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KTOS

Kratos Defense & Security Solutions, Inc.

KTOS

Kratos Defense & Security Solutions, Inc. • NASDAQ
$76.10 ▲ 0.44% (+0.33)
Market Cap $12.85 B
52w High $112.57
52w Low $23.90
Dividend Yield 0%
P/E 585.38
Volume 721.36K
Outstanding Shares 168.82M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $347.6M ▼ $70M ▼ $8.7M ▲ 2.503% ▲ $0.051 ▲ $23.8M ▲
Q2-2025 $351.5M ▲ $70.1M ▲ $2.9M ▼ 0.825% ▼ $0.02 ▼ $18.5M ▼
Q1-2025 $302.6M ▲ $67M ▲ $4.5M ▲ 1.487% ▲ $0.03 $19.7M ▼
Q4-2024 $283.1M ▲ $66.8M ▲ $3.9M ▲ 1.378% ▲ $0.03 ▲ $29.6M ▲
Q3-2024 $275.9M $62.7M $3.2M 1.16% $0.02 $18.9M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $565.9M ▼ $2.423B ▼ $441.8M ▼ $1.982B ▲
Q2-2025 $783.6M ▲ $2.586B ▲ $625.7M ▲ $1.96B ▲
Q1-2025 $263.7M ▼ $2.005B ▲ $617.3M ▲ $1.388B ▲
Q4-2024 $329.3M ▲ $1.951B ▲ $597.7M ▲ $1.353B ▲
Q3-2024 $301.5M $1.912B $569.5M $1.343B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $8.7M ▲ $-13.3M ▼ $-28M ▼ $-176.1M ▼ $-217.7M ▼ $-41.3M ▼
Q2-2025 $2.9M ▼ $-11.7M ▲ $-20.5M ▲ $550.8M ▲ $519.9M ▲ $-32.2M ▲
Q1-2025 $4.5M ▲ $-29.2M ▼ $-22.6M ▼ $-14.5M ▼ $-65.6M ▼ $-51.8M ▼
Q4-2024 $3.9M ▲ $45.6M ▲ $-13.6M ▲ $-3M ▼ $27.8M ▲ $32M ▲
Q3-2024 $3.2M $6.1M $-15.3M $1.6M $-6.7M $-9.2M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Product
Product
 $370.00M ▲$200.00M ▼$220.00M ▲$230.00M ▲
Service
Service
 $210.00M ▲$100.00M ▼$130.00M ▲$120.00M ▼

Five-Year Company Overview

Income Statement

Income Statement Revenue has grown steadily over the past five years, showing that demand for Kratos’ offerings is moving in the right direction. Gross profit has also drifted higher, but operating margins remain thin, which means only a small portion of sales turns into operating profit. Profitability has been uneven, with a swing from losses a couple of years ago to modest net income more recently. Overall, the income statement tells a story of a company successfully growing its top line but still working to translate that growth into consistently strong bottom-line profits.

Balance Sheet

Balance Sheet The balance sheet has strengthened over time. Total assets and shareholders’ equity have both increased, suggesting the business has been building its asset base and book value. Debt is present but not excessive relative to the size of the company, and it has edged down slightly versus earlier years. Cash dropped to low levels a couple of years ago but has since been rebuilt to a healthier cushion, improving financial flexibility. Overall, Kratos looks reasonably well capitalized for a mid-sized defense contractor that is still in investment and growth mode.

Cash Flow

Cash Flow Operating cash flow has been positive in most years, but not by a wide margin, and it dipped into negative territory once over the period. Free cash flow has hovered around breakeven, occasionally negative, mainly because the company continues to spend steadily on capital projects to support growth and new programs. This pattern is typical of a company investing heavily in its future but means less spare cash available in the short term. The cash flow profile is improving, but still sensitive to contract timing and program milestones.

Competitive Edge

Competitive Edge Kratos occupies attractive niches within defense, focusing on unmanned systems, aerial targets, satellite communications, and specialized electronics rather than trying to compete head‑on across the entire spectrum like the largest primes. Its edge comes from being faster and more cost‑focused, offering “good enough” but advanced systems at lower prices. Longstanding relationships with the U.S. government and allies, plus a history of successful target drone programs, help reinforce its position. However, it still faces intense competition from much larger defense contractors, and its reliance on government contracts and specific programs introduces concentration and budget‑cycle risk.

Innovation and R&D

Innovation and R&D Innovation is a core part of Kratos’ identity. The company is pushing hard in low‑cost combat drones, manned‑unmanned teaming concepts, software-defined satellite ground systems, hypersonic test vehicles, and advanced propulsion. Platforms like the Valkyrie and the OpenSpace software suite showcase its focus on disruptive, affordable technology. At the same time, the pipeline is ambitious and technically demanding, which brings execution risk, schedule slippage risk, and uncertainty about which programs will scale. Still, the breadth and depth of its R&D suggest a company trying to position itself at the leading edge of future warfare and space infrastructure.

Summary

Kratos looks like a growing, innovation-driven defense company that is moving from development-heavy years toward more consistent profitability, but is not fully there yet. Revenue has risen steadily, margins are improving but remain thin, and net income has only recently turned reliably positive. The balance sheet is sound with manageable debt and better cash than in the recent past, while cash generation is modest and heavily reinvested back into the business. Strategically, Kratos is well aligned with high-priority defense themes—unmanned systems, hypersonics, and software-defined space—but its success depends on scaling key programs and managing the usual risks of government contracting and advanced R&D. Overall, it combines solid growth momentum and a strong innovation story with the execution and funding uncertainties typical of a challenger in a defense market dominated by very large incumbents.

NEWS

November 13, 2025 · 9:00 AM UTC

Kratos Moves to New Engine Manufacturing Facility in Auburn Hills, MI to Support Demand for High-Rate Production of Spartan Engines

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November 12, 2025 · 8:00 AM UTC

Kratos' $50 Million State-of-the-Art Hypersonic System Indiana Payload Integration Facility on Track for 2026

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November 4, 2025 · 4:05 PM UTC

Kratos to Acquire Israel-Based Orbit Technologies Ltd for $356.3 Million

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November 4, 2025 · 4:00 PM UTC

Kratos Reports Third Quarter 2025 Financial Results

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October 31, 2025 · 9:00 AM UTC

Kratos Announces the GEK800 Has Successfully Completed Altitude Testing

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