Filing Flows › Kratos Defense & Security Solutions (KTOS) › Q1 2025
Kratos Defense & Security Solutions (KTOS) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 7, 2025
Kratos Defense & Security Solutions (KTOS) reported revenue of $303M for the first quarter 2025 (Q1 2025), +9% from a year earlier and +7% from the quarter before. Operating margin was 2.2%, net earnings $4.5M (1.5% of revenue).
Kratos Defense & Security Solutions, Q1 2025: revenue $303M (+9% year over year), operating margin 2.2%, net earnings $4.5M, operating cash flow −$29.2M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $303M | +7% | +9% |
| Gross profit | $73.6M | +5% | +4% |
| Operating profit | $6.6M | +120% | -6% |
| Net earnings | $4.5M | +15% | +246% |
| Operating cash flow | −$29.2M | — | — |
What changed
Revenue was $302.6M in Q1 2025, up 9% year over year and up 7% from the previous quarter. Product sales was the largest line at 66% of revenue. Product sales added $29.5M year over year (up 17%), 116% of the total change. Service revenues declined 4%.
Gross margin was 24.3%, down 1.3 points from a year earlier. Operating profit was $6.6M, a 2.2% margin (down 0.3 points year over year). Operating profit fell $400K even though revenue rose $25.4M versus a year earlier, so costs grew faster than sales. Operating expenses grew 5% against revenue growth of 9%. Net earnings were $4.5M, up 246% year over year. The effective tax rate was 16.7%.
Operating cash flow was −$29.2M. Non-cash charges added back $10.4M of depreciation and amortization and $8.7M of share-based compensation. Working capital and other items used $52.8M. Capital expenditures of $22.6M exceeded it, leaving free cash flow of −$51.8M.
Questions
What was Kratos Defense & Security Solutions' revenue in the first quarter 2025?
Kratos Defense & Security Solutions (KTOS) reported revenue of $303M for the first quarter 2025 (Q1 2025), +9% from a year earlier and +7% from the quarter before.
Was Kratos Defense & Security Solutions profitable in the first quarter 2025?
Operating profit was $6.6M (2.2% of revenue) and net earnings $4.5M.
Source: Kratos Defense & Security Solutions 10-Q on SEC EDGAR.