KRATOS DEFENSE & SECURITY SOLUTIONS, INC. financial statements

Income statement, balance sheet and cash flow statement for the last 10 fiscal years, taken from the XBRL data KRATOS DEFENSE & SECURITY SOLUTIONS, INC. files with the SEC in its annual reports.

In USD millions, except per-share amounts. Outflows in the cash flow statement are negative.

Income statement

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue	669	752	618	718	748	812	898	1,037	1,136	1,347
Cost of revenue	515	555	448	528	545	586	672	769	849	1,039
Gross profit	121	158	170	190	203	225	226	269	287	308
Research and development	13.9	17.8	15.6	18	27	35.2	38.6	38.4	40.3	40
Selling, general and administrative	115	127	120	131	145	160	183	199	217	240
Operating income	-18	-12	30.5	38	29.3	27.9	-2.9	31.1	29	25.6
Interest expense	34.7	29.1	21.6	23.5	23.6	23.7	18.3	21.7	15.2	9.6
Interest income	0	0.5	0.8	1.9	0.8	0.3	0.6	1.2	12.2	15.5
Other non-operating income	-33.8	-45.1	-21.8	-22.3	-22.5	-23.5	-30.1	-20	-2.5	8.4
Pre-tax income	-51.8	-57.1	8.7	15.7	6.8	4.4	-33	11.1	26.5	34
Income tax	5.8	-10.2	4.6	4.8	-73.5	3.9	0.2	8.7	10.2	12
Net income to minority interests		0	0	0.1	-0.2	0.4	3.7	11.3	0	0
Net income	-60.5	-42.7	-3.5	12.5	79.6	-2	-36.9	-8.9	16.3	22
EBITDA	4.5	10.2	48.4	61.4	53.9	53.6	27.6	64.3	69.3	72.7
EPS, basic	-0.99	-0.48	-0.03	0.12	0.69	-0.02	-0.29	-0.07	0.11	0.14
EPS, diluted	-0.99	-0.48	-0.03	0.11	0.67	-0.02	-0.29	-0.07	0.11	0.13
Shares, basic (weighted)	61.3	89.5	104	106	116	125	127	130	149	163
Shares, diluted (weighted)	61.3	89.5	106	109	119	128	127	130	151	165

Balance sheet

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Cash and equivalents	69.1	131	183	173	381	349	81.3	72.8	329	561
Receivables	229	74.2	64.6	85	95.3	93.9	106	129	118	165
Inventory	57.2	49.6	46.8	1.7	3.8	4.7	1.1	5.3	4.3	6.9
Other current assets	5.2	9.5	10.3	11.4	17.8	22.5	35.4	20	38.9	43.8
Total current assets	373	471	495	522	765	758	583	594	872	1,263
Property, plant and equipment	49.8	58	67.1	117	144	168	213	244	288	362
Lease right-of-use assets				42.1	42.9	38.5	47.4	45.7	37.6	43.4
Goodwill	485	426	426	456	484	494	558	569	569	596
Intangible assets	32.6	22	16.1	39.5	43	43.2	55.2	62.4	53.8	53.9
Other non-current assets	7.7	8.1	6.5	9.7	84.4	87.5	95	118	130	144
Total assets	949	1,024	1,010	1,186	1,563	1,590	1,552	1,633	1,951	2,467
Accounts payable	52.7	34.7	46.6	53.8	55.4	50.4	57.3	63.1	82	69.6
Accrued liabilities	50	40.9	38.1	32.7	34.7	27.2	33.8	35.4	38.8	60.5
Deferred revenue		42.8	34.9	34.3	34	58.1		102	76.3	73.4
Short-term debt	1	0.8
Total current liabilities	197	189	165	183	198	221	234	293	297	311
Long-term debt	431	294	294	295	301	297	250	219	175	0
Lease liabilities				37.6	38.6	32.7	40.8	37.8	29.8	33.8
Other non-current liabilities	23.7	24.1	25.5	78.7	83	76.2	77.4	33.5	32.2	30.3
Total liabilities	672	513	491	597	623	629	604	634	598	471
Total debt	432	294	294	295	302	297	250	219	175	0
Paid-in capital	956	1,234	1,245	1,287	1,556	1,579	1,608	1,655	2,017	2,636
Retained earnings	-678	-721	-725	-712	-632	-634	-671	-680	-664	-642
Other comprehensive income	-1.7	-1.4	-0.7	-0.4	1.4	0.6	-0.8	1.7	-0.5	2.1
Shareholders' equity	276	512						976	1,353	1,996
Minority interests								22.5	0
Total equity	276	512	519	574	925	945	936	976	1,353	1,996
Total liabilities and equity	949	1,024	1,010	1,186	1,563	1,590	1,552	1,633	1,951	2,467
Shares outstanding	73.9	103	104	107	123	124	126	129	151	169

Cash flow statement

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Net income	-60.5	-42.7	-3.5	12.6	79.4	-1.6	-33.2	2.4	16.3	22
Depreciation and amortization	22.5	22.2	17.9	23.4	24.6	25.7	30.5	33.2	40.3	47.1
Stock-based compensation	5.1	7.8	7.2	11	21	25.8	26.3	25.3	29.8	35.5
Deferred income tax	4.6	-9.5	-0.4	-4.9	-78.2	-0.4	-3.1	2.5	4.4	8.1
Change in receivables	-9.9	0.5	8.2	-11.6	-3.7	2.6	-4.9	-13.1	11.2	-44.6
Change in inventory	-2.5	7.2	2	-4.6	-5.3	-5.3	-23.8	-29.6	-5	-19.3
Change in payables	1.7	-8.3	12.2	4.8	-2.4	-5.3	4.5	4.4	15.1	-13.7
Cash from operations	-14.6	-26.9	18.1	28.9	44.7	35.3	-25.7	65.2	49.7	-42.1
Capital expenditures					-35.9	-46.5	-45.4	-52.4	-58.2	-95.3
Acquisitions	-5.1	0	-2.9	-17.7	-51.5	-12.3	-132	0.3	-11.5	0
Cash from investing	-14.1	-25.4	40.5	-43.7	-87.3	-52.1	-177	-43.8	-69.7	-88.3
Debt issued	0	300	0	0	5.1	0	200	0	0
Debt repaid	-14.1	-449	0	0
Stock issued	76.2	269	-1.1	0	240	0	0	0	331	556
Cash from financing	63.1	113	1.7	3.5	248	-9.3	-63.3	-30.7	278	361
Net change in cash	39.6	60.2	52.1	-10.4	209	-32.1	-268	-8.5	257	231
Free cash flow					8.8	-11.2	-71.1	12.8	-8.5	-137
Interest paid	32.4	28.3	20.5	19.9	19.9	19.9	13.7	19.6	14.6	6.3
Income taxes paid	-0.1	-0.6	1.5	0.6	2.5	2	4.4	6.5	5	6.5

Key metrics

Worked out from the statements above. Latest values use the trailing twelve months to June 28, 2026; growth uses fiscal years. Valuation uses the share price of $45.62 on September 25, 2026.

Profitability

Metric	Value	How it is calculated
Gross margin	23.0%	Gross profit / revenue.
Operating margin	1.2%	Operating income / revenue.
EBITDA margin	5.4%	EBITDA (operating income + depreciation and amortization) / revenue.
Pre-tax margin	2.7%	Pre-tax income / revenue.
Net margin	2.0%	Net income / revenue.
FCF margin	-8.5%	Free cash flow (cash from operations - capital expenditures) / revenue.
Operating cash flow margin	-2.6%	Cash from operations / revenue.
Effective tax rate	24.3%	Income tax / pre-tax income, when pre-tax income is positive.
Return on equity (ROE)	0.9%	Net income / average shareholders' equity (opening and closing). Not shown when equity is negative.
Return on assets (ROA)	0.8%	Net income / average total assets.
Return on invested capital (ROIC)	0.7%	Approximation: operating income x (1 - tax rate) / average (total debt + equity - cash). Tax rate is the effective rate when between 0% and 50%, else 21%.
R&D / revenue	2.9%	Research and development expense / revenue.
SG&A / revenue	18.6%	Selling, general and administrative expense / revenue.
Stock-based pay / revenue	3.3%	Stock-based compensation (from the cash flow statement) / revenue.
Capex / revenue	5.9%	Capital expenditures / revenue.
D&A / revenue	4.2%	Depreciation and amortization / revenue.

Growth

Metric	Value	How it is calculated
Revenue growth, 1y	18.5%	Revenue vs the same period a year earlier. Only from a positive base.
Revenue CAGR, 3y	14.5%	Compound annual growth of revenue over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Revenue CAGR, 5y	12.5%	Compound annual growth of revenue over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Gross profit growth, 1y	7.2%	Gross profit vs the same period a year earlier. Only from a positive base.
Gross profit CAGR, 3y	10.9%	Compound annual growth of gross profit over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Gross profit CAGR, 5y	8.7%	Compound annual growth of gross profit over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating income growth, 1y	-11.7%	Operating income vs the same period a year earlier. Only from a positive base.
Operating income CAGR, 5y	-2.7%	Compound annual growth of operating income over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
EBITDA growth, 1y	4.9%	EBITDA vs the same period a year earlier. Only from a positive base.
EBITDA CAGR, 3y	38.1%	Compound annual growth of ebitda over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
EBITDA CAGR, 5y	6.2%	Compound annual growth of ebitda over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Net income growth, 1y	35.0%	Net income vs the same period a year earlier. Only from a positive base.
Net income CAGR, 5y	-22.7%	Compound annual growth of net income over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
EPS growth, 1y	18.2%	EPS vs the same period a year earlier. Only from a positive base.
EPS CAGR, 5y	-28.0%	Compound annual growth of eps over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating cash flow growth, 1y	-184.7%	Operating cash flow vs the same period a year earlier. Only from a positive base.
Book value growth, 1y	47.5%	Book value vs the same period a year earlier. Only from a positive base.
Total assets growth, 1y	26.5%	Total assets vs the same period a year earlier. Only from a positive base.
Total assets CAGR, 3y	16.7%	Compound annual growth of total assets over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Total assets CAGR, 5y	9.6%	Compound annual growth of total assets over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Share count change, 1y	9.5%	Change in diluted weighted shares vs a year earlier. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 3y	9.2%	Change in diluted weighted shares, per year over 3 years. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 5y	6.8%	Change in diluted weighted shares, per year over 5 years. Negative means buybacks shrank the share count; positive means dilution.

Balance sheet health

Metric	Value	How it is calculated
Current ratio	5.54x	Current assets / current liabilities.
Quick ratio	3.78x	(Cash + short-term investments + receivables) / current liabilities.
Cash ratio	3.38x	(Cash + short-term investments) / current liabilities.
Liabilities / assets	16.2%	Total liabilities / total assets.
Working capital	$1.93B	Current assets - current liabilities.
Goodwill and intangibles / assets	26.7%	(Goodwill + intangible assets) / total assets.
Tangible book value	$2.33B	Shareholders' equity - goodwill - intangible assets.

Efficiency

Metric	Value	How it is calculated
Asset turnover	0.37x	Revenue / average total assets.
Fixed asset turnover	3.63x	Revenue / average property, plant and equipment.
Inventory turnover	156x	Cost of revenue / average inventory.
Days inventory	2 days	365 x average inventory / cost of revenue.
Receivables turnover	8.89x	Revenue / average receivables.
Days sales outstanding	41 days	365 x average receivables / revenue.
Days payables	33 days	365 x average accounts payable / cost of revenue.
Cash conversion cycle	11 days	Days inventory + days sales outstanding - days payables.
FCF conversion	-417.2%	Free cash flow / net income, when net income is positive.

Per share

Metric	Value	How it is calculated
EPS, diluted	$0.16	Net income per diluted share, as reported (split-adjusted). Over the last twelve months: the four quarters summed, or net income / latest diluted shares when a quarter has no reported EPS.
Revenue per share	$8.01	Revenue / diluted weighted shares.
FCF per share	-$0.68	Free cash flow / diluted weighted shares.
Operating cash flow per share	-$0.21	Cash from operations / diluted weighted shares.
Book value per share	$18.27	Shareholders' equity / shares outstanding (diluted weighted shares when not reported).
Tangible book per share	$12.45	Tangible book value / shares outstanding.
Cash per share	$7.66	(Cash + short-term investments) / shares outstanding.

Valuation

Metric	Value	How it is calculated
Market cap	$8.56B	Share price x shares outstanding.
Enterprise value	$7.13B	Market cap + total debt - cash - short-term investments.
P/E	277x	Market cap / net income. Only when net income is positive.
P/S	5.62x	Market cap / revenue.
P/B	2.50x	Market cap / shareholders' equity. Only when equity is positive.
Price / tangible book	3.67x	Market cap / tangible book value, when positive.
EV/Sales	4.68x	Enterprise value / revenue.
EV/EBIT	387x	Enterprise value / operating income, when both are positive.
EV/EBITDA	86.7x	Enterprise value / EBITDA, when both are positive.
FCF yield	-1.5%	Free cash flow / market cap.
Earnings yield	0.4%	Net income / market cap (the inverse of P/E).

What was KRATOS DEFENSE & SECURITY SOLUTIONS, INC.'s revenue in fiscal 2025?

KRATOS DEFENSE & SECURITY SOLUTIONS, INC. reported revenue of $1.35B for fiscal 2025, 18.5% higher than the year before.

Was KRATOS DEFENSE & SECURITY SOLUTIONS, INC. profitable in fiscal 2025?

Yes. Net income was $22.0M, a net margin of 1.6%.

How much free cash flow did KRATOS DEFENSE & SECURITY SOLUTIONS, INC. generate in fiscal 2025?

Cash from operations of $42.1M minus capital expenditures of $95.3M left free cash flow of -$137.4M.

Source: SEC EDGAR XBRL company facts. Where a company tags only year-to-date figures, quarters are worked out as differences. Where a line is not tagged it is left empty, never estimated.

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