Inferra AI / Company / KTOS
Kratos Defense & Security Solutions, Inc.
KTOS · Industrials
Last earnings Aug 4, 2026
Key results
Revenuequarter
$351.5 Million
Revenues of $351.5 Million Reflect 17.1 Percent Growth and
SEC original ↗Kratos Defense & Security Solutions, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025
Revenues of $300.1 Million Second Quarter 2025 Consolidated Book to Bill Ratio of 0.7 to 1 and Bookings of $257.0
SEC original ↗Kratos Defense & Security Solutions, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025
Revenues of $351.5 million,
SEC original ↗Kratos Defense & Security Solutions, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025
Operating incomequarter
$3.7 million
Operating Income of $3.7 million,
SEC original ↗Kratos Defense & Security Solutions, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025
Net incomequarter
$2.9 million
Net Income of $2.9 million, Adjusted EBITDA of $28.3 million and a consolidated book to bill ratio of 0.7 to 1.0.
SEC original ↗Kratos Defense & Security Solutions, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025
Second quarter 2025 Net Income and Operating Income includes non-cash stock compensation expense of $8.6 million, and Company-funded Research and Development (R D) expense of $10.2 million, including efforts in our Space, Satellite, Unmanned Systems and Microwave Electronic businesses, and expense to accrue $2.0 million related to settlement of a legal matter, offset partially by non-recurring credits of $1.1 million related to the resolution of a previously recorded contingent liability.
SEC original ↗Kratos Defense & Security Solutions, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025
GAAP net incomequarter
$2.9 million
Kratos reported second quarter 2025 GAAP Net Income of $2.9 million and GAAP Net Income per share of $0.02, compared to GAAP Net Income of $7.9 million and GAAP Net Income per share of $0.05, for the second quarter of 2024.
SEC original ↗Kratos Defense & Security Solutions, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025
EPSquarter
$0.11
Adjusted earnings per share (EPS) was $0.11 for the second quarter of 2025, compared to $0.14 for the second quarter of 2024.
SEC original ↗Kratos Defense & Security Solutions, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025
AI analysis
Q2 2025 · reported Aug 7, 2025
Based on: Earnings release + parent 8-K + 10-Q — transcript not held
The quarter in charts
Diluted EPS — GAAP
Per diluted share, as stated
EX-99 · Aug 7, 2025 EPS values as stated in the release.
Guidance ladder — revenue
Delivered vs the company's guided range
EX-99 · Aug 7, 2025 Guide as stated by the company; range and midpoint computed from the stated figure.
Headline figures
| Metric | Q2 2025 | Prior qtr | Year ago |
|---|---|---|---|
| Revenue | $351.5 Million | — | — |
| Operating income | $3.7 million | — | — |
| Net income | $2.9 million | — | — |
| GAAP net income | $2.9 million | — | — |
| EPS | $0.11 | — | $0.14 |
Guidance · company-stated
Direction: Raised
“com Kratos Reports Second Quarter 2025 Financial Results Second Quarter 2025 Revenues of $351.5 Million Reflect 17.1 Percent Growth and 15.2 Percent Organic Growth Over Second Quarter 2024 Revenues of $300.1 Million Second Quarter 2025 Consolidated Book to Bill Ratio of 0.7 to 1 and Bookings of $257.0 Million Last Twelve Months Ended June 29, 2025 Consolidated Book to Bill Ratio of 1.2 to 1 and Bookings of $1.401 Billion Increases 2025 Full Year Revenue and Adjusted EBITDA Guidance SAN DIEGO, CA, August 7, 2025 Kratos Defense Security Solutions, Inc.”
Classified from the release's primary full-year outlook statement.
Capital allocation
Free Cash Flow Used in Operations for the second quarter of 2025 was $31.1 million after funding of $20.5 million of capital expenditures.
What changed vs last quarter
- Guide midpoint vs latest-quarter revenue 0.0% computed from stated figures
Event summary
Adjusted earnings per share (EPS) was $0.11 for the second quarter of 2025, compared to $0.14 for the second quarter of 2024
Based on: Earnings release + parent 8-K + 10-Q — transcript not held
Guidance & outlook
Direction: Raised
Revenue: “com Kratos Reports Second Quarter 2025 Financial Results Second Quarter 2025 Revenues of $351.5 Million Reflect 17.1 Percent Growth and 15.2 Percent Organic Growth Over Second Quarter 2024 Revenues of $300.1 Million Second Quarter 2025 Consolidated Book to Bill Ratio of 0.7 to 1 and Bookings of $257.0 Million Last Twelve Months Ended June 29, 2025 Consolidated Book to Bill Ratio of 1.2 to 1 and Bookings of $1.401 Billion Increases 2025 Full Year Revenue and Adjusted EBITDA Guidance SAN DIEGO, CA, August 7, 2025 Kratos Defense Security Solutions, Inc.”
Revenue — Raised (“Increases”)
“com Kratos Reports Second Quarter 2025 Financial Results Second Quarter 2025 Revenues of $351.5 Million Reflect 17.1 Percent Growth and 15.2 Percent Organic Growth Over Second Quarter 2024 Revenues of $300.1 Million Second Quarter 2025 Consolidated Book to Bill Ratio of 0.7 to 1 and Bookings of $257.0 Million Last Twelve Months Ended June 29, 2025 Consolidated Book to Bill Ratio of 1.2 to 1 and Bookings of $1.401 Billion Increases 2025 Full Year Revenue and Adjusted EBITDA Guidance SAN DIEGO, CA, August 7, 2025 Kratos Defense Security Solutions, Inc.”
Revenue — Raised (“increasing”)
“Financial Guidance We are providing our initial 2025 third quarter guidance and increasing our full year 2025 Revenue and Adjusted EBITDA guidance range, which includes our assumptions, including as related to current forecasted business mix, employee sourcing, hiring and retention manufacturing, production and supply chain disruptions parts shortages and related continued significant cost and price increases in each of these areas, that are impacting the industry and Kratos.”
Classified from the release's primary full-year outlook statement.
Capital allocation
Free Cash Flow Used in Operations for the second quarter of 2025 was $31.1 million after funding of $20.5 million of capital expenditures.
SEC original ↗Kratos Defense & Security Solutions, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025
Our third quarter and full year 2025 guidance ranges are as follows Current Guidance Range $M Q325 FY25 Revenues $315 - $325 $1,290 - $1,310 R D $10 - $11 $40 - $42 Operating Income $3 - $7 $29 - $34 Depreciation $9 - $10 $35 - $38 Amortization $3 - $4 $12 - $14 Stock Based Compensation $8 - $9 $34 - $36 Adjusted EBITDA $25 - $30 $114 - $120 Operating Cash Flow $50 - $60 Capital Expenditures $125 - $135 Free Cash Flow Use ($75 - $85) Management will discuss the Company s financial results on a conference call beginning at 2 00 p.
SEC original ↗Kratos Defense & Security Solutions, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025
Additional non-GAAP financial measures include Free Cash Flow from Operations computed as Cash Flow from Operations less Capital Expenditures plus proceeds from sale of assets and Adjusted EBITDA related to our KUS and KGS businesses.
SEC original ↗Kratos Defense & Security Solutions, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025
These amounts may vary from period to period due to changes in cash and debt balances.
SEC original ↗Kratos Defense & Security Solutions, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025
The Company also had entered into an interest rate swap contract in order to mitigate the exposure to interest rate movements associated with the Company s Term Loan A.
SEC original ↗Kratos Defense & Security Solutions, Inc. — 10-Q Quarterly report10-QAug 4, 2026
On June 30, 2025, in anticipation of the extinguishment of all outstanding Term Loan A debt under the 2022 Credit Facility, the Company terminated this interest rate swap contract.
SEC original ↗Kratos Defense & Security Solutions, Inc. — 10-Q Quarterly report10-QAug 4, 2026
Strategy & priorities
Second quarter 2025 Cash Flow Used in Operations was $10.6 million, primarily reflecting the working capital requirements related to the revenue growth impacting our receivables, increases in inventories for anticipated future deliveries and ramps in production and investments we are making related to certain development initiatives in our Unmanned Systems (KUS) segment.
SEC original ↗Kratos Defense & Security Solutions, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025
Eric DeMarco, Kratos President and CEO, said, A generational recapitalization of strategic weapon systems is underway, with significant global funding being committed by the U.
SEC original ↗Kratos Defense & Security Solutions, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025
Since our last report to you, President Trump signed the Reconciliation Bill into law, supplementing defense spending by an additional $150 billion, including increased funding for drones, air defense systems, missiles, radars, space and satellites and the Golden Dome initiative, each related to primary Kratos capability areas.
SEC original ↗Kratos Defense & Security Solutions, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025
Also, further emphasizing the new focus on streamlining defense acquisition, promoting innovation and commercial ready to go solutions to deliver capabilities to the warfighter faster and more efficiently, Senator Roger Wicker recently introduced the FORGED Act and House Armed Services Committee Chair Mike Rogers and Ranking Member Adam Smith introduced the related SPEED Act, all of which, if enacted, we expect to benefit Kratos and our First to Market strategy.
SEC original ↗Kratos Defense & Security Solutions, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025
Additionally, we were also recently informed that Kratos, with our strategic partner, were down selected on another large, new program of record opportunity we call Deimos .
SEC original ↗Kratos Defense & Security Solutions, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025
Risks & headwinds
Legal Proceedings 45 Item 1A.
SEC original ↗Kratos Defense & Security Solutions, Inc. — 10-Q Quarterly report10-QAug 4, 2026
Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved.
SEC original ↗Kratos Defense & Security Solutions, Inc. — 10-Q Quarterly report10-QAug 4, 2026
Competitors
Competitors & peers
Same GICS sector — classification peers, not declared competitors
Filings
30 documentsEarnings releases
8 documentsPresentations
0 documentsNo presentations for Kratos Defense & Security Solutions, Inc. are held in this edition of the library.
Transcripts
0 documentsNo transcripts for Kratos Defense & Security Solutions, Inc. are held in this edition of the library.
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