Filing Flows › Kratos Defense & Security Solutions (KTOS) › Q3 2026
Kratos Defense & Security Solutions (KTOS) Q3 2026 earnings results (third quarter 2026)
10-Q filed Nov 5, 2026
Kratos Defense & Security Solutions (KTOS) reported revenue of $472M for the third quarter 2026 (Q3 2026), +36% from a year earlier and +3% from the quarter before. Operating margin was -1.0%, net loss $200K (0.0% of revenue).
Kratos Defense & Security Solutions, Q3 2026: revenue $472M (+36% year over year), operating margin -1.0%, net loss $200K, operating cash flow −$5.2M. The chart follows the revenue to costs, profit and cash.
| Q3 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $472M | +3% | +36% |
| Operating profit | −$4.9M | — | -169% |
| Net earnings | −$200K | -105% | -102% |
| Operating cash flow | −$5.2M | — | — |
What changed
Revenue was $471.8M in Q3 2026, up 36% year over year and up 3% from the previous quarter. Product sales was the largest line at 63% of revenue. Product sales added $64.7M year over year (up 28%), 52% of the total change.
Gross margin was 22.5%, up 0.3 points from Q3 2025. Operating costs exceeded revenue by $4.9M, an operating margin of -1.0%. Operating expenses grew 58% against revenue growth of 36%. The fastest-growing cost line was SG&A (+59%). The quarter ended with a net loss of $200K, after a profit of $4.4M the previous quarter. Non-operating items added $9.5M, 207% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was −$5.2M. Non-cash charges added back $25.0M of depreciation and amortization and $18.1M of share-based compensation. Working capital and other items used $48.1M. Capital expenditures of $30.2M exceeded it, leaving free cash flow of −$35.4M.
Questions
What was Kratos Defense & Security Solutions' revenue in the third quarter 2026?
Kratos Defense & Security Solutions (KTOS) reported revenue of $472M for the third quarter 2026 (Q3 2026), +36% from a year earlier and +3% from the quarter before.
Was Kratos Defense & Security Solutions profitable in the third quarter 2026?
Operating loss was $4.9M (-1.0% of revenue) and net loss $200K.
Source: Kratos Defense & Security Solutions 10-Q on SEC EDGAR.