Kratos — Blitz Index 46 (C)
Backlog +47% and a $1.45B record award — but unmanned systems run at 0.9% margin.
Confidence: High · Category: frontier
Score breakdown
| Section | Score | Detail |
|---|---|---|
| A · Speed | 16 / 25 | Q2'26 revenue +30.5% YoY — accelerating; total backlog $2.084B (+47% YoY), 75.4% funded |
| B · Moat | 24 / 60 | MACH-TB 2.0 $1.45B — largest award in company history; Valkyrie flying for USAF/USMC; MUX TACAIR CCA participation |
| C · Creative destruction | 9 / 15 | Loyal-wingman wave rider — but zero production contracts; Northrop is the prime, Kratos the airframe sub |
| D · BlitzFailing | −3 | Unmanned systems margin 0.9% and worsening; OCF −$42.1M in FY2025; +24% dilution in 18 months |
Radar axes (0–100): Moat 40 · Speed 64 · Creative 60.
Watch item
Gates: G1 ✓ · G2 ✓ (borderline — all on production conversion). 19 points below the threshold — awards are real; the factory isn't.
Strengths
- Q2'26 revenue +30.5% YoY — accelerating
- Total backlog $2.084B (+47% YoY), 75.4% funded — order-backed growth
- MACH-TB 2.0 $1.45B — largest award ever, in-house tech converting to orders
- Valkyrie flying for USAF/USMC + MUX TACAIR CCA — in the loyal-wingman wave
Concerns
- Unmanned systems margin 0.9% (worsening) — the narrative's hero is the thinnest
- Zero Valkyrie/CCA production contracts — prime is Northrop, Kratos the airframe sub
- OCF −$42.1M (FY2025) — operating cash outflow amid revenue growth
- +24% dilution in 18 months, −52% vs offering price — dilution-sensitive funding
More Frontier companies
Other Frontier names on the Blitz Index, highest score first: Rocket Lab (62/B), Tesla (62/B), Insulet (57/C).
Next earnings
Nov 3, 2026 · Expected
Coverage
Kratos Defense & Security Solutions, Inc. · Q3 2026 due ~Nov 3, 2026 (expected) · Score 46 · Grade C
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BlitzLab scores businesses against a scholar’s standard — not investment advice. No price targets, no buy/sell recommendations. Figures are from SEC filings (XBRL) as labeled in the source scorecard.