$KTOS

KRATOS DEFENSE & SECURITY SOLUTIONS, INC.

CIK:0001069258|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 28, 2026	Jun. 29, 2025	Jun. 28, 2026	Jun. 29, 2025
Total revenues	$ 458.8	$ 351.5	$ 829.8	$ 654.1
Total costs	358.7	277.7	640.1	506.7
Gross profit	100.1	73.8	189.7	147.4
Selling, general and administrative expenses	87.3	59.9	159.6	116.9
Merger and acquisition expenses	0.8	0.0	2.7	0.0
Research and development expenses	13.6	10.2	24.3	20.2
Operating income (loss)	(1.6)	3.7	3.1	10.3
Other income (expense):
Interest income (expense), net	10.2	(1.2)	14.7	(2.1)
Other income (expense), net	(1.6)	2.1	(1.0)	1.8
Total other income (expense), net	8.6	0.9	13.7	(0.3)
Income before income taxes	7.0	4.6	16.8	10.0
Provision for income taxes	2.6	1.7	0.5	2.6
Net income	$ 4.4	$ 2.9	$ 16.3	$ 7.4
Basic income per common share (in dollars per share)	$ 0.02	$ 0.02	$ 0.09	$ 0.05
Diluted income per common share (in dollars per share)	$ 0.02	$ 0.02	$ 0.09	$ 0.05
Weighted average common shares outstanding:
Basic (in shares)	188.6	155.7	182.7	154.9
Diluted (in shares)	190.1	157.4	184.8	156.9
Service revenues
Total revenues	$ 169.7	$ 134.9	$ 303.7	$ 237.3
Total costs	131.6	107.2	230.9	182.9
Product sales
Total revenues	289.1	216.6	526.1	416.8
Total costs	$ 227.1	$ 170.5	$ 409.2	$ 323.8

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 28, 2026	Jun. 29, 2025
Operating activities:
Net income	$ 16.3	$ 7.4
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	38.9	22.2
Deferred income taxes	2.1	0.0
Amortization of lease right-of-use assets	6.9	6.0
Stock-based compensation	31.3	17.3
Amortization of deferred financing costs	0.2	0.3
Provision for doubtful accounts	0.1	0.0
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	16.7	(23.1)
Unbilled receivables	(104.3)	(49.9)
Inventoried costs	(24.8)	(7.3)
Prepaid expenses and other assets	(36.6)	(27.3)
Operating lease liabilities	(7.5)	(5.7)
Accounts payable	23.0	17.5
Accrued expenses	20.6	9.1
Accrued compensation	(3.2)	0.0
Billings in excess of costs and earnings on uncompleted contracts	(10.7)	(5.1)
Income tax receivable and payable	(3.9)	(0.9)
Other liabilities	(3.5)	(1.4)
Net cash used in operating activities	(38.4)	(40.9)
Investing activities:
Cash paid for acquisitions, net of cash acquired	(346.8)	0.0
Investment in joint venture	(6.9)	0.0
Proceeds from sale of assets	13.5	0.0
Capital expenditures	(37.1)	(43.1)
Proceeds from state grant for capital construction	2.0	0.0
Net cash used in investing activities	(375.3)	(43.1)
Financing activities:
Proceeds from the issuance of common stock, net of issuance costs	1,348.4	555.9
Repayment under credit facility and term loan	0.0	(5.0)
Debt issuance costs	(1.4)	0.0
Payments under finance leases	(2.0)	(0.9)
Payments of employee taxes withheld from share-based awards	(59.1)	(18.3)
Proceeds from shares issued under equity plans	5.3	4.6
Net cash provided by financing activities	1,291.2	536.3
Net cash provided	877.5	452.3
Effect of exchange rate changes on cash and cash equivalents	(0.5)	2.0
Net increase in cash and cash equivalents	877.0	454.3
Cash and cash equivalents at beginning of period	560.6	329.3
Cash and cash equivalents at end of period	1,437.6	783.6
Supplemental disclosure of cash flow information:
Cash paid for interest	0.1	5.5
Cash paid for income taxes	5.8	3.4
Non-cash investing and financing activities:
Finance lease obligation recognized	42.3	0.0
Capital expenditures included in accounts payable and accrued expenses	9.1	4.9
Common stock issuance for contingent acquisition consideration	1.0	0.0
Common stock issuance for acquisition	$ 88.8	$ 36.6

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 28, 2026	Dec. 28, 2025
Current assets:
Cash and cash equivalents	$ 1,437.6	$ 560.6
Accounts receivable, net	171.3	165.0
Unbilled receivables, net	405.4	292.4
Inventoried costs, net	235.9	188.2
Prepaid expenses	24.1	12.9
Other current assets	82.2	43.8
Total current assets	2,356.5	1,262.9
Property, plant and equipment, net	419.4	361.9
Operating lease right-of-use assets, net	50.6	43.4
Goodwill	871.2	595.7
Intangible assets, net	220.8	53.9
Other assets	159.4	144.4
Investment in joint venture	11.9	5.0
Total assets	4,089.8	2,467.2
Current liabilities:
Accounts payable	104.8	69.6
Accrued expenses	95.9	60.5
Accrued compensation	92.2	82.3
Billings in excess of costs and earnings on uncompleted contracts	93.6	73.4
Current portion of operating lease liabilities	13.8	12.8
Current portion of finance lease liabilities	5.1	3.4
Other current liabilities	19.9	9.0
Total current liabilities	425.3	311.0
Operating lease liabilities, net of current portion	39.9	33.8
Finance lease liabilities, net of current portion	134.8	95.8
Other long-term liabilities	63.0	30.3
Total liabilities	663.0	470.9
Commitments and contingencies (Note 13)
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding at June 28, 2026 and December 28, 2025	0.0	0.0
Common stock, $0.001 par value, 245,000,000 shares authorized and 187,557,916 shares issued and outstanding at June 28, 2026; 195,000,000 shares authorized and 168,875,032 shares issued and outstanding at December 28, 2025.	0.2	0.2
Additional paid-in capital	4,051.6	2,635.9
Accumulated other comprehensive income	0.6	2.1
Accumulated deficit	(625.6)	(641.9)
Total stockholders’ equity	3,426.8	1,996.3
Total liabilities and stockholders’ equity	$ 4,089.8	$ 2,467.2