Kratos Defense & Security Solutions, Inc., a technology company, provides technology, hardware, products, system, and software for the defense, national security, and commercial markets in the United States, other North America, the Asia Pacific, the Middle East, Europe, and Internationally. The company operates through Kratos Government Solutions and Unmanned Systems segments. It offers virtualized ground systems for satellites and space vehicles, including software for command and control, telemetry, and tracking and control; jet powered unmanned aerial drone systems and hypersonic vehicles and rocket systems; propulsion systems for drones, missiles, loitering munitions, supersonic systems, spacecraft and launch systems, command, control, communication, computing, combat, and intelligence surveillance and reconnaissance; and microwave electronic products for missile, radar, missile defense, space, and satellite; and counter unmanned aircraft systems, directed energy, communication and other systems, and virtual and augmented reality training systems for the warfighter. The company primarily serves national security-related agencies, the U.S. Department of Defense, intelligence and classified agencies, international government agencies, and domestic and international commercial customers. Kratos Defense & Security Solutions, Inc. was formerly known as Wireless Facilities, Inc. and changed its name to Kratos Defense & Security Solutions, Inc. in August 1999. Kratos Defense & Security Solutions, Inc. was incorporated in 1994 and is headquartered in San Diego, California.
Kratos Defense & Security Solut (KTOS) reported trailing twelve months revenue of $1.42B as of March 2026, a 21.8% increase year-over-year. Quarterly revenue reached $371.00M, reflecting continued top-line momentum.
Kratos Defense & Security Solut generated $29.40M in TTM net income, with quarterly EBITDA of $21.50M. The operating margin contracted from 2.2% to 1.3%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (1.3%) and net margin (3.2%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 1.5% a year ago, signaling stronger bottom-line efficiency.
KTOS trades at a P/E of 432.6x (a premium multiple) and a P/S of 9.0x. The price-to-book ratio of 3.7x reflects a moderate premium to book value.
The company reported negative free cash flow of $-47.30M, indicating cash consumption over the period. The balance sheet shows $4.04B in total assets with no in long-term debt against $3.41B in stockholders equity. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~2.1% on average, but show some variability — pricing power may be sensitive to market conditions.
ROE is positive at ~1.0% on average, adequate but below the threshold typically associated with wide moats.
Only 1 of the last 8 quarters had positive FCF — the business may require external capital to sustain operations.
TTM revenue has grown consistently (7 of 7 quarters up), with ~25.7% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins dropped 31.0% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.
Free cash flow has been negative in 7 of the last 8 quarters — earnings are not translating to cash.
D/E ratio is 0.1 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
The last 5 consecutive quarters had negative FCF — the company is burning cash and may need external funding.
Shares outstanding increased 16.5% — significant dilution, likely from stock compensation or capital raises.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation