The strategy: Family of Affordable Mass. 30,000-plus missiles and drones targeted. Customer's words: 85% capability today, not a 100% solution that may or may not arrive. Think vertical integration. We build the plane and the engine. Firejet flies on our engine. Small jet-engine production late 2026, thousands in 2027 at forty to sixty K each. Prometheus JV with Rafael - fifty million each, one hundred million DoD facility. Second source. First motor firing expected 2027. Okay? All right?

Beat. Raise. Q1 FY26 was a beat-and-raise. $371M revenue. 22.6% total growth. 15.8% organic. Backlog hit $2B record. Book-to-bill 1.6 to 1. Adjusted EBITDA $38.7M blew past the $25-30M guide. Raised full year to $1.70-1.76B. 15-19% organic growth estimated. Cash $1.46B. Zero debt. We're executing. Think affordability. Think mass. Okay? All right?

Operating cash flow was negative $27.4 million in the quarter and free cash flow was about negative $43 million, as capacity is being built ahead of orders – Valkyrie units before a contract, plus new propulsion, radar and hypersonic facilities. Full‑year capex is guided to roughly $160 million. Funding’s equity – two offerings in eight months raised about $1.9 billion, lift‑ing share count roughly 11% this quarter and about 44% since 2023, leaving us debt‑free with $1.46 billion cash. Think financing, brother. Okay? All right?

Valkyrie sits pre-low-rate. First contract in negotiation. Target: 40 a year by early 2028. We built units as company assets before award. Revenue recognition hinges on customer config. Think verbal. The billion-plus hypersonic expansion? Verbal. Not signed. Thirty of one-fifty-six obligated by April. FY27 one-five-trillion rests on requested figure, future appropriations. Demand signal real. Conversion timing open. Okay? All right?

Our first quarter of fiscal 2026 was a beat-and-raise. Revenue hit $371 million, up 22.6% total and 15.8% organically, driven by unmanned systems, defense and rocket support, turbine tech and microwave products. Backlog hit a record at about $2 billion on a 1.6‑to‑1 book‑to‑bill. Adjusted EBITDA was $38.7 million, above the $25‑30 million range we guided. Full‑year revenue guidance lifted to $1.70‑1.76 billion, an estimated 15‑19% organic growth. Cash sits at $1.46 billion, zero debt. Think affordability. Okay? All right?

Kratos's first quarter of fiscal 2026 was a beat-and-raise. Revenue hit $371 million, up 22.6% total and 15.8% organically, driven by unmanned systems, defense and rocket support, turbine tech and microwave products. Backlog hit a record at about $2 billion, book‑to‑bill 1.6‑to‑1. Adjusted EBITDA was $38.7 million, above the $25‑30 million range we guided. Full‑year revenue guide lifted to $1.70‑1.76 billion, an estimated 15‑19% organic growth. Cash sits at $1.46 billion, no debt. Think affordability. Okay? All right?

Valkyrie was pre‑low‑rate‑production, the first low‑rate contract is in negotiation and we aim for about 40 drones a year by early 2028 – units were partly built as company‑owned assets ahead of any award, so revenue recognition depends on the customer’s final configuration. Think affordability. Okay? All right?

Operating cash flow negative $27.4M. Free cash flow about negative $43M. Building ahead — Valkyrie units before contract, propulsion, radar, hypersonic lines. Capex guided roughly $160M. Paid with equity. Two offerings, eight months, about $1.9B net. Share count up roughly 11% this quarter, about 44% since 2023. Cash $1.46B. Zero debt. Operating income $4.7M. 1.3% margin. Net $11.9M on interest income and a tax benefit. The bet: demand converts before cash and dilution run out. Think financing. Think mass, brother. Okay? All right?

Hypersonics guided from about $400M in '26 to about $700M in '27. Anchored by MACH-TB 2.0 - $1.45B ceiling over five years, largest award in company history. That $700M? Forward target, not booked. Near-term is solid rocket motors. Air-breathing engines a 2027 story. Space: $447M USSF prime for Resilient Missile Warning - MEO constellation, ground system and software. Satellite book-to-bill 3-to-1. Think hypersonics. Think space. Okay?

Family of Affordable Mass. That's the frame. 30,000+ low-cost missiles and drones targeted over the next several years. Customer's words: 85% capability today, not a 100% solution that may or may not arrive. Think vertical integration. Think affordability. We build the plane and the engine. Firejet flies on our own engine now. Small jet-engine low-rate production late 2026, ramping to thousands in 2027 at $40K-60K each, tied to programs. Prometheus JV with Rafael - $50M each, $100M DoD facility. Second source for strained supply base. First motor firing expected 2027. Okay? All right?

Beat. Raise. Q1 FY26 revenue $371M. Up 22.6% total, 15.8% organic. Unmanned systems. Defense and rocket support. Turbine tech. Microwave products. All ripping. Backlog record $2B. Book-to-bill 1.6 to 1. Adjusted EBITDA $38.7M - non-GAAP, call figure - above the $25-30M guide. Full year guide raised to $1.70-1.76B. Estimated 15-19% organic growth. Cash $1.46B. Zero debt. Think affordability. Think mass. Okay? All right?

Valkyrie is pre-low-rate-production. First low-rate contract in negotiation. Plan: 40 a year by early 2028. Units built as company-owned assets ahead of award. Revenue recognition depends on customer config. Think verbal. The $1B+ hypersonic expansion? Verbal award. Not signed. Confidence tied to 2025 reconciliation - $30B of $156B obligated by April. Rest flowing. FY27 $1.5T spend rests on requested figure, future appropriations. Demand real. Timing open. Okay? All right?