Core Insights - Kratos Defense & Security Solutions, Inc. (KTOS) reported third-quarter 2025 adjusted earnings of 14 cents per share, exceeding the Zacks Consensus Estimate of 12 cents by 16.7% and increasing 27.3% from the previous year's 11 cents [1][8] - Total revenues reached $347.6 million, surpassing the Zacks Consensus Estimate of $324 million by 7.1% and rising 26% from $275.9 million in the same quarter last year [2][8] Financial Performance - Selling, general and administrative expenses increased by 13.8% year over year, while research and development expenses rose by 1% compared to the prior-year quarter [3] - Operating income was reported at $7.1 million, up from $6.5 million in the year-ago quarter [3] - The company had cash and cash equivalents of $565.9 million as of September 28, 2025, an increase from $329.3 million as of December 29, 2024, with no long-term debt reported [7] Operational Metrics - The consolidated book-to-bill ratio was 1.2-1, with bookings totaling $414.1 million, and total backlog increased to $1.178 billion from $1.076 billion at the end of the second quarter of 2025 [4] - Revenues from the Unmanned Systems segment totaled $87.2 million, up from $64.2 million in the year-ago quarter [5] - Revenues from the Kratos Government Solutions segment reached $260.4 million, compared to $211.7 million in the previous year, with notable organic revenue growth rates of 47.2% in Defense Rocket Systems and 21.2% in Space, Training and Cyber businesses [6] Guidance and Projections - For the fourth quarter of 2025, KTOS projects revenues to be in the range of $320-$330 million, with the Zacks Consensus Estimate at $324.5 million [10] - The company raised its 2025 revenue guidance to $1.32-$1.33 billion from the previous projection of $1.29-$1.31 billion, with the Zacks Consensus Estimate at $1.31 billion [10] - Operating cash flows are expected to be between $10-$20 million, while free cash flow use is projected to be in the range of $95-$105 million for 2025 [11]

Core Insights - Kratos (KTOS) reported $347.6 million in revenue for Q3 2025, a 26% year-over-year increase, with an EPS of $0.14 compared to $0.11 a year ago, exceeding both revenue and EPS estimates [1][4] Revenue Breakdown - Product sales reached $230.2 million, surpassing the average estimate of $191.59 million, reflecting a 33.8% year-over-year increase [4] - Unmanned Systems generated $87.2 million, exceeding the estimated $77.18 million, marking a 35.8% increase from the previous year [4] - Kratos Government Solutions reported $260.4 million, above the $248.03 million estimate, representing a 23% year-over-year growth [4] - Service revenues totaled $117.4 million, below the average estimate of $133.04 million, with a 13% increase year-over-year [4] Profitability Metrics - Gross profit from service revenues was $26.2 million, lower than the $33.11 million estimate [4] - Gross profit from product sales was $50.9 million, exceeding the $44.6 million estimate [4] - Operating income for Kratos Government Solutions was $13.7 million, below the $16.75 million estimate [4] Stock Performance - Kratos shares have returned -9.1% over the past month, contrasting with the Zacks S&P 500 composite's +2.1% change, but the stock holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - Kratos (KTOS) reported revenue of $302.6 million for Q1 2025, a year-over-year increase of 9.2%, with an EPS of $0.12 compared to $0.11 a year ago, exceeding Zacks Consensus Estimate of $292.16 million by 3.57% [1] Revenue Performance - Kratos Government Solutions generated $239.50 million, surpassing the four-analyst average estimate of $226.95 million, reflecting a year-over-year increase of 10% [4] - Unmanned Systems reported revenues of $63.10 million, slightly below the four-analyst average estimate of $65.55 million, with a year-over-year change of 6.2% [4] - Product sales reached $200.20 million, exceeding the $176.11 million average estimate from three analysts, marking a year-over-year increase of 17.3% [4] - Service revenues totaled $102.40 million, falling short of the three-analyst average estimate of $117.12 million, representing a year-over-year decline of 3.9% [4] Profitability Metrics - Gross profit from service revenues was $26.70 million, compared to the average estimate of $28.97 million from three analysts [4] - Operating income for Kratos Government Solutions was $17 million, exceeding the average estimate of $13.79 million from three analysts [4] - Unmanned Systems reported an operating loss of $1.70 million, compared to the average estimate of a $0.41 million profit from three analysts [4] - Gross profit from product sales was $46.90 million, slightly below the average estimate of $47.03 million from three analysts [4] Stock Performance - Kratos shares have returned +25.3% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]