The tables below provide information about the Company’s reportable segments. In these tables total segment operating income (loss) of the reportable business segments is reconciled to the corresponding consolidated amount. “Unallocated amounts” includes costs for merger and acquisition expenses, stock-based compensation expenses, interest expense, net, and other income (expense), net, items not considered part of management’s evaluation of segment operating

income. See Note 3 (Revenue Recognition) to these condensed consolidated financial statements for segment revenues disaggregated by contract type, customer and geographic region. The summary operating results for the Company’s reportable segments for the three and six month periods ended June 29, 2025 and June 30, 2024, are as follows (in millions):


Three Months Ended June 29, 2025	Kratos Government Solutions		Unmanned Systems		Totals
Service revenues	$	133.0	$	1.9	$	134.9
Product sales	145.3		71.3		216.6
Total revenues	278.3		73.2		351.5
Cost of service revenue	105.4		1.8		107.2
Cost of product sales	110.7		59.8		170.5
Total cost of sales	216.1		61.6		277.7

Selling, general & administrative expenses	40.0		11.3		51.3
Research & development expenses	9.6		0.6		10.2
Total segment operating income (loss)	12.6		(0.3)		12.3
Reconciliation of segment operating income
Unallocated amounts:
Stock compensation expense					$	(8.6)
Interest income (expense), net					(1.2)
Other income (expense), net					2.1
Income before income taxes					$	4.6

Revenues from foreign customers were approximately $61.2 million or 17% of total revenue for the three months ended June 29, 2025. Revenues from any one foreign country did not exceed 10% of total revenues.


Six Months Ended June 29, 2025	Kratos Government Solutions		Unmanned Systems		Totals
Service revenues	$	233.7	$	3.6	$	237.3
Product sales	284.1		132.7		416.8
Total revenues	517.8		136.3		654.1
Cost of service revenue	179.9		3.0		182.9
Cost of product sales	212.1		111.7		323.8
Total cost of sales	392.0		114.7		506.7

Selling, general & administrative expenses	77.0		22.6		99.6
Research & development expenses	19.2		1.0		20.2
Total segment operating income	29.6		(2.0)		27.6
Reconciliation of segment operating income
Unallocated amounts:
Stock compensation expense					$	(17.3)
Interest income (expense), net					(2.1)
Other income (expense), net					1.8
Income before income taxes					$	10.0

Revenues from foreign customers were approximately $122.3 million or 19% of total revenue for the six months ended June 29, 2025. Revenues from any one foreign country did not exceed 10% of total revenues.


Three Months Ended June 30, 2024	Kratos Government Solutions		Unmanned Systems		Totals
Service revenues	$	104.7	$	1.8	$	106.5
Product sales	109.6		84.0		193.6
Total revenues	214.3		85.8		300.1
Cost of service revenue	75.7		1.3		77.0
Cost of product sales	77.2		68.7		145.9
Total cost of sales	152.9		70.0		222.9

Selling, general & administrative expenses	37.3		10.6		47.9
Research & development expenses	8.6		1.6		10.2
Total segment operating income	15.5		3.6		19.1
Reconciliation of segment operating income
Unallocated amounts:
Stock compensation expense					$	(6.6)
Interest income (expense), net					0.1
Other income (expense), net					0.1
Income before income taxes					$	12.7

Revenues from foreign customers were approximately $60.0 million or 20% of total revenue for the three months ended June 30, 2024. Revenues from any one foreign country did not exceed 10% of total revenues.


Six Months Ended June 30, 2024	Kratos Government Solutions		Unmanned Systems		Totals
Service revenues	$	209.3	$	3.7	213.0
Product sales	222.8		141.5		364.3
Total revenues	432.1		145.2		577.3
Cost of service revenue	153.5		2.7		156.2
Cost of product sales	157.8		115.1		272.9
Total cost of sales	311.3		117.8		429.1

Selling, general & administrative expenses	71.7		21.4		93.1
Research & development expenses	17.0		2.8		19.8
Total segment operating income	32.1		3.2		35.3
Reconciliation of segment operating income
Unallocated amounts:
Stock compensation expense					$	(15.8)
Interest income (expense), net					(2.7)
Other income (expense), net					(0.1)
Income before income taxes					$	16.7

Revenues from foreign customers were approximately $113.2 million or 20% of total revenue for the six months ended June 30, 2024. Revenues from any one foreign country did not exceed 10% of total revenues.


(b) Capital Expenditures (in millions):	For the Three Months Ended				For the Six Months Ended
	June 29, 2025		June 30, 2024		June 29, 2025		June 30, 2024
Kratos Government Solutions	$	12.6	$	5.4	$	26.2	$	14.9
Unmanned Systems	7.8		7.1		16.8		14.2
Total reportable segment capital expenditures	20.4		12.5		43.0		29.1
Corporate capital expenditures	0.1		0.2		0.1		0.2
Total capital expenditures	$	20.5	$	12.7	$	43.1	$	29.3


(c) Depreciation and Amortization (in millions):	For the Three Months Ended				For the Six Months Ended
	June 29, 2025		June 30, 2024		June 29, 2025		June 30, 2024
Kratos Government Solutions	$	8.2	$	6.9	$	15.3	$	13.0
Unmanned Systems	3.6		3.5		6.9		6.7
Total depreciation and amortization	$	11.8	$	10.4	$	22.2	$	19.7


d) Reportable Segment Assets (in millions):	June 29, 2025		December 29, 2024
Kratos Government Solutions	$	1,382.0	$	1,250.4
Unmanned Systems	421.0		385.7
Total reportable segment assets	1,803.0		1,636.1

Corporate assets(1)	782.7		314.8
Total assets	$	2,585.7	$	1,950.9

(1)Corporate assets primarily include cash and cash equivalents, deferred income tax assets, and property, plant and equipment used in our corporate operations.