Net Income (Loss) per Common Share

3 Months Ended

Mar. 30, 2025

Earnings Per Share [Abstract]

Net Income (Loss) per Common Share

Net Income (Loss) per Common Share

The Company calculates net income (loss) per share in accordance with FASB ASC Topic 260, Earnings per Share (“Topic 260”). Under Topic 260, basic net income (loss) per common share attributable to the Kratos shareholders is calculated by dividing net income (loss) attributable to Kratos by the weighted-average number of common shares outstanding during the reporting period. Diluted net income (loss) per common share reflects the effects of potentially dilutive securities.

Diluted net income per share for the three months ended March 30, 2025 includes the dilutive effect of an aggregate of 2.1 million shares of the Company’s common stock granted to employees under stock-based compensation plans. Diluted net income per share for the three months ended March 31, 2024 excludes the dilutive effects of awards granted to employees under stock-based compensation plans of 1.9 million shares because their inclusion would have been anti-dilutive.