KRATOS DEFENSE & SECURITY SOLUTIONS, INC. (KTOS) FY2026 Q2 Statement of Cash Flows

Income StatementCash FlowBalance Sheet

Statement of Cash Flows

2026-03-30 to 2026-06-28

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KRATOS DEFENSE & SECURITY SOLUTIONS, INC. cash flow reconciliation, Mar 30, 2026 through Jun 28, 2026One connected Sankey reconciles operating, investing and financing net cash flows through a shared cash pool, from beginning cash to ending cash. Ribbons flow left to right on one dollar scale. Activity totals are dark gray; beginning and ending cash are blue. Cash basis for beginning and ending balances and net cash change: Cash, cash equivalents, and restricted cash. Intermediate calculation bars are lighter gray. Calculated remaining financing cash flows are purple; remaining operating and investing bundles are gray. Their underlying inflows and outflows are not separately identified. Net income is green for profit and red for loss. Identified asset purchases, sales and maturities are blue in either cash direction. Orange marks positive customer-advance and deferred-revenue changes that add to operating cash in the reconciliation. These are net changes, not gross customer receipts. Negative changes are neutral reconciliation adjustments; they do not by themselves identify cash payments. Purple identifies capital transactions such as borrowing, repayments, share issuance and dividends. Free cash flow is a separate comparison, not an added cash flow. Read chart description and values below for full signed amounts, including zero items.Proceeds from sale of assets → investing reconciliation: $9,300,000.00Proceeds from state grant for capital construction → investing reconciliation: $2,000,000.00Cash paid for acquisitions, net of cash acquired → investing reconciliation: $600,000.00investing reconciliation → Capital expenditures: $17,200,000.00investing reconciliation → Investment in joint venture: $4,900,000.00financing reconciliation → Payments of employee taxes withheld from share-based awards: $4,200,000.00financing reconciliation → Payments under finance leases: $1,100,000.00financing reconciliation → Debt issuance costs: $300,000.00financing reconciliation → Remaining financing cash flows, net (calculated): $300,000.00financing reconciliation → Proceeds from the issuance of common stock, net of issuance costs: $200,000.00Net cash used in operating activities → operating reconciliation: $11,000,000.00Net income → operating reconciliation: $4,400,000.00Accrued expenses → operating reconciliation: $36,700,000.00Depreciation and amortization → operating reconciliation: $22,100,000.00Accounts receivable → operating reconciliation: $18,700,000.00Stock-based compensation → operating reconciliation: $16,300,000.00Amortization of lease right-of-use assets → operating reconciliation: $3,500,000.00Other liabilities → operating reconciliation: $3,300,000.00Accrued compensation → operating reconciliation: $3,200,000.00Deferred income taxes → operating reconciliation: $900,000.00Amortization of deferred financing costs → operating reconciliation: $100,000.00Provision for doubtful accounts → operating reconciliation: $100,000.00operating reconciliation → Unbilled receivables: $77,600,000.00operating reconciliation → Billings in excess of costs and earnings on uncompleted contracts: $10,800,000.00operating reconciliation → Inventoried costs: $10,100,000.00operating reconciliation → Prepaid expenses and other assets: $10,100,000.00operating reconciliation → Accounts payable: $7,800,000.00operating reconciliation → Operating lease liabilities: $3,800,000.00operating reconciliation → Income tax receivable and payable: $100,000.00Net cash used in financing activities → financing reconciliation: $6,100,000.00Net cash used in investing activities → investing reconciliation: $10,200,000.00Exchange-rate effect → Cash sources and uses: $600,000.00Beginning cash: Cash, cash equivalents, and restricted cash → Cash sources and uses: $1,464,300,000.00Cash sources and uses → Ending cash: Cash, cash equivalents, and restricted cash: $1,437,600,000.00Cash sources and uses → Net cash used in investing activities: $10,200,000.00Cash sources and uses → Net cash used in financing activities: $6,100,000.00Cash sources and uses → Net cash used in operating activities: $11,000,000.00Depreciation and amortization: $22,100,000.00Depreciation & amortization+$22.10 MAmortization of lease right-of-use assets: $3,500,000.00Lease right-of-use amort.+$3.50 MStock-based compensation: $16,300,000.00Stock-based compensation+$16.30 MAmortization of deferred financing costs: $100,000.00Deferred financing cost amort.+$100.00 KAccounts receivable: $18,700,000.00Accounts receivable+$18.70 MUnbilled receivables: -$77,600,000.00Contract assets−$77.60 MInventoried costs: -$10,100,000.00Inventories−$10.10 MPrepaid expenses and other assets: -$10,100,000.00Prepaid expenses−$10.10 MOperating lease liabilities: -$3,800,000.00Operating lease liabilities−$3.80 MAccounts payable: -$7,800,000.00Accounts payable−$7.80 MAccrued expenses: $36,700,000.00Other accrued liabilities+$36.70 MAccrued compensation: $3,200,000.00Accrued compensation+$3.20 MBillings in excess of costs and earnings on uncompleted contracts: -$10,800,000.00Deferred revenue−$10.80 MIncome tax receivable and payable: -$100,000.00Income taxes, net−$100.00 KOther liabilities: $3,300,000.00Other operating liabilities+$3.30 MProvision for doubtful accounts: $100,000.00Credit loss provision+$100.00 KDeferred income taxes: $900,000.00Deferred income taxes+$900.00 KNet income: $4,400,000.00Net income+$4.40 MNet cash used in operating activities: -$11,000,000.00. Cash required to fund net payments.Operating cash−$11.00 Moperating reconciliation: $120,300,000.00Proceeds from the issuance of common stock, net of issuance costs: -$200,000.00Common stock issued−$200.00 KRepayment under credit facility and term loan: -$0.00Debt issuance costs: -$300,000.00Debt issuance costs−$300.00 KPayments under finance leases: -$1,100,000.00Finance lease payments−$1.10 MPayments of employee taxes withheld from share-based awards: -$4,200,000.00Stock-award tax withholding−$4.20 MProceeds from shares issued under equity plans: $0.00Remaining financing cash flows, net (calculated): -$300,000.00Remaining financing (calculated)−$300.00 KNet cash used in financing activities: -$6,100,000.00. Cash required to fund net payments.Financing cash−$6.10 Mfinancing reconciliation: $6,100,000.00Cash paid for acquisitions, net of cash acquired: $600,000.00Acquisitions, net of cash+$600.00 KInvestment in joint venture: -$4,900,000.00Joint venture investments−$4.90 MProceeds from sale of assets: $9,300,000.00PP&E sales+$9.30 MCapital expenditures: -$17,200,000.00Capital expenditures−$17.20 MProceeds from state grant for capital construction: $2,000,000.00Construction aid received+$2.00 MNet cash used in investing activities: -$10,200,000.00. Cash required to fund net payments.Investing cash−$10.20 Minvesting reconciliation: $22,100,000.00Cash sources and uses: $1,464,900,000.00Beginning cash: Cash, cash equivalents, and restricted cash: $1,464,300,000.00Beginning cash$1.46 BEnding cash: Cash, cash equivalents, and restricted cash: $1,437,600,000.00Ending cash$1.44 BExchange-rate effect: $600,000.00FX effect+$600.00 KCASH RECONCILIATIONInvestingflowsFinancingflowsOperatingflowsFree cash flow−$28.20 MOperating cash − cash spent on productive assetsCash flow / Net income−2.50×Operating cash flow ÷ net incomeNet cash change−$26.70 MEnding cash − beginning cash
Chart details

KRATOS DEFENSE & SECURITY SOLUTIONS, INC. cash flow reconciliation, Mar 30, 2026 through Jun 28, 2026

Cash flows for Mar 30, 2026 through Jun 28, 2026. Cash basis: Cash, cash equivalents, and restricted cash. Beginning cash: Mar 29, 2026. Ending cash: Jun 28, 2026. Beginning and ending cash are dated balances. Positive cash flows add cash; negative cash flows reduce it.

Beginning cash on Mar 29, 2026
1,464,300,000 US dollars. Beginning cash: Cash, cash equivalents, and restricted cash
Operating activities
negative 11,000,000 US dollars. Net cash used.
Net income
4,400,000 US dollars
Depreciation and amortization
22,100,000 US dollars
Amortization of lease right-of-use assets
3,500,000 US dollars
Stock-based compensation
16,300,000 US dollars
Amortization of deferred financing costs
100,000 US dollars
Accounts receivable
18,700,000 US dollars
Unbilled receivables
negative 77,600,000 US dollars
Inventoried costs
negative 10,100,000 US dollars
Prepaid expenses and other assets
negative 10,100,000 US dollars
Operating lease liabilities
negative 3,800,000 US dollars
Accounts payable
negative 7,800,000 US dollars
Accrued expenses
36,700,000 US dollars
Accrued compensation
3,200,000 US dollars
Billings in excess of costs and earnings on uncompleted contracts
negative 10,800,000 US dollars
Income tax receivable and payable
negative 100,000 US dollars
Other liabilities
3,300,000 US dollars
Provision for doubtful accounts
100,000 US dollars
Deferred income taxes
900,000 US dollars
Investing activities
negative 10,200,000 US dollars. Net cash used.
Cash paid for acquisitions, net of cash acquired
600,000 US dollars
Investment in joint venture
negative 4,900,000 US dollars
Proceeds from sale of assets
9,300,000 US dollars
Capital expenditures
negative 17,200,000 US dollars
Proceeds from state grant for capital construction
2,000,000 US dollars
Financing activities
negative 6,100,000 US dollars. Net cash used. The remaining amount is calculated by subtracting the other displayed items from the financing total. This quarter is the year to date less the prior quarter's year to date. The prior quarter reported part of this section under different lines (Proceeds from state grant for capital construction), so those amounts cannot be separated for this quarter. It may combine inflows and outflows.
Proceeds from the issuance of common stock, net of issuance costs
negative 200,000 US dollars
Repayment under credit facility and term loan
0 US dollars
Debt issuance costs
negative 300,000 US dollars
Payments under finance leases
negative 1,100,000 US dollars
Payments of employee taxes withheld from share-based awards
negative 4,200,000 US dollars
Proceeds from shares issued under equity plans
0 US dollars
Remaining financing cash flows, net (calculated)
negative 300,000 US dollars
Operating adjustment reconciliation
120,300,000 US dollars. Intermediate calculation joining the operating reconciliation branches. Its gross amount includes any portion of net income routed through this junction. It is not an additional cash source or use.
financing displayed reconciliation
6,100,000 US dollars. Intermediate calculation joining the displayed items and the calculated net remainder. It does not establish gross cash receipts or payments and is not an additional cash flow.
investing gross reconciliation
22,100,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
Exchange-rate effect
600,000 US dollars
Ending cash on Jun 28, 2026
1,437,600,000 US dollars. Ending cash: Cash, cash equivalents, and restricted cash
Cash sources and uses
1,464,900,000 US dollars. Opening cash plus net sources, equal to net uses plus ending cash.
Net cash change
negative 26,700,000 US dollars. Ending cash minus beginning cash.
Cash flow / Net income
−2.50×. Operating cash flow divided by reconciliation net income for the same period. Black from 0.90× through 1.10×; green above 1.10×; red below 0.90×. Color uses the unrounded ratio.
Operating cash flow
negative 11,000,000 US dollars. Operating cash flow used in the free cash flow calculation.
cash spent on productive assets
17,200,000 US dollars. These cash purchases are already included in investing activities above.
Free cash flow
negative 28,200,000 US dollars. A supplemental measure; finance-lease payments are excluded from this definition.

Chart connections

  • Beginning cash plus operating, investing and financing cash flows plus the exchange-rate effect equals ending cash. Negative amounts reduce cash.
  • Financing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Investing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Operating reconciliation adjustments are not all independent cash receipts.
  • Net income or operating cash is negative. The full signed reconciliation is retained: losses remain deductions, and any negative operating-cash total enters the junction from the cash pool. No positive direct-income connection is implied.
  • Each activity has one net cash bar connected to the shared cash pool. Positive activity totals enter the pool; negative activity totals leave the pool to fund that activity's net payments. The central pool does not assign a particular funding source to a particular payment.
  • The intermediate calculation bars include both sides of the displayed activity breakdowns; they are not additional cash flows.
  • Operating cash flow minus cash spent on productive assets equals free cash flow: negative 11,000,000 US dollars minus 17,200,000 US dollars equals negative 28,200,000 US dollars.
KRATOS DEFENSE & SECURITY SOLUTIONS, INC. (KTOS) FY2026 Q2 Statement of Cash Flows Sankey chart
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