KTOS
Kratos Defense & Security Solutions, Inc.
Is KTOS Halal?
Defense technology and unmanned-systems maker — a permissible business under the same screens applied to other defense contractors, with low leverage.
What You Should Know
Kratos Defense & Security Solutions, Inc. designs unmanned systems, satellite communications, propulsion, and defense electronics. Its March 29, 2026 Form 10-Q reports assets of $4,042.7 million, no conventional interest-bearing debt line, cash of $1,464.3 million, receivables of $528.6 million and quarterly revenue of $371.0 million. Debt/assets is 0.00%, liquidity/assets is 36.22% and receivables-plus-cash/assets is 49.30%; the FTSE and Malaysia asset-based ratios pass, while the examined MSCI receivables-plus-cash limit fails. Disclosed nonoperating interest income is $4.5 million (1.21% of revenue).
⚠️ Concerns
- •MSCI receivables-plus-cash/assets is 49.30%, above the examined 33.33% limit
- •Defense exposure is treated as permissible by many screening boards, though ethical and end-use questions remain qualitative
- •No conventional interest-bearing debt line is reported
- •Disclosed interest income is 1.21% of quarterly revenue; no fixed purification percentage is asserted
- •Government-contract concentration makes results lumpy — re-screen periodically
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-29; calculated 2026-07-15.
0 / 4,042.7
1,464.3 / 4,042.7
1,992.9 / 4,042.7
4.5 / 371
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 36.22%, above the examined 33.333% limit; receivables-plus-cash/assets is 49.30%.
- Financial
- Fails
- Overall
- Fails
Receivables-plus-cash/assets is 49.30%, above the examined MSCI 33.33% limit; debt and liquidity remain below limits.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 36.22%, above the examined Malaysia 33% limit; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A properly licensed and reproducible historical market-cap series is not stored; the MSCI receivables-plus-cash screen fails.
Business-activity disclosure
Kratos designs unmanned systems, satellite communications, propulsion and defense electronics for government and military customers; defense manufacturing is generally permissible.
Limitation: The filing does not provide a universal prohibited-revenue numerator or a school-neutral ethical ruling on defense end use.
Purification
The filing discloses $4.5 million of nonoperating interest income (1.21% of revenue); treatment is disclosed for transparency, but no scholar-approved purification percentage is asserted.
Inputs, assumptions and primary sources
- Amounts are USD millions from Kratos's March 29, 2026 Form 10-Q.
- No conventional interest-bearing debt balance is reported; the filing's debt section contains only issuance-cost disclosure, so debt is set to zero rather than inferred from operating liabilities.
- Cash is $1,464.3 million. Receivables combine accounts receivable of $194.5 million and unbilled receivables of $334.1 million.
- Nonoperating interest income of $4.5 million is 1.21% of quarterly revenue; this is a disclosed line, not a purification ruling.
- Defense technology and unmanned systems are generally treated as permissible, but contract/customer ethics and end-use remain qualitative.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
Similar Stocks
Want to screen more assets?
Use our interactive Halal Checker to screen any stock, ETF, or crypto instantly.
Go to Halal Checker →