Filing Flows › Kratos Defense & Security Solutions (KTOS) › Q2 2025
Kratos Defense & Security Solutions (KTOS) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 7, 2025
Kratos Defense & Security Solutions (KTOS) reported revenue of $352M for the second quarter 2025 (Q2 2025), +17% from a year earlier and +16% from the quarter before. Operating margin was 1.1%, net earnings $2.9M (0.8% of revenue).
Kratos Defense & Security Solutions, Q2 2025: revenue $352M (+17% year over year), operating margin 1.1%, net earnings $2.9M, operating cash flow −$11.7M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $352M | +16% | +17% |
| Gross profit | $73.8M | +0.3% | -4% |
| Operating profit | $3.7M | -44% | -70% |
| Net earnings | $2.9M | -36% | -63% |
| Operating cash flow | −$11.7M | — | — |
What changed
Revenue was $351.5M in Q2 2025, up 17% year over year and up 16% from the previous quarter. Product sales was the largest line at 62% of revenue. Service revenues added $28.4M year over year (up 27%), 55% of the total change.
Gross margin was 21.0%, down 4.7 points from a year earlier. Operating profit was $3.7M, a 1.1% margin (down 3.1 points year over year). Operating profit fell $8.8M even though revenue rose $51.4M versus a year earlier, so costs grew faster than sales. Operating expenses grew 8% against revenue growth of 17%. Net earnings were $2.9M, down 63% year over year. The effective tax rate was 37.0%.
Operating cash flow was −$11.7M. Non-cash charges added back $11.8M of depreciation and amortization and $8.6M of share-based compensation. Working capital and other items used $35.0M. Capital expenditures of $20.5M exceeded it, leaving free cash flow of −$32.2M.
Questions
What was Kratos Defense & Security Solutions' revenue in the second quarter 2025?
Kratos Defense & Security Solutions (KTOS) reported revenue of $352M for the second quarter 2025 (Q2 2025), +17% from a year earlier and +16% from the quarter before.
Was Kratos Defense & Security Solutions profitable in the second quarter 2025?
Operating profit was $3.7M (1.1% of revenue) and net earnings $2.9M.
Source: Kratos Defense & Security Solutions 10-Q on SEC EDGAR.