Filing Flows › Kratos Defense & Security Solutions (KTOS) › Q4 2025
Kratos Defense & Security Solutions (KTOS) Q4 2025 earnings results (fourth quarter 2025)
10-K filed Feb 23, 2026
Kratos Defense & Security Solutions (KTOS) reported revenue of $345M for the fourth quarter 2025 (Q4 2025), +22% from a year earlier and -0.7% from the quarter before. Operating margin was 2.4%, net earnings $5.9M (1.7% of revenue).
Kratos Defense & Security Solutions, Q4 2025: revenue $345M (+22% year over year), operating margin 2.4%, net earnings $5.9M, operating cash flow $12.1M. The chart follows the revenue to costs, profit and cash.
| Q4 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $345M | -0.7% | +22% |
| Gross profit | $83.4M | +8% | +19% |
| Operating profit | $8.2M | +15% | +173% |
| Net earnings | $5.9M | -32% | +51% |
| Operating cash flow | $12.1M | — | -73% |
What changed
Revenue was $345.1M in Q4 2025, up 22% year over year and down 1% from the previous quarter. Product sales was the largest line at 67% of revenue.
Gross margin was 24.2%, down 0.5 points from a year earlier. Operating profit was $8.2M, a 2.4% margin (up 1.3 points year over year). Of the extra revenue versus a year earlier, 8% reached operating profit, above the 1% margin then. Operating expenses grew 13% against revenue growth of 22%. The fastest-growing cost line was Other operating costs (+280%). Net earnings were $5.9M, up 51% year over year. The effective tax rate was 51.2%. Non-operating items added $3.9M, 32% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $12.1M (down 73% year over year), 205% of net earnings. Non-cash charges added back $13.0M of depreciation and amortization and $9.1M of share-based compensation. Working capital and other items used $15.9M. Capital expenditures of $24.2M exceeded it, leaving free cash flow of −$12.1M.
Questions
What was Kratos Defense & Security Solutions' revenue in the fourth quarter 2025?
Kratos Defense & Security Solutions (KTOS) reported revenue of $345M for the fourth quarter 2025 (Q4 2025), +22% from a year earlier and -0.7% from the quarter before.
Was Kratos Defense & Security Solutions profitable in the fourth quarter 2025?
Operating profit was $8.2M (2.4% of revenue) and net earnings $5.9M.
Source: Kratos Defense & Security Solutions 10-K on SEC EDGAR.