Kratos Defense & Sec Solutions Financials
Financial Health Signals
Based on FY2024 annual data. Scores normalized against common benchmarks. How we calculate these scores
Kratos Defense & Sec Solutions has an operating margin of 2.5%, meaning the company retains $3 of operating profit per $100 of revenue. This below-average margin results in a low score of 13/100, suggesting thin profitability after operating expenses. This is down from 3.0% the prior year.
Kratos Defense & Sec Solutions's revenue grew 9.6% year-over-year to $1.1B, a solid pace of expansion. This earns a growth score of 56/100.
Kratos Defense & Sec Solutions carries a low D/E ratio of 0.13, meaning only $0.13 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 2.94, Kratos Defense & Sec Solutions holds $2.94 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 98/100.
While Kratos Defense & Sec Solutions generated $49.7M in operating cash flow, capex of $58.2M consumed most of it, leaving -$8.5M in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.
Kratos Defense & Sec Solutions generates a 1.2% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 5/100.
Kratos Defense & Sec Solutions scores 15.74, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($15.2B) relative to total liabilities ($597.7M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Kratos Defense & Sec Solutions passes 6 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 2 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, Kratos Defense & Sec Solutions generates $3.05 in operating cash flow ($49.7M OCF vs $16.3M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Kratos Defense & Sec Solutions earns $1.9 in operating income for every $1 of interest expense ($29.0M vs $15.2M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
This page shows Kratos Defense & Sec Solutions (KTOS) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 16 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
Kratos Defense & Sec Solutions generated $1.1B in revenue in fiscal year 2024. This represents an increase of 9.6% from the prior year.
Kratos Defense & Sec Solutions's EBITDA was $69.3M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 7.8% from the prior year.
Kratos Defense & Sec Solutions generated -$8.5M in free cash flow in fiscal year 2024, representing cash available after capex. This represents a decrease of 166.4% from the prior year.
Kratos Defense & Sec Solutions reported $16.3M in net income in fiscal year 2024. This represents an increase of 283.1% from the prior year.
Kratos Defense & Sec Solutions earned $0.11 per diluted share (EPS) in fiscal year 2024. This represents an increase of 257.1% from the prior year.
Kratos Defense & Sec Solutions held $329.3M in cash against $174.6M in long-term debt as of fiscal year 2024.
Kratos Defense & Sec Solutions had 151M shares outstanding in fiscal year 2024. This represents an increase of 16.2% from the prior year.
Kratos Defense & Sec Solutions's gross margin was 25.3% in fiscal year 2024, indicating the percentage of revenue retained after direct costs. This is down 0.6 percentage points from the prior year.
Kratos Defense & Sec Solutions's operating margin was 2.5% in fiscal year 2024, reflecting core business profitability. This is down 0.5 percentage points from the prior year.
Kratos Defense & Sec Solutions's net profit margin was 1.4% in fiscal year 2024, showing the share of revenue converted to profit. This is up 2.3 percentage points from the prior year.
Kratos Defense & Sec Solutions's ROE was 1.2% in fiscal year 2024, measuring profit generated per dollar of shareholder equity.
Kratos Defense & Sec Solutions invested $40.3M in research and development in fiscal year 2024. This represents an increase of 4.9% from the prior year.
Kratos Defense & Sec Solutions invested $58.2M in capex in fiscal year 2024, funding long-term assets and infrastructure. This represents an increase of 11.1% from the prior year.
KTOS Income Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $347.6M-1.1% | $351.5M+16.2% | $302.6M+6.9% | $283.1M-5.7% | $300.1M+8.3% | $277.2M+1.2% | $273.8M-0.3% | $274.6M |
| Cost of Revenue | $270.5M-2.6% | $277.7M+21.3% | $229.0M+7.4% | $213.3M-4.3% | $222.9M+8.1% | $206.2M+2.1% | $201.9M+0.3% | $201.2M |
| Gross Profit | $77.1M+4.5% | $73.8M+0.3% | $73.6M+5.4% | $69.8M-9.6% | $77.2M+8.7% | $71.0M-1.3% | $71.9M-2.0% | $73.4M |
| R&D Expenses | $10.0M-2.0% | $10.2M+2.0% | $10.0M-5.7% | $10.6M+3.9% | $10.2M+6.3% | $9.6M+20.0% | $8.0M-22.3% | $10.3M |
| SG&A Expenses | $59.8M-0.2% | $59.9M+5.1% | $57.0M+8.6% | $52.5M-3.7% | $54.5M+0.2% | $54.4M+5.0% | $51.8M+1.8% | $50.9M |
| Operating Income | $7.1M+91.9% | $3.7M-43.9% | $6.6M+120.0% | $3.0M-76.0% | $12.5M+78.6% | $7.0M-40.2% | $11.7M-4.1% | $12.2M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $3.2M+88.2% | $1.7M+88.9% | $900K+800.0% | $100K-97.9% | $4.8M+77.8% | $2.7M+35.0% | $2.0M-47.4% | $3.8M |
| Net Income | $8.7M+200.0% | $2.9M-35.6% | $4.5M+15.4% | $3.9M-50.6% | $7.9M+507.7% | $1.3M-45.8% | $2.4M+250.0% | -$1.6M |
| EPS (Diluted) | $0.05+150.0% | $0.02-33.3% | $0.030.0% | $0.03-40.0% | $0.05+400.0% | $0.010.0% | $0.01+200.0% | $-0.01 |
KTOS Balance Sheet
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $2.4B-6.3% | $2.6B+29.0% | $2.0B+2.8% | $2.0B+1.9% | $1.9B-1.9% | $2.0B+19.5% | $1.6B+2.6% | $1.6B |
| Current Assets | $1.2B-13.4% | $1.4B+65.3% | $864.4M-0.9% | $872.1M+2.5% | $851.2M-2.4% | $871.7M+46.7% | $594.2M-1.7% | $604.4M |
| Cash & Equivalents | $565.9M-27.8% | $783.6M+197.2% | $263.7M-19.9% | $329.3M+6.8% | $308.2M-9.1% | $338.9M+365.5% | $72.8M+72.5% | $42.2M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $136.3M-4.1% | $142.2M+20.3% | $118.2M+0.6% | $117.5M-10.8% | $131.7M+12.7% | $116.9M-9.2% | $128.8M+0.5% | $128.2M |
| Goodwill | $595.0M-0.6% | $598.8M+0.2% | $597.4M+5.0% | $568.9M0.0% | $568.9M0.0% | $568.9M0.0% | $569.1M+2.0% | $558.2M |
| Total Liabilities | $441.8M-29.4% | $625.7M+1.4% | $617.3M+3.3% | $597.7M+2.2% | $584.9M-0.2% | $586.0M-7.6% | $634.0M+2.6% | $618.1M |
| Current Liabilities | $287.4M-10.9% | $322.4M+5.7% | $304.9M+2.8% | $296.7M+9.0% | $272.3M-5.5% | $288.2M-1.5% | $292.5M+11.2% | $263.0M |
| Long-Term Debt | $0-100.0% | $169.8M-1.4% | $172.2M-1.4% | $174.6M-2.7% | $179.5M+0.1% | $179.4M-18.2% | $219.3M-6.4% | $234.2M |
| Total Equity | $2.0B+1.1% | $2.0B+41.3% | $1.4B+2.5% | $1.4B+1.8% | $1.3B+1.8% | $1.3B+33.8% | $976.0M+2.4% | $953.4M |
| Retained Earnings | -$647.8M+1.3% | -$656.5M+0.4% | -$659.4M+0.7% | -$663.9M+1.1% | -$671.0M+1.2% | -$678.9M+0.2% | -$680.2M+0.4% | -$682.6M |
KTOS Cash Flow Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$13.3M-13.7% | -$11.7M+59.9% | -$29.2M-164.0% | $45.6M+1788.9% | -$2.7M-485.7% | $700K-99.0% | $67.4M | $0 |
| Capital Expenditures | $28.0M+36.6% | $20.5M-9.3% | $22.6M+66.2% | $13.6M+7.1% | $12.7M-23.5% | $16.6M-14.0% | $19.3M+35.9% | $14.2M |
| Free Cash Flow | -$41.3M-28.3% | -$32.2M+37.8% | -$51.8M-261.9% | $32.0M+307.8% | -$15.4M+3.1% | -$15.9M-133.1% | $48.1M+438.7% | -$14.2M |
| Investing Cash Flow | -$28.0M-36.6% | -$20.5M+9.3% | -$22.6M-66.2% | -$13.6M+43.8% | -$24.2M-45.8% | -$16.6M+12.6% | -$19.0M-33.8% | -$14.2M |
| Financing Cash Flow | -$176.1M-132.0% | $550.8M+3898.6% | -$14.5M-383.3% | -$3.0M+16.7% | -$3.6M-101.3% | $282.6M+1619.4% | -$18.6M-313.8% | $8.7M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
KTOS Financial Ratios
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 22.2%+1.2pp | 21.0%-3.3pp | 24.3%-0.3pp | 24.7%-1.1pp | 25.7%+0.1pp | 25.6%-0.7pp | 26.3%-0.5pp | 26.7% |
| Operating Margin | 2.0%+1.0pp | 1.1%-1.1pp | 2.2%+1.1pp | 1.1%-3.1pp | 4.2%+1.6pp | 2.5%-1.7pp | 4.3%-0.2pp | 4.4% |
| Net Margin | 2.5%+1.7pp | 0.8%-0.7pp | 1.5%+0.1pp | 1.4%-1.3pp | 2.6%+2.2pp | 0.5%-0.4pp | 0.9%+1.5pp | -0.6% |
| Return on Equity | 0.4%+0.3pp | 0.1%-0.2pp | 0.3%+0.0pp | 0.3%-0.3pp | 0.6%+0.5pp | 0.1%-0.1pp | 0.3% | N/A |
| Return on Assets | 0.4%+0.2pp | 0.1%-0.1pp | 0.2%+0.0pp | 0.2%-0.2pp | 0.4%+0.3pp | 0.1%-0.1pp | 0.1%+0.3pp | -0.1% |
| Current Ratio | 4.30-0.1 | 4.43+1.6 | 2.83-0.1 | 2.94-0.2 | 3.13+0.1 | 3.02+1.0 | 2.03-0.3 | 2.30 |
| Debt-to-Equity | 0.00-0.1 | 0.09-0.0 | 0.120.0 | 0.130.0 | 0.140.0 | 0.14-0.1 | 0.22-0.0 | 0.25 |
| FCF Margin | -11.9%-2.7pp | -9.2%+8.0pp | -17.1%-28.4pp | 11.3%+16.4pp | -5.1%+0.6pp | -5.7%-23.3pp | 17.6%+22.7pp | -5.2% |
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Frequently Asked Questions
What is Kratos Defense & Sec Solutions's annual revenue?
Kratos Defense & Sec Solutions (KTOS) reported $1.1B in total revenue for fiscal year 2024. This represents a 9.6% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Kratos Defense & Sec Solutions's revenue growing?
Kratos Defense & Sec Solutions (KTOS) revenue grew by 9.6% year-over-year, from $1.0B to $1.1B in fiscal year 2024.
Is Kratos Defense & Sec Solutions profitable?
Yes, Kratos Defense & Sec Solutions (KTOS) reported a net income of $16.3M in fiscal year 2024, with a net profit margin of 1.4%.
What is Kratos Defense & Sec Solutions's earnings per share (EPS)?
Kratos Defense & Sec Solutions (KTOS) reported diluted earnings per share of $0.11 for fiscal year 2024. This represents a 257.1% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Kratos Defense & Sec Solutions's EBITDA?
Kratos Defense & Sec Solutions (KTOS) had EBITDA of $69.3M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Kratos Defense & Sec Solutions have?
As of fiscal year 2024, Kratos Defense & Sec Solutions (KTOS) had $329.3M in cash and equivalents against $174.6M in long-term debt.
What is Kratos Defense & Sec Solutions's gross margin?
Kratos Defense & Sec Solutions (KTOS) had a gross margin of 25.3% in fiscal year 2024, indicating the percentage of revenue retained after direct costs of goods sold.
What is Kratos Defense & Sec Solutions's operating margin?
Kratos Defense & Sec Solutions (KTOS) had an operating margin of 2.5% in fiscal year 2024, reflecting the profitability of core business operations before interest and taxes.
What is Kratos Defense & Sec Solutions's net profit margin?
Kratos Defense & Sec Solutions (KTOS) had a net profit margin of 1.4% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.
What is Kratos Defense & Sec Solutions's return on equity (ROE)?
Kratos Defense & Sec Solutions (KTOS) has a return on equity of 1.2% for fiscal year 2024, measuring how efficiently the company generates profit from shareholder equity.
What is Kratos Defense & Sec Solutions's free cash flow?
Kratos Defense & Sec Solutions (KTOS) generated -$8.5M in free cash flow during fiscal year 2024. This represents a -166.4% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Kratos Defense & Sec Solutions's operating cash flow?
Kratos Defense & Sec Solutions (KTOS) generated $49.7M in operating cash flow during fiscal year 2024, representing cash generated from core business activities.
What are Kratos Defense & Sec Solutions's total assets?
Kratos Defense & Sec Solutions (KTOS) had $2.0B in total assets as of fiscal year 2024, including both current and long-term assets.
What are Kratos Defense & Sec Solutions's capital expenditures?
Kratos Defense & Sec Solutions (KTOS) invested $58.2M in capital expenditures during fiscal year 2024, funding long-term assets and infrastructure.
How much does Kratos Defense & Sec Solutions spend on research and development?
Kratos Defense & Sec Solutions (KTOS) invested $40.3M in research and development during fiscal year 2024.
How many shares does Kratos Defense & Sec Solutions have outstanding?
Kratos Defense & Sec Solutions (KTOS) had 151M shares outstanding as of fiscal year 2024.
What is Kratos Defense & Sec Solutions's current ratio?
Kratos Defense & Sec Solutions (KTOS) had a current ratio of 2.94 as of fiscal year 2024, which is generally considered healthy.
What is Kratos Defense & Sec Solutions's debt-to-equity ratio?
Kratos Defense & Sec Solutions (KTOS) had a debt-to-equity ratio of 0.13 as of fiscal year 2024, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Kratos Defense & Sec Solutions's return on assets (ROA)?
Kratos Defense & Sec Solutions (KTOS) had a return on assets of 0.8% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.
What is Kratos Defense & Sec Solutions's Altman Z-Score?
Kratos Defense & Sec Solutions (KTOS) has an Altman Z-Score of 15.74, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Kratos Defense & Sec Solutions's Piotroski F-Score?
Kratos Defense & Sec Solutions (KTOS) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Kratos Defense & Sec Solutions's earnings high quality?
Kratos Defense & Sec Solutions (KTOS) has an earnings quality ratio of 3.05x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Kratos Defense & Sec Solutions cover its interest payments?
Kratos Defense & Sec Solutions (KTOS) has an interest coverage ratio of 1.9x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Kratos Defense & Sec Solutions?
Kratos Defense & Sec Solutions (KTOS) scores 45 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.