Filing Flows › Kratos Defense & Security Solutions (KTOS) › Q3 2025
Kratos Defense & Security Solutions (KTOS) Q3 2025 earnings results (third quarter 2025)
10-Q filed Nov 4, 2025
Kratos Defense & Security Solutions (KTOS) reported revenue of $348M for the third quarter 2025 (Q3 2025), +26% from a year earlier and -1% from the quarter before. Operating margin was 2.0%, net earnings $8.7M (2.5% of revenue).
Kratos Defense & Security Solutions, Q3 2025: revenue $348M (+26% year over year), operating margin 2.0%, net earnings $8.7M, operating cash flow −$13.3M. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $348M | -1% | +26% |
| Gross profit | $77.1M | +4% | +11% |
| Operating profit | $7.1M | +92% | +9% |
| Net earnings | $8.7M | +200% | +172% |
| Operating cash flow | −$13.3M | — | — |
What changed
Revenue was $347.6M in Q3 2025, up 26% year over year and down 1% from the previous quarter. Product sales was the largest line at 66% of revenue. Product sales added $58.2M year over year (up 34%), 81% of the total change.
Gross margin was 22.2%, down 2.9 points from a year earlier. Operating profit was $7.1M, a 2.0% margin (down 0.3 points year over year). Of the extra revenue versus a year earlier, 1% reached operating profit, below the 2% margin then. Operating expenses grew 12% against revenue growth of 26%. The fastest-growing cost line was SG&A (+14%). Net earnings were $8.7M, up 172% year over year. The effective tax rate was 26.9%. Non-operating items added $4.8M, 40% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was −$13.3M. Non-cash charges added back $11.9M of depreciation and amortization and $9.1M of share-based compensation. Working capital and other items used $43.0M. Capital expenditures of $28.0M exceeded it, leaving free cash flow of −$41.3M.
Questions
What was Kratos Defense & Security Solutions' revenue in the third quarter 2025?
Kratos Defense & Security Solutions (KTOS) reported revenue of $348M for the third quarter 2025 (Q3 2025), +26% from a year earlier and -1% from the quarter before.
Was Kratos Defense & Security Solutions profitable in the third quarter 2025?
Operating profit was $7.1M (2.0% of revenue) and net earnings $8.7M.
Source: Kratos Defense & Security Solutions 10-Q on SEC EDGAR.