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Kratos Defense & Security Solutions Inc (NASDAQ:KTOS) reported third-quarter financial results after the market close on Tuesday. Here’s a rundown of the report. Q3 Revenue: $347.6 million, versus estimates of $322.87 million Q3 Adjusted EPS: 14 cents, versus estimates of 12 cents Total revenue was up 26% on a year-over-year basis. The company said it used $13.3 million of cash flow in operations during the quarter. • KTOS is feeling the pressure from bearish momentum. Track the latest developments here. “Our Q3 financial results are representative of the increasing demand for Kratos’ military grade hardware, systems and software to support U.S. National Security and its allies,” said Eric DeMarco, president and CEO of Kratos. Kratos sees fourth-quarter revenue in the range of $320 million to $330 million versus Benzinga Pro estimates of $334.55 million. The company raised its full-year 2025 revenue guidance from a range of $1.29 billion to $1.31 billion to a new range of $1.32 billion to $1.33 billion, versus estimates of $1.31 billion. Kratos also provided a preliminary 2027 revenue growth target of 18% to 23%. In connection with earnings, Kratos announced it signed a deal to acquire Orbit Technologies for $356.3 million. The company plans to fund the acquisition with cash. Kratos had approximately $565.9 million in total cash and cash equivalents as of Sept. 28. “Orbit checks every box in a Kratos acquisition, including outstanding leadership and culture, mission-committed employees and leading technology, with real, battle-proven hardware, products and systems that are in Kratos’ sweet spot,” DeMarco said. KTOS Price Action: Kratos Defense shares were down 11.38% in after-hours, trading at $79.95 at the time of publication on Tuesday, according to Benzinga Pro. Read Next: Astera Labs Posts Strong Q3 Earnings Driven By ‘Robust’ AI-Related Demand Image: Shutterstock.com
