Kratos Defense & Security Solutions, Inc.
KTOS Industrials Aerospace & Defense
Kratos Defense & Security Solutions, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $1.3 billion, up 18.5% from fiscal 2024. In the quarter to June 2026, revenue grew 30.5%, EPS was flat, free cash flow grew 12.4% and total debt fell 42.2%, each against the same quarter a year earlier. Revenue growth for five consecutive years.
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Kratos Defense & Security Solutions, Inc. (KTOS) Beneish M-score
Kratos Defense & Security Solutions, Inc.'s Beneish M-score for fiscal 2025 is −1.87; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2025 | −1.87 | 0.68 |
| FY2024 | −2.55 | 0.12 |
| FY2023 | −2.68 | (0.45) |
| FY2022 | −2.23 | 0.32 |
| FY2021 | −2.55 | (0.23) |
| FY2020 | −2.32 | 0.05 |
| FY2019 | −2.37 | (0.02) |
| FY2018 | −2.35 | 0.36 |
| FY2017 | −2.71 | (0.23) |
| FY2016 | −2.47 | 0.06 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 1.19 | — | 1.10 | |
| Gross margin index | 1.11 | — | 0.58 | |
| Asset quality index | 0.84 | — | 0.34 | |
| Sales growth index | 1.19 | — | 1.06 | |
| Depreciation index | 1.09 | — | 0.13 | |
| SG&A index | 0.93 | — | −0.16 | |
| Total accruals to total assets | 0.03 | — | 0.12 | |
| Leverage index | 0.60 | — | −0.20 | |
| Beneish M-score | Elevated | −1.87 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| PL Planet Labs PBC compare | −4.6× |
| HXL Hexcel Corporation compare | −2.5× |
| LOAR Loar Holdings Inc. compare | −2.5× |
| MOG.A Moog Inc. compare | −2.4× |
| SARO StandardAero, Inc. compare | −2.4× |
| DRS Leonardo DRS, Inc. compare | −2.3× |
| HII Huntington Ingalls Industries, Inc. compare | −2.3× |
| KTOS Kratos Defense & Security Solutions, Inc. | −1.9× |
| AVAV AeroVironment, Inc. compare | −1.0× |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI