The Next Phase of Defense AI: A Robotic Response to America’s Security Gaps

Autonomous systems are no longer just a futuristic vision — they’re fast becoming an essential layer of national security. 

As AI reshapes everything from finance to warfare, physical security remains one of the most under-addressed frontiers. Knightscope, Inc. (NASDAQ:KSCP), a pioneer in AI-powered security robotics, is at the heart of this shift. With recent breakthroughs in federal approvals, public-private partnerships, and revenue growth, the company is emerging as one of the most compelling stories in next-gen defense infrastructure.

The Problem: An Overstretched Security Infrastructure

In a world increasingly shaped by AI and automation, one major public safety challenge remains unsolved: how to scale real-time, effective security coverage across critical infrastructure without relying solely on human labor.

Security guards are expensive, require breaks, and can’t be everywhere at once. Surveillance cameras are passive, offering limited real-time threat response. Meanwhile, labor shortages, rising urban crime, and the increasing complexity of public venues—from campuses to airports to federal buildings—are pushing the limits of traditional security infrastructure.

It’s a problem compounded by the growing need for always-on, connected, autonomous security solutions capable of reducing threats without human intervention. And now, thanks to a breakthrough partnership, one company is building toward a scalable, national solution.

The Solution: AI-Powered Security Robots with Federal Clearance

Knightscope, Inc. (NASDAQ:KSCP), a Silicon Valley-based robotics company, is answering this challenge with a suite of Autonomous Security Robots (ASRs) and Emergency Communication Devices (ECDs) already deployed across the US.

Their signature K5 ASR, a fully autonomous security robot equipped with 360° HD vision, real-time anomaly detection, and thermal imaging, is already patrolling hospitals, schools, casinos, police departments, and airports. Unlike legacy security products, these units proactively detect and respond to threats around the clock.

Now, Knightscope is stepping onto the federal stage. In July 2025, the company signed a two-year agreement with Palantir Technologies (NYSE:PLTR), joining its elite FedStart program. This partnership gives Knightscope access to secure AWS GovCloud environments, FedRAMP High accreditation, DoD IL5 infrastructure, and full Authority to Operate (ATO) support.

With this approval, Knightscope’s robots are now eligible to be deployed in US government buildings, military bases, and critical infrastructure. While this substantially increases their potential market, actual federal deployments so far have been at the pilot or limited scale.

K5 ASR

Market Opportunity and Growth Potential

With a projected $196.07 billion market in global physical security tech by 2032, Knightscope is strategically positioned. Their Machine-as-a-Service (MaaS) business model creates recurring revenue by offering ASRs for approximately $0.85 to $9 per hour.

Knightscope’s revenue grew approximately 29% year-over-year in Q1 2025, with total reported annual revenue for 2024 reaching $10.8 million.

That recurring revenue model is backed by recent operational momentum:

• Over $5.5 million in new contracts signed in 2025
• A Phase I SBIR contract with the US Air Force
• A 33,355 sq ft Silicon Valley headquarters supporting manufacturing and engineering
• FedRAMP Authority to Operate, enabling sales across US federal agencies
• Inclusion in Palantir’s FedStart platform to accelerate government deployments

The company also partners with Verizon Frontline to provide first-responder-grade LTE connectivity across its devices. 

Leadership and Expertise

Knightscope is led by co-founder and CEO William Santana Li, a former senior executive at Ford Motor Company with extensive experience in tech-forward transportation. His leadership has guided the company through its growth from startup to public listing, with a focus on innovation, commercialization, and public safety impact.

The executive team also includes Mercedes Soria, EVP and Chief Intelligence Officer, who brings deep technical expertise from her time at Deloitte and in systems architecture; Apoorv S Dwivedi, EVP and Chief Financial Officer, who previously led the financial strategy at NASDAQ-listed Nxu, Inc.; and Aaron J Lehnhardt, EVP and Chief Design Officer, known for his contributions to advanced military-grade and mobility design. 

Together, this group combines vision, execution, and specialized skillsets across technology, finance, and product development to deliver on Knightscope’s mission.This team has guided Knightscope from startup to public company, securing contracts with local governments, Fortune 25 firms, and the US military along the way.

Investment Considerations

• Federal Market Expansion: Knightscope positions itself as one of the few publicly traded AI security robotics companies with both FedRAMP ATO and a U.S. Air Force contract — a rare combination that highlights its credibility in federal deployments.
• Recurring Revenue: The company’s MaaS platform provides predictable cash flow and sticky customer relationships.
• Tight Share Structure: A tight public float with strong insider and institutional ownership, including Sabby Management, Vanguard, UBS, and Geode Capital.
• Strategic Partners: Palantir, Verizon Frontline, and supply relationships with both Ouster and NVIDIA.
• Public Safety Tailwinds: Escalating crime, labor shortages, and federal modernization efforts are boosting demand for AI-driven security solutions.

Looking Ahead: Potential Catalysts

Knightscope has outlined three core growth drivers: expanding its existing business, launching new products, and pursuing acquisitions. Key upcoming catalysts include:

• New federal contracts following FedRAMP certification and Palantir integration
• Expansion of Verizon-powered deployments into rural and emergency-response settings
• Launch of new products like the K7 rugged terrain robot and K1 Super Tower
• Broader institutional coverage and upgrades following continued revenue growth

K1 Super Tower

Valuation

Three analysts currently cover Knightscope (as per Simply Wall St Company Report), and a consensus valuation has been created from their forecasts.

Analysts are assuming Knightscope’s revenue will grow by 22.0% annually over the next three years. While they do not expect the company to achieve profitability during that time, to represent the Analyst Price Target in the form of a future P/E valuation, we estimate Knightscope’s profit margin could improve from -270.7% today to align with the US Commercial Services industry average of 7.2% in three years.

If Knightscope’s margins were to reach this industry benchmark, earnings could grow to around US$1.5 million (earnings per share of US$0.15) by about August 2028, compared to a net loss of US$31.0 million today. The analysts are largely in agreement on these estimates.

In order for these figures to justify the analysts’ price target, Knightscope would need to trade at a P/E ratio of 127.3x on those 2028 earnings — significantly higher than the current US Commercial Services industry average of 27.6x, and up from the current multiple of -1.5x.

Analysts also expect the number of shares outstanding to increase by 7.0% per year over the next three years. Using a discount rate of 7.06%, as per the Simply Wall St company report, the analysts’ implied future price per share of US$15.20 equates to a present value of around US$12.00 today.

Risks to Consider

• Execution Risk: Knightscope must continue hitting contract milestones to prove scalability.
• Capital Needs: While recent fundraising added $12.1M, further expansion will require additional capital.
• Competition: While unique in physical robotics, Knightscope faces broader competition in security and AI automation.
• Stock Volatility: As a micro-cap stock, shares may experience high short-term volatility, especially around earnings or contract news.
• Dilution: As with many small, growth-stage companies, Knightscope may need to issue additional shares to raise capital for operations or expansion. This can reduce the ownership percentage of existing shareholders.

Conclusion

Knightscope, Inc. (NASDAQ:KSCP) is building a real business at the intersection of robotics, AI, and public safety. With millions in revenue, a growing base of government contracts, and now federal-grade infrastructure access through Palantir, Knightscope is positioned to scale.

While risks remain, the company’s unique blend of autonomy, recurring revenue, and federal momentum offers a compelling narrative in today’s AI defense race.

This narrative is sponsored content. Market Jar provides this information for educational purposes only and not as investment advice. Always conduct thorough research and consider consulting a financial advisor before making investment decisions.