Kratos Defense reported Q3 revenue of $471.8 million, up 35.7% year over year, and adjusted EBITDA of $50.9 million, both above estimates. It raised its 2026 adjusted EBITDA outlook to $176 million-$180 million and forecast 2027 revenue of $2.1 billion-$2.2 billion.
Q3 revenue rose 35.7% year over year to $471.8 million, slightly above the $471.16 million consensus estimate. Adjusted EBITDA was $50.9 million, beating the $43.42 million estimate. Kratos posted a net loss of $200,000 and an operating loss of $4.9 million, affected by stock compensation, research and development, and amortization expenses.
Kratos forecast Q4 2026 revenue of $480 million to $510 million, narrowed its full-year 2026 revenue guidance to $1.78 billion-$1.81 billion, and raised its adjusted EBITDA forecast to $176 million-$180 million. It forecast 2027 revenue of $2.1 billion to $2.2 billion. Government Solutions revenue increased 52.5% to $397.2 million, including 35.8% organic growth; Unmanned Systems revenue declined as the quarter lacked a Valkyrie shipment made in the prior-year period.
