# Kratos Defense & Security Solutions, Inc. (KTOS)

> Source: Nexqual · https://nexqual.com/KTOS · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Kratos Defense & Security Solutions, Inc. (KTOS), nexqual.com/KTOS" · informational, not investment advice.

**Price:** USD 38.27 (-1.21% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 38.74 · day 37.4–39.96 · 52w 37.4–134 · market cap $7.18B · NMS

## Key facts
- Last four reported quarters (through Jun 28, 2026): revenue $1.52B, net income $30.9M (2.0% margin), free cash flow -$129M (SEC filings).
- Valuation: P/E 232.5x (avg 407.1x at the last 2 fiscal year-ends).
- Earnings quality: non-operating income $22.4M vs operating income $18.4M over the last four quarters; P/E excluding non-operating income ≈515.5x (estimate: non-operating income taxed at the company's 24.3% effective rate).
- Insider open-market sales, last ~7 months: 38 Form 4 filings, $34.0M; 5 not under a Rule 10b5-1 plan ($4.8M); 4 by opportunistic insiders (1 outside 10b5-1 plans), 24 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Total return with dividends: 1Y -57.1% vs S&P 500 +14.9%; 5Y +70.2% vs S&P 500 +80.3%.
- Next earnings: 2026-11-03, EPS estimate USD 0.2, revenue estimate $470M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $812M | $898M | $1.04B | $1.14B | $1.35B | $1.52B |
| Gross profit | $225M | $226M | $269M | $287M | $308M | — |
| Operating income | $27.9M | -$2.9M | $31.1M | $29.0M | $25.6M | $18.4M |
| Net income | -$2.0M | -$36.9M | -$8.9M | $16.3M | $22.0M | $30.9M |
| EPS (diluted) | -$0.02 | -$0.29 | -$0.07 | $0.11 | $0.13 | — |
| Free cash flow | -$11.2M | -$71.1M | $12.8M | -$8.5M | -$137M | -$129M |
| Gross margin | 27.7% | 25.2% | 25.9% | 25.3% | 22.9% | — |
| Operating margin | 3.4% | -0.3% | 3.0% | 2.6% | 1.9% | 1.2% |
| Net margin | -0.2% | -4.1% | -0.9% | 1.4% | 1.6% | 2.0% |
| Revenue growth | +8.5% | +10.7% | +15.5% | +9.6% | +18.5% | — |
| Cash + short-term investments | $349M | $81.3M | $72.8M | $329M | $561M | — |
| Total debt | $297M | $250M | $219M | $175M | $0K | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 28, 2026)
P/E 232.5x · P/E ex non-operating (est.) ≈515.5x · P/S 4.7x · P/B 2.1x · FCF yield -1.79% · Earnings yield 0.43%
P/E at fiscal year-ends: Dec 2025 570.0x, Dec 2024 244.2x.

## Insider sales (SEC Form 4, open-market, last ~7 months)
33 of 38 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-10-15 | Carrai Phillip D | President, STC Division | 6,500 | $259K | 2.9% | Yes (adopted August 26, 2025) | Routine (sold in Aug & Sep & Oct & Nov & Dec each year 2023–2025) |
| 2026-09-21 | Lund Deanna H | EVP & CFO | 7,000 | $341K | 2.5% | Yes (adopted June 13, 2026) | Routine (sold in Jun & Dec each year 2023–2025; this trade is outside those months) |
| 2026-09-15 | Mendoza Marie | SVP & General Counsel | 1,000 | $49K | 1.6% | Yes (adopted March 17, 2025) | Routine (sold in Jun & Aug & Sep & Oct & Nov each year 2023–2025) |
| 2026-09-15 | Carrai Phillip D | President, STC Division | 6,500 | $311K | 2.8% | Yes (adopted August 26, 2025) | Routine (sold in Aug & Sep & Oct & Nov & Dec each year 2023–2025) |
| 2026-08-24 | Fendley Steven S. | President, US Division | 7,000 | $393K | 2.4% | Yes (adopted May 12, 2025) | Routine (sold in Jun & Aug & Oct & Nov & Dec each year 2023–2025) |
| 2026-08-18 | Jarvis Scot B | Director | 10,000 | $635K | 13.3% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-08-17 | Carrai Phillip D | President, STC Division | 26,500 | $1.7M | 10.4% | Yes (adopted August 26, 2025) | Routine (sold in Aug & Sep & Oct & Nov & Dec each year 2023–2025) |
| 2026-08-17 | Mendoza Marie | SVP & General Counsel | 1,513 | $97K | 2.4% | Yes (adopted March 17, 2025) | Routine (sold in Jun & Aug & Sep & Oct & Nov each year 2023–2025) |
| 2026-08-14 | Demarco Eric M | President & CEO | 300,000 | $19.3M | 26.7% | Yes (adopted March 6, 2026) | Too little history (no open-market trades in 2023) |
| 2026-08-05 | Carter David M | President, DRSS Division | 4,000 | $224K | 6% | Yes (adopted June 13, 2025) | Too little history (no open-market trades in 2023) |
| 2026-08-03 | Lund Deanna H | EVP & CFO | 5,000 | $243K | 1.8% | Yes (adopted May 20, 2025) | Routine (sold in Jun & Dec each year 2023–2025; this trade is outside those months) |
| 2026-07-27 | Fendley Steven S. | President, US Division | 7,000 | $330K | 2.3% | Yes (adopted May 12, 2025) | Routine (sold in Jun & Aug & Oct & Nov & Dec each year 2023–2025; this trade is outside those months) |
| 2026-07-15 | Mendoza Marie | SVP & General Counsel | 1,013 | $52K | 1.6% | Yes (adopted March 17, 2025) | Routine (sold in Jun & Aug & Sep & Oct & Nov each year 2023–2025; this trade is outside those months) |
| 2026-07-15 | Carrai Phillip D | President, STC Division | 6,500 | $329K | 2.5% | Yes (adopted August 26, 2025) | Routine (sold in Aug & Sep & Oct & Nov & Dec each year 2023–2025; this trade is outside those months) |
| 2026-07-08 | Carter David M | President, DRSS Division | 4,000 | $202K | 5.7% | Yes (adopted June 13, 2025) | Too little history (no open-market trades in 2023) |
| 2026-07-01 | Lund Deanna H | EVP & CFO | 5,000 | $264K | 1.7% | Yes (adopted May 20, 2025) | Routine (sold in Jun & Dec each year 2023–2025; this trade is outside those months) |
| 2026-06-30 | Rock Stacey G | President, KTT Division | 4,675 | $234K | 32.7% | Yes (adopted June 16, 2025) | Opportunistic (traded every year 2023–2025, no repeating month) |
| 2026-06-29 | Fendley Steven S. | President, US Division | 7,000 | $339K | 2.3% | Yes (adopted May 12, 2025) | Routine (sold in Jun & Aug & Oct & Nov & Dec each year 2023–2025) |
| 2026-06-15 | Mendoza Marie | SVP & General Counsel | 1,500 | $87K | 2.3% | Yes (adopted March 17, 2025) | Routine (sold in Jun & Aug & Sep & Oct & Nov each year 2023–2025) |
| 2026-06-15 | Carrai Phillip D | President, STC Division | 6,500 | $375K | 2.4% | Yes (adopted August 26, 2025) | Routine (sold in Aug & Sep & Oct & Nov & Dec each year 2023–2025; this trade is outside those months) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-22 | Oppenheimer | Initiated | Outperform | $50 |
| 2026-10-19 | Citizens | Target lowered | Market Outperform | $105 → $70 |
| 2026-10-16 | Macquarie | Initiated | Outperform | $70 |
| 2026-10-12 | Goldman Sachs | Target lowered | Buy | $88 → $77 |
| 2026-10-09 | Barclays | Initiated | Overweight | $90 |
| 2026-10-06 | Rothschild & Co | Initiated | Buy | $70 |
| 2026-10-01 | Jefferies | Target lowered | Buy | $80 → $68 |
| 2026-09-15 | Guggenheim | Initiated | Buy | $74 |
| 2026-08-13 | Truist Securities | Target lowered | Buy | $135 → $104 |
| 2026-08-06 | Canaccord Genuity | Target raised | Buy | $130 → $135 |
| 2026-08-06 | Stifel | Target lowered | Buy | $134 → $115 |
| 2026-08-05 | BTIG | Target raised | Buy | $100 → $104 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | -57.1% | +70.2% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | -57.3% | +11.2% |
| Volatility (annualized) | 69.9% | 51.8% |
| Max drawdown | -70.7% (Jan 2026→Oct 2026) | -70.7% (Jan 2026→Oct 2026) |

## Peers (Aerospace & Defense)
SARO (StandardAero, Inc.) USD 21.72 +1.26% · CAE (CAE Inc) USD 25.02 +2.08% · DRS (Leonardo DRS, Inc.) USD 34.3 +1.06% · MOG-A (Moog Inc.) USD 341.71 -6.96% · HII (Huntington Ingalls Industries, ) USD 278.86 +1.79% · BWXT (BWX Technologies, Inc.) USD 127.3 -5.78%

## More
Full page: https://nexqual.com/KTOS · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Revenue by business segment (quarter ended 2026-06-28)

| Line | Revenue | Share | YoY | Operating income | Op. margin |
|---|---|---|---|---|---|
| Kratos Government Solutions | $379.7M | 82.8% | +36.4% | $14.3M | 3.8% |
| Unmanned Systems | $79.1M | 17.2% | +8.1% | — | — |
| US | $79.1M | 17.2% | +8.1% | $1.2M | 1.5% |
| Total revenue | $458.8M | 100% | — | $15.5M | 3.4% |
The lines above cover 117.2% of total revenue.

## Revenue by product line (quarter ended 2026-06-28)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Product sales | $289.1M | 63.0% | +33.5% |
| Service revenues | $169.7M | 37.0% | +25.8% |
| Total revenue | $458.8M | 100% | — |

## Revenue by region (quarter ended 2026-06-28)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| United States | $360.4M | 78.6% | +25.2% |
| Non-US | $89.9M | 19.6% | +46.9% |
| Middle East | $33.6M | 7.3% | +184.7% |
| Europe | $27.3M | 6.0% | +60.6% |
| Asia Pacific | $26.7M | 5.8% | +16.6% |
| Other North America | $9.1M | 2.0% | +167.6% |
| Other | $1.7M | 0.4% | -80.2% |
| Total revenue | $458.8M | 100% | — |
The lines above cover 119.6% of total revenue.

## Customer concentration

Period ended 2025-12-28: 68% of revenue from unnamed direct customers (10-K, filed 2026-02-23).

## Company outlook (8-K filed 2026-08-04)

- "Guidance to $1.750 to $1.810 Billion, With Forecasted Organic Revenue Growth of Approximately 18 Percent to 23 Percent as Compared to Full Year 2025 SAN DIEGO, CA, August 4, 2026 – Kratos Defense & Security Solutions, Inc."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.20 | $0.20 | -0.1% | $470.1M | 19 |
| Next quarter (ends 2026-12-31) | $0.25 | $0.25 | -1.5% | $494.7M | 19 |
| Current fiscal year (ends 2026-12-31) | $0.82 | $0.78 | +5.8% | $1.79B | 22 |
| Next fiscal year (ends 2027-12-31) | $1.13 | $1.09 | +3.6% | $2.22B | 23 |