Conestoga Buys Karman Holdings After Shares Rally 201.6% Over Past Year
Conestoga Capital Advisors added Karman Holdings to its Q4 2025 Small Cap Strategy portfolio, highlighting its mid-teens organic revenue growth and sole-source defense systems sales. Karman’s shares closed at $88.46 on February 19, 2026, after a 52-week gain of 201.6% and a one-month drop of 18.3%.
1. Q4 2025 Conestoga Capital Purchase
In its fourth-quarter 2025 investor letter, Conestoga Capital Advisors named Karman Holdings as a new addition to its Small Cap Strategy portfolio, citing confidence in the company’s growth prospects in defense technology.
2. Defense Technology Business Model
Karman Holdings designs and manufactures mission-critical systems for space, missile, hypersonic and defense programs, generating mid-teens organic revenue growth supplemented by tuck-in M&A and selling over 90% of its IP-protected products on a sole-source basis.
3. Recent Stock Performance
Karman’s stock closed at $88.46 on February 19, 2026. Shares have climbed 201.60% over the past 52 weeks but fell 18.26% in the last month, and the company holds an $11.705 billion market capitalization.
4. Growing Hedge Fund Interest
Thirty-four hedge funds held positions in Karman Holdings at the end of Q3 2025, up from 31 funds the prior quarter, indicating increasing institutional interest in its defense technology platform.