Short answer
MERCURY SYSTEMS INC (MRCY) filed its fiscal 2025 10-K annual report with the SEC on Aug 11, 2025. It reported revenue of $912M (+9.2% year over year) and net income of −$38M.
- Top risk flagged: Regulatory risk: Impact of One Big Beautiful Bill Act (OBBBA) enacted July 4, 2025, affecting tax provisions, to reflect in fiscal 2026 results
FY2025 key financial metrics · XBRL
- Revenue
- $912M
- +9.2% YoY
- Net income
- −$38M
- +72.5% YoY
- Operating margin
- -2.2%
- +15.5 pp YoY
- Gross margin
- 27.9%
- +4.5 pp YoY
- EPS (diluted)
- −$0.65
- +72.7% YoY
- ROE
- -2.6%
- +6.8 pp YoY
- Operating cash flow
- $139M
- +130.0% YoY
Source: XBRL data from the MERCURY SYSTEMS INC (MRCY) FY2025 10-K on SEC EDGAR. USD.
MERCURY SYSTEMS INC FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: Mission-critical edge processing solutions for aerospace and defense markets
- New international business unit launched with facilities in U.K., Spain, Switzerland to expand global footprint
- Strategic restructure in 2024 consolidated divisions into unified operating structure with 4 specialized business units
- Revenue growth to $912M in FY25 from $835M in FY24; adjusted EBITDA rose sharply to $119.4M from $9.4M
- Introduced Altera Agilex 9 Direct RF FPGA-powered products enabling direct digitization at antenna, eliminating legacy analog stages
Management Discussion & Analysis
- Revenue $912.0M, up 9.2% YoY from $835.3M; point in time revenue up $112.3M, over time revenue down $35.5M
- Gross margin 27.9% vs 23.5%, up 440 bps driven by $21.1M net EAC change and $16.4M lower manufacturing adjustments
- Best segment: radar, other, and C4I end applications up $67.7M, $34.4M, and $15.1M; worst: other sensor and EW down $30.2M and $10.3M
- Net loss $37.9M improved from $137.6M loss; operating expenses down to $274.1M from $343.7M, SG&A and R&D reduced significantly
Risk Factors
- Regulatory risk: Impact of One Big Beautiful Bill Act (OBBBA) enacted July 4, 2025, affecting tax provisions, to reflect in fiscal 2026 results
- Macroeconomic risk: $90.1 million decline in working capital during fiscal 2025 due to unbilled receivables and deferred revenue conversion
- Supply chain risk: $50.0 million purchase commitment for inventory from Cicor Group over next five years linked to sale of manufacturing operations
- Competitive risk: Workforce reductions trimming 211 employees in R&D and 145 in fiscal 2025 to realign cost structure amid evolving market demands
- Financial risk: $591.5 million outstanding borrowings under $900 million Revolver with covenant temporarily increased to 5.25 in Q2 2024 due to government funding uncertainty
Generated from the filing text; verify against the original. How to read a 10-K
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