Axon Enterprise vs Kratos Defense & Security Solutions
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KIRA’s take AI analyst
I put Axon Enterprise and Kratos Defense & Security Solutions side by side, using each one’s latest annual report. Here is what stands out:
- Axon Enterprise is the larger business, with $2.8B of revenue in fiscal 2025 against $1.3B for Kratos Defense & Security Solutions, about 2.1 times as much.
- Axon Enterprise grew revenue faster (33.5%, against 18.5%).
- Kratos Defense & Security Solutions kept more of each dollar of sales as operating profit (1.9% operating margin, against −2.2%).
- Axon Enterprise turned more of its sales into free cash flow (2.7% FCF margin, against −10.2%).
- Kratos Defense & Security Solutions earned a higher return on the capital invested in it (1.2%, against −2.2%).
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Axon Enterprise
AXON
8/11
Revenue growth5-year growthGross marginNet marginFCF marginReturn on equityPiotroski F-scoreShare count change
Kratos Defense & Security Solutions
KTOS
3/11
Operating marginReturn on capitalNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | AXON FY25 | KTOS FY25 |
|---|---|---|
| Size | ||
| Market cap | $35.0B | $7.4B |
| Revenue | $2.8B | $1.3B |
| Free cash flow | $75.1M | −$137M |
| Net income | $125M | $22.0M |
| Growth | ||
| Revenue growth | 33.5% | 18.5% |
| 5-year growth | 32.5% | 12.5% |
| Share count change | 4.9% | 9.5% |
| Profitability | ||
| Gross margin | 59.7% | 22.9% |
| Operating margin | −2.2% | 1.9% |
| Net margin | 4.5% | 1.6% |
| FCF margin | 2.7% | −10.2% |
| Return on capital | −2.2% | 1.2% |
| Return on equity | 4.5% | 1.3% |
| Balance sheet | ||
| Net debt | $104M | −$461M |
| Net debt / EBITDA | 4.9x | −6.4x |
| Dividends and buybacks | $0.0M | $0.0M |
| Valuation & quality | ||
| P/E | 176.3x | — |
| Piotroski F-score | 6 | 4 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.