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Kratos Defense & Security Solutions cash flow, quarter by quarter

Latest: Q3 2026 · from the cash-flow statements filed with the SEC

Free cash flow−$35.4M in Q3 2026 · −$123M over twelve months

Operating cash flow−$5.2M
Capital spending−$30.2M
Free cash flow−$35.4M
Cash conversion cycle68 days

Analysis

In Q3 2026, Kratos Defense & Security Solutions generated −$5.2M of operating cash flow and spent $30.2M on capital projects, leaving free cash flow of −$35.4M.

Over the twelve months to Sep 27, 2026, operating cash flow was −$31.5M; the largest uses were acquisitions ($347M), capital spending ($91.5M), taxes on employees’ shares ($60.1M); besides operations, cash came from shares issued ($1.4B), asset & business sales ($25.9M); the cash balance rose by $838M.

Operating cash flow was −$5.2M against net income of −$200K. The largest differences: contract assets −$49.3M, depreciation & amortization +$25.0M, receivables −$20.2M.

Its cash conversion cycle was 68 days (receivables 35 + inventory 60 − payables 27).

Free cash flow

Kratos Defense & Security Solutions: free cash flow by quarterKratos Defense & Security Solutions: free cash flow by quarter$32.0MQ4 2024−$51.8MQ1 2025−$32.2MQ2 2025−$41.3MQ3 2025−$12.1MQ4 2025−$47.3MQ1 2026−$28.2MQ2 2026−$35.4MQ3 2026
Operating cash flow less capital spending.
Kratos Defense & Security Solutions: operating cash flow against capital spendingKratos Defense & Security Solutions: operating cash flow against capital spendingOperating cash flowCapital spending$45.6M$13.6MQ4 2024−$29.2M$22.6MQ1 2025−$11.7M$20.5MQ2 2025−$13.3M$28.0MQ3 2025$12.1M$24.2MQ4 2025−$27.4M$19.9MQ1 2026−$11.0M$17.2MQ2 2026−$5.2M$30.2MQ3 2026
Latest (Q3 2026): Operating cash flow −$5.2M, Capital spending $30.2M.

Capital allocation, year by year

Kratos Defense & Security Solutions: where the cash came from (up) and went (down), by fiscal yearKratos Defense & Security Solutions: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingShares issuedAsset salesCapital spendingAcquisitionsFY2021: Operating cash flow $35.3MFY2021: Net borrowing −$6.1MFY2021: Shares issued $5.9MFY2021: Asset sales $2.2MFY2021: Capital spending −$46.5MFY2021: Acquisitions −$12.3M$43.4MFY2021FY2022: Operating cash flow −$25.7MFY2022: Net borrowing $256MFY2022: Shares issued $6.2MFY2022: Asset sales $200KFY2022: Capital spending −$45.4MFY2022: Acquisitions −$132M$262MFY2022FY2023: Operating cash flow $65.2MFY2023: Net borrowing −$33.5MFY2023: Shares issued $6.5MFY2023: Asset sales $8.3MFY2023: Capital spending −$52.4MFY2023: Acquisitions $300K$80.3MFY2023FY2024: Operating cash flow $49.7MFY2024: Net borrowing −$43.9MFY2024: Shares issued $339MFY2024: Capital spending −$58.2MFY2024: Acquisitions −$11.5M$389MFY2024FY2025: Operating cash flow −$42.1MFY2025: Net borrowing −$187MFY2025: Shares issued $566MFY2025: Asset sales $12.0MFY2025: Capital spending −$95.3M$578MFY2025
Over these 5 years operating cash flow totalled $82.4M; the largest uses were capital spending ($298M) and net borrowing ($270M). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$1.4B
Debtnone
Net cash$1.4B
Due within a year$2.5M
Cash runwaymore than 10 years

Kratos Defense & Security Solutions is burning cash: its operations consume cash, a free cash flow of −$123M a year at the current rate against $1.4B of cash and investments: a runway of more than ten years at that rate; $2.5M of debt also comes due within a year, which the cash covers before any new financing.

Kratos Defense & Security Solutions: debt maturities by year (FY2024)Kratos Defense & Security Solutions: debt maturities by year (FY2024)$2.5MYear 1$10.0MYear 2$10.0MYear 3$162MYear 4
Principal due in each year as disclosed in the annual report, against $1.4B of cash and investments now.

Where the cash came from and went

Kratos Defense & Security Solutions: sources (+) and uses (−) of cash, Q3 2026Kratos Defense & Security Solutions: sources (+) and uses (−) of cash, Q3 2026Cash drawn (+) / kept (−)$33.3MCapital spending−$30.2MShares issued$6.7MOperating cash flow−$5.2MOther investing−$3.6MNet borrowing (+) / repaid (−)−$1.2MAsset & business sales$400KTaxes on employees’ shares−$200K
Kratos Defense & Security Solutions: sources (+) and uses (−) of cash, TTM to Q3 2026Kratos Defense & Security Solutions: sources (+) and uses (−) of cash, TTM to Q3 2026Shares issued$1.4BCash drawn (+) / kept (−)−$838MAcquisitions−$347MCapital spending−$91.5MTaxes on employees’ shares−$60.1MOperating cash flow−$31.5MAsset & business sales$25.9MOther investing−$13.5MNet borrowing (+) / repaid (−)−$3.6MExchange rates−$1.2MOther financing$300K

From profit to cash

Kratos Defense & Security Solutions: net income to operating cash flow, Q3 2026Kratos Defense & Security Solutions: net income to operating cash flow, Q3 2026Net income−$200KDepreciation & amortization$25.0MStock-based pay$18.1MDeferred taxes−$5.1MReceivables−$20.2MInventory$1.3MPayables$12.5MAccrued liabilities$7.1MEmployee-related liabilities−$3.0MDeferred revenue$1.2MContract assets−$49.3MPrepaid and other assets$1.7MOther liabilities$4.5MIncome taxes payable$1.1M
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
QuarterReceivable daysInventory daysPayable daysCash conversion cycle
Q3 202635602768
Q2 202636592867
Q1 202644672982
Q4 202540642480
Q3 202536602869
Q2 202534583062
Q1 202535673370
Q4 202437683175

Every quarter

QuarterOperating cash flowCapital spendingAcquisitionsNet borrowing (+) / repaid (−)Shares issuedCash drawn (+) / kept (−)Free cash flow
Q3 2026−$5.2M−$30.2M—−$1.2M$6.7M$33.3M−$35.4M
Q2 2026−$11.0M−$17.2M$600K−$1.1M−$200K$26.7M−$28.2M
Q1 2026−$27.4M−$19.9M−$347M−$900K$1.4B−$904M−$47.3M
Q4 2025$12.1M−$24.2M———$5.3M−$12.1M
Q3 2025−$13.3M−$28.0M—−$180M$5.3M$218M−$41.3M
Q2 2025−$11.7M−$20.5M—−$3.0M$556M−$520M−$32.2M
Q1 2025−$29.2M−$22.6M—−$2.9M$4.6M$65.6M−$51.8M
Q4 2024$45.6M−$13.6M—−$2.9M—−$27.8M$32.0M

Kratos Defense & Security Solutions: income statement and cash flow

Kratos Defense & Security Solutions, Q3 2026: revenue $472M (+36% year over year), operating margin -1.0%. The chart follows the revenue to costs, profit and cash.

Kratos Defense & Security Solutions: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.