Filing Flows › Kratos Defense & Security Solutions (KTOS) › Q2 2026
Kratos Defense & Security Solutions (KTOS) Q2 2026 earnings results (second quarter 2026)
10-Q filed Aug 4, 2026
Kratos Defense & Security Solutions (KTOS) reported revenue of $459M for the second quarter 2026 (Q2 2026), +31% from a year earlier and +24% from the quarter before. Operating margin was -0.3%, net earnings $4.4M (1.0% of revenue).
Kratos Defense & Security Solutions, Q2 2026: revenue $459M (+30% year over year), operating margin -0.3%, net earnings $4.4M, operating cash flow −$11.0M. The chart follows the revenue to costs, profit and cash.
| Q2 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $459M | +24% | +31% |
| Operating profit | −$1.6M | -134% | -143% |
| Net earnings | $4.4M | -63% | +52% |
| Operating cash flow | −$11.0M | — | — |
What changed
Revenue was $458.8M in Q2 2026, up 31% year over year and up 24% from the previous quarter. Product sales was the largest line at 63% of revenue. Product sales added $72.5M year over year (up 33%), 68% of the total change.
Gross margin was 21.8%, up 0.8 points from Q2 2025. Operating costs exceeded revenue by $1.6M, an operating margin of -0.3%. Operating expenses grew 45% against revenue growth of 31%. The fastest-growing cost line was SG&A (+46%). Net earnings were $4.4M, up 52% year over year. The effective tax rate was 37.1%. Non-operating items added $8.6M, 123% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was −$11.0M. Non-cash charges added back $22.1M of depreciation and amortization and $16.3M of share-based compensation. Working capital and other items used $53.8M. Capital expenditures of $17.2M exceeded it, leaving free cash flow of −$28.2M.
Questions
What was Kratos Defense & Security Solutions' revenue in the second quarter 2026?
Kratos Defense & Security Solutions (KTOS) reported revenue of $459M for the second quarter 2026 (Q2 2026), +31% from a year earlier and +24% from the quarter before.
Was Kratos Defense & Security Solutions profitable in the second quarter 2026?
Operating loss was $1.6M (-0.3% of revenue) and net earnings $4.4M.
Source: Kratos Defense & Security Solutions 10-Q on SEC EDGAR.