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Mercury Systems, Inc.

NASDAQ•MRCY
CEO: Dr. William L. Ballhaus
Sector: Industrials
Industry: Aerospace & Defense
Listing Date: 1998-01-30
Mercury Systems, Inc., a technology company, manufactures and sells components, products, modules, and subsystems for defense prime contractors, the U.S. government, and original equipment manufacturers commercial aerospace companies. in the United States, Europe, and the Asia Pacific. Its products and solutions are deployed in approximately 300 programs with 25 defense contractors and commercial aviation customers. The company offers components, including power amplifiers and limiters, switches, oscillators, filters, equalizers, digital and analog converters, chips, monolithic microwave integrated circuits, and memory and storage devices; modules and sub-assemblies, such as embedded processing boards, switched fabrics and boards, digital receivers, multi-chip modules, integrated radio frequency and microwave multi-function assemblies, tuners, and transceivers, as well as graphics and video boards; and integrated subsystems. It also designs and develops digital radio frequency memory units for various modern electronic warfare applications; radar environment simulation and test systems for defense and intelligence applications; and signals intelligence payloads and EO/IR technologies for small UAV platforms, as well as onboard UAV processor systems for real-time wide area motion imagery. The company was formerly known as Mercury Computer Systems, Inc. and changed its name to Mercury Systems, Inc. in November 2012. The company was incorporated in 1981 and is headquartered in Andover, Massachusetts.
Contact Information
50 Minuteman Road, Andover, MA, 01810, United States
978-256-1300
www.mrcy.com
Market Cap
$5.21B
P/E (TTM)
-169.7
142.2
Dividend Yield
--
52W High
$103.84
52W Low
$39.89
52W Range
73%
Rank38Top 36.9%
4.3
F-Score
Modified Piotroski Analysis
Based on 10-year fundamentals
Average • 4.3 / 9 points
Scoring Range (0-9)
8-9: Excellent Value
6-7: Strong Fundamentals
4-5: Average Quality
0-3: Weak Performance
Data Period: 2016-2025

Financial Dashboard

Q2 2026 Data

Revenue

$232.87M+4.37%
4-Quarter Trend

EPS

-$0.26-13.33%
4-Quarter Trend

FCF

$42.55M-78.90%
4-Quarter Trend

2026 Q2 Earnings Highlights

Key Highlights

Q2 Revenue Increased 4.4% Net revenues for Q2 reached $232.9M, marking a 4.4% increase compared to $223.1M last year, driven by modules and components.
Six-Month Net Loss Reduced Six-month net loss narrowed to $27.6M from $35.1M previously, showing improved bottom line results for the half year.
Gross Margin Improved YTD Six-month gross margin improved 70 basis points to 27.0%, driven primarily by favorable estimate at completion changes.
Cash Position Strengthened Ending cash balance grew to $335.0M as of December 26, 2025, significantly up from $242.6M at June 27, 2025.

Risk Factors

Q2 Gross Margin Compression Q2 gross margin fell 130 basis points to 26.0% due to execution on lower margin programs, scrap, and inventory reserves.
Restructuring Charges Incurred Workforce reductions eliminated 100 positions, incurring $5.6M in severance charges YTD, classified as operating expenses.
Litigation Settlement Paid Former CEO dispute settled, resulting in a $5.0M payment recorded in the second quarter, impacting cash flow.
Operating Cash Flow Decline Net cash from operations decreased to $53.8M for six months, impacted by working capital fluctuations and prepaid expenses.

Outlook

New Share Repurchase Plan Board authorized new $200.0M share repurchase program in November 2025, with $185.0M available as of period end.
Strong RPO Backlog Total remaining performance obligations stand at $823.5M, expecting 50% recognized as revenue within next 12 months.
Credit Facility Extended Revolver maturity extended to November 2030, maintaining $850.0M borrowing capacity, ensuring strong liquidity runway.
R&D Efficiency Gains R&D expenses decreased 28.0% in Q2 due to efficiency improvements and savings from 225 headcount reductions.

Peer Comparison

Revenue (TTM)

CAR stock ticker logoCAR
$11.65B
-1.2%
SPR stock ticker logoSPR
$6.39B
-1.3%
BCO stock ticker logoBCO
$5.26B
+5.0%

Gross Margin (Latest Quarter)

PL stock ticker logoPL
57.3%
-3.9pp
ENS stock ticker logoENS
30.1%
+0.6pp
POWL stock ticker logoPOWL
28.4%
+3.8pp

Key Metrics

Symbol
Market Cap
P/E (TTM)
ROE (TTM)
Debt to Assets
PL$8.07B-60.6-31.0%41.7%
HXL$6.91B61.07.4%36.7%
POWL$6.43B34.230.6%0.1%

Long-Term Trends

Last 4 Quarters
Revenue
Net Income
Operating Cash Flow
4Q Revenue CAGR
3.3%
Moderate Growth
4Q Net Income CAGR
N/M
Profitability Shift
Cash Flow Stability
100%
Strong Cash Flow

Deep Research

Next earnings:May 4, 2026
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