices (ECDs). 

This combination of retention and new growth shows that once customers adopt Knightscope’s technology, they tend to stay.

At the same time, the company continues to invest in research and development. The upcoming K7 Autonomous Security Robot represents a major step forward.  An advanced platform designed to operate across mixed terrain with greater speed, range, and intelligence. Prototypes have already been revealed, with production expected to begin in 2026. 

The K7 is poised to unlock new markets such as energy infrastructure, transportation, and logistics, all while strengthening the company’s recurring revenue foundation.

Behind all this progress is a leadership team that combines deep experience in technology, automotive design, and enterprise-scale operations. 

CEO William Santana Li is a former Ford Motor Company executive who co-founded GreenLeaf, a subsidiary that grew into the world’s second-largest automotive recycler, now part of LKQ Corporation (NASDAQ:LKQ). His experience in building, financing, and scaling complex operations has become a core advantage for Knightscope, Inc. (NASDAQ:KSCP) as it expands into new markets.

The company’s mission remains clear: to make America the safest country in the world. Its path forward is built on proof, not promises.

With a strong balance sheet, expanding customer base, and a strategic partnership with Palantir now in motion, Knightscope, Inc. (NASDAQ:KSCP) has entered a new phase of execution. The groundwork has been laid. The technology is proven. The revenue base is growing.

And for investors watching the rise of physical AI, this may be the moment when vision turns into measurable results.

Top 8 Reasons

Investors Should Pay Close Attention to Knightscope Right Now

1

The K7 Launch Marks a New Era of Physical AI: After years of development and over 4 million operational hours, Knightscope, Inc. (NASDAQ:KSCP) has introduced its most advanced platform yet: the K7 Autonomous Security Robot. This machine expands the company’s reach into large outdoor and mixed-terrain environments that traditional systems cannot cover

2

Solving a $2.6 Trillion Problem with Real Economics: Security costs across the US are soaring, with guard services reaching up to $65 an hour. The K7 delivers 24/7 coverage at an estimated $15 per hour, creating a structural cost advantage that organizations cannot ignore.

3

Recurring Revenue That Grows Every Month: The company’s Machine-as-a-Service model generates predictable income from every machine in the field. Each new deployment creates a subscription-based revenue stream, and renewals are already driving compounding growth across multiple industries.

4

Real Contracts, Real Clients, Real Cash: In the past year, Knightscope, Inc. (NASDAQ:KSCP) has announced multiple $1 million-plus contracts spanning healthcare, education, gaming, and local government. The company reported $24.2 million in cash as of August 2025, a clean balance sheet, and no toxic debt.

5

Strategic Partnership with Palantir Technologies (NASDAQ:PLTR): Palantir’s AI and defense infrastructure are used by some of the most mission-critical institutions in the world. Its decision to partner with Knightscope, Inc. (NASDAQ:KSCP) is a powerful validation of the company’s readiness, credibility, and capability to scale into high-security environments.

6

Expanding National Presence and Product Line: With nearly 10,000 machines in-network, the company protects locations across healthcare, manufacturing, hospitality, logistics, and education. New product lines, including the upcoming next generation K1, are expected to extend its footprint even further in 2026.18

7

A Leadership Team Built to Execute: Chairman and CEO William Santana Li brings more than three decades of operational experience, including leadership roles at Ford Motor Company and GreenLeaf, which grew into the world’s second-largest automotive recycler. His proven track record of building scalable enterprises is now focused on one mission: making America safer through innovation.

8

A Mission That Aligns with the Future of Security: Automation is transforming how the world protects people and property. As law enforcement vacancies rise and crime continues to cost the US trillions annually, Knightscope, Inc. (NASDAQ:KSCP) stands at the center of a structural shift toward intelligent, autonomous protection.

The K7 is not a concept. It is built, tested, and ready to start production in 2026.

And it represents a once-in-a-generation inflection point where technology meets necessity, and innovation meets impact.

Why are investors looking at Knightscope?
Technology keeps reshaping the landscape of safety, as evolving security risks demand new approaches. Public safety is ready for disruption by AI and robotics. Knightscope, Inc. (NASDAQ:KSCP) represents an opportunity to build the next major $30 billion defense-tech company, but focused on the home front. Its addressable market includes Homeland Security, the Department of Justice, over 19,000 law enforcement agencies, and 8,000 private security firms across the US.

The Mission: Make America the Safest Country in the World

Every company claims to have a mission. Few actually build toward one.

For Knightscope, Inc. (NASDAQ:KSCP), the goal is clear and measurable: to make the United States of America the safest country in the world.

This is not a slogan. It is the foundation of everything the company designs, builds, and deploys.

Each robot, each data point, each mile of patrol brings the company closer to that mission. The focus is not on replacing people but on protecting them more efficiently, more intelligently, and more consistently than ever before.

As crime rates climb and the demand for public safety outpaces available personnel, the role of technology is no longer optional. It is essential. Knightscope, Inc. (NASDAQ:KSCP) has positioned itself at the center of that transition, using advanced AI, robotics, and data analytics to build safer communities across the nation.

The K7 represents the next evolution of that vision. Designed to operate in environments where coverage gaps remain (solar farms, ports, campuses, and industrial zones) the K7 extends the reach of public safety far beyond the limits of human patrols.

"“Every American has a fundamental and basic right to live in a safe community in a safe country.”"
— William Santana Li, Chairman and CEO, Knightscope, Inc.19

That belief drives the company’s innovation and defines its purpose.

The Innovators Building the Future of Public Safety

Vision alone does not execute. It takes leadership, experience, and discipline to build a new category of technology from the ground up.

Knightscope, Inc. (NASDAQ:KSCP) is led by a team with decades of combined experience across automotive engineering, robotics, software, and enterprise operations.

William Santana LiChairman and CEO

William Santana Li became the youngest senior executive at Ford Motor Company at age 28. He later co-founded and served as COO of GreenLeaf LLC, a Ford subsidiary that raised $250 million and became the world’s second-largest automotive recycler, now part of LKQ Corporation (NASDAQ:LKQ).
Mercedes SoriaEVP & Chief Intelligence Officer / CISO

Mercedes Soria has been with Knightscope since its inception, leading the company’s AI, software, and cybersecurity strategy. Before joining Knightscope, she oversaw large-scale technology and software development teams at Deloitte and Gibson Musical Instruments. She now drives the intelligence infrastructure that powers Knightscope’s autonomous systems across the US.
Apoorv S. DwivediEVP & Chief Financial Officer

Apoorv Dwivedi manages Knightscope’s financial strategy and capital planning. He previously served as CFO of NXU Inc., where he guided the company through its public listing, and held senior finance roles at Cox Automotive and General Electric (GE). His experience in corporate finance, analytics, and operational scale gives Knightscope the financial discipline needed for national expansion.
Aaron J. LehnhardtEVP & Chief Design Officer

Aaron Lehnhardt directs the industrial and product design of Knightscope’s Autonomous Security Robots since inception. Before joining Knightscope, he co-founded a vehicle design consultancy and led concept design work for hybrid, military, and electric vehicles at advanced automotive firms. He ensures each platform blends innovation, safety, and practicality for real-world deployment.
William G. BillingsIndependent Director

William Billings brings extensive public-company finance experience to Knightscope’s board. He served as Vice President of Finance & Chief Accounting Officer at GlobalFoundries and held senior finance positions at Airbnb and General Electric. His background supports strong governance, transparency, and fiscal oversight as Knightscope scales.
Robert A. MocnyIndependent Director

Robert Mocny offers decades of homeland security and public-sector experience. A former DHS Senior Executive Service member, he helped lead national biometric and border-security programs following 9/11. His expertise in technology deployment and federal security policy strengthens Knightscope’s alignment with public-safety agencies.
Mel W. TorrieIndependent Director

Mel Torrie is the founder and CEO of Autonomous Solutions Inc. (ASI), a global leader in vehicle automation for industries ranging from mining to agriculture. With over two decades in robotics and autonomous technology, his experience directly complements Knightscope’s mission to advance physical AI and large-scale automation in public safety.

This team is not new to execution. They have built, financed, and scaled global operations before and they are applying that same expertise to physical AI

Together, they are building something much larger than a company. They are building a safer future.

And with the upcoming K7 launch, the foundation is in place. The products are proven. The mission is defined.

Knightscope, Inc. (NASDAQ:KSCP) has reached the point where technology, timing, and necessity intersect.

The Opportunity: A Defining Moment for Physical AI

Every major technological shift begins quietly.

Then one day, it stops being an idea and starts becoming reality.

That is where Knightscope, Inc. (NASDAQ:KSCP) stands today.

After more than a decade of engineering, testing, and real-world deployment, the company has reached the next stage of its mission to make America the safest country in the world. The launch of the K7 Autonomous Security Robot marks the first time an AI-driven platform can patrol large, complex environments with speed, accuracy, and full autonomy.

It is a leap forward for public safety, but also for investors who understand what happens when a proven product meets a trillion-dollar problem.

The cost of security is out of control. Labor shortages are widening. And the demand for automated solutions is only accelerating. Knightscope, Inc. (NASDAQ:KSCP) has the assets, partnerships, and recurring revenue to capitalize on that shift.

The company has logged millions of operational hours. It has built a national client base that renews year after year. It holds a clean balance sheet, growing cash reserves, and a strategic partnership with Palantir Technologies.

And now, it has the K7, a product that opens new markets, increases efficiency, and scales faster than any human-based security model can.

This is not a speculative concept or an untested prototype. It is the next stage of physical AI, ready to be deployed.

For investors following innovation, timing matters. The setup is here. The story is building. And the early phase of this rollout will not stay quiet for long.

To see what’s next, access the Knightscope, Inc. (NASDAQ:KSCP) corporate presentation and learn how the K7 launch could shape the future of autonomous security.

Subscribe here to download the Corporate Deck Now.

P.S. Every major technology wave rewards those who spot the inflection point first. The K7 launch is that moment for Knightscope, Inc. (NASDAQ:KSCP). The machines are built, the clients are growing, and the shift toward autonomous security is already underway. Don’t wait until the rest of the market catches on.

P.P.S. If your facility in the U.S. could use a K7 be sure to get on the wait list here: www.knightscope.com/k7

Why are investors looking at Knightscope?
Technology keeps reshaping the landscape of safety, as evolving security risks demand new approaches. Public safety is ready for disruption by AI and robotics. Knightscope, Inc. (NASDAQ:KSCP) represents an opportunity to build the next major $30 billion defense-tech company, but focused on the home front. Its addressable market includes Homeland Security, the Department of Justice, over 19,000 law enforcement agencies, and 8,000 private security firms across the US.

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