Kratos Defense & Security Solutions, Inc. (KTOS) financials
NASDAQ · Industrials · Aerospace & Defense · 4,300 employees · CEO Eric DeMarco
- Price
- $41.09 -5.74%
- Market cap
- $7.71B
- Enterprise value
- $6.47B
- Last report
- Q2 '26 filed 2026-08-04
- Next report
- 2026-11-05 EPS est. $0.21
Revenue (TTM)$1.52B+25.5% vs a year agoLast 4 quarters; bars = each quarter
Operating margin (TTM)1.5%-0.1 pp vs a year agoOperating income $23.5M
Net income (TTM)$30.9M+113.1% vs a year agoAfter tax, incl. non-operating gains
Free cash flow (TTM)-$129M-110.6% vs a year agoCapex $89.3M
Diluted EPS (TTM)$0.17+70.4% vs a year agoSum of the last 4 quarters
Net cash$1.24B+146.7% vs a year agoCash + short-term investments - debt
Valuation & key figures
- Market cap
- $7.71B EV $6.47B
- Revenue
- $1.52B Trailing 12 months
- Revenue growth
- +33% FY2026 consensus
- Profit margin
- 2.0% Net income / revenue, TTM
- P/E
- 239.0× Forward 48.8× (FY2026)
- P/S
- 5.1× Price / sales, TTM
- EV / EBITDA
- 54.5× TTM
- Free cash flow
- -$129M Trailing 12 months
- Net income
- $30.9M Trailing 12 months
- Revenue estimate
- $1.79B FY2026 consensus
- Earnings
- 2026-11-05 Revenue est. $470M
- Dividend
- – No dividend
Key takeaways
Computed from the reported numbers - every statement carries the figure it rests on.
- Last report (2026-08-04): revenue beat by 11.8%, EPS beat by 51.3%Revenue $459M vs $410M expected (+11.8%); EPS $0.21 vs $0.14 (+51.3%).
- Revenue growth accelerating: 30.5% year on yearQ2 '26 revenue $459M, against an average of 21.9% over the four quarters before.
- Operating margin 1.5% (TTM), -0.1 pp on a year agoOperating income grew 18.7% while revenue grew 25.5%.
- 42.4% of pre-tax profit is non-operatingPre-tax income $40.8M vs operating income $23.5M (TTM). Gains on equity stakes and other one-off items lift net income and EPS - operating income is the cleaner measure of the business.
- Capex 5.9% of revenue (a year ago 5.9%)$89.3M invested in the last 4 quarters (+24.0% on a year earlier). Free cash flow -$129M = -417.2% of net income.
- Diluted share count up 20.8% in a year190M diluted shares in Q2 '26, 157M a year earlier.
- Net cash $1.24BCash + short-term investments $1.44B, debt incl. leases $194M; a year ago net cash $504M.
- Kratos Government Solutions: revenue +36.4%, margin 3.8% (was 4.5%)Fastest-growing reported segment in Q2 '26: operating income $14.3M on revenue $380M (from the segment note of the filing).
Last quarter: Q2 '26
Quarter ended 2026-06-28. Compared with the same quarter a year earlier and with the analyst consensus before the report.
Quarter vs a year ago
| Q2 '26 | Year ago | Change | |
|---|---|---|---|
| Revenue | $459M | $352M | +30.5% |
| Gross margin | 21.8% | 21.0% | +0.8 pp |
| Operating income | -$1.6M | $3.7M | -143.2% |
| Operating margin | -0.3% | 1.1% | -1.4 pp |
| Net income | $4.4M | $2.9M | +51.7% |
| Diluted EPS | $0.02 | $0.02 | 0.0% |
| Operating cash flow | -$9.9M | -$11.7M | +15.4% |
| Capex | $17.2M | $20.5M | -16.1% |
| Free cash flow | -$27.1M | -$32.2M | +15.8% |
| R&D | $13.6M | $10.2M | +33.3% |
| Stock-based compensation | $31.3M | $8.6M | +264.0% |
Reported vs consensus
2026-08-04| Actual | Consensus | vs consensus | |
|---|---|---|---|
| Revenue | $459M | $410M | +11.8% |
| EPS (as estimated) | $0.21 | $0.14 | +51.3% |
From the report of 2026-08-04 for Q2 '26: revenue and the EPS analysts estimate (often adjusted), so it can differ from the EPS of the statements above.
EPS vs consensus
last 8 reportsRevenue
Where the money comes from - by business line and by region, quarter by quarter.
Revenue, operating income and growth
quarterlyRevenue by business line
stacked, quarterly| Segment | Q2 '26 | y/y | Share | TTM | TTM y/y | 12 quarters |
|---|---|---|---|---|---|---|
| Product | $289M | +33.5% | 63.0% | $987M | +2.9% | |
| Service | $170M | +25.8% | 37.0% | $535M | -3.4% |
Revenue by region
share of total| Segment | Q2 '26 | y/y | Share | TTM | TTM y/y | 12 quarters |
|---|---|---|---|---|---|---|
| United States | $360M | +25.2% | 78.6% | $1.19B | – | |
| Europe | $27.3M | +60.6% | 6.0% | $91.3M | – | |
| Middle East | $33.6M | +184.7% | 7.3% | $101M | – | |
| Asia Pacific | $26.7M | +16.6% | 5.8% | $72.6M | – | |
| Other Countries | $1.7M | -80.2% | 0.4% | $44.6M | – | |
| Other North America | $9.1M | +167.6% | 2.0% | $28.2M | – |
Segment profits
Operating income per reported segment, read from the segment note of each 10-Q / 10-K (the profit split most data feeds leave out).
Segments in Q2 '26
| Segment | Revenue | y/y | Operating income | y/y | Margin | Margin a year ago | TTM operating income |
|---|---|---|---|---|---|---|---|
| Kratos Government Solutions | $380M | +36.4% | $14.3M | +13.5% | 3.8% | 4.5% | $65.6M |
| Kratos Unmanned Systems | $79.1M | +8.1% | – | – | – | – | – |
| Corporate (unallocated) | – | – | – | – | – | – | – |
| Unmanned Systems Segment | – | – | $1.2M | +500.0% | – | – | $7.1M |
Operating income by segment
quarterlySegment operating margin
quarterlyFourth quarters are derived: the 10-K reports the full year, minus the three quarters of the 10-Qs.
Margins & cost structure
How much of each unit of revenue is left at each level - and where the costs go.
Margins
quarterlyCosts as % of revenue
quarterlyCash flow & capital allocation
Cash generated, what it is spent on, and what reaches shareholders.
Operating cash flow, capex, free cash flow
quarterlyUses of cash vs operating cash flow
fiscal yearsLast 4 quarters
cash flow statement- Operating cash flow
- -$39.6M
- Capex
- -$89.3M
- Buybacks
- -$1.7M
- Dividends
- $0
- Acquisitions
- -$347M
- Net debt issued
- -$183M
- Stock-based compensation
- $14M
- Free cash flow
- -$129M
- Returned to shareholders / FCF
- -1.3%
Share count and EPS
quarterly, dilutedBalance sheet
Liquidity, investments and debt at each quarter end.
Cash, investments and debt
quarter endsValuation & returns
Today's multiples against the company's own last five fiscal years; analyst targets and ratings.
Multiples and returns
TTM vs 5 fiscal years| Now | 5y average | Where today sits in the 5-year range | |
|---|---|---|---|
| P/E (TTM) | 239.0× | 418.5× 2 of 5 years | 241.1× – 595.9× |
| EV / EBITDA | 54.5× | 60.1× | 37.3× – 124.6× |
| EV / Sales | 4.2× | 4.1× | 1.7× – 9.6× |
| Price / FCF | -59.8× | 206.7× 1 of 5 years | 206.7× – 206.7× |
| Price / Book | 2.3× | 3.3× | 1.4× – 6.7× |
| FCF yield | -1.7% | -1.4% | -5.4% – 0.5% |
| Return on invested capital | 0.5% | 0.5% | -0.2% – 1.1% |
| Return on equity | 1.1% | -0.6% | -3.9% – 1.2% |
Analysts
Consensus target $87.82 (+113.7%)
range $50.00 – $135.00 · rating Buy
Strong buy1
Buy21
Hold3
Sell0
Strong sell0
Outlook
Analyst consensus for the coming fiscal years and what it implies at today's price.
Consensus estimates
| Fiscal year | Revenue | Growth | EPS | Growth | P/E at today's price | Analysts (EPS) |
|---|---|---|---|---|---|---|
| FY2026 | $1.79B | +32.9% | $0.84 | +547.1% | 48.8× | 15 |
| FY2027 | $2.22B | +23.8% | $1.14 | +35.9% | 36.0× | 16 |
| FY2028 | $2.71B | +22.1% | $1.47 | +28.2% | 28.0× | 11 |
| FY2029 | $3.08B | +13.7% | $1.97 | +34.3% | 20.9× | 4 |
| FY2030 | $3.58B | +16.4% | $2.52 | +28.0% | 16.3× | 4 |
Financial statements
Every line of the income statement, balance sheet and cash flow statement - 12 quarters and 10 fiscal years, as values, as % of revenue or as growth.
Every reported line
All 263 figures Kratos Defense & Security Solutions, Inc. tagged in its recent 10-Q / 10-K filings, with the official SEC label and definition - including the notes (leases, taxes, buybacks, employees, ...).
| Line (SEC label) | Latest quarter | Year ago | y/y | Latest FY | Prior FY | y/y |
|---|---|---|---|---|---|---|
| Accounts Payable, Current | $105M | $97.6M | +7.4% | $69.6M | $82M | -15.1% |
| Accounts Receivable, after Allowance for Credit Loss, Current | $171M | $142M | +20.5% | $165M | $118M | +40.4% |
| Accounts Receivable, after Allowance for Credit Loss, Noncurrent | $457M2025-12-28 | $324M | +41.3% | $457M | $324M | +41.3% |
| Accounts Receivable, Allowance for Credit Loss, Current | $1M2025-12-28 | $1.1M | -9.1% | $1M | $1.1M | -9.1% |
| Accounts Receivable, before Allowance for Credit Loss, Current | $458M2025-12-28 | $325M | +41.1% | $458M | $325M | +41.1% |
| Accounts Receivable, Credit Loss Expense (Reversal) | – | – | – | $0 | $0 | – |
| Accrued Liabilities, Current | $95.9M | $48.4M | +98.1% | $60.5M | $38.8M | +55.9% |
| Accumulated Other Comprehensive Income (Loss), Net of Tax | $600K | $2.8M | -78.6% | $2.1M | -$500K | +520.0% |
| Additional Paid in Capital, Common Stock | $4.05B | $2.61B | +55.0% | $2.64B | $2.02B | +30.7% |
| Amortization of Deferred Charges | $100K | $100K | 0.0% | $500K | $700K | -28.6% |
| Amortization of Intangible Assets | $10.1M | $2.8M | +260.7% | $9.6M | $8.6M | +11.6% |
| APIC, Share-based Payment Arrangement, Increase for Cost Recognition | $16.3M | $8.6M | +89.5% | $35.5M | $29.8M | +19.1% |
| Assets | $4.09B | $2.59B | +58.2% | $2.47B | $1.95B | +26.5% |
| Assets, Current | $2.36B | $1.43B | +64.9% | $1.26B | $872M | +44.8% |
| Business Acquisition, Pro Forma Earnings Per Share, Basic | – | – | – | -$2.312012-12-30 | -$1.15 | -100.9% |
| Business Acquisition, Pro Forma Net Income (Loss) | – | – | – | -$130M2012-12-30 | -$67.1M | -94.3% |
| Business Acquisition, Pro Forma Revenue | – | – | – | $1.02B2012-12-30 | $1.05B | -2.6% |
| Business Combination, Acquisition Related Costs | $800K | $0 | – | $2.1M | $700K | +200.0% |
| Capital Expenditures Incurred but Not yet Paid | $2.3M | -$1.1M | +309.1% | $8.2M | $8.8M | -6.8% |
| Cash and Cash Equivalents, at Carrying Value | $1.44B | $784M | +83.5% | $561M | $329M | +70.2% |
| Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $1.44B | $784M | +83.5% | $561M | $329M | +70.2% |
| Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | -$26.7M | $520M | -105.1% | $231M | $257M | -9.8% |
| Common Stock, Par or Stated Value Per Share | $0.00 | $0.00 | 0.0% | $0.00 | $0.00 | 0.0% |
| Common Stock, Shares Authorized | 245M | 195M | +25.6% | 195M | 195M | 0.0% |
| Common Stock, Shares, Issued | 188M | 169M | +11.3% | 169M | 151M | +11.8% |
| Common Stock, Shares, Outstanding | 188M | 169M | +11.3% | 169M | 151M | +11.8% |
| Common Stock, Value, Issued | $200K | $200K | 0.0% | $200K | $200K | 0.0% |
| Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | – | – | – | $0 | $0 | – |
| Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $3.9M | $5.6M | -30.4% | $24.6M | $14.1M | +74.5% |
| Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | – | – | – | $24.6M | $14.1M | +74.5% |
| Contract with Customer, Asset, after Allowance for Credit Loss | $405M | $257M | +58.0% | $292M | $206M | +41.7% |
| Contract with Customer, Liability | $93.6M | $77.3M | +21.1% | $73.4M | $76.3M | -3.8% |
| Contract with Customer, Liability, Current | $93.6M | $77.3M | +21.1% | $73.4M | $76.3M | -3.8% |
| Contract with Customer, Liability, Revenue Recognized | $17M | $15.8M | +7.6% | $64.7M | $85.8M | -24.6% |
| Cost of Goods and Services Sold | $359M | $278M | +29.2% | $1.04B | $849M | +22.4% |
| Current Federal Tax Expense (Benefit) | – | – | – | $0 | $0 | – |
| Current Foreign Tax Expense (Benefit) | – | – | – | $5.8M | $4.2M | +38.1% |
| Current State and Local Tax Expense (Benefit) | – | – | – | -$1.9M | $1.8M | -205.6% |
| Deferred Federal Income Tax Expense (Benefit) | – | – | – | $8.3M | $7.1M | +16.9% |
| Deferred Foreign Income Tax Expense (Benefit) | – | – | – | -$500K | -$200K | -150.0% |
| Deferred Income Tax Expense (Benefit) | $900K | $0 | – | $8.1M | $4.4M | +84.1% |
| Deferred State and Local Income Tax Expense (Benefit) | – | – | – | $300K | -$2.7M | +111.1% |
| Deferred Tax Assets, Gross | $134M2025-12-28 | $124M | +7.7% | $134M | $124M | +7.7% |
| Deferred Tax Assets, Net | $52.8M2025-12-28 | $59.5M | -11.3% | $52.8M | $59.5M | -11.3% |
| Deferred Tax Assets, Net of Valuation Allowance | $126M2025-12-28 | $117M | +8.4% | $126M | $117M | +8.4% |
| Deferred Tax Assets, Operating Loss Carryforwards | $30M2025-12-28 | $33.3M | -9.9% | $30M | $33.3M | -9.9% |
| Deferred Tax Assets, Tax Credit Carryforwards | $16.5M2025-12-28 | $12.7M | +29.9% | $16.5M | $12.7M | +29.9% |
| Deferred Tax Assets, Tax Deferred Expense | $19.8M2025-12-28 | $15.7M | +26.1% | $19.8M | $15.7M | +26.1% |
| Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Compensation | $11.3M2025-12-28 | $9.4M | +20.2% | $11.3M | $9.4M | +20.2% |
| Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | $7.2M2025-12-28 | $7.3M | -1.4% | $7.2M | $7.3M | -1.4% |
| Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Deferred Rent | $32.8M2025-12-28 | $28.7M | +14.3% | $32.8M | $28.7M | +14.3% |
| Deferred Tax Assets, Valuation Allowance | $7.4M2025-12-28 | $7.6M | -2.6% | $7.4M | $7.6M | -2.6% |
| Deferred Tax Liabilities, Gross | $73.5M2025-12-28 | $57M | +28.9% | $73.5M | $57M | +28.9% |
| Deferred Tax Liabilities, Intangible Assets | $26.2M2025-12-28 | $19.4M | +35.1% | $26.2M | $19.4M | +35.1% |
| Deferred Tax Liabilities, Other | $1.9M2025-12-28 | $2.3M | -17.4% | $1.9M | $2.3M | -17.4% |
| Deferred Tax Liabilities, Property, Plant and Equipment | $13.3M2025-12-28 | $6.6M | +101.5% | $13.3M | $6.6M | +101.5% |
| Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | – | – | – | $11.9M2021-12-26 | $11M | +8.2% |
| Defined Contribution Plan, Employer Discretionary Contribution Amount | – | – | – | $13.3M | $11.8M | +12.7% |
| Depreciation, Depletion and Amortization | $22.1M | $11.8M | +87.3% | $47.1M | $40.3M | +16.9% |
| Earnings Per Share, Basic | $0.02 | $0.02 | 0.0% | $0.14 | $0.11 | +27.3% |
Source: SEC companyfacts (XBRL of every 10-Q / 10-K). Cash-flow quarters are derived from the year-to-date figures the 10-Q tags. Segment breakdowns are tagged with dimensions and are shown in the segment section instead.
Sources
Statements, segment revenue, metrics and estimates are standardised from the company's filings. Segment profits and every reported line: SEC EDGAR (XBRL). Filings read: 10-Q 2026-06-28, 10-Q 2026-03-29, 10-K 2025-12-28, 10-Q 2025-09-28, 10-Q 2025-06-29, 10-Q 2025-03-30, 10-K 2024-12-29, 10-Q 2024-09-29, 10-Q 2024-06-30
Data as of 2026-11-02