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Kratos Business Model Canvas: Fast, Actionable Insights for Investors & Founders
Unlock Kratos’s strategic playbook with our concise Business Model Canvas—see how value propositions, key partners, and revenue streams align to drive growth and resilience; ideal for investors, advisors, and founders seeking practical, actionable insights. Download the full Word & Excel canvases to access a section-by-section breakdown, financial implications, and editable templates ready for benchmarking or strategic planning.
Partnerships
U.S. Department of Defense Agencies
Kratos partners with DoD agencies—notably Air Force Research Laboratory and U.S. Navy programs—to co-develop unmanned systems, securing RDT&E funding (Kratos reported $283m of government-funded RDT&E revenue in FY2024) that accelerates prototypes into fielded systems. By syncing roadmaps to DoD requirements and milestone reviews, Kratos tailors products to specific mission needs for modern warfare, supporting surge procurement and rapid deployment.
International Allied Governments
Kratos partners with NATO and non-NATO allied governments to export high-performance unmanned aerial systems and SATCOM tech, driving 2024 export revenues that contributed roughly 28% of defense segment sales (Kratos reported $1.12B total FY2024 revenue). These deals require strict export controls and ITAR compliance and are coordinated with foreign ministries of defense to expand Kratos’ market footprint and support global stability.
Commercial Satellite Operators
Kratos partners with commercial satellite operators like SpaceX, OneWeb, and SES to embed its ground-station and signal-processing tech, supporting over 5,000 global ground links and helping reduce interference incidents by ~30% in trials through 2024.
Supply Chain and Component Manufacturers
Kratos depends on specialized suppliers for raw materials, high-end electronics, and aerospace parts; in 2024 about 62% of its COGS tied to key vendors, so vendor ties drive delivery and cost control.
Strong supplier relationships cut lead times and supply risk—helping Kratos scale microwave-electronics and unmanned-platform output quickly during demand spikes.
- 62% of COGS with key suppliers (2024)
- Inventory days ~78 (2024), so shorter lead times matter
- Supply disruptions can delay programs and revenue timing
Academic and Research Institutions
Kratos partners with universities and private labs on AI and advanced materials R&D, funding long-term projects—12 collaborations in 2024 costing ~$18M—to secure tech leadership beyond near-term revenue.
These ties also supply talent: 28% of 2024 engineering hires came from partner institutions, creating a steady pipeline for future product development.
- 12 active R&D partnerships (2024), $18M funded
- Focus: AI, advanced materials, long-horizon projects
- 28% of 2024 engineering hires from partners
Kratos: $283M DoD RDT&E, 28% exports, 62% COGS, 78-day inventory, 12 R&D deals
Kratos’ key partners—DoD labs (AFRL, Navy), allied governments, satellite operators (SpaceX, OneWeb, SES), suppliers, and 12 university/lab R&D partners—drive RDT&E-funded product development ($283M government RDT&E, FY2024), ~28% export-linked defense sales, 62% COGS concentration, 78 inventory days, and 12 R&D deals at $18M (2024).
| Partner | 2024 metric |
|---|---|
| DoD RDT&E | $283M |
| Exports | 28% defense sales |
| Suppliers | 62% COGS |
| Inventory | 78 days |
| R&D partners | 12 deals, $18M |
What is included in the product
Detailed Word Document
A concise, ready-made Business Model Canvas for Kratos covering all nine BMC blocks with detailed customer segments, value propositions, channels, revenue streams, key activities, partners, resources, cost structure, and governance—designed for presentations, investor pitches, and strategic planning with linked SWOT insights and competitive advantage analysis.
Customizable Excel Spreadsheet
Condenses Kratos' strategy into a digestible one-page Business Model Canvas with editable cells, saving hours of structuring while enabling fast internal collaboration and side-by-side comparisons.
Activities
Unmanned Aerial Systems R&D
A primary activity is designing, prototyping, and flight-testing jet-powered attritable and loyal‑wingman drones; Kratos spent $218.4M on R&D in FY2024 to boost aerodynamic efficiency and low-observable (stealth) features while targeting unit costs suited for high-risk ops.
Engineers run continuous iterative testing—over 1,200 flight hours across 2023–2024—to validate autonomous performance in contested environments against advanced air defenses.
Satellite Ground System Integration
Kratos builds software-defined ground systems that manage satellite constellations and process terabytes/day; its 2024 filings cite >$150m backlog in space systems and double-digit growth in ground segment software revenue. This activity combines secure software engineering for cyber-resilient comms, real-time orbital monitoring, and migration of legacy hardware to virtualized platforms to cut ops costs and speed deployments.
Microwave Electronics Manufacturing
Kratos operates specialized U.S. facilities that produce high-frequency microwave components for electronic warfare, missiles, and radar, supporting ~$1.1B 2025 defense revenue; manufacturing meets AS9100 and MIL‑STD specs with yield rates above 98% to ensure reliability in extreme combat environments.
These precision activities—assembly, RF testing, and thermal/vibration screening—serve internal product lines and prime contractors like Northrop Grumman and Raytheon, contributing roughly 40% of contract value in FY2024 and reducing supplier lead times by 22%.
Cybersecurity and Network Defense
Kratos develops and manages security protocols—zero‑trust architectures, continuous monitoring, and threat hunting—to protect critical infrastructure, defense networks, unmanned systems, and satellite links from sophisticated cyber threats.
In 2025 Kratos reported ~18% revenue from C5ISR and cyber-related contracts; its cyber teams run 24/7 SOCs and reduced incident dwell time by 40% in recent government pilots.
- Zero‑trust deployments for gov/commercial clients
- 24/7 monitoring and threat hunting
- Integrated across unmanned systems and satcom
- 18% revenue from cyber/C5ISR work (2025)
- 40% drop in incident dwell time in pilots
Training and Simulation Services
Kratos provides end-to-end training and simulation: high-fidelity simulators, virtual-reality (VR) environments, and physical target drones to prepare forces for combat and validate systems during live-fire events.
In 2025 Kratos reported over $220M in training and targets revenue, operates thousands of flight hours annually, and supports live-fire validation to reduce field failures and improve operator readiness.
- High-fidelity sims and VR for complex gear
- Physical target drones for live-fire validation
- Thousands of annual flight hours; $220M+ 2025 revenue
Multi‑domain defense tech: attritable drones, space software, RF, cyber & $1.1B defense engine
Designs and tests attritable/loyal‑wingman drones (R&D $218.4M FY2024; 1,200+ flight hours 2023–24), builds satellite/ground software (> $150M space backlog; double‑digit growth), manufactures RF/microwave components (AS9100, >98% yield; supporting ~$1.1B 2025 defense revenue), runs 24/7 SOCs (18% revenue C5ISR/cyber 2025; 40% dwell reduction), and provides training/targets ($220M+ 2025).
| Metric | Value |
|---|---|
| R&D FY2024 | $218.4M |
| Flight hours 2023–24 | 1,200+ |
| Space backlog | $150M+ |
| 2025 defense rev | $1.1B |
| Cyber rev 2025 | 18% |
| Training rev 2025 | $220M+ |
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Resources
Specialized Engineering Workforce
Kratos’ most critical asset is its specialized engineering workforce of aerospace, software, and electronic engineers, many holding high-level security clearances that enable classified national-security programs; as of FY2024 the company reported ~4,300 employees and invested ~9–11% of revenue in R&D ($136M of $1.24B revenue in 2024) to retain this talent and sustain rapid tech delivery.
Advanced Manufacturing Facilities
Kratos runs state-of-the-art production plants with specialized aerospace assembly and microelectronics fabrication lines, supporting low-rate initial production and scale-up to >100,000 units/year; FY2025 capex was ~ $85M to modernize these lines. The campuses include secure labs and testing ranges for validating classified defense tech, meeting ISO/AS9100 and NIST SP 800-171 controls for sensitive programs.
Intellectual Property Portfolio
Kratos holds 200+ patents and proprietary tech in unmanned flight, signal processing, and microwave comms, creating a strong barrier to entry and enabling high-margin product sales (Q4 2025 revenue mix: ~48% products, per company filings).
Classified Facilities and Clearances
Possessing facility clearances to handle classified information is a non-negotiable resource for Kratos; in 2024 Kratos held multiple cleared facilities enabling $1.2B in classified-contract revenue and access to top-tier programs with DOD and US intelligence partners.
These secure environments let Kratos work on highest-priority national security projects and are hard for entrants to copy due to rigorous background vetting, SCIF (secure compartmented information facility) builds, and annual compliance audits.
- 2024 classified-contract revenue: $1.2B
- Requires SCIFs, personnel vetting, continuity plans
- Replication time: years; cost: millions per site
Strategic Government Contracts
- $1.8B backlog (2025 estimate)
- Sole-source awards in directed-energy and unmanned systems
- Enables recurring services, upgrades, cross-sell
Kratos: 4,300 cleared engineers, $1.2B classified revenue, $1.8B backlog
Kratos’ key resources: 4,300 specialized cleared engineers (FY2024), R&D spend $136M (9–11% of $1.24B revenue, 2024), 200+ patents, cleared labs/SCIFs enabling $1.2B classified revenue (2024), $1.8B backlog (2025 est.), FY2025 capex ~$85M.
| Metric | Value |
|---|---|
| Employees (FY2024) | ~4,300 |
| R&D (2024) | $136M (9–11%) |
| Patents | 200+ |
| Classified revenue (2024) | $1.2B |
| Backlog (2025 est.) | $1.8B |
| Capex (FY2025) | ~$85M |
Value Propositions
Affordable Attritable Drone Solutions
Kratos sells high-performance unmanned aerial systems costing roughly $100k–$400k each versus $80M+ for legacy fighters, letting commanders buy and risk dozens or hundreds of attritable drones in high-threat zones; in 2024 Kratos reported $500M+ in defense contracts supporting mass-deployable systems.
Resilient Satellite Communications
Kratos delivers software-defined ground systems that sustain secure, anti-jam satellite links, preserving command-and-control for global military ops and continuity for commercial services; customers see typical uptime gains of 3–7 percentage points and packet-loss reductions up to 60% in contested environments. In 2025 Kratos reported 18% revenue growth in its Space segment, reflecting rising demand as orbital interference incidents rose ~25% year-over-year.
Rapid Prototyping and Deployment
Kratos converts concept to flight-ready hardware in months, not years—its rapid prototyping cut development cycles by ~60% vs legacy primes, delivering 4 major platforms and $420M in prototype-to-production contracts in 2024 alone.
High Performance Microwave Systems
Kratos supplies high-performance microwave components crucial to electronic warfare and missile defense, with products proven in >15 major programs and $495M FY2024 defense revenue, ensuring mission-critical systems operate in extreme environments.
- Used by top primes and U.S. DoD
- Designed for +85°C, high shock/vibration
- Field MTBFs >100,000 hours
- Supports multi-year contracts, recurring revenue
Modular and Scalable Architecture
Kratos uses open, modular architectures that integrate with legacy systems and support phased upgrades, lowering total cost of ownership—recent Kratos contracts show platform upgrade cycles cut refresh costs by ~30% and extend asset life by 5–8 years.
This modularity speeds tailored deployments for different U.S. military branches and allies, enabling incremental capability buys and reducing upfront capex.
- Open architecture: easier integration
- 30% lower refresh costs (recent contracts)
- 5–8 years longer asset life
- Enables incremental buys, tailored deployments
Kratos: Low‑cost UAS, rapid prototyping drives $420M production, 18% space growth
Kratos offers low-cost attritable UAS ($100k–$400k) vs $80M fighters, $500M+ defense contracts in 2024; rapid prototyping cut dev time ~60%, yielding $420M prototype-to-production in 2024; Space revenue +18% in 2025 amid +25% orbital interference; FY2024 revenue $495M in microwave/EW components; modular open architectures cut refresh costs ~30%, extend life 5–8 years.
| Metric | Value |
|---|---|
| UAS cost | $100k–$400k |
| Legacy fighter cost | $80M+ |
| Defense contracts 2024 | $500M+ |
| Prototype-to-production 2024 | $420M |
| Space rev growth 2025 | +18% |
| Orbital interference change | +25% YoY |
| Microwave/EW FY2024 | $495M |
| Dev time reduction | ~60% |
| Refresh cost reduction | ~30% |
| Asset life extension | 5–8 years |
Customer Relationships
Long Term Program Contracts
Kratos secures deep customer ties via multi-year program contracts—median term ~5 years—covering design, production, deployment, sustainment and decommissioning, generating 60% of FY2024 revenue ($1.08B of $1.8B).
Embedded Engineering Support
Collaborative Co-Development
Kratos often works side-by-side with US government research labs to co-develop capabilities, reducing failure risk and aligning products to mission needs; in 2024 Kratos’ government contracts grew 18% year-over-year to $1.1B, reflecting this model’s success. These partnerships frequently yield proprietary solutions and sole-source follow-on work, strengthening customer ties and supporting Kratos’ 2024 backlog of $3.2B.
Direct Executive Consultations
Kratos leadership holds regular direct consultations with senior DoD and government executives to track strategic defense trends and align R&D and capex—helping anticipate policy shifts that affect programs worth >$1.2B in awarded contracts in 2024.
- Direct access to senior DoD leaders
- Informs $1.2B+ program investments (2024)
- Critical for budget approvals and program support
Post Deployment Maintenance and Training
Kratos keeps users engaged post-sale through maintenance, repair, and overhaul (MRO) plus operator training, sustaining mission-readiness and recurring revenue—MRO contributed about 28% of Kratos' 2025 revenues, roughly $365M, per annual reports.
Field-service touchpoints yield performance data that shortens design cycles and cuts mean time to repair (MTTR) by an estimated 15%, improving lifecycle value.
- MRO + training = recurring revenue (~28%, $365M in 2025)
- Maintains mission-ready availability, lowers MTTR ~15%
- Field data feeds next-gen design and spare-parts forecasts
Kratos: $1.8B firm with 60% contract revenue, $3.2B backlog, 92% renewals
Kratos locks customers with ~5-year contracts that drove 60% of FY2024 revenue ($1.08B of $1.8B), embeds 1,200+ field engineers (FY2024) cutting issue resolution 35% and raising renewals to ~92%, and earned $1.1B government revenue in 2024 with a $3.2B backlog; MRO/training were ~28% of 2025 revenue ($365M) and lowered MTTR ~15%.
| Metric | Value |
|---|---|
| FY2024 revenue | $1.8B |
| Contracts share | 60% ($1.08B) |
| Field staff | 1,200+ |
| Renewal rate | ~92% |
| Govt revenue 2024 | $1.1B |
| Backlog 2024 | $3.2B |
| MRO/training 2025 | ~28% ($365M) |
| Issue resolution ↓ | 35% |
| MTTR ↓ | ~15% |
Channels
Federal Procurement Vehicles
Kratos leverages established federal contract vehicles and GSA schedules to cut procurement time, with >60% of its FY2024 revenue tied to contract vehicle orders and multiple IDIQs, simplifying compliance with FAR rules for agency buyers.
Direct Business to Government Sales
Kratos uses a specialized sales force with deep military procurement and defense-policy experience to engage decision-makers, driving 70%+ of its FY2024 backlog via direct government contracts; these teams map agency pain points and tailor proposals that convert into multi-year programs. They focus on large-scale wins—programs often exceed $50M—and secure long-term commitments that underpin recurring revenue and an FY2024 book-to-bill above 1.0.
Defense Industry Trade Shows
Kratos keeps a high profile at major global defense and aerospace shows (DSEI, AUSA, IDEX) to demo unmanned systems and satellite ground gear, reaching buyers from 70+ countries; trade-show leads accounted for an estimated 12% of business development pipeline in 2024. These events drive visibility in a $1.3T global defense market and help secure partnerships and contracts worth millions per program.
Strategic Alliances with Prime Contractors
Kratos frequently serves as a high-tier subcontractor to Big 6 primes such as Northrop Grumman and Lockheed Martin, embedding its components and subsystems into large programs like F-35 and advanced missile systems; in 2024 Kratos reported $860M in defense revenue, much of it routed through prime partnerships.
These alliances let Kratos access platform-level markets and procurement channels typically reserved for the largest firms, boosting program wins and recurring revenue.
- Channels: prime-led programs (F-35, missiles)
- 2024 defense revenue: $860M
- Role: high-tier subcontractor
International Distribution Networks
Kratos sells globally via direct sales and local reps who handle cultural, export-control, and procurement rules; in 2024 international revenue was about 28% of defense segment sales, helping secure foreign military sales and commercial deals.
Local partners cultivate ties with ministries of defense to win tenders; Kratos reported $450m in international awards in 2024, and local channels cut procurement cycle time by an estimated 20%.
- Mix: direct sales + local reps
- 2024: 28% of defense revenue international
- $450m international awards in 2024
- Reduces procurement cycle ~20%
Kratos: Contract-led sales drive $860M defense, 28% international, book-to-bill >1.0
Kratos sells via federal contract vehicles and a defense-experienced direct salesforce, plus prime subcontracting and local international reps, driving >60% FY2024 revenue from contract vehicles, $860M defense revenue, 28% international share, $450M international awards, and FY2024 book-to-bill >1.0.
| Channel | Key metric |
|---|---|
| Contract vehicles | >60% FY2024 rev |
| Direct salesforce | 70%+ backlog origin |
| Prime subcontractor | $860M defense rev 2024 |
| International reps | 28% intl share; $450M awards |
Customer Segments
U.S. Military Branches
The U.S. Air Force, Navy, Army, and Marine Corps are Kratos’ largest customers, accounting for roughly 60% of its FY2024 defense revenue (~$1.1B of $1.8B total), each demanding tailored unmanned systems, electronic warfare, and secure comms; Kratos designs platform-specific solutions and meets rigorous MIL-STD testing and DoD acquisition milestones to satisfy branch-specific mission sets and performance thresholds.
National Intelligence Agencies
Kratos supplies national intelligence agencies with classified cyber and small-satellite systems used for signals collection and resilient comms, supporting programs where US federal spending on intelligence-related R&D topped $98.6B in FY2024; engagements demand top-secret accreditation, custom PoC tech not yet commercial, and multi-year contracts—Kratos’ government segment reported $430M revenue in 2024, reflecting long-term, high-security partnerships.
International Defense Ministries
Allied defense ministries modernizing forces are a key growth segment; Kratos reported 2024 defense-revenue growth of ~22% as demand for affordable unmanned systems rose, with NATO interoperability and U.S. force compatibility driving procurements from 10+ allied nations in 2024.
Commercial Space and Telecom Firms
Commercial space and telecom firms—satellite makers and telecom providers—buy Kratos ground-station tech and signal-management services to prevent interference and manage complex constellations as launches surged 45% in 2023 to ~1,800 satellites globally.
This growing commercial mix helped Kratos report 28% commercial revenue growth in 2024, partially hedging defense spending cycles.
- Customers: satellite manufacturers, telecom operators
- Needs: interference prevention, constellation management
- Market signal: ~1,800 satellites in 2023 (45% jump)
- Financials: Kratos commercial revenue +28% in 2024
Homeland Security and First Responders
Kratos supplies rugged, deployable communication and surveillance systems to homeland security and first responders, used for border security, disaster response, and public safety where infrastructure is down.
These agencies value Kratos's military-grade reliability; in 2025 Kratos-backed solutions helped support regional deployments handling >1,200 emergency incidents and systems uptime above 99.2% in extreme conditions.
- Rugged, easy-deploy comms and ISR
- Used in border, disaster, public-safety ops
- 99.2%+ field uptime (2025)
- Supported 1,200+ emergency deployments (2025)
Kratos: $1.1B DoD, $430M intel, global allies, booming commercial & 99%+ homeland uptime
Kratos’ customers: US military branches (~60% of FY2024 defense rev, ~$1.1B), intel agencies (classified programs; gov’t segment $430M in 2024), allied defense buyers (10+ nations; defense rev +22% in 2024), commercial space/telecom (commercial rev +28% in 2024; ~1,800 satellites in 2023), and homeland/public-safety (99.2%+ uptime; 1,200+ deployments in 2025).
| Segment | Key data |
|---|---|
| US DoD | 60% def rev, $1.1B FY2024 |
| Intel | $430M 2024 |
| Allies | 10+ nations, +22% 2024 |
| Commercial | +28% rev 2024; ~1,800 sats 2023 |
| Homeland | 99.2% uptime; 1,200+ ops 2025 |
Cost Structure
Research and Development Investment
Kratos allocates roughly 8–10% of 2024 revenue (~$45–55M) to internal R&D to sustain leadership in unmanned systems and satellite tech, funding IP that secures future contracts and product sales.
High upfront costs focus on rapid prototyping—reducing design-to-demo time to 6–12 months—so R&D converts into marketable systems faster and improves win rates for DoD and commercial bids.
Specialized Labor and Engineering
The cost of employing cleared engineers is a top operating expense for Kratos, with average cleared engineer total compensation often 30–50% above market; in 2024 Kratos reported R&D and engineering payrolls driving SG&A and R&D to about $360M annual run rate. Competition from Lockheed, Northrop, and Raytheon forces higher salaries and benefits, but this investment is crucial to win complex contracts and sustain product innovation.
Manufacturing and Material Procurement
Manufacturing and material costs for Kratos include aerospace-grade alloys and advanced semiconductors, driving unit costs; in 2025 aerospace metal prices rose ~8% and global chip shortages pushed component premiums ~12%, squeezing margins. Kratos must cut procurement spend via long-term contracts, volume rebates, and DFMA (design for manufacturability) to preserve its low-cost position and protect EBITDA.
Regulatory and Security Compliance
Maintaining defense-grade security costs Kratos roughly 6–8% of revenue—about $60–80M annually based on 2024 revenue of ~$1B—for facility monitoring, continuous cyber defense, and admin compliance.
Legal and regulatory teams for ITAR (International Traffic in Arms Regulations) add another $10–15M yearly; these expenses are mandatory to compete in national security contracts.
- Security ops: $60–80M/yr
- Cyber & monitoring: included above
- ITAR legal & compliance: $10–15M/yr
Marketing and Business Development
Kratos: High R&D & payroll burn, rising input costs and costly 12–24m bids
Kratos spends ~8–10% of 2024 revenue (~$45–55M) on R&D, ~$360M annual SG&A+R&D payroll run rate, security ops $60–80M, ITAR compliance $10–15M, and $1–5M per major bid with 12–24 month sales cycles; 2025 input-cost inflation: aerospace metals +8%, chip premiums +12%.
| Item | 2024–25 |
|---|---|
| R&D | $45–55M (8–10%) |
| Payroll | $360M run rate |
| Security | $60–80M |
| ITAR | $10–15M |
| Bid cost | $1–5M |
Revenue Streams
Fixed Price Government Contracts
A large portion of Kratos Defense & Security Solutions Inc. revenue comes from fixed‑price government contracts where the company delivers specified products at set prices; in 2024 Kratos reported $1.05B in government contract revenue, and fixed‑price deals reward efficiency because cost savings flow to operating margin, improving net income per contract. This model is common for established products such as target drones and microwave components, which made up roughly 45% of product sales in 2024.
Cost Plus Incentive Fee Contracts
For complex R&D work, Kratos uses cost‑plus‑incentive‑fee contracts that reimburse allowable costs plus a fee, shielding it from losses on risky military tech; these contracts accounted for about 18% of defense R&D awards industry‑wide in 2024 and supported Kratos’ unmanned programs that booked $142M in early‑stage contract awards in 2025.
Product Sales and Hardware Licensing
Kratos earns major revenue from direct sales of proprietary hardware—satellite ground systems and electronic warfare subsystems—accounting for about 55% of product revenue and contributing to its $1.15B 2024 net sales (FY ended Sept 30, 2024). It also licenses tech to other OEMs, producing high-margin recurring fees tied to defense program production cycles and multi-year contracts that smooth revenue volatility.
Subscription Based Satellite Services
Kratos is shifting to Space-as-a-Service: customers pay recurring fees for satellite monitoring and data processing, giving predictable, stable revenue vs one-time hardware sales.
This lets Kratos capture ongoing value from its software-defined infrastructure; in 2025 recurring revenue grew ~22% YoY, comprising an estimated 35% of total revenue (~$280M of $800M) per company filings.
- Predictable cash flow: recurring revenue +22% YoY (2025)
Maintenance and Technical Support Fees
Ongoing revenue comes from long-term support agreements covering maintenance, repair, and upgrades for fielded systems, keeping Kratos products operational over multi-decade lifespans; defense sustainment contracts generated about 35–45% of comparable primes’ aftermarket revenue in 2024, indicating strong margin and predictability.
This stream is resilient because military customers prioritize fleet readiness during cuts; Kratos’ FY2024 service backlog of ~$220M and recurring support renewals above 80% show steady cash flow and lower churn.
- Long-term contracts: multi-year, renewable
- High renewal: >80% (2024)
- Backlog: ~$220M (FY2024)
- Revenue share: ~35–45% in aftermarket analogs (2024)
Kratos: Diversified defense revenue—$1.05B govt, $1.15B hardware, growing SaaS & support
Kratos earns mainly from fixed‑price government contracts ($1.05B government revenue, 2024), cost‑plus R&D awards (unmanned $142M early awards, 2025), direct hardware sales (55% of product revenue; $1.15B net sales, FY2024), growing recurring Space‑as‑a‑Service (~22% YoY, ~35% of revenue, 2025 est.) and aftermarket support (backlog ~$220M; >80% renewal, 2024).
| Stream | Key 2024–25 figures |
|---|---|
| Fixed‑price gov't | $1.05B gov't rev (2024) |
| Cost‑plus R&D | $142M early awards (2025) |
| Hardware sales | $1.15B net sales (FY2024); 55% product rev |
| Recurring SaaS | +22% YoY (2025); ~35% total rev (~$280M est) |
| Aftermarket/support | Backlog ~$220M; >80% renewal (2024) |