Filing Flows › Kratos Defense & Security Solutions (KTOS) › Q1 2026
Kratos Defense & Security Solutions (KTOS) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 6, 2026
Kratos Defense & Security Solutions (KTOS) reported revenue of $371M for the first quarter 2026 (Q1 2026), +23% from a year earlier and +8% from the quarter before. Operating margin was 1.3%, net earnings $11.9M (3.2% of revenue).
Kratos Defense & Security Solutions, Q1 2026: revenue $371M (+23% year over year), operating margin 1.3%, net earnings $11.9M, operating cash flow −$27.4M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $371M | +8% | +23% |
| Gross profit | $89.6M | +7% | +22% |
| Operating profit | $4.7M | -43% | -29% |
| Net earnings | $11.9M | +102% | +164% |
| Operating cash flow | −$27.4M | -326% | — |
What changed
Revenue was $371.0M in Q1 2026, up 23% year over year and up 8% from the previous quarter. Product sales was the largest line at 64% of revenue. Product sales added $36.8M year over year (up 18%), 54% of the total change.
Gross margin was 24.2%, down 0.2 points from Q1 2025. Operating profit was $4.7M, a 1.3% margin (down 0.9 points year over year). Operating profit fell $1.9M even though revenue rose $68.4M versus Q1 2025, so costs grew faster than sales. Operating expenses grew 27% against revenue growth of 23%. The fastest-growing cost line was SG&A (+27%). Net earnings were $11.9M, up 164% year over year. The effective tax rate was -21.4%. Non-operating items added $5.1M, 52% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was −$27.4M. Non-cash charges added back $16.8M of depreciation and amortization and $15.0M of share-based compensation. Working capital and other items used $71.1M. Capital expenditures of $19.9M exceeded it, leaving free cash flow of −$47.3M.
Questions
What was Kratos Defense & Security Solutions' revenue in the first quarter 2026?
Kratos Defense & Security Solutions (KTOS) reported revenue of $371M for the first quarter 2026 (Q1 2026), +23% from a year earlier and +8% from the quarter before.
Was Kratos Defense & Security Solutions profitable in the first quarter 2026?
Operating profit was $4.7M (1.3% of revenue) and net earnings $11.9M.
Source: Kratos Defense & Security Solutions 10-Q on SEC EDGAR.