Two ETFs offer streamlined exposure to today’s hottest corporate shakeups: one chasing the growth potential of recent spin-offs, the other aiming to profit from merger arbitrage. Here’s how CSD and MRGR fit different market conditions.  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

May 18, 2026   |   Read online Target the Red-Hot Spin-Off and Merger Space With These ETFs Two ETFs offer streamlined exposure to today’s hottest corporate shakeups: one chasing the growth potential of recent spin-offs, the other aiming to profit from merger arbitrage. Here’s how CSD and MRGR fit different market conditions. After “33X” call, Jon Najarian reveals NEW Tesla prediction… (From Banyan Hill Publishing) Key Points Spin-offs and mergers are complex situations for investors, but a pair of ETFs can help to simplify the process of building exposure. CSD is a fund focused on companies that have recently been spun off from larger firms; it has sharply outperformed the market this year. MRGR uses a merger arbitrage strategy to try to profit from price discrepancies in potential acquisition target company stocks. Special Report: These AI stocks could go to zero. Here's why. (From InvestorPlace)   Spin-offs and mergers may appeal to investors because they can signal a company's efforts to focus its business, realign its operations, or even seek new leadership. In the case of large conglomerates, it can be hard for investors to accurately assess which units might be the most profitable or fastest-growing—a spin-off can help clarify. These deals can also lead to new opportunities to find high-growth businesses that were once attached to more stable firms, or to access mispriced stocks that have been impacted by forced selling by institutional investors or funds. However, because keeping track of all of the M&A and spin-off activity taking place across the market may take up a disproportionate amount of an investor's time, two exchange-traded funds (ETFs) are uniquely designed to focus on developments of this kind. Ticker Revealed: Pre-IPO Access to "Next Elon Musk" Company (Ad) We’ve found The Next Elon Musk… and what we believe to be the next Tesla. It’s already racked up $26 billion in government contracts. Peter Thiel just bet $1 Billion on it. 👉 Unlock the ticker now and get it completely free. A High-Flying Spin-Off Fund Successfully Capturing Growth Opportunities The Invesco S&P Spin-Off ETF (NYSEARCA: CSD) targets an index of firms that have recently gone through a split, leading to the dismantling of a portion of a business and its formation as a new publicly traded entity. Investors in this fund make a bet that the spin-off process may be able to open access to new value in this new company, allowing for outsized growth. Specifically, CSD focuses only on the companies that have been spun off (and only those going through this process within the last four years), not the preexisting firms that did the spinning off. It also includes companies across the full market capitalization spectrum, given that many companies emerging from spin-offs are substantially smaller than their larger siblings. The majority of firms in CSD's basket are mid-cap companies, and it includes both highly publicized spin-offs like GE Vernova Inc. (NYSE: GEV) as well as more niche firms like Solventum Corp. (NYSE: SOLV), which spun off from 3M Co. (NYSE: MMM). The universe of recent spin-offs is not huge, and CSD has just over two dozen holdings in its portfolio. These are not weighted evenly, and the largest position represents more than 12% of the total asset base. The combination of fairly narrow basket and selected companies being heavily weighted means that CSD may carry greater risks than some other broader funds. However, its year-to-date (YTD) return of more than 35% might go a long way to ease investor concern, even with an expense ratio of 0.64%. A Merger Arbitrage Approach Condensed Into an ETF On the other side is the ProShares Merger ETF (BATS: MRGR), an ETF with a merger arbitrage strategy, capitalizing on the spread between the current stock price of a potential acquisition target and the price offered by the acquiring company. Because merger arbitrage can be a complex and risky endeavor for investors to take on independently, a passively managed ETF may make for an easier access point. MRGR targets roughly 40 companies and divides its investments fairly evenly across its portfolio. As an arbitrage-focused fund, MRGR employs both long and short positions to profit from price inefficiencies. On the long side it is most heavily weighted toward health care and financials names, while on the short side it focuses primarily on materials and industrials. Thanks to its unique approach, MRGR is not designed to move in tandem with the share prices of its holdings over time. The fund has so far returned only about 1% YTD, but it pays a compelling distribution. Investors currently enjoy a dividend yield of about 3.2% from this fund. For its uncommon strategy, investors should expect to spend a bit more for this fund—its expense ratio is 0.75%. Of course, there are other ways mergers can be profitable as well, but investors may have to seek companies looking to merge outside the ETF space. Still, a relatively modest level of risk in the form of an arbitrage-focused ETF may appeal to investors seeking an alternative approach to companies in this stage of development. Investors might want to keep in mind that the two funds above may perform very differently depending on overall market conditions. Spin-offs, for example, tend to do well during bull markets when investors have more of an appetite for riskier high-growth names. Merger arbitrage is a useful approach during volatile periods because it doesn't rely on market direction. In this way, the funds may balance one another out and provide opportunities to benefit in contrasting environments. Read this article online › Featured Stories Robinhood, SoFi, and Webull Are Telling Very Different Stories The real SpaceX trade isn't SpaceX (From Behind the Markets) As Broadcom Eclipses $2 Trillion, Private Credit Giants Wants In The #1 stock to buy BEFORE the June S-1 filing (From Behind the Markets) Samsung Joins the $1 Trillion Club as AI Memory Demand Explodes Japan's Stealth Bull Market: How U.S. Investors Can Get Exposure 3 Stocks to Own If Gas Prices Keep Rising   Stay Ahead of the Market The best investment opportunities don't wait. Get our research and stock ideas delivered straight to your smartphone—so you never miss a market-moving opportunity. Our text alerts ensure you see timely stock ideas and professional research reports instantly, whether you're in a meeting, commuting, or away from your desk. Get Text Alerts from American Market News (free)   Update your email preferences or unsubscribe here © 2026 The Markets Daily 345 N Reid Place #620 Sioux Falls, SD 57106, United States Terms of Service

Featured: A New Fed Chair, A Hot Inflation Number, and Five Days of Data  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

May 18, 2026 The catch about my 9:30 AM strategy Featured: A New Fed Chair, A Hot Inflation Number, and Five Days of Data Sponsored Hey, I have been getting a lot of the same question lately: "Thomas, if this strategy is so good, why are you giving the guide away for free?" It is a fair question. Especially in an industry where every "free" offer is usually just a Trojan horse for a $2,000 upsell or a 90-minute webinar you have to sit through. So here is my honest answer. I have been trading professionally for years. I have seen talented people blow up their accounts because they were following overly complicated systems sold to them by people who do not actually trade. It bothers me. A lot. The "Opening Bell Breakout" is the simplest, most repeatable strategy I have ever used. It takes about 30 minutes a day. It does not require expensive software. And it has produced gains like 113% on GOOGL and 240% on META. I put it into a free guide because I genuinely believe that if you see how it works, you will understand the kind of real, actionable trading education we provide at Base Camp Trading. And maybe down the road, you will want to learn more from us. But that is entirely up to you. There is no pressure. No auto-billing. Just the strategy, explained clearly, in a guide you can read in 10 minutes. Download the FREE Opening Bell Breakouts Guide If you have been burned before by "free" offers that were anything but, I understand. All I am asking is that you give this one a look. Thomas Wood Pro Trader, Base Camp Trading FEATURED A New Fed Chair, A Hot Inflation Number, and Five Days of Data Hey there, bargain hunter. Kevin Warsh officially became the 17th chair of the Federal Reserve on May 15 – confirmed in a 54-45 Senate vote that was the most partisan in Fed history. He walked into the job carrying a 3.8% inflation rate, oil running above $100 a barrel, and a rate-setting committee that just logged its most divided vote since 1992. This week, the data starts filling in the picture. What Warsh Inherited The April CPI came in at 3.8% year over year – the highest reading since May 2023 – driven largely by energy costs that jumped 17.9% annually as the war with Iran chokes supply through the Strait of Hormuz. Core CPI, which strips out food and energy, ran at 2.8%. Neither number gives Warsh room to maneuver on rates anytime soon. At the April 28-29 FOMC meeting – Powell's last as chair – the committee held the fed funds rate at 3.50%–3.75% for a third straight meeting. The vote was 8-4. One member wanted a cut. Three others opposed language in the statement that even hinted at future easing. That kind of internal friction doesn't resolve itself when a new chair walks in. Traders are currently pricing in rates on hold through year-end, with the odds of a hike rising to roughly 30% by December. Wednesday Is the One to Watch The April FOMC meeting minutes drop Wednesday, May 20, at 2:00 p.m. ET. These are Powell's final minutes as chair, and they matter more than a typical release. With four dissents on the record, the minutes will show exactly where the fractures inside the committee run – who wanted to signal hikes, who pushed for cuts, and how far apart the center of the committee actually is from both flanks. That read-through matters for how Warsh manages consensus at his first meeting on June 16-17. The Rest of the Week Monday (5/18): NY Fed Business Leaders Survey and SCE Household Spending Survey. Services-sector tone at a time when services inflation is doing the quiet damage. Tuesday (5/19): New Residential Construction and NAR Pending Home Sales. Housing has been grinding under rate pressure for months – any further softness here reinforces the hold argument heading into June. Thursday (5/21): Initial Jobless Claims and the Philadelphia Fed Manufacturing Survey, plus flash PMI readings for May. Claims have been running between 190K–215K recently – the labor market is still holding. The PMIs will be the first real read on May economic momentum. Friday (5/22): Final Michigan Consumer Sentiment for May. Consumer confidence has been deteriorating under the weight of gas prices averaging $4.50 a gallon nationally. A weak reading here could close the week on a sour note for equity markets. None of this week's data moves the Fed before June. But it shapes how loud the rate hike conversation gets by then – and with EY already flagging CPI could push past 4% in May, that conversation is getting louder whether markets want to hear it or not. Stay sharp. – The Cheap Investor This content is for informational purposes only and should not be considered financial advice. Investing involves risk. The Cheap Investor is a publication of Investing Media Solutions, LLC. To view our full policies: Disclaimer | Privacy Policy | Terms & Conditions Update your email preferences or unsubscribe here © 2026 The Cheap Investor 203 N La Salle Suite 2100 Chicago , Illinois 60601, United States Powered by beehiiv Terms of Service

Broadcom’s surge past the $2 trillion mark has caught the attention of private credit heavyweights Blackstone and Apollo. The proposed $35 billion financing could fuel its AI ambitions while adding another layer of debt to an already leveraged balance sheet.  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Read online As Broadcom Eclipses $2 Trillion, Private Credit Giants Wants In Broadcom’s surge past the $2 trillion mark has caught the attention of private credit heavyweights Blackstone and Apollo. The proposed $35 billion financing could fuel its AI ambitions while adding another layer of debt to an already leveraged balance sheet. After “33X” call, Jon Najarian reveals NEW Tesla prediction… (From Banyan Hill Publishing) Key Points Broadcom has performed exceptionally well as of late, surging to a market capitalization above $2 trillion. Amid this, reports have surfaced that the company is in talks to receive tens of billions in private credit funding. See what the report signals about Broadcom's outlook and what it could mean for the company's balance sheet. Special Report: These AI stocks could go to zero. Here's why. (From InvestorPlace)   Over the past several weeks, semiconductor giantBroadcom (NASDAQ: AVGO) has entered rarified air, with its market capitalization eclipsing $2 trillion. Broadcom is now one of just six companies in the world in this territory, becoming more valuable than giants like Meta Platforms (NASDAQ: META) and Tesla (NASDAQ: TSLA). Notably, shares fell below $300 in late March, a level not seen since September 2025. Broadcom has since rebounded mightily, closing at or above $430 multiple times in May. Overall, Broadcom shares are closing in on a 50% gain since March lows. An interesting report recently surfaced around the firm, with potential implications that could be both positive and negative. According to Bloomberg, the company is in discussions with two alternative asset management giants to receive billions in debt funding. While this move signals confidence in Broadcom’s outlook for its artificial intelligence (AI) chips, it also raises questions, given the company’s already significant debt levels. Ticker Revealed: Pre-IPO Access to "Next Elon Musk" Company (Ad) We’ve found The Next Elon Musk… and what we believe to be the next Tesla. It’s already racked up $26 billion in government contracts. Peter Thiel just bet $1 Billion on it. 👉 Unlock the ticker now and get it completely free. Broadcom, Blackstone, and Apollo: Private Credit Eyes AI Infrastructure Asset management companies Blackstone (NYSE: BX) and Apollo Global Management (NYSE: APO) are reportedly in talks with Broadcom to provide $35 billion in private credit funding. Details around the potential deal are minimal, but the funds would reportedly support Broadcom’s AI chip development roadmap. From Broadcom’s perspective, this indicates that the company is highly confident in the demand for its chips going forward. $35 billion is no small sum; the agreement would be one of the largest private credit deals ever. It is unlikely that Broadcom would engage in the deal without strong multi-year visibility. The report also signals confidence in Broadcom’s future from Blackstone and Apollo—lenders who surely want to recoup their principal with meaningful interest over time. Broadcom’s Already Debt Sits Above $60B Near the end of 2023, Broadcom acquired VMware in a deal worth $69 billion. The acquisition has been a clear success. Since VMware came onto Broadcom’s books in its fiscal Q1 2024, its quarterly infrastructure software revenue has increased from $4.75 billion to $6.78 billion. That is good for a strong compound annual growth rate of just under 20%. Broadcom has also significantly improved VMware’s margins, cutting costs while also increasing prices. However, the deal also greatly increased Broadcom’s debt. Between its fiscal Q4 2023 and fiscal Q1 2024, Broadcom’s total debt nearly doubled from $39.6 billion to $75.9 billion. Notably, Broadcom has made solid headway in reducing its debt since then, with the figure falling by around 13% to $66.1 billion last quarter. Adding $35 billion in private credit financing could put its total debt near $100 billion, far greater than post-VMware heights. Still, raw debt levels themselves don’t tell the full story of Broadcom’s solvency situation. One key metric of balance sheet health is the Net Debt to EBITDA ratio. This is also called the “Leverage Ratio." SpaceX IPO in 3…2…1… (Ad) Elon Musk's team has quietly filed confidential paperwork with the SEC for what Bloomberg estimates could be a $1.75 trillion IPO - larger than Saudi Aramco and any tech offering in history. CNBC calls it 'the big market event of 2026.' According to former tech executive and angel investor Jeff Brown, there's a way to claim a stake before the public filing drops, starting with as little as $500. See how to get positioned in SpaceX before the announcement goes public Balance Sheet Breakdown: Broadcom’s Theoretical Leverage Ratio Note that: Net Debt/EBITDA = (Total Debt – Cash) / (Quarterly EBITDA x 4) With 66.1 billion in total debt, $14.2 billion in cash and equivalents, and fiscal Q1 EBITDA of $10.8 billion, Broadcom’s Net Debt/EBITDA ratio is roughly 1.2x. This is healthy. For reference, S&P Global recently evaluated the theoretical health of Texas Instruments' (NASDAQ: TXN) balance sheet after a proposed acquisition. S&P said Texas Instruments would have “a strong balance sheet with net debt to EBITDA comfortably below 1.5x following transaction close.” Adding $35 billion in debt would shoot Broadcom’s figure up to 2x. While certainly more elevated, this is not particularly problematic. Leverage ratios below 3x are generally acceptable. Furthermore, it’s unlikely that Broadcom would draw down this debt all at once. Additionally, as is common with private credit deals, a significant portion of the debt may never actually go on Broadcom’s balance sheet. Lastly, Broadcom is growing its EBITDA rapidly. Its last 12 months' EBITDA rose by 54.5% YOY as of last quarter. With strong growth expected to continue, its leverage ratio could improve quickly. Broadcom Remains on Strong Footing Overall, if Broadcom were to engage in this private credit deal, its balance sheet would still be in good shape. This makes the idea that Broadcom is considering the deal to pursue growth initiatives not overly worrisome. Notably, Broadcom shares gained significantly, by around 4.2%, on the day Bloomberg released this report. However, chip stocks in general showed strength that day, with the iShares Semiconductor ETF (NASDAQ: SOXX) rising more than 5%. At a minimum, this reaction indicates that markets did not view the report as a large negative for Broadcom, consistent with this analysis. Still, it will be worth watching how the market reacts should the deal actually materialize. Read this article online › Read More Robinhood, SoFi, and Webull Are Telling Very Different Stories The real SpaceX trade isn't SpaceX (From Behind the Markets) Target the Red-Hot Spin-Off and Merger Space With These ETFs The #1 stock to buy BEFORE the June S-1 filing (From Behind the Markets) Samsung Joins the $1 Trillion Club as AI Memory Demand Explodes Japan's Stealth Bull Market: How U.S. Investors Can Get Exposure 3 Stocks to Own If Gas Prices Keep Rising   Stay Ahead of the Market The best investment opportunities don't wait. Get our research and stock ideas delivered straight to your smartphone—so you never miss a market-moving opportunity. Our text alerts ensure you see timely stock ideas and professional research reports instantly, whether you're in a meeting, commuting, or away from your desk. Get Text Alerts from American Market News (free)     Update your email preferences or unsubscribe here © 2026 American Market News 345 N Reid Place #620 Sioux Falls, SD 57103, United States Terms of Service

Just Landed: (Nasdaq: KSCP) is Back on Our Radar This Morning—And Here’s Why

Any content you receive is for information purposes only. Always conduct your own research. *Sponsored Knightscope, Inc. (NASDAQ: KSCP) Returns to the Top of Market Crux’s Monday Watchlist —May 18, 2026 Don’t Miss The Next Breakout—Get Real-Time Alerts Sent Directly To Your Phone. Up To 10X Faster Than Email Consider Starting Your Own Research On (KSCP)... Company Website | Corporate Presentation May 18, 2026 Just Landed: (Nasdaq: KSCP) is Back on Our Radar This Morning—And Here’s Why Dear Reader, America's security infrastructure is broken — and the numbers make that impossible to ignore. Businesses are spending between $220K and $570K per year just to cover a single location around the clock. Police departments are burning through up to $1.3M annually per 24/7 post. And despite all of that spending, more than 90% of security alerts are non-actionable without a human in the loop. Guards, cameras, sensors, and software all operate in silos. Nobody owns accountability from end to end. It is a $230B market that has barely seen real innovation in decades. One Silicon Valley company saw this coming more than a decade ago — and in just the last few weeks, it has stacked moves on top of moves that are beginning to change that picture. Knightscope, Inc. (NASDAQ: KSCP) is topping our watchlist this morning — Monday, May 18, 2026. Full-year 2025 revenue grew to $11.3Mn, with service revenue up 7% and now representing roughly 70% of the total. Cash on hand nearly doubled to $20.6Mn from $11.1Mn the year prior. And on the back of the Event Risk acquisition, the company is now expecting triple-digit revenue growth in 2026. On top of that, (KSCP) just signed a five-year collaboration with Carnegie Mellon University's School of Computer Science, with five graduate students from one of the most respected robotics programs in the world already working on advanced AI for the all-new K7 Autonomous Security Robot. And three Wall Street analysts are maintaining ratings with targets as high as $26. Keep reading to learn more about Knightscope, Inc. (NASDAQ: KSCP). *Knightscope, Inc. (NASDAQ: KSCP)* Knightscope, Inc. (NASDAQ: KSCP) is a Silicon Valley security technology company founded in 2013 with one mission: to make the United States of America the safest country in the world. The company is building the nation's first Autonomous Security Force, a fully managed service that combines autonomous robots, AI-driven software, and augmented security agents into one integrated operation that deterrs, detect, and respond to threats in real time. Not a camera company. Not a guarding company. Not a software platform. All three, under one roof, fully managed. With approximately 10,000 machines already deployed nationwide across heal-thcare, higher education, commercial real estate, manufacturing, local government, and residential communities, the foundation is already in place. The Acquisition That Accelerates Everything At the end of February 2026, (KSCP) closed the acquisition of Event Risk, a nationwide provider of armed and unarmed security guarding services and executive protection. Event Risk brings something that technology-only vendors simply cannot manufacture overnight: licensed guarding capability, established client relationships, and a proven operational infrastructure for delivering security services at scale across the United States. The deal doesn't just speed up Knightscope's plan. It massively widens the funnel, converting traditional guards into Augmented Security Agents and plugging Knightscope's technology into a far larger installed base, site by site. Every contract Event Risk holds today is a future deployment opp. for autonomous machines. In connection with the acquisition, the company quadrupled its workforce to over 400 personnel, including 290 security agents now supporting client deployments nationwide. And in an industry notorious for extreme turnover, Knightscope is offering equity participation to frontline workers. As Chairman and CEO William Santana Li said recently: "By expanding our workforce and offering equity participation to new team members, we aim to attract and retain mission-driven professionals committed to helping us build the Nation's First Autonomous Security Force." Guards are not the destination. They are the deployment catalyst for autonomy. Triple-Digit Revenue Growth Expected in 2026 On March 30, 2026, (KSCP) reported full-year 2025 results. Total revenue grew 5% to $11.3Mn. Service revenue, which is the recurring engine of the business, grew 7% to $8.0Mn and now represents approximately 70% of total revenue. Product revenue came in at $3.4Mn. The balance sheet got materially stronger as well. Cash and cash equivalents climbed to $20.6Mn as of December 31, 2025, up from $11.1Mn the year prior. And here is the line that should grab every reader's attention. Based on active revenue under contract, Knightscope expects the Event Risk acquisition to drive triple-digit revenue growth in 2026, while accelerating the transition to a larger, recurring, service-based operating model. As CEO William Santana Li stated when the company reported full-year 2025 results: "2025 marked a pivotal transition for Knightscope as we expanded from developing advanced security technologies to deploying the nation's first Autonomous Security Force. The Company enters 2026 with a stronger foundation, improved liquidity, and a broader platform to accelerate growth, enhance client outcomes, and drive toward a more scalable and pro-fit-able operating model." Carnegie Mellon University Joins the Mission On April 15, 2026, (KSCP) announced a five-year collaboration with Carnegie Mellon University's School of Computer Science, one of the most respected robotics programs in the world. The agreement establishes the National Security Robotics Lab at Knightscope's Silicon Valley headquarters and funds five educational course projects over five years focused on robotics for national security, public safety, and physical security. And this is not theoretical. Five graduate students from Carnegie Mellon's Master of Science in Robotic Systems Development program are already working with Knightscope on an advanced artificial intelligence feature for the all-new K7 Autonomous Security Robot. Carnegie Mellon does not lend its name to projects that aren't serious. This collaboration plugs (KSCP) directly into one of the deepest robotics talent pipelines in the country and aligns the company with U.S. national priorities around autonomy, public safety, and security. With the U.S. government representing the single largest vertical in the $230Bn physical security market at an estimated $57Bn alone, the federal opp. is significant. The K7: A New Robot Built for Markets No Current System Can Reach Autonomously The all-new K7 Autonomous Security Robot is slated for limited production in the second half of 2026. It is designed for large outdoor environments that traditional security systems simply cannot cover - miles of fence lines, logistics yards, solar farms, industrial complexes, critical infrastructure, and defense installations. The K7 combines light-duty off-road capability with Knightscope's full suite of AI-powered detection, deterrence, and reporting technology. It can go where no camera and no human patrol can match. Integrated with the all-new Signals AI software platform, it opens entirely new markets that the current fleet cannot yet reach. Think of critical infrastructure operators protecting thousands of acres. Defense contractors. Border security. Solar and wind installations. Each of these represents a brand new layer of recurring revenue sitting on top of an already-growing subscription base. Every new market the K7 unlocks is another deployment channel. And every deployment channel feeds directly into the Machine-as-a-Service flywheel that gets more powerful over time. Consider Starting Your Own Research On (KSCP)... Company Website | Corporate Presentation 7 Reasons Why Knightscope, Inc. (NASDAQ: KSCP) Is Topping Our Watchlist Monday, May 18, 2026 1. Three Wall Street Analysts. Targets Up to $26: Source: tipranks.com Ascendiant Capital raised its target to $26 in April 2026, implying significant potential upside from current levels. H.C. Wainwright reiterated a $12 target. Lake Street Capital maintains an $8 target. Three independent firms. That kind of consensus doesn't happen by accident. 2. Landmark Acquisition Closed and Driving Potential Triple-Digit Revenue Growth in 2026: (KSCP) closed its acquisition of Event Risk on February 27, 2026. Based on active revenue under contract, the company expects the deal to fuel triple-digit revenue growth in 2026 while accelerating the shift to a larger recurring, service-based operating model. Immediate revenue. Immediate deployment channels. And a workforce now being converted into Augmented Security Agents. 3. Service Revenue Up 7%, Now ~70% of Total Revenue: Full-year 2025 service revenue grew 7% to $8.0Mn and represented approximately 70% of total revenue. Product revenue increased to $3.4Mn. The recurring engine of this business is getting bigger and stickier every quarter. 4. Balance Sheet Nearly Doubled in Cash: Cash and cash equivalents climbed to $20.6Mn as of December 31, 2025, up from $11.1Mn the year prior. Total revenue grew 5% to $11.3Mn. The company is not pre-revenue. It is pre-scale. 5. The Only Provider That Checks All Six Boxes: Licensed guarding. 24/7 monitoring. Autonomous patrol. Integrated response. Quality and consistency. Outcome accountability. Traditional guard firms check two. Technology-only vendors check one. No other company delivers all six. That is not a feature. It is a structural competitive advantage. 6. Validated by Carnegie Mellon — One of the World's Top Robotics Programs: (KSCP) just signed a five-year collaboration with Carnegie Mellon University's School of Computer Science, including the establishment of the National Security Robotics Lab at Knightscope's Silicon Valley headquarters. Five graduate students are already developing advanced AI for the all-new K7. Add the existing Palantir FedStart agreement and the federal door is wide open. The U.S. government is the single largest vertical in the $230Bn physical security market, estimated at $57Bn alone. 7. A $230Bn Market and (KSCP) Has Barely Scratched the Surface: With approximately $11.3Mn in 2025 revenue against a $230Bn total addressable market spanning government, heal-thcare, education, retail, critical infrastructure, and residential communities, and triple-digit revenue growth expected in 2026, the runway ahead is extraordinarily long. Consider Starting Your Own Research On (KSCP)... Company Website | Corporate Presentation Before you call it, I think it's worth taking one more look at why (KSCP) has landed front and center. Three independent Wall Street analysts have a consensus target implying significant potential upside from current levels, with the high target sitting at $26 from Ascendiant Capital. The Event Risk acquisition is closed and is expected to drive triple-digit revenue growth in 2026. Service revenue grew 7% to $8.0Mn and now makes up roughly 70% of the business. Cash on hand nearly doubled to $20.6Mn. Add in the brand-new five-year Carnegie Mellon University collaboration, the existing Palantir partnership opening the federal door, and a next-generation K7 robot built for markets the current fleet cannot yet reach. As CEO William Santana Li put it: "The Company enters 2026 with a stronger foundation, improved liquidity, and a broader platform to accelerate growth." We are not taking our eyes off (KSCP) this morning — Monday, May 18, 2026 — and we do not think you should either. Stay close to your inbox. A follow-up could be heading your way before the opening bell. As always, please remember to do your own research. Sincerely, Gary Silver Managing Editor, Market Crux   MarketCrux.com (“MarketCrux” or “MC” ) is owned by Headline Media LLC, MC is not responsible for its accuracy. Make sure to always do your own research and due diligence on any day and swing profile MC brings to your attention. Any emojis used do not have a specific defined meaning, and may be used inconsistently. 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