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MRCY

Mercury Systems, Inc.

MRCY

Mercury Systems, Inc. • NASDAQ
$69.89 ▲ 0.39% (+0.27)
Market Cap $4.20 B
52w High $85.33
52w Low $37.28
Dividend Yield 0%
P/E -124.8
Volume 183.22K
Outstanding Shares 60.10M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q1-2026 $225.209M ▼ $71.496M ▲ $-12.515M ▼ -5.557% ▼ $-0.21 ▼ $8.236M ▼
Q4-2025 $273.106M ▲ $61.218M ▼ $16.37M ▲ 5.994% ▲ $0.28 ▲ $46.812M ▲
Q3-2025 $211.358M ▼ $74.454M ▲ $-19.17M ▼ -9.07% ▼ $-0.33 ▼ $6.166M ▲
Q2-2025 $223.125M ▲ $73.241M ▲ $-17.579M ▼ -7.879% ▲ $-0.3 $5.048M ▼
Q1-2025 $204.431M $65.208M $-17.525M -8.573% $-0.3 $7.007M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q1-2026 $304.716M ▼ $2.458B ▲ $982.583M ▲ $1.475B ▲
Q4-2025 $309.099M ▲ $2.435B ▲ $961.303M ▼ $1.473B ▲
Q3-2025 $269.822M ▲ $2.414B ▲ $963.328M ▲ $1.451B ▼
Q2-2025 $242.565M ▲ $2.401B ▲ $941.179M ▲ $1.46B ▲
Q1-2025 $158.123M $2.369B $909.14M $1.46B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q1-2026 $-19.17M ▼ $29.974M ▼ $-3.214M ▼ $0 ▼ $27.257M ▼ $24.06M ▼
Q4-2025 $16.37M ▲ $38.075M ▲ $-2.395M ▲ $2.169M ▲ $39.277M ▲ $33.977M ▲
Q3-2025 $-19.17M ▼ $29.974M ▼ $-3.214M ▼ $0 ▼ $27.257M ▼ $24.06M ▼
Q2-2025 $-17.579M ▼ $85.462M ▲ $-1.655M ▲ $1.492M ▲ $84.442M ▲ $81.907M ▲
Q1-2025 $-17.525M $-14.66M $-6.236M $-2.249M $-22.398M $-20.896M

Revenue by Products

Product Q1-2025Q2-2025Q3-2025Q1-2026
Airborne
Airborne
 $90.00M ▲$100.00M ▲$100.00M ▲$90.00M ▼
Land
Land
 $30.00M ▲$40.00M ▲$30.00M ▼$40.00M ▲
Naval
Naval
 $20.00M ▲$20.00M ▲$20.00M ▲$20.00M ▲
Product and Service Other
Product and Service Other
 $40.00M ▲$50.00M ▲$50.00M ▲$50.00M ▲
Space
Space
 $20.00M ▲$10.00M ▼$10.00M ▲$20.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has been fairly steady over the past few years, with a recent return to growth after a dip, which is encouraging. The main concern is profitability: operating results have swung from profit to loss, and the company has posted net losses for several recent years after being solidly profitable earlier in the period. This points to pressure on margins, likely from higher costs, program delays, or integration challenges. In short, the top line is holding up and even improving again, but the bottom line still needs a clear, sustained turnaround.

Balance Sheet

Balance Sheet The company appears to have a sizable asset base and a solid equity cushion, built up over time through past profitability and acquisitions. Debt has risen meaningfully over the last five years, which introduces more financial risk and makes consistent cash generation more important. Cash on hand is modest rather than abundant, but not alarming on its own. Overall, the balance sheet looks workable but more leveraged than in the past, so future performance will need to justify that added debt load.

Cash Flow

Cash Flow Cash generation has been choppy but is moving in a better direction. Operating cash flow was weak and even negative in some earlier years, but has recently turned positive and improved, suggesting that the business is doing a better job converting revenue into cash. Free cash flow followed a similar pattern, with recent years showing healthier, positive figures after prior shortfalls. Capital spending has been relatively modest and stable, which limits the cash burden but also suggests that growth is being driven more by integration and technology investment than by heavy physical expansion.

Competitive Edge

Competitive Edge Mercury sits in an attractive niche: high-performance, secure processing and embedded systems for aerospace and defense. It is deeply embedded with major defense prime contractors and U.S. government programs, which creates high switching costs and long program lifecycles. Its domestic manufacturing, trusted supply chain status, and security credentials fit well with current national security priorities. The flip side is strong dependence on defense budgets, program timing, and a small number of large customers, which can cause lumpiness in results and heighten execution risk.

Innovation and R&D

Innovation and R&D The company’s strategy is heavily built around innovation rather than pure scale. It focuses on open-architecture systems, secure processing, chip-scale integration, and advanced thermal management—areas that are central to modern defense electronics. Acquisitions have expanded capabilities in RF, cybersecurity, and space-related systems, and the company is leaning into edge AI, electronic warfare, and satellite communications. This focus keeps Mercury technologically relevant and hard to replicate, but requires sustained R&D and integration discipline to translate into consistent profits.

Summary

Mercury Systems combines a strong strategic position in defense electronics with uneven financial performance. Revenue is stable and recently growing again, and backlog indicators suggest healthy demand. However, profitability has deteriorated over the last few years and remains the key weakness, especially given higher leverage on the balance sheet. On the positive side, the company’s technology portfolio, long-term customer relationships, and focus on secure, domestic solutions provide a meaningful competitive moat. The central question going forward is execution: whether management can convert a strong strategic and technological position into durable margins and steady cash flow while managing debt and integration risks.

NEWS

November 4, 2025 · 4:01 PM UTC

Mercury Systems Reports First Quarter Fiscal 2026 Results

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October 22, 2025 · 7:00 AM UTC

Mercury Awarded Contract To Develop Multi-Mission Subsystem for U.S. Military Programs

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October 14, 2025 · 4:15 PM UTC

Mercury Systems to Report First Quarter Fiscal Year 2026 Financial Results on November 4, 2025

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October 13, 2025 · 7:00 AM UTC

Mercury To Demonstrate AI-Powered Integrated Threat Detection Solution at AUSA 2025

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October 6, 2025 · 7:00 AM UTC

Mercury Systems and Nightwing Collaborate to Enhance Cybersecurity for Aerospace and Defense Systems

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